U.S. government fails to collect over $1 billion in debt from nearly 1,300 colleges, report says

The Department of Education has failed to collect more than $1 billion in debt from nearly 1,300 colleges, most of which are for-profit, according to a report released Thursday by a nonprofit student advocacy group. These institutions owe money to the department as of February, according to the National Student Legal Defense Network’s report, which cites documents obtained over the past two years through Freedom of Information Act requests.

Shelling it Out– New Ruling Shows CIPA Cases Can Be Even More Dangerous than TCPA

Quick one for you TCPAWorld. In Collins v. Enver Solar, SACV19-00146-JLS-KES, 2021 U.S. Dist. LEXIS 115616 (C.D. Cal. May 26, 2021) we get a peek at how dangerous claims under California’s famous Invasion of Privacy Act (CIPA) can be.

9 in 10 student loan borrowers aren’t ready to begin payments again, survey finds

The vast majority of nearly 24,000 student loan borrowers surveyed recently said they are unprepared for the pandemic payment pause ending after September. The sampling, conducted between June 17 and June 22 through a 46-question survey distributed via email to a group of followers of advocacy group Student Debt Crisis, found that 9 in 10 respondents across all 50 states were not ready to resume making payments in October.

CDC Director Extends the Eviction Moratorium for 30 days

CDC Director Dr. Rochelle Walensky has signed an extension to the eviction moratorium further preventing the eviction of tenants who are unable to make rental payments. The moratorium that was scheduled to expire on June 30, 2021 is now extended through July 31, 2021 and this is intended to be the final extension of the moratorium.

Ripple Effects of Supreme Court’s TCPA Decision Still Developing for Companies Using Auto-Dialers

If you work in the Telephone Consumer Protection Act (TCPA) space, you are certainly aware of the landmark unanimous decision by the United States Supreme Court in Facebook v Duguid[1], in which the Court narrowed the definition of an automatic telephone dialing system (ATDS) to equipment that has the capacity to either store or produce numbers using a random or sequential number generator.

U.S. House targets ‘predatory lenders’, votes to repeal Trump banking rule

WASHINGTON (Reuters) - The U.S. House of Representatives voted Thursday to repeal a contentious banking rule introduced during former President Donald Trump's administration that Democrats say allows predatory lenders to skirt state consumer protections.

Agricultural Lending: By the Numbers

Agricultural production loan demand declined 6.7% due to rising costs, supply and production bottlenecks, price volatility and an increase in federal cash payments, the report found. Government payments also enabled producers to pay down existing loan balances, according to the report.

Student loan rates set new record lows – how to know if you should refinance

If you've been considering refinancing your private student loans, there's never been a better time to do so. Student loan refinancing rates set a new record low for the week of June 14, based on an analysis of borrowers with credit scores of 720 or higher who refinanced their student loans on Credible's online marketplace.

FTC Sends Refunds to People who Lost Money to Student Loan, Mortgage Debt Relief Scheme

The Federal Trade Commission is sending refunds totaling more than $223,000 to people who lost money to a student loan and mortgage debt relief operation.

New data show improving yet sustained housing insecurity risks

In March 2021, we released an initial report on the effects of the COVID-19 pandemic on housing insecurity We continue to monitor the market to assess new and developing risks to consumers, and we share updated charts from the report below that show an improving economic picture, yet sustained housing insecurity risks.

Majority of Consumers in Accommodation Programs Continued to Make Payments

Enrollment in financial hardship programs grew significantly as a result of the COVID-19 pandemic – to approximately 7% of all accounts for credit products such as auto loans and mortgages. However, a new TransUnion (NYSE: TRU) study found that the majority of consumers continued to make payments on their accounts even when in an accommodation program.

Medical Debt Collection Bill Takes Effect July 1 in Nevada

Less than a month after it was signed by Nevada Gov. Steve Sisolak, the state’s new medical debt bill will take effect on July 1.

What CFPB Data Sharing Rule Would Mean For Financial Institutions

It seems simple: People want access to all their financial data from their banks and credit unions and want to be able to share that information with third parties. It's not that easy – financial institutions argue it could be a major security concern. Yet, the CFPB may impose a long-delayed rule which would make it easier for people to share their financial data. If it stalls again, private-sector initiatives are gaining speed.

Supreme Court: Mortgage overseer structure unconstitutional

WASHINGTON (AP) — The Supreme Court on Wednesday gave the president greater power to fire the head of the agency that oversees mortgage giants Fannie Mae and Freddie Mac, ruling that the agency’s structure violates separation of powers principles in the Constitution.

Thirty-five percent of students who are in debt have stopped repaying their loans

In response to the pandemic, 35 percent of students who are in debt have stopped repaying their loans. In January 2021, President Biden used an executive order to extend the federal student payment freeze for eight more months, giving students more time to resume their payment at least by September. However, with talks of student loan debt possibly being forgiven as much as $50,000 some time in the timeline, it has altered the spending habits of students now reliant on uncertain premises, College Finance reported.

U.S. judge blocks $4 billion debt relief program for minority farmers

June 24 (Reuters) - A U.S. federal judge on Wednesday temporarily blocked a part of the Biden administration's federal stimulus relief package that forgave agricultural debts to farmers of color.

Weekly mortgage refinance demand jumps as some fear end of super-low rates is near

Mortgage rates rose last week, along with demand for refinances. That may sound counterintuitive, but it speaks to the larger picture of where mortgage rates are heading. Applications to refinance a home loan rose 3% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 9% lower than a year earlier.

CDC Eviction Moratorium Prompting Interim Rule from CFPB Ends June 30

The Centers for Disease Control and Prevention (CDC)’s eviction moratorium , which generally prohibits landlords from evicting tenants for non-payment of rent if the tenant submits a written declaration that they are unable to afford full rental payments, ends June 30. 

Longer lifeline for struggling homeowners sought by Consumer Financial Protection Bureau

Homeowners behind on their mortgages could soon win extra time to get caught up, a federal consumer watchdog agency tells CBS MoneyWatch. An estimated 2 million homeowners are months behind on their home-loan payments due to income losses during the coronavirus pandemic. A foreclosure moratorium passed by Congress last year has kept families in their homes even though they're behind on payments. The moratorium is set to expire next week.

CFPB to Resume Examinations Under the Military Lending Act

On June 16, the CFPB issued an interpretive rule reversing its prior determination that it lacked authority to examine institutions for compliance with the Military Lending Act (MLA). In 2018, the CFPB discontinued checking for MLA compliance during supervisory examinations on the grounds that Congress had not authorized such examination authority under the Dodd-Frank Act. As a result, the new interpretive rule sets forth the statutory basis to examine institutions that it supervises for MLA compliance as follows:

New data show improving yet sustained housing insecurity risks

In March 2021, we released an initial report on the effects of the COVID-19 pandemic on housing insecurity . We continue to monitor the market to assess new and developing risks to consumers, and we share updated charts from the report below that show an improving economic picture, yet sustained housing insecurity risks.

Attorney General Bonta Pushes Back on Postmaster General DeJoy’s Flawed Postal Service Proposal

OAKLAND – California Attorney General Rob Bonta today joined a coalition of 21 attorneys general, as well as the cities of New York and San Francisco, in a comment letter condemning a proposed 10-year strategic plan put forward by Postmaster General Louis DeJoy that threatens to significantly slow the speed of mail delivered by the U.S. Postal Service (USPS) across the country, including first-class election mail. 

Utah Community Credit Union Signs on to Participate in Mobile Driver’s License Pilot

Waltham, Massachusetts; Salt Lake City, Utah --News Direct-- GET Group North America

GET Group North America and The Utah Driver License Division (DLD) jointly announced today that Utah Community Credit Union (UCCU) will be the state’s first financial institution equipped to accept mobile driver’s licenses (mDLs) as a legal form of identification for all banking transactions. UCCU is a pioneer of Utah’s recently launched mDL pilot program, providing Contactless ID banking transactions that ensure safety, security, and accuracy with a quick tap or scan – never requiring the phone to change hands.- ADVERTISEMENT -https://s.yimg.com/rq/darla/4-6-0/html/r-sf-flx.html

Regulators tell Biden US financial system in good shape-White House

WASHINGTON, June 21 (Reuters) - Financial regulators assured President Joe Biden on Monday that the U.S. financial system is in good shape and that financial risks are being mitigated by strong liquidity in the banking system, the White House said.

United States: CFPB Issues Mortgage Servicing FAQs

The CFPB recently released new FAQs regarding the Mortgage Servicing Rule and Regulation X and Regulation Z relating to escrow account guidance and analysis. Putting it Into Practice:  Some key takeaways include the following: The initial escrow statement is the first disclosure statement that the servicer delivers to the borrower concerning the borrower's escrow account. It must include: (i) the amount of the monthly mortgage payment; (ii) the portion of the monthly payment going into the escrow account; (iii) itemized anticipated disbursements to be paid from the escrow account; (iv) anticipated disbursement dates; (v) the amount the servicer elects as a cushion; and (vi) trial running balance for the account.

ABA Report: Ag Lending Remains Strong Despite Small Decrease in 2020

Agricultural lending by the nation’s farm banks dipped 1.8% to $98.6 billion in 2020 as demand for agricultural production loans declined slightly, according to the American Bankers Association’s annual Farm Bank Performance Report released today. Agricultural production loan demand declined 6.7% due to rising costs, supply and production bottlenecks, price volatility and an increase in federal cash payments, the report found. Government payments also enabled producers to pay down existing loan balances.

Here’s the average student loan debt of borrowers 35 to 49 years old

Thirty-five to 49-year-olds carry the highest amount of student loan debt. Borrowers in this age group have an average balance of $42,373.23, according to statistics from the U.S. Department of Education’s Q4 2020 data. Trailing close behind are individuals in the older 50- to 61-year-old age bracket who have an average student loan debt load of $42,290.32 per borrower. For many, these numbers may not come as much as a surprise. Parents often tack on additional student loan debt to finance their children’s college education, in addition to having to still making payments on their own student loans.

NY Fed’s Williams: Economic conditions have not progressed enough for central bank to shift stance

June 21 (Reuters) - The U.S. economy is rebounding rapidly from the crisis caused by the coronavirus pandemic, but more progress is needed before the Federal Reserve should begin to scale back some of the robust support it is providing, New York Fed president John Williams said on Monday.

Second Circuit Reverses Ruling in FDCPA Case

The U.S. Court of Appeals for the Second Circuit recently held that a debt collector’s settlement offer must indicate whether interest and fees are continuing to accrue on the outstanding debt, or alternatively, whether payment of the settlement amount by a specified date will constitute full satisfaction of the debt. The plaintiff allegedly incurred credit card debt that was placed with defendant debt collection company. The defendant mailed plaintiff a collection notice offering to settle the debt. The plaintiff sued the debt collection company by claiming that the notice violated Section 1692e of the Fair Debt Collection Practices Act (FDCPA) “by failing to disclose that interest was continuing to accrue on his balance.”

FHA Reduces Obstacles to Homeownership for Student Debt Holders

The Federal Housing Administration (FHA) has announced updates to its student loan monthly payment calculations to take steps to remove barriers and provide more access to affordable single-family FHA-insured mortgage financing for creditworthy individuals with student loan debt. The updated policy more closely aligns FHA student loan debt calculation policies with other housing agencies, helping to streamline and simplify originations for borrowers with student loan debt obligations.

Statement by CFPB Acting Director Dave Uejio on Impact of the Juneteenth National Independence Day Federal Holiday on Residential Mortgage Closings

WASHINGTON, D.C. — Today, Consumer Financial Protection Bureau (CFPB) Acting Director Dave Uejio issued the following statement: President Biden’s signing of the Juneteenth National Independence Day Act into law yesterday afternoon is a cause for celebration. Juneteenth is a moment for us to commemorate the emancipation of those enslaved. I am proud that we as a country are taking concrete steps to recognize and heal from the legacy of slavery, even as I recognize that there is much more work to do.

California Association of Collectors Submits Comments on State’s Licensing Requirements

The California Department of Financial Protection and Innovation (DFPI) is considering a proposed rule to add to the agency’s license application process and recently concluded a public comment period.

Hawaii becomes the latest state to put new restrictions on payday loan rates and repayment methods

Hawaii Governor David Ige signed a bill into law on Tuesday that will cap interest rates on payday loans at 36% within the state. 

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