The CFPB has released a report on consumer experience with the three largest nationwide credit reporting companies – Equifax, Experian and TransUnion – finding, among other things, that credit card history dominates the information in consumer reports and that debt collection items generate the highest rate of disputes. Each of these firms have in excess of 200 million files on consumers. In a typical month, they receive updates from approximately 10,000 information “furnishers.” The furnishers do this on more than...
The CFPB has a pretty full plate digesting hundreds of comments related to its mortgage servicing proposed rule, making it difficult to predict how the final product might end up as it presses to balance the industry’s legitimate concerns with the regulatory mandates of the Dodd-Frank Wall Street Reform and Consumer Protection Act. During a recent webinar sponsored by Inside Mortgage Finance, an affiliated publication, Mitchell Hochberg, counsel in the division of research, markets and regulations at the CFPB...
There was a pronounced difference of opinion between a leading industry attorney and a top official from the CFPB at a recent event over whether the bureau’s proposed mortgage servicing standards create a private right of action that could bring any foreclosure proceeding to a grinding halt. During a webinar sponsored by Inside Mortgage Finance, Larry Platt, financial services practice area leader with the law firm of K&L Gates, said, “The consequence of these regulations is to create a federal cause of action that...
The FHA this week announced additional measures to restore the financial health of its insurance fund and better protect consumers, including tighter underwriting on new FHA loans and elimination of a widely used standard fixed-rate reverse mortgage product. Acting FHA Commissioner Carol Galante unveiled the latest structural reforms in a Dec. 18 letter to Sen. Bob Corker, R-TN, who has repeatedly expressed concerns over the slow pace of reforms at FHA. The reforms address issues the senator raised with Department of Housing and Urban Development Secretary Shaun Donovan at a Dec. 6 Senate Banking, Housing and Urban Affairs Committee hearing on ...
The U.S. Senate has unanimously passed legislation guaranteeing that privileged information provided to the CFPB will remain confidential, ending months of lender uncertainty about the disclosure of privileged and confidential information to the powerful new bureau. H.R. 4014, introduced in March by Rep. Bill Huizenga, R-MI, adds the CFPB to the list of federal agencies that are permitted to share the privileged information of a regulated entity with other federal agencies without waiving any state...
The CFPB announced it will provide state banking and financial services regulators with real-time access to the database it uses to collect complaints consumers have with credit cards, mortgages, student loans, checking and savings accounts, credit reporting, bank services and other consumer loans. gThis way, multiple government agencies can work on the consumerfs behalf without them having to file complaints with multiple agencies at different levels of government,h said Scott Pluta, assistant director for the...
A Senate vote on FHA reform legislation appears unlikely unless Senate Majority Leader Harry Reid, D-NV, and Senate Banking Committee Chairman Tim Johnson, D-SD, find a way to persuade Republican lawmakers to sign off on a House-approved bill before the end of the year, industry sources say. Senate Republicans are poring over the bill, H.R. 4264, the FHA Emergency Fiscal Solvency Act of 2012, which the House passed overwhelmingly 402-7. It is unclear how much Republican support the bill would have if – and when – it is taken to the Senate floor, said one trade group executive. The bill would strengthen the ...
House Oversight and Government Reform Committee Chairman Darrell Issa, R-CA, and Financial Services Subcommittee Chairman Patrick McHenry, R-NC, released a harshly critical report of the CFPB, asserting the bureau’s structure and mandate will dry up credit for large swaths of the American people. “At a time of prolonged economic strain, American consumers can ill-afford such an unaccountable, unresponsive and all-powerful financial regulator,” the report began. The document also cited a Federal Deposit...
The CFPB was able to convince judges in California to put a stop to two alleged mortgage loan modification scams it believes ripped off thousands of struggling homeowners across the country, accusing scammers of taking in more than $10 million by charging consumers for services that falsely promised to prevent foreclosures or renegotiate troubled mortgages. At the request of the CFPB, U.S. District Court judges in California ordered a halt to the operations of the Gordon law firm and the National Legal Help Center...
Those fee disclosure stickers seen at automated teller machines across the U.S. as per the Electronic Fund Transfer Act are slated to become a thing of the past, after a vote by the Senate cleared the way for the CFPB to eliminate the requirement. The Senate recently followed up on action by the House of Representatives and approved H.R. 4367, legislation that amends the EFTA to eliminate the law’s requirement that a fee disclosure be placed in a prominent and conspicuous location on or at an ATM. Critics say the ...
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