At a glanceFriday, February 26, 2021

Collection Industry News At A Glance - February 26, 2021
Friday February 26, 2021
This Week's Newsletter:
Subscribe for Free - More Information - Advertising


Stimulus checks: Personal income, savings, and spending surged after round 2 of direct payments

Personal income jumped 10% in January, reaching its highest level on record after the distribution of the second stimulus checks and the additional $300 in weekly unemployment benefits kicked in last month, according to data by the Bureau of Economic Analysis. Spending and savings also increased.

Read More
Judge rules CDC eviction moratorium unconstitutional

A federal judge in Texas ruled on Thursday that an order from the Centers for Disease Control and Prevention (CDC) temporarily halting evictions amid the pandemic is unconstitutional.

Read More
Self-employed and gig workers could get bigger loans under new PPP rules. They may want to wait to apply

Millions of self-employed and gig workers got good news this week. The Biden administration on Monday changed how the Small Business Administration’s Paycheck Protection Program calculates forgivable loans for the smallest firms and sole proprietors.

Read More
Commercial/Multifamily Lending to Increase 11% to $486 Billion in 2021

It was nearly a year ago that I penned a blog post with this opening sentence: “Last week, the week of Feb. 24, 2020, financial markets recognized that the Coronavirus has arrived in the United States.” Little did we know that now a year later, just how much the world, our lives and the commercial real estate industry has changed. The COVID-19 pandemic took a heavy toll on commercial and multifamily property sales and mortgage originations in 2020, but not equally. The impacts have varied significantly by property type and capital source–with lodging and retail feeling the greatest downward pressure. The multifamily sector held up far better, driven by refinance activity in government-backed loans.

Read More
Mortgage and refinance rates today, February 25, 2021

Average mortgage rates nudged higher yet again yesterday. Of course, these rates remain exceptionally low by historical standards and are at dream levels for most. But they’re not like they were in 2020 and early January.

Read More
Biden administration may undo certain Trump-era mortgage rules

The Biden administration hinted it may dismantle mortgage rules inked during the waning days of Donald Trump’s presidency. Those Trump-era rules erase protections for borrowers and may open the door to risky loans that led the housing bubble to burst in the 2008 financial crisis, according to some consumer advocates.

Read More
AG Ellison Joins Multi-State Coalition Calling For Student Loan Debt Cancellation

MINNEAPOLIS (WCCO) — Attorney General Keith Ellison says that he is joining a multi-state coalition to urge congressional resolutions calling for the cancellation of up to $50,000 in federal student debt.

Read More
Utah State Selects CSS IMPACT Financial Cloud as its Enterprise Debt Collections Platform

SALT LAKE CITY, Feb. 25, 2021 /PRNewswire/ -- The State of Utah known as one of the fastest growing technology centers in the country, selects CSS IMPACT Financial Cloud as its Enterprise Debt Collections Ecosystem Platform. CSS, Inc., the developers of "IMPACT | HD 2.0" is the leading provider of "NextGen" Cloud Financial & Debt Collections Ecosystem platforms with a focus on "Ai" (Artificial Intelligence) machine learning Digital Collections.

Read More
Millennials are living on their plastic, and relief will take more than a swipe of a card

Although American consumer debt declined last year due to decreased consumer spending during the pandemic, many millennial credit card holders are having financial deja-vu.

Read More
Jobless claims: Another 730,000 Americans filed new unemployment claims

Weekly unemployment claims fell far more than expected last week, as the labor market recovery took a stride forward even as harsh winter weather compounded with the coronavirus pandemic over the past several weeks.

Read More
U.S. bank regulators say pandemic drove up risk in leveraged lending

WASHINGTON (Reuters) - The credit risk for large, syndicated loans, including leveraged loans, remains high and increased in 2020 as the COVID-19 pandemic took an economic toll, U.S. bank regulators cautioned on Thursday. A new regulatory report found that the level of “non-pass” loans nearly doubled in 2020, rising to 12.4% from 6.9%, with most of those riskier loans held by nonbanks. U.S. banks accounted for 45% of the $5.1 trillion in large, syndicated loans but held less than 25% of all non-pass loans

Read More
Fixed-rate student loan refinancing rates hit record low

Rates for well-qualified borrowers using the Credible marketplace to refinance student loans into 10-year fixed-rate loans hit another low during the week of Feb. 15, 2021.

Read More
NC lawmakers move again to shut down debt settlement companies

State lawmakers will try again this year to close a loophole in North Carolina law that they say lets out-of-state debt settlement companies run bait-and-switch tactics on unsuspecting people. This same bill cleared the North Carolina House easily last year and was moving through committee in the Senate when companies stepped up a lobbying effort to stall the measure, which they say will put them out of business in North Carolina and take a reasonable path out of debt off the table for consumers.

Read More
Attorney General Becerra Announces Critical Net Neutrality Win

SACRAMENTO – California Attorney General Xavier Becerra today prevailed in securing net neutrality for 40 million Californians while litigation is ongoing. The U.S. District Court for the Eastern District of California denied a motion for preliminary injunction brought by a group of internet service providers, which attempted to block enforcement of Senate Bill 822 (SB 822), California's net neutrality law, while litigation is ongoing. With today's ruling, California can soon begin enforcement of SB 822.

Read More
Making our housing market work better for all Americans

The COVID-19 pandemic has left almost 3 million American homeowners behind on their mortgages. Black and Hispanic communities, in particular, have still not recovered from the impact of the Great Recession and bear the heaviest burden of job losses under COVID-19. With so much economic hardship and uncertainty, the CFPB must do all we can to protect homeowners and promote stability in the housing market.

Read More
National Consumer Protection Week 2021 Begins Sunday, February 28

The Federal Trade Commission and more than 100 federal, state, and local agencies, consumer groups, and national advocacy organizations, will participate in the 23rd annual National Consumer Protection Week (NCPW), held February 28 – March 6, 2021.

Read More
Senator Krueger Introduces Bill To Tax The Collection Of Consumer Data

Albany – Today New York State Senator Liz Krueger, Chair of the Senate Finance Committee, introduced legislation (S.4959) to apply a tax on the collection of New Yorkers' consumer data by businesses that then use it for commercial purposes.

Read More
CFPB Issues Statement on QM Rule Compliance Deadlines

As the Consumer Financial Protection Bureau considers whether to revisit its recent final rules regarding the definition of Qualified Mortgage and the establishment of a “seasoned QM” category of loans, it issued a statement today addressing the compliance deadlines associated with these rules. The statement also addresses the temporary “GSE patch” that was set to expire on the compliance date of the General QM final rule.

Read More
Equifax Undergoing $2B Digital Transformation. Stresses Security, Cloud-Native Opportunity

Equifax has revealed that it is in the early stage of a multi-year, A$2 billion digital transformation, which it says represents the largest investment in the company’s history.

Read More
Ontario Systems Acquires Pairity to Embed the Power of Machine Learning in Its Industry-Leading Collections Technology

MUNCIE, Ind., Feb. 23, 2021 /PRNewswire/ -- Ontario Systems, a leading provider of enterprise software that automates complex workflows, accelerates revenue recovery and simplifies the payment process for healthcare, accounts receivable management (ARM) and government clients, today announced its acquisition of Pairity, a cutting-edge provider of artificial intelligence (AI) and machine-learning capabilities that allow collection teams to maximize revenue recovery by uncovering new data insights at scale.

Read More
FDIC-Insured Institutions Reported Net Income of $59.9 Billion In Fourth Quarter 2020

WASHINGTON— For the commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC), aggregate net income totaled $59.9 billion in fourth quarter 2020, an increase of $5 billion (9.1 percent) from a year ago. The improvement in quarterly net income was led by a reduction in provision expenses. Financial results for fourth quarter 2020 are included in the FDIC’s latest Quarterly Banking Profile released today.

Read More
Consumer watchdog sues immigration services company, claiming it preys on detainees

The Consumer Financial Protection Bureau on Monday filed a lawsuit against Libre by Nexus, claiming the company is preying on immigrants through a bond scam that traps participants into paying expensive fees.

Read More
Consumer Alert: FTC report shows Hawaii consumers lost over $15 million to fraud in 2020

HONOLULU (KHON2) – According to new data from the Federal Trade Commission, Hawaii consumers lost over $15 million collectively to scams in 2020. The FTC says, on average Hawaii residents lost about $370.

Read More
Most student loan borrowers won’t get a tax break this year

Add it to the long list of changes in 2020: Your ability to claim the student loan interest deduction on your taxes. If you’re not familiar with all the details of the deduction, here’s how it works: Those with federal or most private student loans are usually able to subtract up to $2,500 a year in interest payments they’ve made on their loans from their gross income, reducing their tax liability.

Read More
New rules make it easier for struggling student loan borrowers to access PPP loans

Struggling student loan borrowers who own a business received some welcome news this week: They will no longer be excluded from the Paycheck Protection Program.

Read More
HSBC to announce exit from U.S. retail banking, reshuffles top jobs

LONDON (Reuters) - HSBC is set to withdraw from U.S. retail banking, a source familiar with the matter told Reuters on Monday, as Europe's biggest bank seeks to dispose of a business that has long underperformed.

Read More
Consumer Financial Protection Bureau and Virginia, Massachusetts, and New York Attorneys General Sue Libre for Predatory Immigrant-Services Scam

WASHINGTON, D.C. Today the Consumer Financial Protection Bureau (CFPB), in partnership with Virginia, Massachusetts, and New York, is suing Libre by Nexus, Inc. (Libre) and its owners for a predatory immigrant-services scam that traps victims into paying expensive, long-term fees. The CFPB alleges that Libre preys on immigrants, primarily Hispanics, who speak little or no English and are being held in federal detention centers, desperate to return to their families.

Read More
Biden to announce changes to PPP loan program, with focus on smallest businesses

President Joe Biden will announce changes to the Paycheck Protection Program (PPP) on Monday afternoon that includes a two-week window that only allows businesses with less than 20 employees to apply for loans, and includes improvements to place a bigger emphasis on equity.

Read More
U.S Mortgage Rates Rise for the 1st Time in 3-Weeks

Mortgage rates were on the rise in the week ending 18th February. After having held steady for 2 consecutive weeks, 30-year fixed rates rose by 8 basis points to 2.81%. Compared to this time last year, 30-year fixed rates were down by 68 basis points.

Read More
Loans available for Texas businesses impacted by cold weather crisis

U.S. Small Business Administration’s acting Administrator Tami L. Perriello has announced that low-interest federal disaster loans are now available to Texas businesses and residents as a result of President Joe Biden’s major disaster declaration following historically cold weather.

Read More
State attorneys general call for President Biden to forgive $50,000 in student loan debt

A multi-state group of attorneys general on Friday sent a letter to Congress urging the adoption of two resolutions that call on President Biden to cancel up to $50,000 in federal student loan debt.

Read More
Consumer Alert: Robocalls, scam calls hit record high

GREEN BAY, Wis. (WBAY) - Robocalls and scam calls are hitting a new high. According to a recent report, American received more than four billion robocalls in January alone. In Wisconsin, the Department of Ag, Trade and Consumer Protection put a list together of the top five calls reported last month, using a tracking system of calls coming into their consumer protection hotline.

Read More
Here’s how student loans show up on your credit report and impact your credit score

If you have student loans in your name, you can find them on your credit report under installment loans. Similar to an auto loan or mortgage, student loans are a type of loan that gives borrowers a finite amount of money to pay back in a fixed number of monthly “installments” over a specified amount of time.

Read More

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 - This event has been tentatively postponed - to be held either later this year, or next year.