At a glanceFriday, January 22, 2021

Collection Industry News At A Glance - January 22, 2021
Friday January 22, 2021
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Meet Biden’s new CFPB Acting Director Dave Uejio

After former Consumer Financial Protection Bureau Director Kathy Kraninger stepped down Wednesday at the request of President Joe Biden, Dave Uejio took over as the bureau’s acting director. Biden named Uejio acting director late Wednesday, moving him from his previous role as CFPB strategy program manager. In that role, he reported to the deputy director, led the 30-person Office of Strategy to define the bureau’s enterprise level strategy and policy priorities, identified and managed enterprise risks, evaluated impact of major programs and drove organizational performance.

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Existing home sales hit highest level since 2006

Home sales activity ticked up in the final month of 2020 and annual sales activity reached its highest levels since 2006.  Existing home sales increased 0.7% to 6.76 million in December from a month earlier and up 22.2% from the same time a year ago, according to the National Association of Realtors (NAR). The results beat analysts’ estimates compiled by Bloomberg of 6.56 million.

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Q4 Earnings Reports Show Mobile Banking’s Surge

One common theme amid bank earnings — beyond lofty trading revenues gleaned from Wall Street — has been the increased uptake of mobile banking. Stats from banks, pretty much across the board, have given evidence that consumers have been pivoting to their mobile devices to attend to their everyday financial needs.

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What are the new FHA loan limits for 2021?

There isn’t much the coronavirus hasn’t impacted in the real estate market – from loan rates to inventory. In response to the escalating home prices seen in 2020, the Federal Housing Administration is now offering higher loan limits on FHA loan products in the new year.

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OSHA raises penalty maximums, establishes new debt collection procedures

The agency also announced that it is changing the way it collects citation penalties that have been levied against establishments, which OSHA defines as single, physical locations where business is conducted. Currently, all demands for payment after the first are issued at 30-day intervals. Moving forward, OSHA will send a series of three penalty payment after an establishment fails to make timely payment based on a final order — one at seven days, the second at 30 days and the next at 60 days. OSHA will also contact those that don't pay their fines on time by phone 14 days after the payment is due.

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Biden directs Department of Education to extend student loan payment freeze

In one of his first actions as president, Joe Biden on Wednesday directed the Department of Education to extend the nearly year long pause on student loan payments through September 30, delivering on the new administration's campaign promise to prioritize and begin addressing the nearly $1.6 trillion debt crisis.

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WRITTEN CONSENT REQUIRED FOR INFORMATIONAL CALLS?: How the FCC’s Recent TCPA Ruling May Have (Unintentionally?) Expanded PEWC Requirements

As we have reported, the FCC’s recent ruling implementing Section 8 of the TRACED Act was a really big deal–it limited the number of calls permitted under certain extremely-valuable and important exemptions related to prerecorded calls to landlines. 

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Consumer bureau director resigns after Biden’s inauguration

Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger resigned Wednesday at the request of the newly sworn-in President Biden, clearing the way for his nominee to lead the powerful regulatory agency.  "As requested by the Biden administration, today I resigned as Director of the CFPB. I am proud of all that we accomplished on behalf of consumers. It has been an honor to lead the agency during these challenging times" Kraninger tweeted.

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California’s revamped consumer protection agency subpoenas debt collectors, signaling more regulation in Biden era

The California Department of Financial Protection and Innovation (DFPI), using new oversight and enforcement authority under the California Consumer Financial Protection Law that went into effect on January 1, issued subpoenas to the companies after receiving consumer complaints.   The companies subpoenaed in this latest investigation were Portfolio Recovery Associates, LLC; Encore Capital Group; Midland Credit Management, Inc.; Midland Funding, LLC; Atlantic Credit and Finance, Inc.; Enhanced Recovery Company LLC; Resurgent HP LLC and LVNV Funding LLC; IC System, Inc.; The Offices of Morgan and Moss; Convergent Outsourcing, Inc.; Spectrum Billing Services; and Monterey Financial Services LLC.

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Under government pressure, big U.S. lenders rush to launch more pandemic loans: sources

WASHINGTON (Reuters) - The U.S. government is pressuring large lenders to go live this week with another round of a key federal pandemic loan program despite many unresolved issues, sparking an industry scramble to get lending platforms ready, five people familiar with the discussions said.

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CFPB exempts some credit unions from escrow regulations

The Consumer Financial Protection Bureau announced Tuesday some insured depository institutions and insured credit unions will now be exempt from regulations to establish escrow accounts for some higher-priced mortgage loans. The final rule will take effect upon publication in the Federal Register, and will exempt the HPLM escrow requirement for any mortgage made by an insured depository institution or insured credit union and secured by a first lien on the principal dwelling of a consumer if all three of the following criteria are met:

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CFPB clarifies role of supervisory guidance

The Consumer Financial Protection Bureau issued a final rule Tuesday clarifying that supervisory guidance is not backed by the same force as law or regulation. First proposed in October 2020, the CFPB’s final rule codifies the statement, with amendments, that the Bureau and other federal financial regulatory agencies issued in September 2018, which clarified the differences between regulations and supervisory guidance. In 2018, five federal agencies issued a joint statement explaining the role of supervisory guidance for regulated institutions.

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Consumer Financial Protection Bureau Issues Final Rule on the Role of Supervisory Guidance

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) issued today a final rule regarding the Bureau’s use of supervisory guidance for its supervised institutions. The rule codifies the statement, with amendments, that the Bureau and other federal financial regulatory agencies issued in September 2018, which clarified the differences between regulations and supervisory guidance.

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Consumer Financial Protection Bureau Settles with LendUp Loans, LLC for Military Lending Act Violations

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (Bureau) filed a proposed settlement to resolve its December 4, 2020 lawsuit against LendUp Loans, LLC (LendUp) alleging violations of the Military Lending Act (MLA). Today’s action is the first resolution in the Bureau’s broader sweep of investigations of multiple lenders that may be violating the MLA. LendUp, which has its principal place of business in Oakland, California, is an online lender that offers single-payment and installment loans to consumers.

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Consumer Financial Protection Bureau Issues Rule on Higher-Priced Mortgage Loan Escrow Exemption

WASHINGTON, D.C. – The Bureau of Consumer Financial Protection (Bureau) today issued a final rule to implement a requirement of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). The final rule exempts certain insured depository institutions and insured credit unions from the requirement to establish escrow accounts for certain higher-priced mortgage loans (HPMLs).

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Consumer Financial Protection Bureau Announces Partnerships with Communities Across the Country to Promote Financial Resiliency

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today announced that it will partner with seven communities across the country to help build financial resiliency among Americans. The partnerships, part of the Bureau’s Start Small, Save Up initiative, aim to increase the number of people having sufficient liquid savings by testing new approaches as well as identifying existing approaches that can assist Americans to become more financially secure.

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FTC Publishes Annual Performance Report

The Federal Trade Commission published its Fiscal Year 2020 Performance Report as required under the Government Performance and Results Modernization Act of 2010. The report documents the progress made by the Commission in achieving the mission and performance goals established in the Fiscal Year 2020-2021 Performance Plan. Also, as required by the Government Performance and Results Modernization Act during a transition in administration, the Commission will submit its Fiscal 2021-2022 Performance Plan along with its Fiscal Year 2022 budget request in support of the President’s FY 2022 budget for the federal government later this year.

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CFPB slaps 1st Alliance Lending for illegal mortgage-origination practices

The Consumer Financial Protection Bureau (CFPB) has taken 1st Alliance Lending and three of its top executives to court for allegedly engaging in various illegal mortgage-lending practices.

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CFPB Changes Expected As Biden Administration Settles In

As reported, President-elect Joe Biden nominated Rohit Chopra, a commissioner at the Federal Trade Commission (FTC), to lead the Consumer Financial Protection Bureau (CFPB), replacing Kathy Kraninger as director (who remains in her post in a term that technically runs through 2023, but is likely to be replaced by Biden).

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Digital loans: Credit lending landscape in the post COVID-19 world

The COVID-19 pandemic isn’t over yet but we have hopefully moved beyond its worst phase and with several vaccines faring well in clinical trials, the hopes of the economies bouncing back have become strong. As a consequence of the coronavirus-induced lockdowns, credit uptake all around the world had witnessed a very lean period but momentum in economic activity has been recorded in the past few months. In fact, a recent market analysis suggests that credit lending is nearing 80 percent of its pre-COVID-19 level.

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Consumer Financial Protection Bureau Sues 1st Alliance Lending, LLC and Its Principals for Alleged Unlawful Mortgage Lending Practices

WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (Bureau) filed a lawsuit against 1st Alliance Lending, LLC, John Christopher DiIorio, Kevin Robert St. Lawrence, and Socrates Aramburu for allegedly engaging in various unlawful mortgage-lending practices. 1st Alliance, based in Hartford, Connecticut, originated residential mortgages from 2004 to September 2019 and stopped operating in November 2019. DiIorio was its chief executive officer and he, St. Lawrence, and Aramburu were 1st Alliance’s three managing executives.

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Attorney General Becerra Sues U.S. Department of Education for Easing Oversight of For-Profit Colleges

SACRAMENTO – California Attorney General Xavier Becerra today announced a lawsuit against Acting U.S. Secretary of Education Mitchell Zais and the U.S. Department of Education (ED) over ED’s effort to ease oversight and accountability on for-profit colleges at the expense of students and taxpayers. ED’s recently finalized “Distance Education and Innovation” regulations allow colleges to bypass requirements set out in the Higher Education Act intended to prevent federal Title IV funds, including federal student loans and Pell grants, from going to low-quality educational programs and predatory for-profit institutions.

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Industry Events

RMAI 2021 Annual Conference – In Person and Virtual

Receivables Management Association International (RMAi)

Las Vegas, Nevada
April 12 - 15 , 2021

Collection and Recovery Solutions 2021 (CRS2021)

Resource Management Services, Inc.

Produced by: Resource Management Services, Inc. 10440 Pioneer Blvd., Suite 2 Santa Fe Springs, CA. 90670-8235
Las Vegas , Nevada
May 12 - 14 , 2021

(562) 906-1101