Trade groups file summary judgment motion in Texas lawsuit challenging CFPB payday loan rule

The industry trade groups challenging the CFPB’s final rule on Payday, Vehicle Title, and Certain High-Cost Installment Loans (the Rule) have filed a motion for summary judgment.  The motion follows the filing of an Amended Complaint by the trade groups focused on the Rule’s payments provisions and the filing of an Answer to the Amended Complaint by the CFPB.

NCUCA Hosts 6th Annual Conference October 28th – 30th at the Bellagio in Las Vegas

Join the National Credit Union Collections Alliance at their 6th annual conference October 28th - 30th, 2020 at the Bellagio Las Vegas.  Presented by:  First City Credit Union, First Tech Federal Credit Union, TexasBay Credit Union, Alta Vista Credit Union, VantageWest Credit Union, Credit Union of Southern California, Los Angeles Federal Credit Union and Del Norte Credit Union.  Join your peers and colleagues at this in person event - with courtesy daily rapid Covid-19 testing for all attending. Go to ncuca.com/register. Get Your Tickets Now!

Nev. Lenders Must Brace For The Next Wave Of Foreclosures

Law360 (October 6, 2020, 3:50 PM EDT) --Nevada was an epicenter  of the Great Recession and housing crisis of 2008-2009. Home prices plummeted, accompanied by widespread job losses and decreases in income. Homeowners defaulted on mortgages and, in some cases, walked away from their homes.

DCM Services names Tiffany Jansen Senior Vice President, Business Development

Minneapolis, MN — October 6^th, 2020 — DCM Services, LLC (DCMS) the industry leader in estate and specialty account recovery solutions, announced the promotion of Tiffany Jansen to Senior Vice President, Business Development.   Jansen, who most recently served as Vice President of Executive Account Management, will now also oversee sales and marketing strategies for DCMS.

“Tiffany has been an invaluable member of the DCMS team over the last 17 years, said Tim Bauer, DCMS Chief Executive Officer. “Her involvement in our ongoing growth and company initiatives has contributed to our overall success. We are excited to continue our growth into additional markets under Tiffany’s leadership.”  Jansen joined the organization in 2003 and has held various roles within both Operations and Business Development. She holds a Bachelor of Arts degree from the University of Minnesota Twin Cities.

400,000 mortgage borrowers are “needlessly delinquent”

There are about 400,000 mortgage borrowers “needlessly delinquent” as a result of the COVID-19 pandemic, according to a report from the Urban Institute. These are borrowers with mortgages backed by the federal government who could have gotten help by getting a forbearance agreement, a right given to them by the CARES Act passed by Congress at the end of March.“These borrowers may not know they are eligible for forbearance or do know but wrongly fear having to make ‘double payments’ when the forbearance period ends,” the report said.

PPP Loan Forgiveness: 5 Important Questions About Applications, Automatic Approvals, and Additional Relief

When the government announced the Paycheck Protection Program earlier this year, it said that pandemic-stricken business owners wouldn’t have to pay back funds if used for certain purposes — namely, payroll costs, interest on rent or mortgages, and utilities.

Third Circuit Sharply Limits FTC Authority to Obtain Monetary Relief as Supreme Court Prepares to Weigh In

Last week, in FTC v. AbbVie et al., the Third Circuit joined the Seventh Circuit in holding that the Federal Trade Commission (FTC) was not authorized to seek disgorgement as a remedy under Section 13(b) of the FTC Act – deepening a circuit split ahead of the Supreme Court’s upcoming consideration of this issue.  The holding will make it exceedingly difficult for the FTC to obtain monetary remedies in many of its enforcement actions in the Third Circuit, in both antitrust and consumer protection cases.  And ultimately, as we have previewed, the Supreme Court is expected to have the final say on this question this Term.

Consumer Financial Protection Bureau Issues Policy Statement on Applications for Early Termination of Consent Orders

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) issued today a policy statement on applications for early termination of administrative consent orders (Consent Orders). The policy statement outlines the early termination application process for entities subject to a Consent Order and the standards that the Bureau intends to use when evaluating applications.

The Good, the Bad, and the Ugly of PPP Loan Forgiveness Delays

If getting a PPP loan approved meant you had to move at warp speed, getting one forgiven may well feel like you’re stuck in slow motion. That’s the case for Andrew Cao, a managing partner at Motoza, the Austin-based digital marketing agency he founded in 2011. Cao tapped into the Paycheck Protection Program — the $521 billion forgivable loan program designed to bridge small businesses through the pandemic–in May, after some of his clients started pulling their business. He applied through a local lender, Horizon Bank, after failing to get in on the first tranche of PPP funding with his company’s own bank, Bank of America.

New York State debt collection suspension renewed through November

NEW YORK (WWTI) — The Office of the Attorney General announced Monday that suspension of state debt collection will be renewed for the seventh time. New York Attorney General Letitia James announced on October 5 that New York has renewed the order to halt state medical and student debt collection specifically referred to the OAG. This order will be renewed for an additional 30-day period, through November 3, 2020. According to Attorney General James, this decision was made due to the financial impairments following the spread of the COVID-19 virus.

The Number of Past-Due Auto Loans Is Creeping Up

The trends say some financial troubles that began for many families with the approach of COVID-19 this spring are starting to retreat, but if you're a glass half empty kind of person, you'll appreciate this: new data has come out that shows signs of financial trouble in the auto-loan market.

Ohio Attorney General sues local debt collection company, alleges illegal harassing and abusive behavior

CLEVELAND, Ohio (WOIO) – The state of Ohio holding alleged bad debt collectors accountable in a new lawsuit. The state attorney general is going after the Northeast Ohio debt collection company saying, “We want to do everything in our legal authority to go to bat for the people of Ohio.” Attorney Dave Yost says officials recently received more than 40 complaints against Advanced Capitol Solutions.The lawsuit alleges the Canton-based debt collectors’ conduct was harassing or abusive in some instances.

Loans in forbearance gain after 6 weeks of decline

After six weeks of steady declines, the number of mortgages in active forbearance rose by 21,000 last week, according to a new report. Though the raw number increased, the number of all mortgages in active forbearance remained at 6.8%, unchanged from the week prior, Black Knight said in a report on Friday. As of Sept. 29, 3.6 million homeowners remain in COVID-19-related forbearance plans representing $751 billion in unpaid principal. According to the report, the portfolio-held and private labeled security loans were largely responsible for the recent increase, with forbearance share gaining from 7.1% to 7.3% – a total of 28,000 new loans in forbearance.

NCUCA Annual Event Is On! October 28-30 in Las Vegas

The National Credit Union Collections Alliance (NCUCA) 6th Annual Conference is gaining momentum with all hands on deck from Bellagio and NCUCA board members.  You can't miss this conference: October 28-30, 2020 at Bellagio Las Vegas.  NCUCA will deploy RAPID DAILY COVID TESTING offered by Bellagio - you will only be admitted after clearing the test - HIPPA will be enforced so privacy is a non-issue.  The tests are super cool technology that are not invasive.  NCUCA is proud to say this has been in the works for some time and will lay the foundation as the first conference in the world to deploy this cutting edge technology as an added layer of security.  It is an honor to be the first conference to deploy a well thought out model that promotes a safe and scientific strategy that allows the Governor of NV to open to larger group gathering segments.

SIMM Associates continues as a Major Statewide Sponsor for DFRC Blue-Gold Golf Classic

Newark, Delaware – September 21, 2020 – SIMM Associates is proud to continue its sponsorship of DFRC Blue-Gold Golf Classics tournaments which were held on August 28^th and September 21^st 2020. Every year, with the support of more than 100 sponsors, 250 golfers participate in the two Blue-Gold All★Star Golf Classics. DFRC is a well-respected Delaware foundation dedicated to raising funds and consciousness in support of programs that enrich the lives of Delawareans with intellectual disabilities. Established in 1956, the private, nonprofit organization is dedicated to identifying and funding programs based on community need. Since inception, DFRC has distributed over $6 million dollars into Delaware programs.

Survey: Business economists see coronavirus as biggest risk

The U.S. economy faces risks from a potential resurgence of the coronavirus and from the failure so far of Congress to provide additional financial support for struggling individuals and businesses. That judgment emerges from a survey released Monday by the National Association for Business Economics of 52 forecasters who were polled last month. Among the forecasters, 55% said they regarded a second wave of Covid-19 cases as the most serious threat. Twenty percent said they thought a lack of further government economic aid would pose the biggest risk.

How student loan forgiveness is altering consumer behavior

Student loans are now a perennial political hot potato and an entrenched economic challenge for young Americans. Politicians and the higher education industry have kicked the can down the road for so long that we can no longer ignore the effect student debt is having on Millennials’ ability to thrive in today’s unforgiving economic environment.

California’s CFPB-style Agency Moves Ahead After Gov. Newsom Signs Bill Package

The state of California’s desire to create a watchdog agency akin to the federal Consumer Financial Protection Bureau (CFPB) is moving ahead, after Governor Gavin Newsom signed a package of bills into law to reform the state’s Department of Business Oversight (DBO) into a new entity.

Goldman to buy GM’s credit card unit for $2.5 billion – WSJ

(Reuters) – Goldman Sachs Group Inc is buying General Motors Co’s credit card business for about $2.5 billion (£1.94 billion), the Wall Street Journal reported on Thursday, citing people familiar with the matter.

Ohio attorney general files lawsuit against debt collector

COLUMBUS, Ohio (WKBN) – According to a lawsuit filed by Ohio Attorney General David Yost, a Canton-based debt collector harassed customers and was abusive in collection techniques. The lawsuit was filed against Advanced Capital Solutions. Yost said the company was also contacting family members, co-workers and employers of debtors and disclosing their debts, an intimidation tactic that is prohibited by law.

Lobel Financial reaches $1.4M settlement with CFPB

WASHINGTON, D.C. – Last week, Lobel Financial Corp. finalized a settlement with the Consumer Financial Protection Bureau totaling more than $1.4 million. According to a news release, the bureau found that Lobel engaged in unfair practices with respect to the finance company’s loss damage waiver (LDW) product in violation of the Consumer Financial Protection Act (CFPA). When a contract holder has insufficient insurance, rather than force-placing collateral-protection insurance, the CFPB said Lobel places the LDW product. The bureau said this product is not itself insurance on accounts and charges a monthly premium of approximately $70 for the LDW coverage.

Repo, Forwarder and Skip Oversight Special Session Added to Oversight Options

October is Oversight Month!  Resource Management Services, Inc. presents Oversight Options - taught as a virtual course on October 20th with an extra added option - a special October 21st add-on course on Oversight of Repo Vendors, Forwarders and Skip Vendors.  See more as the class delves into the Four Key Risk areas of oversight of third party collection vendors (Financial, Operational, Contractual and Compliance).  Learn practical tips and techniques for oversight.  For compliance managers, relationship managers and vendor auditors.  Two for One offer extended!  Register before October 10th and bring two for the price of one.

‘Seasoned’ QM would aid residential mortgage expansion

CUNA supports the Consumer Financial Protection Bureau’s (CFPB) proposed “Seasoned” Qualified Mortgage (QM) to aid in the expansion of the residential mortgage market. The CFPB has proposed to proposed rulemaking to create a new category of QMs, Seasoned QMs, for first-lien, fixed-rate covered transactions that meet certain performance requirements over a 36-month seasoning period.

House approves $2.2 trillion Covid measure as bipartisan talks remain stalled

The House on Thursday night cleared a $2.2 trillion coronavirus relief measure in the Democrats’ latest bid to pressure Republicans into a massive bipartisan deal before the election. 

1,600 customers say Wells Fargo paused their mortgage payments without their consent

Some 1,600 Wells Fargo customers say the bank paused their mortgage payments without their consent, far more than previously known, according to correspondence the bank sent to two U.S. senators in August and September.

JPMorgan Finds More Than 500 Workers Got U.S. Virus Relief Funds

(Bloomberg) -- More than 500 JPMorgan Chase & Co. employees got assistance from taxpayers aimed at helping businesses through the pandemic -- and dozens of them shouldn’t have, according to people with knowledge of the firm’s internal investigation.

Big U.S. banks to report profit plunge as pandemic recession takes hold

NEW YORK (Reuters) - As big U.S. commercial banks close their books on the third quarter, analysts expect them to report a 30% to 60% plunge in profits on the year-ago period due to the pandemic-induced recession and near record low interest rates.

Consumer Financial Protection Bureau Releases Assessment of TRID Mortgage Loan Disclosure Rule

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today published an assessment of the TRID Integrated Disclosure Rule (the Truth in Lending Act and Real Estate Settlement Procedures Act). The assessment found that the TRID Rule made progress towards several of its goals.

OCC’s Brooks defends special-purpose charters amid growing ‘unbundling’

The acting comptroller of the Office of the Comptroller of the Currency (OCC) argued for the regulatory importance of introducing a charter for fintech and payments companies amid the growing trend of "unbundling," as companies increasingly offer financial services outside of the traditional banking system during a LendIt Fintech virtual conference Tuesday.

U.S. pending home sales race to record high in August

WASHINGTON (Reuters) - Contracts to buy U.S. previously owned homes surged to a record high in August, suggesting housing market activity was gathering speed amid record-low mortgage rates. The National Association of Realtors said on Wednesday its Pending Home Sales Index, based on contracts signed last month, jumped 8.8% to an all-time high of 132.8 last month. Economists polled by Reuters had forecast pending home contracts, which become sales after a month or two, rising 3.4% in August.

Ohio Attorney General Dave Yost Announces Settlements in Groundbreaking Lawsuit Against Illegal Robocall Service

(COLUMBUS, Ohio) – Ohio Attorney General Dave Yost today announced settlements in a lawsuit against ten defendants - six companies and four individuals - that deceived Ohio consumers with illegal robocalls offering bogus credit card interest rate reduction services.

U.S. Fed to extend curbs on big bank buy backs, dividends through end of year

WASHINGTON (Reuters) - The U.S. Federal Reserve will curb big bank capital distributions through the end of the year, meaning the likes of JPMorgan Chase & CoJPN., Citigroup Inc.C.N, Wells Fargo & CoWFC.N and Bank of America Corp.BAC.Nwill be barred from share buy backs and will have to cap dividends. The central bank announced it would extend its existing policy of limiting capital payouts for banks with at least $100 billion in assets, to ensure lenders have enough capital to weather the economic strain caused by the coronavirus pandemic.

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

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NCUCA 6th Annual Conference – October 28 – 30th