California may move to regulate booming debt settlement industry

A bill aims to create new rules for California’s mostly unregulated debt settlement industry. AB 1405, expected to pass through Senate committees, comes at a time when the industry expects to see a 75% increase in account enrollment.

Alert: Biden Signs Law Overturning True Lender Rule

On June 30, 2021, President Joe Biden signed a joint resolution to revoke the Office of the Comptroller of the Currency’s (OCC) “true lender” rule (the “Rule”). Passed in October 2020, the Rule clarified that a national bank was the true lender of a loan if it was the named lender on the loan agreement or funded the loan. Under the Trump administration, the OCC said the Rule would provide regulatory clarity for banks, borrowers and other stakeholders to identify the lender in a transaction.

Most student loan borrowers aren’t ready to resume payments, survey finds – here’s what you can do

Federal student loans are in forbearance until Sept. 30, 2021, and unless President Joe Biden's administration takes further action, millions of borrowers will need to resume making payments on Oct. 1. But the vast majority of college graduates aren't prepared for federal student loan payments to resume, according to a survey of more than 23,000 student loan borrowers conducted by Student Debt Crisis, an advocacy group.

LexisNexis Risk Solutions Wins Seven Categories at the 2021 Cyber Defense Global InfoSec Awards

ATLANTA, July 7, 2021 /PRNewswire/ -- LexisNexis® Risk Solutions won seven awards at the ninth annual Cyber Defense Global Infosec Awards, an independent awards competition administered by the Cyber Defense Media Group as part of its Cyber Defense Awards Platform. The judging panel consisted of CISSP, FMDHS, CEH, certified security professionals who vote based on their independent reviews of the products and services submitted for contention.

Home loan amounts for purchases rising as mortgage applications fall

The average loan amount for buying a home in the U.S. continued to climb this week while loan applications across the board continued to drop, as low inventory in the market pushes the cost of purchasing to greater heights. "Swift home-price growth across much of the country, driven by insufficient housing supply, is weighing on the purchase market and is pushing average loan amounts higher," Joel Kan, the Mortgage Brokers Association Associate vice president of Economic and Industry Forecasting, said in the MBS' latest report on its weekly mortgage survey.

Fireworks On The Horizon For Post-PPP Alt-Lending

With the Paycheck Protection Program (PPP) and other government aid initiatives ending, small businesses need to turn to new sources of capital. According to some industry players, the moment could be ripe for an alternative lending comeback. “PPP has come to an end and is starting to wear off in terms of its impact,” explained Sam Graziano, CEO of Linear Financial Technologies, in a conversation with PYMNTS last month. “As confidence in the small business base comes back, you’re going to see a lot more investment, and therefore a need for capital in the space.”

Fixed-rate student loan refinancing rates tick up, still hover near yearly lows

Rates for well-qualified borrowers using the Credible marketplace to refinance student loans into 10-year fixed-rate loans crept up slightly during the week of June 28, 2021. Still, 10-year rates remain a bargain compared to earlier this year, when rates averaged 3.83%

Fla. Supreme Court Holds Note Prevails Over Mortgage in Event of Conflict

The Supreme Court of Florida recently held that a mortgage and note must be read together, and in the event of a conflict, the note prevails, quashing the decision of the Third District Court of Appeal because it conflicted with the Court’s established precedent.

Should you buy now and pay later?

If you’ve shopped online recently, you may have noticed new payment options at checkout, including buy-now-pay-later (BNPL) credit, for purchases like clothing, electronics, furniture, and exercise equipment. BNPL is a type of deferred payment option that generally allows you to purchase items with little to no money paid up front, followed by installment payments. Its use has spiked during the COVID-19 pandemic. According to a recent survey, 42% of American consumers have used BNPL at least once.

Texas Legislature Passes Remote Work Law for Office of Consumer Credit Licensees

Texas Gov. Greg Abbott signed a new law (H.B. 3510) that will allow remote work for employees of entities licensed by the Texas Finance Commission.

Meet Connecticut’s New Cybersecurity Law

Like many state data security laws, the Cybersecurity Standards Act requires a cybersecurity program with “reasonable” controls.  But, rather than define what is reasonable by reference to certain enumerated requirements (like the laws in neighboring states Massachusetts and New York), the Cybersecurity Standards Act includes more general requirements and what is reasonable cybersecurity is established by way of a safe harbor. Specifically, the Cybersecurity Standards Act makes available an affirmative defense to a tort claim that a business’ failure to “implement reasonable cybersecurity controls” results in a data breach.

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.

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.

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.

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.

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.

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