At a glanceWednesday, February 10, 2021

Collection Industry News At A Glance - February 10, 2021
Wednesday February 10, 2021
Mid Week Newsletter:
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No FDCPA Harm, No FDCPA Foul

The United States Court of Appeals for the Seventh Circuit has recently released a veritable avalanche of debt collector-friendly opinions regarding “standing” under the Fair Debt Collection Practices Act (FDCPA), which given the relative dearth of lender-slanted opinions in this legal niche, seems practically momentous. As of the time of writing, no less than six opinions on this narrow topic were issued over little more than a week in mid-December of 2020, leaving the distinct impression that the Court is sending a message. 

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Main Street Lending Program Ends With Just $17.5 Billion Disbursed

The Federal Reserve’s Main Street Lending Program, intended to give support to small- to medium-sized businesses (SMBs) during the pandemic, has only disbursed $17.5 billion, around 3 percent of its total $600 billion, Bloomberg reported, citing data released by the central bank.

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FTC Sends More than $1.7 Million in Refunds to People who Lost Money to Student Loan Debt Relief Scam

The Federal Trade Commission is sending more than $1.7 million to people who lost money to a debt relief scheme that targeted individuals trying to pay down their student loan debt.

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Mortgage Delinquency in November Reaches the Lowest Level Since March, CoreLogic Reports

IRVINE, Calif.--(BUSINESS WIRE)--CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report for November 2020. On a national level, 5.9% of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure), which represents a 2-percentage point increase in the overall delinquency rate compared to November 2019, when it was 3.9%. This is the lowest overall delinquency rate since an initial jump in April 2020.

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Mortgage demand drops as interest rates hit a three-month high

Mortgage interest rates have increased in four of the first six weeks of 2021, putting a chill on mortgage demand. Overall mortgage application volume fell 4.1% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

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Citi to pay five states $4.2 mln over interest overcharges

Citibank NA agreed on Monday to pay $4.2 million to settle claims by five states that it failed to recalculate credit card interest rates on accounts held by 25,000 consumers, thus overcharging them.

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Debit Card Use Increasing Online, But Credit Cards Remain More Popular

A new study by PYMNTS and Elan Financial Services shows that Americans are using their debit cards more for online shopping. However, they’re not moving away from credit cards entirely, which remain the most popular way to pay.

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Forbearance is nearing its end and over 5% of borrowers are still in the program

We’re approaching the one-year anniversary of mortgage forbearance programs and while many American borrowers have gotten off the program for one reason or another, a frustrating number of homeowners remain. A little less than 5.5% of homeowners are still missing mortgage payments, representing a group of homeowners who have not gotten back on their feet since the initial COVID-related lockdowns in spring of 2020.

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Regional Banks Accelerate Modernization Through FinTech

For large, global financial institutions (FIs), modernizing is no easy feat. Bogged down by legacy infrastructure, big banks often find that FinTech collaboration wins in the “build-versus-buy” debate as a more agile way to digitize and bring competitive products to market.

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Mortgage servicers take steps to support borrowers amid COVID-19

As COVID-19 cases continue to rise, borrowers are facing new financial risks. According to Black Knight, as of late November, 2.73 million homeowners were still in a forbearance plan, down from the May 2020 peak of 4.7 million. Even though the forbearance numbers continue to fall, homeowners are showing signs of distress. As a result, call volume to servicers spiked to a level not seen since last April. Lenders and servicers need to prepare for a significant increase in their workload as they help borrowers through these difficult times.

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CFPB accuses servicers of misleading borrowers about forbearance

Several mortgage servicers gave consumers incomplete and inaccurate information about CARES Act forbearances, according to a new Consumer Financial Protection Bureau (CFPB) report.

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Housing market bracing for new changes with FHA loans

There are new developments in the housing market that are helping DACA immigrants become eligible for FHA loans. Joining us to talk more about that and some topes for new home buyers dealing with this market, is mortgage expert Brian Sacks.

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The Bureau is taking much-needed action to protect consumers, particularly the most economically vulnerable

Last week, I was honored to have been appointed Acting Director of the CFPB by the President. Having joined the Bureau in 2011, I have seen firsthand the impact of the Bureau’s mission and the incredible work being done by its staff. I know that the Bureau’s staff shares my devotion to the Bureau’s mission, and I look forward to serving in this latest capacity.

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Biden’s CFPB Focuses On Debt Collection As Early Priority

Every new presidential administration gets to make its imprint on regulations — and by extension, the financial services industry. In the midst of grappling with the pandemic and the headwinds still buffeting the U.S. economy, the President Joe Biden administration may be gearing up to take a closer look at the way firms, particularly debt collectors and payday lenders, interact with consumers.

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Venmo’s debt-collection practices probed by CFPB

The Consumer Financial Protection Bureau is probing the way that Venmo, the digital money-transfer service operated by PayPal Holdings Inc., treats customers whom the company says owe it money for transactions that went awry. In a regulatory filing Friday, PayPal said it had received a "Civil Investigative Demand" from the CFPB "related to Venmo's unauthorized funds transfers and collections processes, and related matters." The company said the CFPB had requested documents and answers to written questions, and that it was cooperating with the regulators. Venmo's debt-collection tactics were the subject of articles in The Wall Street Journal in 2019 and 2020.

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Biden Wants to Shut Down Credit Bureaus – What Would That Mean for You?

One of the more fascinating platform items of the Biden presidential campaign was the idea of transferring consumer credit ratings from Equifax (NYSE: EFX), Experian PLC (OTC: EXPGY) and TransUnion (NYSE: TRU) to a public registry under the Consumer Financial Protection Bureau.

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New York AG eyes Credit Acceptance Corp. in fresh probe

The Office of the New York State Attorney General is considering bringing claims against Credit Acceptance Corp. in connection with the subprime lender’s originations, collections and securitization practices.

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Economy adds 49K jobs in January, unemployment falls to 6.3 percent

The U.S. added 49,000 jobs in January and the unemployment rate fell to 6.3 percent, a 0.4 percentage point drop, according to data released Friday by the Labor Department.

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PayPal says U.S. consumer watchdog investigating payment app Venmo

(Reuters) - PayPal Holdings Inc said on Friday it was cooperating with the U.S. consumer watchdog regarding a civil investigation demand relating to its app Venmo’s alleged unauthorized fund transfers and collections processes.

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Debt consolidation vs. debt settlement: What’s the difference?

Debt can keep you up at night — especially when you owe multiple creditors. If you have credit card debt, medical bills and outstanding loans, staying on top of monthly payments can be overwhelming. If you’re interested in paying down debt by bundling it together — also known as debt consolidation — you may want to consider a personal loan.

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IMF: CFPB mortgage servicer complaints drop in Q4

Mortgage servicers received less complaints at the Consumer Financial Protection Bureau (CFPB) in the fourth quarter of 2020, according to data from Inside Mortgage Finance. The data showed that mortgage protests overall decreased by 6.7% in the fourth quarter, while complaints about loan modifications dropped 10.1%, servicing concerns dropped 6.7% and criticisms about applications fell 8.6%. But while these complaints were down for the final quarter of the year, overall in 2020, the CFPB saw an increase of 8.2% in mortgage-related complaints.

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New Data Shows FTC Received 2.2 Million Fraud Reports from Consumers in 2020

The Federal Trade Commission received more than 2.1 million fraud reports from consumers in 2020, according to newly released data, with imposter scams remaining the most common type of fraud reported to the agency.

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Jessica Hearn Named Majority Owner and CEO

KATY, Texas — Universal Fidelity LP (UFLP) is proud to announce Jessica Hearn as majority owner and CEO.  We are pleased that UFLP is now certified as a Women-Owned Small Business by the Small Business Administration (SBA) under the WOSB program. UFLP is celebrating 30 years in the accounts receivable management (ARM) and call center industry this February.

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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

Tentatively Postponed - Future Dates To Be Announced