Numerous current and former heavily indebted student borrowers who attended schools previously owned by Corinthian Colleges will see the outstanding amount they owe reduced by 40 percent, under the terms of a deal struck by the CFPB, the Department of Education and ECMC Group, the new owner of a number of the schools. The total debt relief amounts to $480 million. Back in September, the CFPB sued Corinthian Colleges Inc. for allegedly luring tens of thousands of students to take out private loans, known as “Genesis loans,” to cover expensive tuition costs by advertising bogus job prospects and career services. The bureau also alleged that Corinthian used illegal debt collection tactics to strong-arm students into paying back those loans while ...
Last week, the CFPB ordered Continental Finance Company, LLC, a subprime credit card originator, marketer and servicer based in Newark, DE, to refund approximately $2.7 million to consumers who were charged allegedly illegal fees. The bureau also imposed a $250,000 civil penalty on Continental. The CFPB alleged that Continental “engaged in deceptive acts or practices by making false statements regarding certain fees charged consumers in connection with credit cards,” and by “representing, expressly or impliedly, that certain security deposits consumers provided for certain credit cards” would be insured by the Federal Deposit Insurance Corp. The company also violated the Truth in Lending Act and its implementing Regulation Z by requiring some consumers to pay fees exceeding the 25 percent limit ...
The CFPB recently warned financial institutions under its supervisory authority not to hide behind third-party non-disclosure agreements (NDAs) as a way of blocking the bureau’s access to all the supervisory information it needs from those under its charge. “The CFPB is aware that some supervised financial institutions may have entered into non-disclosure agreements that purport to restrict the institution from sharing information with a regulator, or to require the institution to notify a third party when it shares information,” the agency said. However, NDAs “neither alter the legal restrictions on the disclosure of confidential supervisory information (CSI) nor impact the CFPB’s authority to obtain information from covered persons and service providers in the exercise of its supervisory authority.”Further, a ...
The CFPB excited many in the mortgage industry with some noteworthy proposed changes to its ability-to-repay rule, particularly a broad exemption for portfolio loans held by small lenders. But it’s not chiseled in stone yet – the bureau wants industry and other public comment on a host of issues associated with the revisions it contemplates. For instance, the bureau wants all of the changes in its proposal to take effect on Jan. 1, 2016. The date would be consistent with the end of the calendar year determinations that have to be made regarding the special provisions and exemptions that apply to small creditors under the CFPB’s regulations, and would therefore facilitate compliance by creditors. “The bureau seeks comment on whether the ...
Some factions of the industry have expressed a concern about the “liquidity language” in the FHFA proposal, but that’s not a concern for Pingora's Lau.
Another manager noted that, “It’s been very intense recruiting in the markets that have shown the most growth: Texas, California, Florida and the DC [Washington] area.”
But that reticence could be slipping. As the week opened, the yield on the benchmark 10-year Treasury was at 1.94 percent, the highest it has been in several weeks.
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