Consumers Remain Resilient Despite Broader Economic Challenges

Serious delinquency rates in August improved once more across all consumer credit segments even as the number of people in accommodation programs dropped for the second consecutive month. Despite positive consumer credit performance, TransUnion’s (NYSE: TRU) latest Monthly Industry Snapshot also points to potential challenges in the near future.

Student debt is at an all-time high — what that means for borrowers

U.S. student loan debt hit an all-time high of nearly $1.5 trillion in November 2019, according to a Bloomberg analysis. Almost 81% of this debt consists of federal direct loans, as reported by Federal Student Aid (FSA), an office of the U.S. Department of Education. In early 2020, the number of student loans in repayment reached $686.5 billion in the U.S., while $119.8 billion worth of student loans were in default.

Oversight Options Virtual Training – October 20th – Two for One Offer Extended

For compliance officers, vendor managers or collection agency auditors. Learn audit/oversight strategies, as well as practical tips and processes for evaluating the risks associated with utilizing third party collection vendors. A solid, practical and insightful oversight program can not only reduce risk, but maximize results. Learn skills and techniques to audit your third party collection vendors for compliance with regulations, to validate consumer protection and to verify that your contract requirements and expectations are being met. Just added - an extra session specifically for repossession and auto finance lenders.

Navient to judge: Pay no attention to CFPB’s argument for ratification

HARRISBURG (Legal Newsline) – The battle continues over whether the Consumer Financial Protection Bureau can pursue a lawsuit it filed years ago when its structure was unconstitutional.

RPT-Fed’s Powell says Main Street may use up to $30 bln by year end

Sept 24 (Reuters) - The Federal Reserve’s Main Street Lending facility may lend as much as $30 billion by the end of the year, Fed Chair Jerome Powell said in testimony before the Senate Banking Committee. “The total loans might be, I don’t know, you know, $10, $20, $30 billion by the end of the year, that’s with leverage” he said in the last of three hearings in which he testified before Congress this week. (Reporting by Howard Schneider, Ann Saphir Editing by Chizu Nomiyama)

U.S. new home sales vault to near 14-year high in August

WASHINGTON (Reuters) - Sales of new U.S. single-family homes increased to their highest level in nearly 14 years in August, suggesting the housing market continued to gain momentum even as the economy’s recovery from the COVID-19 recession appears to be slowing.

House passes CUNA-backed diversity, fraud prevention bills

The House voted to pass two CUNA-supported pieces of legislation, The Ensuring Diversity in Community Banking Act of 2019 (H.R. 5532) and the COVID-19 Fraud Prevention Act (H.R. 6735). CUNA sent a letter of support to House leaders earlier this week in support of the bills.

Banks and small businesses look to Congress to streamline PPP forgiveness

One of the main draws of the Paycheck Protection Program was the ability to have loans forgiven if the money was used as the law permitted — with 60% of the capital going to payroll and 40% to other allowable expenses. But as forgiveness opened up last month, some banks and small businesses are reporting difficulty navigating the process, and advocates are pushing for simplicity for already struggling companies.

STATE OF NEVADA – Extended Temporary Guidance Regarding Working from Home

On March 12, 2020, Governor Steve Sisolak declared a state of emergency for Nevada. In addition, the Nevada Financial Institutions Division (“NFID”) issued a memorandum of temporary guidance regarding working from home initially until May 31, 2020. Excerpt from that guidance: This Guidance does not amend current Nevada Revised Statutes (“NRS”) or Nevada Administrative Code (“NAC”) and does not create new statutory framework. All licensees and registrants must comply with the applicable NRS, NAC, and other state and federal laws and regulations, which includes establishing and maintaining proper security protocols to ensure maximum data, records and transaction security. Click read more to get additional information on the Division’s Guidance.

How canceled student-loan and mortgage debts could affect your taxes in the COVID-19 era

In this COVID-19 ravaged economy, debts can pile up beyond a borrower’s ability to repay. However, lenders are sometimes willing to forgive (cancel) debts that are owed by especially beleaguered borrowers. While forgiveness can help you survive financially, it can trigger negative tax consequences. Or maybe not. This column summarizes the most important things borrowers need to know about the federal income tax implications of forgiven debts. Here goes.

Cybersecurity: Your supply chain is now your weakest link

More than 80% of organisations have experienced a data breach as a result of security vulnerabilities in their supply chains, as cyber criminals take advantage of the poor security of smaller vendors as a means of gaining access to the networks of large organisations. Research by cybersecurity company BlueVoyant found that organisations have an average of 1,013 vendors in their supplier ecosystem – and that 82% of organisations have suffered a data breach in the past 12 months due to cybersecurity weakness in the supply chain.

Attorney General Becerra Announces $7 Million Settlement Against Multinational Bank HSBC for Overcharging CalPERS on Foreign Exchange Transactions

SACRAMENTO – California Attorney General Xavier Becerra announced a $7 million settlement involving multinational bank and financial services company HSBC for overcharging the California Public Employees Retirement System (CalPERS) in foreign currency trading. 

Several regional Fed banks are researching central bank digital currency initiatives

The U.S. Federal Reserve, the country's central bank, has been researching digital currencies along with several regional Federal banks. The detail was revealed by Loretta Mester, president of the Cleveland Federal Reserve Bank, at a virtual event on Wednesday. Mester said several staff members of reserve banks, including Cleveland Fed software developers, are contributing to the research effort.

Phin Solutions, LLC Celebrates 20 Years of Service

Ramsey, Minn – Phin Solutions is celebrating their 20th anniversary in 2020. Phin Solutions is a national information services company specializing in compliance monitoring services. Phin Solutions offers software and services to help organizations identify and manage consumer life stage events and events that impact their credit accounts and accounts standing. By using their Vigilant-CMS(SM) software and services platform, Phin provides clients a secure environment while delivering complete and timely bankruptcy and deceased information, litigious debtor identification, active duty military certification, as well as filing bankruptcy proof of claims. Read More

Second Round of Refunds, Totaling $147 Million, Sent to Consumers As a Result of Multi-Agency Case Against Western Union

Approximately $147 million is being mailed to 33,000 consumers in the second distribution of refunds resulting from the law enforcement actions brought against Western Union by the Federal Trade Commission (FTC), the U.S. Department of Justice (DOJ), and the U.S. Postal Inspection Service. Affected consumers are receiving compensation for 100 percent of their verified losses. 

Attorney General Becerra Testifies Before U.S. Senate Committee on Commerce, Science and Transportation Regarding California Privacy Laws

State law is the backbone of consumer privacy in the United States, and federal law serves as the glue that ties our communities together. In the data privacy space, the optimal federal legal framework recognizes that privacy protections must keep pace with innovation. That's the hallmark of our data-driven economy. To keep pace, we must all work from the same playbook, yet be nimble enough to adapt to real-world circumstances on the field where we meet them. 

Student loan relief extension: What does it mean for you?

Many borrowers with federal student loans are facing serious financial struggles during the coronavirus pandemic. Fortunately, there was recently a student loan relief extension. President Trump signed an executive order that suspends payments of federal student loans through the end of the year. This executive order extended the moratorium on student loan payments signed into law by Congress earlier this year and offers much-needed additional relief for those struggling with loan repayment.

LendingClub Studies Reveal Customers Prioritize Personal Loan Payments Over Credit Cards, Helping Them Progress Towards Financial Health

SAN FRANCISCO, Sept. 22, 2020 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), America's largest online lending marketplace connecting borrowers and investors, today released findings from two recent studies on member financial health and payment behavior before and during the novel coronavirus (COVID-19). Conducted in January and June 2020, the studies sought to understand member behavior before and during the coronavirus-driven recession and how they make decisions regarding prioritization of bills and expenses in relation to their long-term financial goals.

CFPB releases Section 1071 SBREFA outline

The CFPB  has taken a significant step towards issuing regulations to implement Section 1071 of the Dodd-Frank Act by releasing an outline of the proposals it is considering in preparation for convening a small business review panel (Panel).  Section 1071 amended the ECOA to require financial institutions to collect and report certain data in connection with credit applications made by women- or minority-owned businesses and small businesses.  Such data includes the race, sex, and ethnicity of the principal owners of the business. 

New Whitepaper Released: Three out of Five Collection Systems are Outmoded

Most traditional collection software platforms in use today are based on old underlying technology and outdated designs. They were never built to support the latest needs of today’s collection organizations. Even collection software systems deployed in the past five years may already be outmoded. Much like a well-maintained car that has a new appearance but an old, inefficient, gas-guzzling engine under the hood, some collection software platforms may appear modern but are powered by old, inefficient code. Both can still get you from point A to point B, but the journey is likely not a very smooth and efficient ride. Outdated software is fraught with too many manual activities, elongated processing times, limited insight, higher operational costs, and increased compliance risk.

No stimulus, no problem for U.S. consumers so far: Morning Brief

A temporary bump from Labor Day spending, a slowdown in the labor market, a lack of fresh stimulus, and a rough patch in financial markets were all viewed as negatives by Wall Street economists when assessing the overall state of the U.S. economy five months into this recovery.

NYDFS brings first action to enforce state’s debt collection regulation

The New York Department of Financial Services (DFS) announced on September 16 that it has filed a Statement of Charges against debt collector Forster & Garbus LLP (Forster) for alleged violations of the state’s Debt Collection Regulation, Part 1 of Title 23 of the New York Codes, Rules, and Regulations, promulgated in 2015.  The alleged violations involve Forster’s collection of student loans. The DFS states in its press release that the charges are the first brought by the DFS alleging violations of the Debt Collection Regulation.

CEO optimism improves in Q3, but remains well below historical average: survey

Confidence among U.S. CEOs improved in the third quarter, after nine straight quarters of decline, according to Business Roundtable’s quarterly business sentiment survey. Still, optimism among the nation’s chief executives remains well below the historical average, as the COVID-19 pandemic continues to take its toll.

Existing home sales jump to 14-year high, as prices set another record

After a record-setting July, the housing market still shows no sign of cooling off. Sales of existing homes rose 2.4% to a seasonally adjusted annualized rate of 6 million units, according to the National Association of Realtors. Sales were 10.5% higher compared with August 2019. This is the highest sales pace since December 2006, before the Great Recession.

PenFed Credit Union and PenFed Foundation Donate $40,000 to Fully Furnish 35 Apartments in Nebraska Veterans Housing Facility

TYSONS, Va., Sept. 21, 2020 /PRNewswire/ -- PenFed Credit Union, the nation's second-largest federal credit union, and PenFed Foundation, a national 501(c)3 founded by PenFed Credit Union, today announced the donation of $40,000 to fully furnish 35 apartments in the newly-renovated addition to the Victory Apartments complex in Omaha, Neb.

Consumer Financial Protection Bureau Settles with Auto Lender for Unfair Loss Damage Waiver Practices

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (Bureau) settled with Lobel Financial Corporation, an auto-loan servicer based in Anaheim, California. The Bureau found that Lobel engaged in unfair practices with respect to its Loss Damage Waiver (LDW) product, in violation of the Consumer Financial Protection Act (CFPA). When a borrower has insufficient insurance, rather than force-placing collateral-protection insurance, Lobel places the LDW product, which is not itself insurance, on borrower accounts and charges a monthly premium of approximately $70 for the LDW coverage.

Globex Telecom and Associates Will Pay $2.1 Million, Settling FTC’s First Consumer Protection Case Against a VoIP Service Provider

Globex Telecom, Inc. and an affiliated company will pay a total of $1.9 million to settle Federal Trade Commission and State of Ohio charges that they facilitated a scheme that peddled bogus credit card interest rate relief, illegally charging consumers millions of dollars. The settlement marks the end of the FTC’s first consumer protection case against a Voice over Internet Protocol (VoIP) service provider.

Government aid, stock gains push U.S. wealth to pre-pandemic levels, Fed says

WASHINGTON (Reuters) - A rebounding stock market and massive federal aid payments pushed the net worth of U.S. households back to pre-coronavirus levels in the second quarter, the Federal Reserve reported on Monday, with savings accounts and equity portfolios both rising sharply despite the pandemic.

CFPB to Extend Comment Period for Notice of Proposed Rulemaking on New Category of Qualified Mortgages

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) is extending the comment period on its notice of proposed rulemaking (NPRM) to create a new category of seasoned qualified mortgages (Seasoned QMs) by three days, from September 28, 2020 to October 1, 2020 in order to accommodate for the Yom Kippur Jewish holiday.

Three more former Wells Fargo execs settle civil charges

Three former senior Wells Fargo executives have agreed to pay six-figure fines to regulators in connection with the bank’s unauthorized account scandal. Matthew Raphaelson, Kenneth Zimmerman and Tracy Kidd were all once executives in Wells Fargo’s consumer banking unit. The Office of the Comptroller of the Currency found in settlements announced Monday that they either knew or should have known about what the agency described as the unit’s systemic sales misconduct problem.

U.S. debt jumps by record amount in second quarter led by federal government, Fed data show

The numbers: The debt burden on the U.S. economy increased at a record pace in the second quarter led by government borrowing needed to cushion the blow of the coronavirus pandemic, according to a report from the Federal Reserve released Monday.

CFPB announces advisory committee members

Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger has appointed new members to the Consumer Advisory Board and three other advisory councils who will work with the agency on a broad range of consumer financial issues and emerging market trends.

Nearly 11 million households missed mortgage or rent payments at pandemic’s outset – study

Nearly 11 million households fell behind on their mortgage or rent payments during the first three months of the COVID-19 pandemic, according to a new study by the Mortgage Bankers Association’s Research Institute for Housing America (RIHA). Meanwhile, 30 million people missed at least one student loan payment.

Massachusetts Attorney General Creates Data Privacy and Security Division

The Massachusetts Office of the Attorney General has created a new Data Privacy and Security Division. This Division is charged with protecting consumers from the threats to the privacy and security of their data. The Attorney General, Maura Healey, announced “The Data Privacy and Security Division will build on our office’s commitment to empowering Massachusetts consumers in the digital economy, ensuring that companies are protecting personal data, and promoting equal and open access to the internet.”

FTC to Host Virtual Workshop on Data Portability on September 22, 2020

The Federal Trade Commission will host a workshop that will examine the potential benefits and challenges to consumers, privacy, and competition raised by data portability, which is the ability of consumers to move data from one service to another or to themselves.

U.S. senators reintroduce postal banking | Information

WASHINGTON — U.S. senators reintroduced a brand new model of a retired submit workplace observe to supply another for important banking providers to low-income and rural People, and make sure the nation’s postal service stays a public, nonprofit entity.U.S. Sens. Kirsten Gillibrand, D-N.Y., and Bernie Sanders, I-Vt., reintroduced a brand new model of the Postal Banking Act in a Fb livestream occasion Thursday afternoon to create a sustainable supply of funding for the U.S. Postal Service after U.S. Postmaster Basic Louis DeJoy has been accused of constructing modifications which have slowed mail supply forward of the upcoming Nov. three election

Fed officials tussle over practical meaning of new inflation policy

WASHINGTON (Reuters) - Federal Reserve policymakers on Friday began fleshing out what their new tolerance for inflation will mean in practice, an issue critical to how investors and households reshape their own outlooks even if it may not be relevant to any immediate decisions by the U.S. central bank.

JPMorgan’s Dimon says economic recovery could be derailed: report

NEW YORK (Reuters) - JPMorgan Chase & Co JPM.N Chief Executive Jamie Dimon said the economic recovery from the coronavirus recession could be derailed by a lack of additional economic stimulus, the election and a second wave of infections. Dimon made the comments on Friday to stock analyst Brian Kleinhanzl of Keefe, Bruyette & Woods, who wrote about their meeting in a report.

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

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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