Federal and state financial regulators will adopt a flexible supervisory and enforcement approach regarding certain communication requirements under mortgage servicing rules during the pandemic period.
Overall consumer complaints filed with the CFPB increased in 2019, driven by a double-digit jump in gripes regarding credit reporting. However, mortgage-related criticisms continued to decline.
Democratic senators criticized the CFPB’s response to the economic pain caused by COVID-19 as “tepid and inefficient.” Meanwhile, the bureau’s former director, Richard Cordray, outlined his suggestions.
The CFPB and other federal financial regulators last week reminded servicers and lenders of consumer protection requirements in updated guidance on loan modifications, while giving broad discretion to implement prudent modification programs.
The Comptroller of the Currency is moving forward with its plan to modernize the Community Reinvestment Act despite calls for a delay due to the coronavirus.
CFPB examiners continue to work from home; enforcement action against a short-term lender; FTC’s suggestions on the use of artificial intelligence and algorithms.
One of the goals: to assist nonbanks so they are not declared in technical default, an event that would trigger financing covenants they have with their warehouse lenders.
Scott Olson, executive director of the Community Home Lenders Association: "This is a period of deep uncertainty for IMBs. Those that service [loans] are getting hit with huge unexpected liquidity demands regarding advances."
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