At a glanceWednesday, April 07, 2021

Collection Industry News At A Glance - April 7, 2021
Wednesday April 7, 2021
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CFPB Proposes Delay of Effective Date for Recent Debt Collection Rules

WASHINGTON, D.C. – The Consumer Financial Protection Bureau today proposed extending the effective date of two recent debt collection rules to give affected parties more time to comply due to the ongoing COVID-19 pandemic. The debt collection rules, issued in late 2020, are scheduled to take effect on November 30, 2021.  The CFPB is proposing to extend the effective date of both rules to January 29, 2022.

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Americans keep stretching auto loans to make car payments affordable

At the end of 2020, the average price for a new car ticked past $40,000 for the first time. In the first quarter of this year, the average price fell, but still hung around $38,000. To meet rising car prices, Americans continue to extend auto loan terms even further, and new data from TrueCar released at the end of March shows the trend in full swing.

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New USDA loan limits for 2021: How much can you borrow?

For a long time, the USDA loan program was unique in that it didn’t enforce loan limits. That meant home buyers could theoretically borrow any amount — so long as they met other USDA mortgage requirements. But that changed this year. USDA now caps the amount you can borrow to buy or refinance. Loan sizes max out at $285,000 in much of the U.S., with expanded limits in higher-cost real estate markets.

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Acceleration in Student Loan Debt Could Block Millions From Homeownership

In-state tuition and fees at public universities increased from $6,189 in 2007 to $11,260 in 2020, according to U.S. News & World Report, an increase of 81.9% — and many students are increasingly reliant on student loans to help shoulder the rising costs. In 2007, student debt amounted to just 4.4% of total household debt. By 2020, that had more than doubled to 10.7%, a 143% increase over the span of 13 years that far outpaces in-state tuition hikes. 

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Consumer protection agency cracks down on mortgage servicers that don’t assist struggling homeowners

The Consumer Financial Protection Bureau is warning mortgage servicers that they’re expected to help the surge of struggling homeowners in the pandemic and explore options other than foreclosure. “Responsible servicers should be preparing now,” CFPB Acting Director Dave Uejio said in a statement. “There is no time to waste, and no excuse for inaction.”

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Bill to reinstate foreclosure moratorium moves on to Oregon Senate after gaining approval in House

Oregon lawmakers edged closer toward reinstating the statewide moratorium on residential foreclosures Tuesday as House Democrats pushed through a bill that would protect homeowners until at least June 30.

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AG Slatery Urges U.S. Department of Education to Forgive Loans for Some ITT Tech Students

Nashville- Attorney General Herbert H. Slatery III urged the U.S. Department of Education to cancel federal student loan debt for some students who attended ITT Technical Institute. The now defunct for-profit school defrauded thousands of individuals by encouraging them to enroll and borrow loans based on false and misleading information about the value of an ITT degree.

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Michigan lawyers charged in alleged fraudulent debt-collecting scheme

Three lawyers in Michigan have been charged in connection with an alleged scheme to collect debts that may not have been owed, according to reports. The Oakland County attorneys -- identified as Marc Fishman, 70; Ryan Fishman, 32; and Alexandra Ichim, 33 -- were charged with multiple felony counts that included racketeering, forgery and obstruction of justice, according to FOX 2 in Detroit.

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Mortgage Firms Face Foreclosure Ban Until 2022 Under CFPB Plan

(Bloomberg) -- Millions of homeowners who’ve fallen behind on mortgage payments due to the pandemic would have more time before facing foreclosure under rules proposed Monday by the Consumer Financial Protection Bureau.

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CFPB Takes Action Against Debt Collector And Its Owner For Falsely Threatening Consumers with Legal Action

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today issued a consent order against a debt collector and its owner for harassing thousands of consumers, falsely threatening them with legal action. The CFPB found that Yorba Capital Management, LLC (Yorba) and its former owner, Daniel Portilla, Jr., violated the Consumer Financial Protection Act of 2010 (CFPA) and that Yorba violated the Fair Debt Collection Practices Act (FDCPA). 

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19 states have higher student-loan debt than annual budgets, report finds

The student-debt problem numbers are massive: 45 million people owe $1.7 trillion. But another big number is 19, as that many states have more outstanding student debt than their annual budgets.

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CFPB warns servicers: “Unprepared is unacceptable”

In a Thursday compliance bulletin, the CFPB said it will monitor how servicers work to prevent a wave of foreclosures from occurring this fall. “Unprepared is unacceptable,” the Bureau said. The CFPB will closely monitor how servicers engage with borrowers, respond to borrower requests and process applications for loss mitigation.

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CFPB proposes foreclosure ban until 2022

The Consumer Financial Protection Bureau (CFPB) released a notice of proposed rulemaking on Monday that would amend Regulation X to provide a special pre-foreclosure review period prohibiting servicers from starting foreclosures until after December 31, 2021. Under current CFPB foreclosure rules, a borrower must be 120 days delinquent before the foreclosure process can start. The Bureau said that nearly 2.1 million households in forbearance are past the 90-day delinquent mark and said it is concerned that those homeowners may be transferred immediately in to the foreclosure process once their forbearance period expires.

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CFPB Proposes Mortgage Servicing Changes to Prevent Wave of COVID-19 Foreclosure

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today proposed a set of rule changes intended to help prevent avoidable foreclosures as the emergency federal foreclosure protections expire. Due to the COVID-19 pandemic and ensuing economic crisis, millions of families nationwide have suffered the loss of income and nearly 3 million homeowners are behind on their mortgages. The CFPB’s proposal seeks to ensure that both servicers and borrowers have the tools and time they need to work together to prevent avoidable foreclosures, recognizing that the expected surge of borrowers exiting forbearance in the fall will put mortgage servicers under strain.

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A complete guide to COVID-19 financial relief

In March, Americans started receiving the third and latest round of federal COVID-19 financial relief through the Economic Impact Payments (EIP) distributed through the American Rescue Plan. Yet, millions of eligible individuals still haven’t received the first and second payments – and likely won’t receive the third – unless they file a 2020 tax return or tax extension by May 17, 2021.

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CFPB warns lenders of “tidal wave” of distressed mortgages

As the economy recovers, businesses reopen and people return to work, pandemic economic relief programs will be winding down, including mortgage forbearance programs. As of January, more than 2.7 million people were still in the programs to put payments on hold during the pandemic, according to the Consumer Financial Protection Bureau.  The CFPB is warning mortgage servicers to get ready for what it calls a “tidal wave of distressed homeowners” when forbearance starts to expire in June.

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Considering a mortgage refinance loan? This is how much a 1% rate drop can save you

The current juggling of interest rates by the Federal Reserve is an effort to jump-start a sluggish economy and lower unemployment numbers due to COVID-19. Mortgage rates still remain low, although they have inched up slightly as the economy begins to show signs of gaining strength.

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Today’s mortgage refinance — one key rate rate slips back under 3% | April 5, 2021

Based on data compiled by Credible Operations, Inc., NMLS Number 1681276, current mortgage refinance rates have fallen compared to last Thursday’s, with 20-year rates dropping below 3% for the first time in seven days. Average rates across all loan types remain low at 2.719%.

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ACA International CEO Mark Neeb Issues Statement on U.S. Supreme Court Ruling in Facebook v. Duguid

April 1, 2021 – Washington, D.C. – ACA International CEO Mark Neeb released a statement today on the U.S. Supreme Court’s unanimous favorable ruling on the Telephone Consumer Protection Act and definition of an autodialer in Facebook v. Duguid.

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SUPREME COURT OF THE UNITED STATES Argued December 8, 2020—Decided April 1, 2021

The Telephone Consumer Protection Act of 1991 (TCPA) proscribes abusive telemarketing practices by, among other things, restricting certain communications made with an “automatic telephone dialing system.” The TCPA defines such “autodialers” as equipment with the capacity both “to store or produce telephone numbers to be called, using a random or sequential number generator,” and to dial those numbers.

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Attorney General James Urges Department of Education to Forgive Loans of Defrauded ITT Tech Students

NEW YORK – New York Attorney General James, as part of a bipartisan coalition of 25 attorneys general, today urged the U.S. Department of Education to cancel federal student loan debt of defrauded ITT Technical Institute (ITT Tech) students. The now defunct for-profit school lured students with deceptive claims about the value of an ITT degree and empty promises of high-paying jobs after graduation.

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CFPB Compliance Bulletin Warns Mortgage Servicers: Unprepared is Unacceptable

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today warned mortgage servicers to take all necessary steps now to prevent a wave of avoidable foreclosures this fall. Millions of homeowners currently in forbearance will need help from their servicers when the pandemic-related federal emergency mortgage protections expire this summer and fall.

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Attorney General James Suspends State Debt Collection for 13th Time as Coronavirus Continues to Impact New Yorkers’ Wallets

NEW YORK – New York Attorney General Letitia James today announced that the state has halted, for the 13th time, the collection of medical and student debt owed to the state of New York that has been specifically referred to the Office of the Attorney General (OAG) for collection — with limited exceptions — through April 30, 2021.

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Biden to review executive authority to cancel student debt

WASHINGTON — President Joe Biden has asked Education Secretary Miguel Cardona to prepare a memo about his legal authority to cancel student debt, chief of staff Ron Klain said Thursday, as pressure grows for the administration to address the student loan crisis crippling millions of Americans.

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Industry groups criticize CFPB decision to rescind COVID-related policies

The rescinded policy statements – issued between March 26 through June 3 of last year – were designed to provide financial institutions with flexibility regarding certain regulatory filings or compliance with consumer financial laws and regulations. In rescinding them, the Bureau said the financial institutions have had a year to adapt their operations to the difficulties posed by the pandemic.

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CFPB warns servicers: “Unprepared is unacceptable”

The Consumer Financial Protection Bureau (CFPB) is warning servicers that it is ramping up enforcement and will be specifically watching how servicers manage borrowers coming out of forbearance. In a Thursday compliance bulletin, the CFPB said it will monitor how servicers work to prevent a wave of foreclosures from occurring this fall. “Unprepared is unacceptable,” the Bureau said. The CFPB will closely monitor how servicers engage with borrowers, respond to borrower requests and process applications for loss mitigation.

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CFPB reverses pandemic flexibilities, vowing enforcement

The Consumer Financial Protection Bureau announced Wednesday it is rescinding seven of its temporary policies put in place to protect consumers during the pandemic. The seven rescissions will be effective Thursday, April 1, with the government agency noting that it intends to exercise the full scope of its supervisory and enforcement authority provided under the Dodd-Frank Act.

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CFPB Rescinds Series Of Policy Statements To Ensure Industry Complies With Consumer Protection Laws

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today announced it is rescinding seven policy statements issued last year that provided temporary flexibilities to financial institutions in consumer financial markets including mortgages, credit reporting, credit cards and prepaid cards.

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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 - Originally Scheduled for:
May 12 - 14 , 2021

562-906-1101 - This event has been tentatively postponed - to be held either later this year, or next year.