Succeeding in Collections Today Requires More Agility

New White Paper Released - Advanced “DIY” collections software configurability makes Succeeding in Collections Today With More Agility possible. It is not a new revelation that the collections and recoveries market is becoming more dynamic and complex. Even before the advent of Covid-19, the industry was changing at a faster pace. However, what is not widely known is that collections and recoveries operations are struggling more than ever before to keep up with all the changes they need to make. Many collections operations see the answer lies in having a more agile collections software system that provides more “Do-It-Yourself” (“DIY”) Configurability. More specifically, they want their collections system to enable those in collection operations to easily make more changes at their fingertips. Click on "Read More" below for the full white paper.

‘Lenders don’t have the capacity’ to meet mortgage demand: expert

Mortgage rates hit a new low last week, the average 30-year fixed rate hit 2.86% for the week ending September 4. It’s the ninth time mortgage rates set a record low this year — and some experts think it won’t be the last time.

Mortgage lending volume in 2020 likely to break records

Fannie Mae, the world’s largest mortgage financier, said mortgage lending this year probably will reach an all-time high of $3.9 trillion. The dollar-volume record will be boosted by $2.4 trillion in refinancings, the highest level since 2003 and more than double the level seen in 2019, the mortgage giant said in a forecast on Tuesday. “We continue to believe that a low-rate environment will support refinance demand over the forecast horizon,” Fannie Mae said in the forecast. “At the current interest rate of 2.86%, we estimate that nearly 69% of outstanding first-lien loan balances have at least a half-percentage point incentive to refinance.”

ITT Tech student loan lender to cancel millions in debt in multistate settlement

Roughly $330 million in debt for 35,000 students who attended the now-shuttered ITT Tech will be canceled thanks to a settlement in conjunction with the Consumer Financial Protection Bureau, the attorneys general of nearly all 50 states announced this week. For-profit college chain ITT Tech filed for bankruptcy in 2016, but its former students still faced high-interest loan payments through private lender PEAKS Trust, which was run by ITT Tech and affiliated with Deutsche Bank, according to the Ohio Attorney General's office.

Consumer Financial Protection Bureau Releases Outline of Proposals Under Consideration to Implement Small Business Lending Data Collection Requirements

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) released its Outline of Proposals Under Consideration and Alternatives Considered for Section 1071 of the Dodd-Frank Act governing small business lending data collection and reporting. The Bureau will convene a Small Business Advocacy Review panel in October 2020. The panel will prepare a report that examines the impact of the potential rule on small businesses. The report, along with feedback received from small businesses, will be considered by the Bureau in its rulemaking to implement Section 1071.

The changing threat landscape in today’s cybersecurity

Thoughts around threat landscapes commonly prioritize corporate and governmental networks assets as high priorities, with personal networks and resources as lower-level threats. However, there have been recent changes that have caused the reassessment of prioritization levels at times. As a result of the COVID-19 pandemic, the number of individuals who work from home has greatly increased. In fact, Stanford researcher Nicholas Bloom places the percentage of people currently working at home at over 40%.

National Credit Union Foundation gives over $100k in disaster relief grants

The National Credit Union Foundation has granted over $100K in disaster relief support via CUAid to the California and Nevada Credit Union Leagues and the Louisiana Credit Union League in response to the California Wildfires and Hurricane Laura.

CFPB and New York AG allege deceptive and harassing collection efforts in lawsuit against five debt collection companies and four individual owners and managers

Last week the CFPB and New York Attorney General filed a lawsuit against five debt collection companies and four individuals who own and manage the companies. The complaint alleges the defendants used deceptive, harassing, and otherwise improper methods to induce consumers to make payments to them in violation of the Fair Debt Collection Practices Act (FDCPA) and the Consumer Financial Protection Act (CFPA). The CFPB and Attorney General allege the defendants collected revenues from consumers ranging from “approximately $10 million in 2015 to over $23 million in 2018.” The complaint seeks the refund of monies paid by consumers, disgorgement of ill-gotten revenues, civil money penalties, and injunctive relief.

Millions of small businesses want to know when congress is going to streamline the PPP program: CBA CEO

Attorney General James Stops Debt Collection Company from Unlawful Practices Harming Thousands of Student Borrowers

NEW YORK – New York Attorney General Letitia James today announced that she has secured protections for thousands of student borrowers who defaulted on student loans and who were subject to misleading and unlawful actions by Transworld Systems, Inc. (Transworld), one of the nation’s largest debt collectors. The agreement resolves an investigation of Transworld — the principal debt collector for the National Collegiate Student Loan Trusts — after the Office of the Attorney General (OAG) found that Transworld violated multiple federal and state consumer protection laws by making false, misleading, and deceptive statements in National Collegiate Student Loan Trusts lawsuits and in communications with borrowers, and for filing these lawsuits beyond the applicable statute of limitations.

Consumer Financial Protection Bureau and Multiple States Enter Into Settlement with Owner of ITT Private Loans for Substantially Assisting ITT in Unfair Practices

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today filed a proposed stipulated judgment against PEAKS Trust 2009-1, along with Deutsche Bank National Trust Company, Deutsche Bank Trust Company Delaware, and Deutsche Bank Trust Company Americas, in their capacity as trustees to PEAKS Trust 2009-1 (collectively, “PEAKS”). In its complaint, filed in the District Court for the Southern District of Indiana, the Bureau alleged that PEAKS provided substantial assistance to ITT Educational Services, Inc. (ITT) in engaging in unfair acts and practices in violation of the Consumer Financial Protection Act of 2010. PEAKS owned and managed private loans for students at ITT Technical Institute.

Remittance Companies in CFPB’s Crosshairs

The Consumer Financial Protection Bureau (CFPB) recently announced settlements with two remittance transfer providers for violations of the Electronic Funds Transfer Act (EFTA) and the Remittance Rule, part of the regulation that implements the EFTA—an area in which there isn’t typically much CFPB enforcement activity.

Fraud reports rise as banks dole out PPP loans, report finds

Reports of possible instances of business loan fraud rose over the summer as banks doled out hundreds of billions of dollars’ worth of Paycheck Protection Program loans, according to a new study. The Project on Government Oversight, which analyzed previously unreported government data, noted an “abnormally high” number of suspected business loan fraud reports filed with the Treasury Department’s Financial Crimes Enforcement Network in July. For the month, there were 1,044 reports filed, according to the group, which is about seven times previous monthly averages.

Opinion Changes to the qualified mortgage rule are coming; be prepared

With origination volumes skyrocketing due to historically low interest rates, it would be an understatement to say lenders have been preoccupied in 2020. However, as the Consumer Financial Protection Bureau considers changes to the qualified mortgage rule, lenders must shift a portion of their focus to ensure they understand the proposed changes and are prepared to comply once the rule becomes final.

CFPB Supervisory Highlights

The Consumer Financial Protection Bureau (CFPB or Bureau) is committed to a consumer financial marketplace that is free, innovative, competitive, and transparent, where the rights of all parties are protected by the rule of law, and where consumers are free to choose the products and services that best fit their individual needs. To effectively accomplish this, the Bureau remains committed to sharing with the public key findings from its supervisory work to help industry limit risks to consumers and comply with Federal consumer financial law.

Consumer Financial Protection Bureau Settles with Eighth Mortgage Company to Address Deceptive Loan Advertisements Sent to Servicemembers and Veterans

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (Bureau) issued a consent order against ClearPath Lending, Inc. (ClearPath), a California corporation that is licensed as a mortgage broker or lender in about 22 states. ClearPath offers and provides mortgage loans guaranteed by the United States Department of Veterans Affairs (VA). ClearPath’s principal means of advertising VA-guaranteed loans is through direct-mail advertisements sent primarily to United States military servicemembers and veterans.

Illinois residents among leaders in paying down credit card debt

(The Center Square) – With the economy showing signs of life despite the ongoing impact of the COVID-19 pandemic, Illinoisans were among the leaders nationally in paying down credit card debt. According to the personal finance website WalletHub, Illinois ranked fifth in the nation in paying down debt in the second quarter of this year. Analyst Jill Gonzalez says the pandemic and the tumultuous job market forced people to take a hard look at the finances.

Mortgage forbearances drop 22% from May peak

There are 3.7 million U.S. homeowners with mortgages in forbearance this week, down 22% from May’s peak of 4.7 million, Black Knight said in a report on Friday. The total weekly drop was 66,000 loans, a slower pace than the decline of 150,000 in the prior week, the report said. Measured as a share of all mortgages, 7% of home loans are in forbearance, down from 7.1% in the prior week, Black Knight said.

California Dept. of Business Oversight launches “true lender” investigation of auto title lender’s partnership with Utah bank

On September 3, 2020, the California Department of Business Oversight (DBO) announced that it has launched a formal investigation into whether Wheels Financial Group, LLC d/b/a LoanMart, formerly one of California’s largest state-licensed auto title lenders, “is evading California’s newly-enacted interest rate caps through its recent partnership with an out-of-state bank.” 

How Covid may change banking forever

Covid-19 has changed how consumers and businesses interact with financial institutions, and new research shows that this trend will likely be permanent. According to the results of Citizens Bank’s first Banking Experience Survey, 50% of consumers and 76% of businesses that responded that the pandemic has changed the way they interact with their financial institution. Of these respondents, 66% of consumers and 73% of businesses feel that these changes will be permanent.

Sign Up for LendIt Fintech USA today and SAVE

LendIt Fintech USA 2020 is going virtual! Taking place on September 29 - October 1, this 3-day event is jam-packed with engaging content and interactive networking. Join keynote speakers from the leading traditional banks, fintech platforms and tech companies as they discuss innovation in lending, digital banking, data science and embedded finance. Networking has been reimagined for the virtual world, with 1:1 meetings, networking roulette, overtime and more. Lending and banking are transforming - make sense of this new world with LendIt Fintech, where fintech leaders gather to connect and reimagine the future of finance. Register today before rates increase! Save 15% with the DC15%.

One in 10 U.S. Adults Say They Have Been Victims of Identity Theft Since the COVID-19 Pandemic Began

More than eight in 10 U.S. adults (83%) are concerned about having their identity stolen and the level of distress of this crime occurring has increased for nearly one-third (32%) of Americans since the COVID-19 pandemic began.   More alarmingly, since the onset of the pandemic, 10% of U.S. adults report being a victim of identity theft. The findings are part of a  new survey conducted by the public sector business of TransUnion (NYSE: TRU) released today during the FedID 2020 virtual conference.

More Americans are taking on new debt for boats, motorcycles, and RVs

For Americans who have remained gainfully employed during the pandemic, more are taking advantage of low interest rates to borrow money to finance big-ticket luxury items.

CONNECT1 CONSULTANTS ESTABLISHED BY INDUSTRY VETERANS

Nancy Hughes and Bob Picone, two highly respected industry executives, are proud to announce the establishment of Connect1 Consultants. Nancy currently owns and operates Sync Now, LLC while Bob is the owner of RJP Consultants. The formation of Connect1 Consultants allows both companies to continue the high level of services our clients expect under one umbrella. 
http://connect1consultants.com/

Mortgage lending sets a 20-year record with $1.1T in Q2

U.S. lenders issued a staggering $1.1 trillion in home loans between April and June, marking the biggest quarter in at least two decades, according to mortgage data firm Black Knight. The record quarter highlights the growing disparity between homeowners who are primed to take advantage of perfect conditions, and those who are simply desperate to not lose their homes.

CFPB to Hold First Tech Sprint

The Consumer Financial Protection Bureau (the “CFPB”) recently announced that it will hold its first Tech Sprint to reduce regulatory burden and improve consumer understanding of financial services.  The CFPB describes its Tech Sprints as a model that:

U.S. charges 57 with fraud involving pandemic paycheck aid, Justice Department says

WASHINGTON (Reuters) - Federal law enforcement authorities have charged 57 people with stealing $175 million from an aid program meant to help small businesses weather pandemic lockdowns, officials said on Thursday, adding that they are eyeing hundreds more suspected cases of fraud.

OCC chief, N.Y. regulator dig in on fintech chartering, preemption

WASHINGTON — Acting Comptroller of the Currency Brian Brooks and New York State Department of Financial Services Superintendent Linda Lacewell traded barbs Wednesday in the perpetual struggle between federal and state regulators over the dual banking system.

On Paycheck Protection Program, streamlined forgiveness is key

The nation’s small businesses, and the millions of men and women who work at them, are the foundations of communities across the country and our nation’s economy. As a result of COVID-19, millions of small business owners have been forced to shutter operations with little to no revenue coming in.

Governor Newsom Signs Bills to Support Small Businesses Grappling with Impact of COVID-19 Pandemic, Bolster Economic Recovery

SACRAMENTO — Today at Solomon’s Delicatessen, a small business in Sacramento, Governor Gavin Newsom alongside Senator Anna Caballero signed three bills into law to support small businesses grappling with the impact of the COVID-19 pandemic and another to jumpstart state construction projects.

Consumer Financial Protection Bureau Announces Podcast Series on Paying for Higher Education

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today released the first episodes of a two-part podcast series for students, parents, and practitioners on managing finances before, during, and after college. The podcast series, Financial inTuition, will include interviews with experts in financial aid, student loans, financial coaching, and planning. The podcasts also will highlight the Bureau’s bevy of resources and tools to help young adult consumers make sound financial decisions.

LendIt Fintech USA – Virtual – September 30 – October 1

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Oversight Options for Third Party Auditors – Virtual Class 10/20/20

Learn Oversight Tips of Key Risk Areas: Financial, Operational, Contractual and Compliance

LendIt Fintech Europe 2020 – Virtual – October 19 – 20

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Auto Finance Summit 2020 – Virtual – October 20 – 22

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NCUCA 6th Annual Conference – October 28 – 30th