California Department of Justice Joins Multistate Coalition Urging Congress to Rescind OCC Rule That Promotes Predatory Lending

SACRAMENTO - The California Department of Justice joined a coalition of 25 attorneys general today in a letter asking Congress to invalidate a rule by the Office of the Comptroller of the Currency (OCC) that encourages predatory lending by non-bank lenders. The OCC regulates national banks, which are generally not bound by state interest-rate caps. The “True Lender Rule,” issued in October 2020, allows payday lenders, auto-title lenders, and other non-bank entities to evade state limits on loan interest rates through phony "rent-a-bank" partnerships with national banks. The California Department of Justice has a pending multistate lawsuit challenging the OCC's “True Lender Rule,” but today’s letter urges Congress to use its powers under the Congressional Review Act to rescind the rule as the most efficient way to prevent predatory lending abuse and consumer harm.

CFPB Tries To Fend Off A Potential Foreclosure Crisis

The Consumer Financial Protection Bureau (CFPB) is taking a long hard look at mortgage servicers — and whether they’ve really been compliant with pandemic-era programs designed to keep struggling homeowners out of foreclosure. Accusations are surfacing that homeowners are failing to get help they were promised, or that institutions have been discriminatory in how they have portioned out aid.

More homeowners are leaving mortgage forbearance — but still need help

The share of mortgages in forbearance hit 4.50% for the week ending April 11, down from 4.66%, the previous week, according to the Mortgage Bankers Association. That marked the seventh straight week of declines and followed one of the largest decreases on record in the prior week. About 2.3 million homeowners remain in forbearance plans, according to the MBA.

FTC warns it could crack down on biased AI

The US Federal Trade Commission has warned companies against using biased artificial intelligence, saying they may break consumer protection laws. A new blog post notes that AI tools can reflect “troubling” racial and gender biases. If those tools are applied in areas like housing or employment, falsely advertised as unbiased, or trained on data that is gathered deceptively, the agency says it could intervene.

Mortgage rates dip, triggering surge in loan requests

When mortgage rates dropped last week to their lowest levels in two months, buyers pounced. After three weeks of mortgage applications falling, a Mortgage Bankers Association index tracking them surged 8.6 percent.

FTC Testifies Before Congress on its Work to Protect Consumers from COVID-19 Scams, and Threats to its Ability to Return Money to Victims of Illegal Conduct

In testimony before the Senate Commerce Committee, the Federal Trade Commission updated lawmakers on its efforts to combat scams and address other consumer issues related to the COVID-19 pandemic, while urging lawmakers to ensure the agency has the authority it needs to prohibit illegal conduct and return money to consumers who have been victims of illegal conduct.

FTC commissioners agree they should act to protect consumer privacy if Congress doesn’t

The agency is awaiting the confirmation of a fifth commissioner to fill out its slate -- the confirmation hearing for President Joe Biden’s nominee Lina Khan will take place Wednesday -- but it’s clear there are several areas in which the FTC does not need a tiebreaking vote. Commissioners generally agreed that:

Know your rights as a renter facing eviction

The Fair Debt Collection Practices Act (FDCPA) is a federal law that says that debt collectors must follow certain rules when collecting a debt. For example, the FDCPA says that debt collectors can’t harass you or use false or misleading statements to collect a debt.

DFPI Reminds Debt Collectors, Mortgage Lenders and Servicers about COVID-19 Renter and Homeowner Protections

SACRAMENTO – The California Department of Financial Protection and Innovation (DFPI) recently issued a reminder to future debt collector licensees and existing mortgage lenders and servicers about protections for California renters and homeowners experiencing economic hardship under the COVID-19 pandemic.

CFPB begins cracking down on mortgage servicers

The Consumer Financial Protection Bureau (CFPB) is making good on its threats to police mortgage servicers. In late January, the agency released a series of authority actions warning servicers that they need to do right by consumers who need access to forbearance programs. According to a new report from Reuters, the government watchdog is already actively investigating several servicers.

How student lending can benefit non-bank lenders

Over the last several years, non-bank mortgage originators have established a much larger market share. Additionally, non-bank servicers have more than doubled their ownership of servicing rights in the last 10 years. This gives non-bank lenders and servicers significantly greater access to more consumers and provides an opportunity for student lending to make an impact. 

Know your rights as a renter facing eviction

The Fair Debt Collection Practices Act (FDCPA) is a federal law that says that debt collectors must follow certain rules when collecting a debt. For example, the FDCPA says that debt collectors can’t harass you or use false or misleading statements to collect a debt. The FDCPA applies to many lawyers who regularly collect debt. This may include lawyers who represent landlords or property managers in eviction court to collect unpaid rent, if they start collecting the debt for your landlord after you fall behind on your payments.

The Federal Government Will Now Give PPP Loans to Borrowers in Bankruptcy

In late March, ProPublica reported on a Small Business Administration rule that disqualified individuals or businesses currently in bankruptcy from getting relief through the Paycheck Protection Program, an $813 billion pot of funds distributed to small businesses in the form of loans that are forgiven if the money is mostly spent on payroll. The agency had battled in court against several bankrupt companies attempting to apply for PPP loans, and did not change course even after Congress explicitly passed legislation in December allowing it to do so.

U.S. debt collectors must tell delinquent renters about eviction protections

The new interim final rule takes effect on May 3 and seeks to make sure tenants know about protections against eviction under a nationwide moratorium issued by the Centers for Disease Control and Prevention (CDC). That measure, introduced to limit the spread of COVID-19, has been extended to June 30.

Student loan forgiveness: Will Biden clear $50,000 debt per person, or less? The story today

US student loan debt currently sits at an accumulated total of roughly $1.7 trillion, making it second in consumer debt behind home mortgages. President Joe Biden made canceling $10,000 of student loan debt per student a part of his election campaign, but members of Congress are urging Biden to forgive much more: $50,000 per student. "America is facing a student loan time bomb," Sen. Elizabeth Warren said during a Senate hearing on April 13. The explosion, the Massachusetts Democrat said, "could throw millions of families over a financial cliff."

6 Cybersecurity Tips for Working from Home

This unique transition has required flexibility to adapt to a new environment, and with that new environment has come a different set of security practices. Although many of us have finally established a rhythm when it comes to working from home, it is worth reminding ourselves of some important security practices every remote employee should be implementing.

CFPB Rule Clarifies Tenants Can Hold Debt Collectors Accountable for Illegal Evictions

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today issued an interim final rule in support of the Centers for Disease Control and Prevention (CDC)’s eviction moratorium. The CFPB’s rule requires debt collectors to provide written notice to tenants of their rights under the eviction moratorium and prohibits debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium. 

Business Lending Volume Is Low Even While Economists Are Optimistic and Consumer Spending Is High

Last week, JP Morgan Chase and Company reported astounding first quarter profits. Smaller banks followed with amazing earnings, and even Wells Fargo showed signs of life recovering from its three year hangover from its troubles, with a strong earnings report.

$10,000? $50,000? What different amounts of student loan forgiveness would mean for borrowers

Phyllis Wintter has had student debt for more than 30 years. At 67, she still owes around $48,000. Now she hopes that change could be coming, and that President Joe Biden will forgive her loans. “It would be great if we could die free of this debt,” said Wintter, who lives in Georgia. But, she added, ”$10,000 wouldn’t do it. I’d still have $38,000, and I can’t afford that.”

Exclusive: Fearing foreclosure crisis, U.S. watchdog cracks down on mortgage servicers

NEW YORK/WASHINGTON (Reuters) - The U.S. consumer watchdog is scrutinizing mortgage servicers’ compliance with pandemic relief programs amid concerns struggling homeowners are not getting the help they need to avoid foreclosures, or are being discriminated against, said a dozen people with knowledge of the regulatory effort.

U.S. Foreclosure Activity Grows Despite Government Moratorium

Today, ATTOM Data Solutions released its first-quarter U.S. Foreclosure Market Report for 2021, which shows that foreclosure filings were up 9% from the previous quarter but down 78% from a year prior. A total of 33,699 foreclosure filings within the first quarter includes default notices, scheduled auctions, and bank repossessions.

AG SHAPIRO ENSURES CANCELLATION OF DEBT FOR PA STUDENT LOAN BORROWERS

HARRISBURG – Attorney General Josh Shapiro today announced that his office has entered into an agreement that will result in the cancellation of approximately $2.6 million in private Pennsylvania student loans held by 1,300 students who attended schools operated by the now-defunct Education Corporation of America, including five former Brightwood Career Institute locations in Pennsylvania.

ABA Report Consumer Delinquencies Rose in Fourth Quarter of 2020

WASHINGTON —

After two consecutive quarters of declines, consumer credit delinquencies rose in the fourth quarter of 2020 as the toll of the pandemic-induced recession weighed on the economy, according to results from the American Bankers Association’s Consumer Credit Delinquency Bulletin. Overall, delinquencies rose in each of the 11 loan categories tracked by ABA.

Illinois Extension on Garnishment and Wage Deduction Limits Continues Through April 30

Illinois Gov. J.B. Pritzker has again extended Executive Order 2020-25 , which suspends the issuance of garnishment, wage deductions and post-judgment citations to discover assets. Per the extension, these restrictions will now remain in effect through April 30, 2021.

Consumers Shifted Credit Payment Behaviors in the U.S. and Other Global Markets as a Result of COVID-19

In times of crisis, repayment prioritization of credit products often provides a clearer view of how consumers are meeting the financial burdens they face. A new TransUnion (NYSE: TRU) Global Payment Hierarchy study found that the COVID-19 pandemic had a pronounced effect – in a short period of time – on how people paid their debts, particularly when faced with financial stress.

OPERATING LOANS DRIVE DECLINE IN AG LENDING

With federal pandemic aid in their hands, farmers and ranchers borrowed far less money than usual from ag bankers during the opening months of this year for equipment, livestock, and operating expenses, according to a Federal Reserve survey of commercial lenders. “The volume of non-real-estate farm loans was about 10% less than a year ago, continuing a recent trend of reduced loan demand,” said a Kansas City Fed summary of the data on Thursday.

RMAI Honors Outstanding Member and Executive Director

April 14, 2021 (Sacramento, CA) – Against all odds, the Receivables Management Association International held its 2021 Annual Conference in Las Vegas, April 12-25, 2021. With more than 500 in-person attendees and more than 150 virtual attendees, leaders from RMAI capitalized on the event by honoring an outstanding member and RMAI’s executive director.

Sinema, Romney propose bill to tackle student loan debt

Sens. Mitt Romney (R-Utah) and Kyrsten Sinema (D-Ariz.) on Thursday introduced a bipartisan bill to tackle student loan debt. The Earn to Learn Act will allow low-income students to pay for college-related expenses through a college-matched savings program

FCC questions carriers on status of free robocall blocking tools

The Federal Communications Commission on Tuesday took its next steps to bat down robocalls, including letters to carriers about free robocall blocking tools. In addition to writing to major phone companies and third-party developers, the FCC issued a Public Notice (PDF) seeking input on a variety of robocall-related questions and status updates on carrier efforts to help block unwanted calls.

Protecting consumers through a pandemic: 2020 Fair Lending Report to Congress

The month of April marks Fair Lending Month, Fair Housing Month, and Financial Capability Month. In recognition of this, today the Bureau released its annual Fair Lending Report to Congress. The report highlights our work in 2020 to promote the Bureau's fair lending mission of ensuring fair, equitable, and nondiscriminatory access to credit while also protecting consumers in the midst of the COVID-19 pandemic and resulting economic consequences. As the report explains, in 2020:

Judge orders Munster debt collection firm to pay $1.4M in fines, consumer restitution

MUNSTER — The Indiana attorney general's office has won a $1.4 million default judgment against a Glenview, Illinois-based debt collection firm that allegedly engaged in abusive and deceptive business practices out of its Munster office. According to court records, New Britain Financial LLC and its owner, Nelson Macwan, allegedly committed multiple violations of the Indiana Deceptive Consumer Sales Act, including threatening consumers with lawsuits, arrest, garnishments and liens without holding judgments against the consumers.

$50K student loan forgiveness would cancel debt of 84% of borrowers, Biden told

Armed with new data on what they’re calling America’s "student loan time bomb," members of Congress and advocacy groups are turning up the heat on President Joe Biden to cancel as much as $50,000 in federal student loan debt for every borrower.

Cybersecurity: Victims are spotting cyberattacks much more quickly – but there’s a catch

The amount of time cyber criminals are spending inside compromised networks is dropping. But while that might sound like a positive development, one reason hackers are spending less time inside networks is because of the surge in ransomware attacks.

Mortgage refinance demand hits lowest level in over a year, and homebuyers retreat, too

It was a mixed week for rates, which started high and then fell slightly, but the damage was done early. Total mortgage application volume decreased 3.7% for the week, according to the Mortgage Bankers Association’s seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) decreased to 3.27% from 3.36%, with points decreasing to 0.33 from 0.43 (including the origination fee) for loans with a 20% down payment.

Superlative RM

(916) 478-6700

ARM Compliance Business Solutions LLC

(205) 753-1861

Collection and Recovery Solutions 2021 (CRS2021)

Resource Management Services, Inc.