Consumer complaints across all categories sharply increased from the third to the fourth quarter of 2020. On an annual basis, gripes jumped 47.3%. Credit reports drew the most grievances while mortgage-related issues saw a relatively modest increase. (Includes data chart.)
The Ninth Circuit Court of Appeals ruled in favor of the CFPB, concluding that the 2017 civil investigative demand issued to Seila Law was validly ratified by Director Kathy Kraninger in July 2020.
The Hartford, CT-based firm is accused of using unlicensed employees to engage in mortgage origination activities in violation of the Truth in Lending Act. The bureau is seeking injunctions against the defendants, as well as damages, redress and penalties.
Criticism continues to mount on the Conference of State Bank Supervisors’ proposed prudential standards for nonbank servicers. The Community Home Lenders Association urged that smaller servicers be exempted from the rules.
In anticipation of a resolution, Ocwen Financial increased its legal and regulatory accrual related to the CFPB matter by $13.1 million in the fourth quarter of 2020.
The CFPB issues new guidance on serving consumers with limited English proficiency; the filing period for Home Mortgage Disclosure Act data collected in 2020 opened Jan. 1; the latest pandemic-related stimulus package pro-vides $25 billion for emergency rental assistance and extends the national eviction moratorium until Jan. 31.
One of the biggest issues mortgage lenders will face is implementing changes to the general qualified-mortgage rule, which has a mandatory compliance date of July 2021.
After dropping sharply in March, new mortgage applications spiked while other consumer credits struggled to find their footing, according to new research from the CFPB.
The Mortgage Bankers Association has drafted a model bill for state regulators to provide regulatory flexibility allowing mortgage loan originators to work from home, with prescribed regulator standards for consumer and data protection.
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