At a glanceWednesday, October 28, 2020

Collection Industry News At A Glance - October 28, 2020
Wednesday October 28, 2020
Mid Week Newsletter:
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Consumer Financial Protection Bureau Announces Settlement With Washington Federal Bank, N.A. For Flawed Mortgage-Loan Data Reporting

WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (Bureau) settled with Washington Federal Bank, N.A., a federally insured national bank, to address the Bureau’s finding that it reported inaccurate Home Mortgage Disclosure Act (HMDA) data about its mortgage transactions for 2016 and 2017.  

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OCC Finalizes ‘True Lender’ Rule

The OCC today issued a long-awaited final rule establishing a “clear test” to determine when a bank making a loan is considered the “true lender” in the context of a partnership between a bank and a third party. Under the final rule, a bank makes a loan if, as of the date of origination, it is named as the lender in the loan agreement or funds the loan.

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A new US House of Representatives bill would exempt PPP loans from small banks’ asset totals

Under the legislation, when regulators calculate the asset totals of banks and credit unions with less than $15 billion in assets, Paycheck Protection Programs (PPP) loans would not be counted, American Banker reports. This would shield small financial institutions (FIs) from additional regulatory requirements that banks with more than $10 billion have to deal with under the Dodd-Frank Act.

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The DOJ is investigating Visa’s $5.3 billion bid for Plaid on antitrust grounds

It’s not just big tech that’s getting the antitrust treatment from the Department of Justice. Late Monday afternoon, the Department of Justice tipped its hand that it was investigating Visa’s proposed $5.3 billion acquisition of the venture-backed Plaid, which allows applications to connect with a users’ bank account.

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Consumer Financial Protection Bureau Settles with Ninth 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 Low VA Rates LLC (Low VA Rates) to address the Bureau’s finding that Low VA Rates sent consumers mailers for mortgage loans guaranteed by the U.S. Department of Veterans Affairs (VA) that contained false, misleading, and inaccurate statements.

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FTC Releases FY 2020 National Do Not Call Registry Data Book

The Federal Trade Commission today issued the National Do Not Call Registry Data Book for Fiscal Year 2020. The FTC’s National Do Not Call (DNC) Registry lets consumers choose not to receive most legal telemarketing calls. The data show that the number of active registrations on the DNC Registry increased by two million over the past year, while the total number of consumer complaints decreased for the third year in a row.

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US New Home Sales Drop 3.5 Pct In September From Previous Month

The number of new homes sold in the U.S. in September was lower than the number sold in August, according to a joint report by the U.S. Census Bureau and the Department of Housing and Urban Development. The houses sold were at a seasonally adjusted rate of 959,000, which was 3.5 percent lower than the August rate of 994,000, the report stated. However, the rate is also 32.1 percent above the rate from September 2019 of 726,000.

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Here’s who Biden would likely pick as the top financial watchdog for consumers

Consumers are likely to get a new financial watchdog if Joe Biden wins the presidential election next month. The Consumer Financial Protection Bureau has languished during the Trump administration, making it likely that Biden, if elected, would make leadership changes, according to consumer advocates.

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How reverse mortgages could backfire for many retirees

Carl Abrams has owned his Minneapolis home since 1989. Now 78, about four years ago, he took out a reverse mortgage — that’s a loan for people 62 and older that turn a home into cash before they move or die. “I’m getting old, didn’t have a job, so didn’t have any savings, so I had to do something,” he says. With a reverse mortgage, the homeowner remains responsible for paying property taxes, homeowner’s insurance and maintenance costs. If those payments aren’t made in a timely fashion, the home can go into foreclosure.

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U.S. new home sales drop; record low mortgage rates underpinning demand

WASHINGTON (Reuters) - Sales of new U.S. single-family homes unexpectedly fell in September after four straight monthly increases, but the housing market remains supported by record low mortgage rates and demand for more space as the COVID-19 pandemic drags on.

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Today’s mortgage refinance rates see little change — but one rate breaks the mold | October 26, 2020

Based on data compiled by Credible Operations, Inc., NMLS Number 1681276, current mortgage refinance have largely remained unchanged since this time last week, though 20-year fixed refinance rates have risen slightly. Despite this fluctuation, average rates for home refinance remain low by historical standards.

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    Here is Everything You Need to Know About Peer to Peer Lending

    Peer-to-peer lending is slowly changing the financial landscape, giving alternatives to both borrowers and investors. The peer lending market is expected to hit $312.6Bn this year, fueled in part by technological advancements in the industry that help platforms quickly evaluate loans.

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    New Study Finds Smooth Digital Transactions “Essential to Business Survival” During and After Pandemic

    A new global study by the Economist Intelligence Unit and TransUnion (NYSE: TRU) has overwhelmingly found the key to whether or not companies go out of business hinges on providing consumers friction-right digital transactions. Nearly 85% of global executives surveyed as part of the study said they believe smooth digital transactions are “essential to business survival” rather than merely a competitive edge.

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    Financial Services Professionals Say Lending Sector to Take A Year or Longer to Recover to Pre-COVID Levels: Survey

    The COVID-19 pandemic has accelerated the shift to digital with financial services, according to a recent report from TransUnion (NYSE:TRU), a financial services data platform and credit report provider.   The report notes that the Coronavirus outbreak sent “shockwaves” through the financial services sector and has “challenged the way lenders have historically operated.” TransUnion also mentioned that as more commerce begins to move to all-digital platforms, “empowered” consumers will have even more power or control in today’s global, technology-driven economy.

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    Banking Agencies Issue Proposed Rule Addressing Role of Supervisory Guidance

    The Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau (CFPB), and the National Credit Union Administration (each, a Banking Agency, and collectively, the Banking Agencies) published a proposed rule (the Proposed Rule) that would codify the Interagency Statement Clarifying the Role of Supervisory Guidance issued by the Banking Agencies on September 11, 2018 (the 2018 Statement). The 2018 Statement provided that regulatory guidance did not have the force and effect of law and did not create binding obligations on the public.

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    California Attorney General Issues More Proposed CCPA Regulation Changes

    The California attorney general recently published proposed modifications to the operative final regulations to the California Consumer Privacy Act, including notable regulatory changes requested by the attorney general for those businesses subject to the act.A third set of proposed modifications to the California Consumer Privacy Act (CCPA) regulations were announced by the California attorney general on October 12. The announcement comes less than two months after California’s Office of Administrative Law (OAL) approved the final CCPA regulations that went into immediate effect on August 14, as we previously reported.

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    Smaller Firms Could Escape Scrutiny in CFPB Enforcement Shakeup

    The Consumer Financial Protection Bureau’s reorganization of its enforcement and supervision unit could mean less oversight of small firms such as payday lenders and debt collectors

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    What Wells Fargo’s exit from student lending means for competitors

    Wells Fargo’s recently announced exit from private student lending figures to give competitors an opportunity to grab market share at a time when the sector’s prospects are threatened by declining college enrollment and the possibility of Joe Biden becoming president and making college free for many families.

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    Is Student Loan Discharge in Bankruptcy Now Within Reach?

    Student loan borrowers who seek to have their debt canceled in bankruptcy — what's known as discharge — typically find it an expensive process with standards that can be difficult to meet. But recent bankruptcy court rulings and lawmakers' support of relief for overburdened borrowers may signal a change is coming.

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    Consumer Financial Protection Bureau Releases Advance Notice of Proposed Rulemaking on Consumer Access to Financial Records

    WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today issued an advance notice of proposed rulemaking (ANPR) requesting information related to consumer access to financial records.

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    Debt collection scams on the rise during COVID-19 pandemic

    HOUSTON, Texas (KTRK) -- The Federal Trade Commission reports it is already seeing an increase in debt-related complaints, either from abusive collection tactics or from scammers. We've seen fake debt collectors in the past and usually, they come out during an economic downturn. If you get a call from someone saying you owe them money, but you cannot recall the debt or maybe it is something you already paid off, there are some things you can do to make sure it is not a scam. Get some basic contact information, like the debt collector's name, the company name and the mailing address and phone number of the company.

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    CFPB Issues Final Rule Extending the GSE Patch

    The Consumer Financial Protection Bureau (CFPB) has issued a final rule to extend the government-sponsored enterprise (GSE) “patch” until the mandatory compliance date of a final rule amending the general qualified mortgage (QM) loan definition in Regulation Z.

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    The CFPB missed a chance to fix the QM rule

    The Consumer Financial Protection Bureau appears to have lost an opportunity to correct a nagging issue in its definition of a qualified mortgage. The current rule provides safe harbor protection to lenders from potential litigation brought by borrowers for loans having debt-to-income ratios of 43% or less. A proposal in June by the CFPB to replace the 43% DTI limit with a rate-based definition of a qualified mortgage still misses the mark by a country mile. A far more accurate measure of a borrower’s ability to repay their mortgage would be to target the most risk-layered loans in the market as unqualified for safe harbor treatment.

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    146 jobs to be cut as Utah terminates student loans contract due to ‘financial losses’

    SALT LAKE CITY — Effective immediately, the Utah Higher Education Assistance Authority has terminated its contract with the U.S. Department of Education to process student loans, which will result in 146 employees losing their jobs.

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    Discover Launches Personalized Tool for Students and Their Families Making Important College Decisions

    RIVERWOODS, Ill.--()--Planning for college is an exciting moment in any student’s life and brings with it many important decisions. Students need to pick a school that is the right fit, determine a major that matches their skills and interests and also evaluate different career paths post-college. These are big life decisions for anyone, let alone for someone in high school.

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    FTC Announces New Fraud Reporting Platform for Consumers:

    The Federal Trade Commission has launched a new website,, where consumers can easily report fraud and all other consumer issues directly to the FTC.

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    FTC Issues Annual Report to Congress on Protecting Older Adults

    The Federal Trade Commission’s annual report to Congress on protecting older adults, issued Monday, provides a detailed look at the scams that most often affect adults over 60, as well as the FTC’s research, law enforcement, and education efforts aimed at protecting older consumers—a top priority for the agency.

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    Portfolios For Sale

    $4,107,495,56 Payday Loans
    DSP Holdings, Inc., dba Debt Sales Partners

    (330) 573-8448

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    Industry Events

    NCUCA 6th Annual Conference – October 28 – 30th

    Bellagio, Las Vegas

    October 28 - 30 , 2020