In case you were unaware, Joe Garrett has never been a big fan of the CFPB, but unlike some advisors, he is willing to state his feelings on-the-record…
The House Financial Services Committee held an oversight hearing last week on the Financial Stability Oversight Council, of which the CFPB is a voting member. In response to a softball question tossed in his direction by Rep. Nydia Velázquez, D-NY, CFPB Director Richard Cordray took advantage of the opportunity to tout the work the bureau does and its relation to addressing systemic risk in the U.S. economy. Velázquez stated: “The CFPB’s core mission is consumer protection, which may not seem linked to systemic risk. However, I don’t think that’s the case. Can you elaborate on what role consumer financial protection plays in the stability in the economy and how your agency’s work helps inform FSOC?” Cordray replied: “It’s worthy of ...
The ability of mortgage servicers to call struggling borrowers and help them resolve their problems is being compromised by an order from the Federal Communications Commission and needs to be overturned, a trio of industry groups argued in a recently submitted legal brief. The FCC’s order, released June 18, 2015, aims to bolster consumer protections against unwanted telephone calls and texts by, in part, restricting the ability of mortgage servicers, debt collectors and others to make autodialed or prerecorded phone calls without prior express consent of the person called. Violators can be subject to fines of $500 per phone call. A challenge to the FCC’s order is being led by ACA International before the U.S. Court of Appeals for the ...
The more consumers complain to the CFPB about their financial services providers, the more likely those providers are to be fined, and the higher those fines are likely to be, new research suggests. For instance, lenders and other financial services providers face a 58 percent chance of being fined when complaints to the CFPB breach the 2,000 threshold for a company, according to an analysis by PerformLine, a “software-as-a-service” marketing compliance company based in Morristown, NJ. Among the other key findings were a 34 percent increase in the number of consumer complaints year-over-year since 2012, and average fines ranging from $134 million (for companies that received 2,000-10,000 complaints) to $758 million (for companies with 10,000+ complaints). Sliced another way, the ...
Some 66.5 percent of the loans to be included in the MBS are purchase mortgages. The mortgages have seasoned for four months, on average and none were delinquent at the time the deal was priced.
RSS