FHFA’s Plan to Prevent Discrimination in Mortgage Lending

The Federal Housing Finance Agency Thursday announced its commitment to comprehensive fair lending oversight of Fannie Mae, Freddie Mac, issuing a Policy Statement on Fair Lending. The statement details the agency’s general position on monitoring and information gathering, supervisory examinations, and
administrative enforcement related to the Equal Credit Opportunity Act, the Fair Housing Act, and the Federal Housing Enterprises Financial Safety and Soundness Act.

As Federal Eviction Protections Come to an End, CFPB Warns Landlords and Consumer Reporting Agencies to Report Rental Information Accurately

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today released an Enforcement compliance bulletin reminding landlords, consumer reporting agencies (CRAs), and others of their critical obligations to accurately report rental and eviction information. Inaccurate rental and eviction information on a tenant screening report or a credit report can unfairly block a family from safe and affordable housing. As the federal eviction moratorium and other pandemic rental protections come to an end, the CFPB wants to protect families from being denied housing on the basis of inaccurate information. The CFPB’s bulletin is part of its ongoing commitment to a fair and equitable recovery.

FCC forces phone carriers to step up anti-robocall fight: “If you lie to us, we’re going to come after you”

Wireless companies have had until the last day of June to implement call authentication technology to stop robocalls. They must tell the Federal Communications Commission whether they are complying with the agency's requirements — risking possible penalties. An estimated 4 billion robocalls rung in on people's cellphones in the month of May alone — 12 calls per person on average, according to anti-fraud app company Youmail. The deadline comes under new Acting FCC Chairwoman Jessica Rosenworcel, a lawyer who wants wireless carriers to know she's serious about cracking down.

Carr Stops Company from Exploiting Georgians

ATLANTA, GA – Attorney General Chris Carr today announced that Burlington Financial Group, LLC, Katherine Burnham, Sang Yi, and Richard Burnham (Burlington) have entered into a consent judgment with the State of Georgia and the Consumer Financial Protection Bureau (CFPB) to resolve allegations that they violated the Telemarketing Sales Rule, the Fair Business Practices Act (FBPA), and the Debt Adjustment Act in connection with the marketing, sale, and provision of debt relief and credit repair services.

Attorney General Ford Announces Reappointment of Nevada State Consumer Advocate Ernest Figueroa

Carson City, NV – Today, Nevada Attorney General Aaron D. Ford announced the reappointment of Ernest Figueroa as Nevada’s State Consumer Advocate and head of the Bureau of Consumer Protection. This is Figueroa’s second term serving as Nevada’s Consumer Advocate after being appointed in 2017.

CFPB Prioritizing Resources Against Racial Bias in Home Appraisals

As the Bureau’s Fair Lending Director, I am pleased to highlight that the CFPB has prioritized resources to focus on the role of racial bias in home appraisals, a growing topic of conversation within our communities.

Connecticut Debt Collectors Can Continue to Work From Home

Connecticut’s no-action position on remote work, enacted in March 2020, allowed individuals engaged in certain licensable activity on behalf of consumer credit licensees to work from remote office locations not licensed as branch office locations.

Complaint Bulletin: COVID-19 issues described in consumer complaints

The CFPB’s Office of Consumer Response hears directly from consumers about the challenges they face in the marketplace, brings their concerns to the attention of companies, and assists in addressing their complaints.

FHFA won’t give servicers break on CFPB rule

The Federal Housing Finance Agency (FHFA) is requiring Fannie Mae and Freddie Mac servicers to follow the Consumer Financial Protection Bureau’s (CFPB) new foreclosure rule a full month before it goes into effect. The move clarifies how servicers should approach the month-long gap between the foreclosure moratorium expiration at the end of July, and the CFPB rule, which takes effect at the end of August. Starting during that period, servicers must now adhere to the CFPB’s procedural safeguards for foreclosures.

Democrats relaunch crackdown on bank overdraft fees

New York (CNN Business)Democrats are once again taking aim at dreaded bank overdraft fees. New York Congresswoman Carolyn Maloney reintroduced legislation on Wednesday that would crack down on overdraft fees, making it illegal for banks to charge more than one fee per month. The bill, which is very similar to legislation Maloney sponsored in previous years, would also require that these fees are proportional to the amount of the overdraft and the cost to banks for providing coverage for the transaction

House Votes to Repeal OCC True Lender Rule

On June 24, the U.S. House of Representatives passed S.J. Res. 15 by a vote of 218-208 to repeal the Office of the Comptroller of the Currency’s (OCC) “True Lender” rule under the Congressional Review Act (CRA). The OCC published the rule last year to establish a “simple, bright-line test” to determine when a national bank or federal savings association is the true lender. Under the rule, a bank is the true lender and makes a loan if, as of the date of origination, it (i) is named as the lender in the loan agreement or (ii) funds the loan. Further, the final rule amended the initial proposed rule and added that if, as of the date of origination, one bank is named as the lender in the loan agreement and another bank funds that loan, the bank that is named as the lender in the loan agreement is deemed to have made the loan. The U.S. Senate passed S.J. Res. 15 last month by vote of 52-47 to invoke the CRA and provide for congressional disapproval and invalidation of the final rule. The repeal now heads to President Biden who is expected to sign it.

U.S. Data Protection Act Would Create A Federal Data Privacy Oversight Agency

U.S. Sen. Kirsten Gillibrand (D-New York) announced that she reintroduced Senate Bill 2134, the Data Protection Act of 2021. The bill creates an independent federal Data Protection Agency (DPA) to protect individuals' data, safeguard their privacy and ensure that data practices are fair and transparent.

Minnesota Bill Package Passes with ARM Industry Remote Work and Licensing Provisions

Minnesota Gov. Tim Walz signed the Commerce and Energy Omnibus bill into law on June 26, which includes several provisions that impact the accounts receivable management industry, thanks in large part to the hard work of the Great Lakes Credit and Collection Association leaders and the unit’s lobbyist, Judy Cook. The bill becomes effective Aug. 1.  

CFPB beefs up protections for struggling homeowners, but will not ban foreclosures

About 2 million homeowners are still in some type of mortgage forbearance amid the health and financial fallout brought on by the Covid-19 pandemic. While the U.S. government extended the foreclosure moratorium through July 31, the Consumer Financial Protection Bureau isn’t planning to put any further bans on foreclosures in place.

Attorney General James Calls on Congress to Protect Consumers by Providing FTC with Much-Needed Tools

NEW YORK – New York Attorney General Letitia James, today, co-led a bipartisan coalition of 28 attorneys general from around the nation in taking action to support the ability of the Federal Trade Commission (FTC) to successfully combat fraudulent and anticompetitive conduct. In a letter to congressional leaders, Attorneys General James and the coalition express their strong support for the Consumer Protection and Recovery Act (H.R. 2668), which would ensure the ability of the FTC to obtain equitable monetary relief, including restitution for consumers and disgorgement of ill-gotten gains, after a U.S. Supreme Court decision stripped the agency of its ability earlier this year. 

CFPB Supervisory Highlights

We periodically publish Supervisory Highlights to share key examination findings. These reports also communicate operational changes to our supervision program and provide a convenient and easily accessible resource for information on our recent guidance documents.

The trends of commercial credit reporting on consumer credit

Lenders of small business loans and credit products have several options for how and where they report information about the borrower and the status of the commercial credit product. While reporting, also known as furnishing, is generally provided to business credit reporting companies – including Dun & Bradstreet, Experian, Equifax, and the Small Business Financial Exchange – many small business owners may also find information on their commercial credit products on their consumer credit reports, especially when their accounts are delinquent.

CFPB Report Highlights Supervisory Findings of Wide-Ranging Violations of Law in 2020

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today issued a report highlighting legal violations identified by the Bureau’s examinations in 2020. The report also highlights prior CFPB supervisory findings that led to public enforcement actions in 2020 resulting in more than $124 million in consumer remediation and civil money penalties.

Preferred Collection and ACA Tell 11th Circuit That SCOTUS Opinion in Ramirez Supports Request for Rehearing in Hunstein

The defendant debt collection agency in Hunstein v. Preferred Collection & Mgmt. Servs. Inc. and ACA International both recently filed letters of supplemental authority with the 11th Circuit Court of Appeals under Federal Rule of Appellate Procedure 28(j).

Top Federal Reserve official ‘skeptical’ about need for US digital dollar

A top Federal Reserve official on Monday advocated against creating a digital version of the U.S. dollar, questioning the use cases and security of a Fed-issued digital currency.

FSA Changes Course on Streamlined Loan Servicing

The Office of Federal Student Aid has canceled its solicitation for vendors to run its intermediate phase of modernizing student loan servicing, according to people familiar with the matter. FSA introduced the Interim Servicing Solution, or ISS, last fall as a part of its Next Gen FSA Initiative to provide a bridge between the current student loan servicing system and a single, modernized website. Currently, there are nine different pre-default loan servicers that each operate their own website, contact center and staff training. ISS was intended to cut that down to two vendors who would take on all of the same responsibilities as the existing servicers.

Farm Debt Declines, Loan Performance Improves- Kansas City Fed

Last week, Nathan Kauffman and Ty Kreitman, of the Federal Reserve Bank of Kansas City, penned an update titled, “Farm Debt Declines Further and Credit Stress Eases,” which noted that, “Agricultural debt at commercial banks continued to decline in the first quarter of 2021 and farm loan performance improved.” The Kansas City Fed pointed out that, "The outlook for agriculture remained strong heading into the summer months. Robust demand for key farm commodities continued to support strong prices and optimism across the sector." “Increases in production costs and persistent drought in many regions lingered as concerns, however; and profitability for cattle producers remained narrow. Overall, strength in aggregate conditions and lasting support of government aid and lending programs have continued to limit increases in farm debt and ease agricultural credit stress.” More narrowly, Kaufmann and Kreitman explained that, “Farm debt at commercial banks continued to shrink in the first quarter. Non-real estate farm debt decreased by 10% from a year ago as strong profits in large segments of the agricultural sector limited producers’ needs for operating loans. Similarly, farm real estate debt declined by 3% from a year ago despite ongoing increases in the valuations of farm real estate.”

CFPB Issues Rules to Facilitate Smooth Transition as Federal Foreclosure Protections Expire

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today finalized amendments to the federal mortgage servicing regulations to reinforce the ongoing economic recovery as the federal foreclosure moratoria are phased out and which will help protect mortgage borrowers from unwelcome surprises as they exit forbearance. The amendments will support the housing market’s smooth and orderly transition to post-pandemic operation.

SCOTUS decision on FHFA’s constitutionality could provide support for validity of pre-Seila Law CFPB actions

In its decision earlier this week in Collins v. Yellin (previously captioned Collins v. Mnuchin), the U.S. Supreme Court, relying on its decision in Seila Law, held that the Federal Housing Finance Agency’s structure is unconstitutional because the Housing and Economic Recovery Act of 2008 only allows the President to remove the FHFA’s Director “for cause.”  Despite ruling that the FHFA’s structure was unconstitutional, the Supreme Court also held that the proper remedy for the constitutional violation was not to invalidate the FHFA actions challenged by the plaintiffs.

OCC Working With Tech Firms on Credit Score Alternatives

During the American Bankers Association’s Regulatory Compliance Conference this week, Grovetta Gardineer, a senior official at the OCC, said the regulator is working to find nontraditional ways to establish a good credit history for those with no credit.

Legislature looks to halt child support debt collections — only for some

California lawmakers have advanced a budget proposal to stop collecting child support debt from some parents who are receiving cash assistance, but the proposed solutions are a far cry from what advocates for those debt-holders sought in January. The Legislature’s budget proposal would reduce or expunge debt owed to the government – not the debt owed to families – for parents whose only source of income is from Supplemental Security Income or State Supplementary Payment, the Cash Assistance Program for Immigrants, a combination of SSI/SSP and Social Security Disability Insurance benefits, or Veterans Administration disability benefits. 

As foreclosure protections end, it’s time to work with your mortgage servicer

Today we finalized amendments to federal mortgage servicing rules to help ensure that mortgage servicers give homeowners a meaningful opportunity to pursue available foreclosure avoidance options while homeowners are recovering from the effects of COVID-19. Effective August 31, 2021, most mortgage servicers must tell you about your repayment or other options when they reach out to you.

Biden Selects Nominee for FHA Commissioner, Plans to Appoint Acting CFPB Director to HUD

The White House announced on Friday that President Joe Biden has selected a series of new nominees for positions within the administration, including for Assistant Secretary for Housing, Federal Housing Commissioner (FHA Commissioner) as well as the appointment of the current Acting Director of the Consumer Financial Protection Bureau (CFPB) to a position at the U.S. Department of Housing and Urban Development (HUD).

NICE TCPA WIN!: Court Holds System Not an ATDS Because It did not Call From a Random List

In Hufnus v DoNotPay, Case No. 20-cv-08701, Doc. No. __ (N.D. Cal. June 24, 2021) the Court held that a system is not an ATDS if it calls sequentially from a non-random list of numbers. And that’s a pretty nice win. But we know courts are struggling with this, so don’t get too excited just yet.

Planning to take out a federal student loan this fall? Prepare for a higher interest rate

Students planning to borrow federal student loans for the upcoming school year, take note: Interest rates for new ones will tick up a percentage point come July 1, to more than 3.7% for undergraduates. This change comes as interest rates on existing federal student loans are set at zero percent through the end of September as part of coronavirus relief.

Lina Khan Takes Charge of the Federal Trade Commission

On June 15, 2021, in a 69–28 vote, the Senate confirmed Lina Khan to fill the current vacancy at the Commissioner level of the Federal Trade Commission (“FTC”). Immediately upon her confirmation, President Biden tapped Ms. Khan for FTC Chair. Since Ms. Khan has no prior experience at the FTC and is only 32, her appointment to lead the FTC took many by surprise. Although Acting Chair Rebecca Slaughter had been thought to be a likely candidate for the position since the departure of former Chair Joseph Simons, the administration took a different path.

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.

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