New York’s Highest Court Eliminates A Spurious Issue In Foreclosure Litigation

When a mortgage borrower stops paying its loan and the lender eventually decides to foreclose, the lender first needs to accelerate the loan. In other words, the lender needs to tell the borrower that the loan is in default and the borrower must repay it all now. If the borrower doesn’t do that, then eventually the lender goes ahead with foreclosure litigation and eventually, if all goes well for the lender, the borrower loses its real property. In New York that judicial proceeding can take at least one or two years, even if the borrower has no meritorious defenses. Sometimes a lender accelerates the loan and then doesn’t pursue foreclosure, instead sitting on its hands and doing nothing. If that continues for six years in New York, or other periods in other states, then the lender loses its right to foreclose. 

Smart Home Monitoring Company Vivint Will Pay $20 Million to Settle FTC Charges That It Misused Consumer Credit Reports

Smart home security and monitoring company Vivint Smart Homes Inc. has agreed to pay $20 million to settle Federal Trade Commission allegations that the Utah-based firm misused credit reports to help unqualified customers obtain financing for the company’s products and services.

Digital Lending Tools are Reducing Mortgage Timeframes

There has been a significant reduction mortgage processing times since the first of the year according to ICE Mortgage Technology. Its Origination Insight Report says that the time to close a purchase mortgage, which averaged 57 days in January declined to 53 days in February then to 51 days in March. Refinancing has seen similar improvement, falling from 59 days in January to 52 days in each of the subsequent months. The time to close for all loans was also 51 days, 6 fewer than in January.

Banks seek bigger role in point-of-sale lending

Fintechs' rush into the installment lending market creates a threat to the banks that got there first. But for the banks that sat on the sidelines, the best course forward might be to partner with a fintech rather than push back.

Making Ends Meet series: Changes in consumer financial status during the early months of the pandemic

Beginning in March 2020, the coronavirus pandemic sent the U.S. economy into one of the sharpest recessions in recent history. Millions were laid off, either temporarily or permanently, as restrictions went into effect to help reduce the spread of the virus. By June, the unemployment rate had risen to 11.1 percent, with almost 31 million people claiming unemployment insurance benefits.

Attorney General Rob Bonta Launches New Diversity, Equity, and Inclusion Effort within the California Department of Justice

SACRAMENTO – California Attorney General Rob Bonta today announced the launch of a Diversity, Equity, and Inclusion Council within the California Department of Justice (DOJ). The new council will take steps to help ensure that DOJ’s work environment and hiring and retention policies can continue to be a model for elevating the voices of all Californians in the workforce.

CFPB Consumer Complaint Bulletin Examines County-Level Demographic Data

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) issued a bulletin today analyzing complaints submitted by consumers in counties nationwide. In 2019 and 2020, the CFPB received more complaints on a per-capita basis from consumers living in predominantly minority counties than from consumers in predominantly white, non-Hispanic counties.

FTC Sends More Than $11M in Refunds to Consumers Affected by Credit Card Interest Rate Reduction Scam

The Federal Trade Commission is sending full refunds totaling more than $11 million to consumers who lost money to a bogus credit card interest rate reduction scheme operated by E.M. Systems & Services.

The U.S. has already cancelled roughly $100 billion in student debt amid the pandemic

Actions taken by the federal government will lead to roughly $100 billion in total student loan forgiveness between March 2020 and September 2021, according to Education Department (ED) data and analysis from experts.

Second round of PPP loan application deadline has been pushed back to May

REDDING, Calif. — Lawmakers have approved a state tax break of almost $7-billion as a part of the COVID-19 economic recovery for small businesses and there's still time to apply.

This Texas bill would cancel student lunch debt

AUSTIN (KXAN) — A newly filed bill in the Texas State House would ban debt accrued from school lunches for students in Texas. On Wednesday, Texas state Rep. James Talarico (D-Round Rock), filed House Bill 4112, which would allow students to receive regular lunches despite what their meal card balance may be.

Crypto Bank Gets OCC Approval, ABA Objects

New York fintech Paxos National Trust is the latest non-traditional bank to be conditionally approved for a banking charter by the Office of the Comptroller of the Currency (OCC).

Lawmakers clash over OCC rule validating loan sales to nonbanks

WASHINGTON — Democratic senators made clear their hopes of blocking a rule that makes it easier for national banks to sell loans to third parties, but invalidating the measure in the tightly divided Senate could be an uphill battle.

The Number of Fintech Consumer Complaints Filed to the CFPB Exploded in the Beginning of 2021

When COVID-19 hit the United States, Americans moved much of their lives online, including, in some cases, their finances. As the prevalence of financial technology rose during the pandemic, so too did the volume of consumers complaining about it.

California DFPI Seeks Comments on Debt Collection License Application and Requirements

The California Department of Financial Protection and Innovation (DFPI) has filed a Notice of Proposed Rulemaking to add to the agency’s licenses application process.

CFPB Takes Action Against Reverse Mortgage Lender for Deceptive Advertising

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today took action against Nationwide Equities Corporation for sending deceptive loan advertisements to hundreds of thousands of older borrowers. The Bureau found that advertisements from Nationwide Equities misled consumers about how much money they could receive from a reverse mortgage, the fees and costs associated with the products, and the consequences of nonpayment.

Why an Opinion from the Eleventh Circuit is Keeping Creditors Up at Night

A recent federal appeals decision is sending shockwaves throughout the financial services sector. In Hunstein v. Preferred Collection & Mgmt. Services, Inc., the Court of Appeals for the Eleventh Circuit held that, under the federal Fair Debt Collection Practices Act (FDCPA), businesses and individuals operating as “debt collectors” are prohibited from communicating debtor information to third-party service providers and vendors (such as mail processors) hired to send dunning correspondence or other communications “in connection with the collection of any debt.”

FTC Asks Congress to Pass Legislation Reviving the Agency’s Authority to Return Money to Consumers Harmed by Law Violations and Keep Illegal Conduct from Reoccurring

In testimony before the House Energy and Commerce Subcommittee on Consumer Protection and Commerce, the Federal Trade Commission asked Congress to pass legislation that would revive the FTC’s ability to return money to their constituents who were harmed by law violations and to stop that illegal conduct from reoccurring.

CFPB issues interim rule applicable to FDCPA debt collectors seeking to evict tenants for non-payment of rent

The CFPB has issued an interim final rule that requires “debt collectors” as defined under the FDCPA who seek to evict tenants for non-payment of rent to provide written notice to tenants of their rights under the Centers for Disease Control and Prevention (CDC) Order that establishes an eviction moratorium. The interim rule also prohibits FDCPA debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium. The rule becomes effective on May 3, 2021 and comments on the rule must be submitted by May 7, 2021.

CFPB Delays Mandatory Compliance Date For General QM Final Rule

The Consumer Finance Protection Bureau is moving the mandatory compliance date of the General Qualified Mortgage final rule to Oct. 1, 2022. The CFPB stated that this delay was made in order to help ensure access to responsible, affordable mortgage credit and preserve flexibility for consumers affected by the COVID-19 pandemic. The original date was scheduled for July 1, 2021, according to the press release.

Statement by CFPB Acting Director Dave Uejio on Mr. Cooper Unauthorized Withdrawals

WASHINGTON, D.C. – Today Consumer Financial Protection Bureau (CFPB) Acting Director Dave Uejio issued the following statement in response to apparent unauthorized withdrawals made by a mortgage servicer, Mr. Cooper. Unauthorized duplicate-payment drafts by Mr. Cooper appear to have resulted in hundreds of thousands of consumers’ bank accounts being debited for multiples of their mortgage payments. Affected consumers have reported being charged overdraft fees and likely suffered additional harm as a result of these unauthorized withdrawals.

CFPB looking at Mr. Cooper after withdrawal errors

On Tuesday, the Consumer Financial Protection Bureau (CFPB) announced it was looking into a situation with mortgage servicer Mr. Cooper after the company made unauthorized withdrawals from borrower accounts over the weekend due to a vendor error. “The CFPB is taking immediate action to understand and resolve the situation that has affected hundreds of thousands of consumers,” said CFPB acting director Dave Uejio. “The CFPB will use all appropriate tools at our disposal to help ensure harmed consumers receive relief. Consumers affected by the incident should monitor their accounts and may contact Mr. Cooper directly.”

No Coverage for Common Law Claims “Arising Out Of” Alleged TCPA Violations

TCPA lawsuits are expensive. So when Colorado company Mesa Laboratories, Inc. faced a class action for its unsolicited faxes promoting dental-industry-related services, it turned to its insurance company for coverage. The insurance company refused, citing an exclusion in the policy for any claims “arising out of” the TCPA. The District Court upheld the insurer’s coverage decision and the Seventh Circuit affirmed. Mesa Laboratories, Inc. v. Federal Insurance Company, No. 20-1983, 2021 U.S. App. LEXIS 11365 (7th. Cir. April. 20, 2021).

CFPB shake-up: What administration changes may mean for auto lenders

Things are quickly changing at the Consumer Financial Protection Bureau. President Joe Biden made Dave Uejio acting director of the CFPB on January 20, and nominated former FTC Commissioner Rohit Chopra for director.

Innovation and collaboration: Tech sprints support improvements in consumer notifications and data collection and processing

Today, I’m excited to share the team presentations from the Bureau’s first two tech sprints. Our tech sprint program emphasizes a “technology first” approach that asks, across a range of challenges, what role advanced technology can play to strengthen compliance, encourage innovation, drive down cost and burden, and promote transparency.

ConServe to Award Continuing Professional Education (CPE) Credits

Rochester, N.Y. – Today ConServe announced it will award sponsored Continuing Professional Education (CPE) credits through its ConServe University^® quarterly Webinar Series. CPE is a requirement for most CPAs and financial leaders to maintain their professional competence and provide quality professional services.

COVID-19: CFPB’s Proposed Mortgage Servicing Amendments Add Loss Mitigation Protections for Borrowers and Signal Heightened Expectations for Mortgage Servicers’ Operational

On 5 April 2021, the Consumer Financial Protection Bureau (CFPB) solicited comments on proposed amendments to Regulation X,[1] which amendments are intended to assist mortgage borrowers impacted by the COVID-19 pandemic.[2] Though the proposal to extend the current foreclosure moratorium to January 2022 is gaining the headlines, it is important to note that the proposed amendments, if adopted, once again require modification to servicers’ existing loss mitigation programs in order to “maximize the likelihood that borrowers exiting forbearances have sufficient time to complete a loss mitigation application.”[3]

Student loan forgiveness: Where Joe Biden’s student debt plan stands today

Student loan debt right now in the US is roughly $1.7 trillion, sitting just behind home mortgages in consumer debt and ahead of credit card debt and auto loans. While we don't know if President Joe Biden will cancel $10,000 per student in loan debt, some Congress members are pressuring Biden to go even higher, forgiving $50,000 per student.

Florida ranks third for states with highest share of renters with debt

TAMPA, Fla. — Florida is ranked third when it comes to states who have the highest shares of renters with debt, according to data from PolicyLink. PolicyLink, a national research and action institute, says across the country the share of renters with debt is trending downward from a high of 19% in January.

Here’s the average student debt balance of borrowers under 25

Collectively, there are 7.8 million people ages 24 and younger carrying an outstanding $115.50 billion in student loan debt. Individual borrowers in this age group are carrying an average balance of $14,807.69, according to statistics from the U.S. Department of Education’s Q4 2020 data. The average debt load is $39,351 for student loan borrowers of all ages. While that’s more than double what the 24-and-younger cohort carries, this segment of borrowers still has years of interest accruing ahead of them — not to mention that many may take on more debt as they finish up their undergrad degrees and pursue additional education.

Fixed-rate student loan refinancing rates just miss tying record low

Rates for well-qualified borrowers using the Credible marketplace to refinance student loans into 10-year fixed-rate loans fell just shy of record lows during the week of April 19, 2021 .

Innovation and collaboration: Tech sprints support improvements in consumer notifications and data collection and processing

Today, I’m excited to share the team presentations from the Bureau’s first two tech sprints. Our tech sprint program emphasizes a “technology first” approach that asks, across a range of challenges, what role advanced technology can play to strengthen compliance, encourage innovation, drive down cost and burden, and promote transparency.

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