A federal judge in Ohio recently sided with a law firm in a debt collection enforcement action taken by the CFPB. Industry attorneys said the ruling calls into question whether the bureau should bring future actions against such firms. The CFPB filed a lawsuit in April 2017 against the debt collection law firm Weltman, Weinberg & Reis for falsely representing in collection letters sent to consumers that attorneys were involved in collecting the debt. In most cases ...
A progressive group recently filed a lawsuit against the CFPB and the Office of Management and Budget for allegedly failing to provide records on Kathy Kraninger, President Trump’s nominee to become the next director of the CFPB. Allied Progress, a consumer watchdog, said in the lawsuit that it is suing to compel the agencies to respond to Freedom of Information Act requests for records associated with Kraninger. The lawsuit was filed in the U.S. District Court ...
Mortgage lenders want the CFPB to exempt single-family residential construction loans from the Real Estate Settlement Procedures Act / Truth in Lending Act Integrated Disclosure Rule. The TRID rule implemented by former Director Richard Cordray expressly applies to most construction loans that are secured, closed-end consumer credit transactions. Such loans are subject to the same extensive cost and term TRID disclosures as permanent purchase ...
Two public interest groups recently asked the CFPB’s inspector general to open an investigation into Acting Director Mick Mulvaney’s relationship with the payday lending industry. Americans for Financial Reform and Change to Win requested the IG, Mark Bialek, investigate whether Mulvaney has violated ethics regulations governing the conduct of executive branch employees by giving preferential treatment to the payday lending industry. Americans for Financial Reform ...
The Federal Reserve Board recently reminded banks that redlining remains a compliance concern for the central bank. Redlining is a form of illegal discrimination in which a financial services institution provides unequal access to credit in certain markets based on the race, color or national origin of its residents. The CFPB in the past has brought several public enforcement actions for redlining. The Fed released its Consumer Compliance Supervision Bulletin ...
The CFPB recently announced plans to create a “regulatory sandbox” to encourage consumer-friendly innovation in financial services. The mortgage industry sees it as an opportunity to enhance the emerging niche of loans that fall outside the qualified mortgage standard. “I’m optimistic,” said Justin Wiseman, an associate vice president at the Mortgage Bankers Association. “I think [the plan is] broadly beneficial across the mortgage market … one area that might ...
House Bill Would Strengthen Online Credit Card Disclosures. Rep. David Price, D-NC, recently introduced the Online Credit Card Disclosure Act, legislation which would require credit card companies to inform consumers about the risks associated with minimum debt payments by regularly publishing clear, personalized pay-down disclosures online, including websites and mobile apps. “As more and more Americans handle their financial affairs [Includes three briefs] ...
The prepayment rates for ABS backed by Property Assessed Clean Energy programs are on the rise which can have mixed effects on the notes, warned Morningstar Credit Ratings in a new report. The monthly annualized conditional prepayment rates averages for residential PACE ABS rated by Morningstar have been increasing from “single digits to high teens” since 2016, said the credit rating service. “Investors should pay attention to prepayment rates because they can have ...
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