Last week, the CFPB released a report entitled, “The Next Front? Student Loan Servicing and the Cost to Our Men and Women in Uniform,” outlining the unique servicing obstacles reported by U.S. military service members seeking to pay off student loan debt. “Since I began this job almost two years ago, I’ve visited over 40 different military installations – talking to senior leaders, military service providers and thousands of service members and spouses,” said Holly Petraeus, head of the bureau’s Office...
The CFPB announced last week that it is now accepting consumer complaints about credit reporting agencies, another indication that the bureau is aggressively expanding its efforts to protect consumers throughout the financial services sector. “Credit reporting touches the financial lives of nearly each and every American,” said Scott Pluta, head of the bureau’s Office of Consumer Response. “Credit reports affect whether or not you are able to get a credit card, a home loan, an auto loan, or a student loan...
Last week, the CFPB issued its final rule for overseeing debt collectors – which will allow the agency to supervise the larger consumer debt collectors – and included attorneys among those who are going to be subject to direct federal supervision for the first time. That leaves some observers wondering if enforcement actions will be next. Also, with this expansion of the supervision program to oversee nonbanks that are larger participants in the consumer debt collection market, the bureau is now going to be able to...
The CFPB recently put out its small business compliance guide for the bureaufs international electronic money transfers rule (also known as the remittance rule), which will take effect Feb. 7, 2013. The publication summarizes the remittance rule, and includes information to assist a business in determining whether it will be subject to the rule, along with details on the rulefs requirements. The guide is not a substitute for the rule, but it highlights issues that businesses, in particular small businesses and those that...
Representatives of Fannie Mae, Freddie Mac, the Federal Housing Finance Agency and the CFPB had a meeting late last month to discuss the bureau’s integrated mortgage disclosure rule proposal. The two government-sponsored enterprises told the CFPB they have learned a great deal about data standardization and the electronic capture of data in the course of the three years they have been working on the Uniform Mortgage Data Program, according to a document filed with the bureau. The GSEs “are interested in providing this...
More Talk Heard About Changing Dodd-Frank. Senate Banking, Housing and Urban Affairs Committee member Mark Warner, D]VA, recently told the Bipartisan Policy Center that he has hope the 113th Congress will be able to put together a technical corrections bill to the Dodd-Frank Wall Street Reform and Consumer Protection Act. gCongress never gets it right, when youfre looking at massive reform legislation the first time through,h Warner said. gYou directionally head in an area and then you come back two years, three years...
Republicans in the House will approve a package of legislation to reform the government-sponsored enterprises next year, according to the chief of staff for Rep. David Schweikert, R-AZ. The Arizona lawmaker is also working on a bipartisan bill to establish a framework for the non-agency mortgage-backed security market. Speaking at the ABS East conference sponsored by Information Management Network this week in Miami, Matthew Tully, chief of staff for Schweikert, said GSE reform is a top agenda item for House ...
With the help of consumer advocates, five borrowers filed a class-action lawsuit last week against Morgan Stanley alleging racial discrimination tied to the issuance of subprime mortgage-backed securities. The case appears to be the first to connect securitization and racial discrimination and the first class-action by borrowers against an investment bank. “It literally is the first case of Main Street holding Wall Street accountable for the abuses that happened and the aftermath in the Great Recession,” ...
The federal government this week filed a lawsuit against Bank of America regarding stated income mortgages originated by Countrywide Financial’s former subprime unit and sold to the government-sponsored enterprises in 2007 through 2009. The lawsuit is the first of its kind, though some legal analysts question the strength of the claims. U.S. v. BofA was filed by the U.S. Attorney for the Southern District of New York, the Inspector General of the Federal Housing Finance Agency and the Special Inspector General ...
Morgan Keegan and Regions Financial reached a $68.0 million settlement this month with mutual fund investors relating to a lawsuit alleging breaches of fiduciary duty in connection with their alleged mismanagement of the funds and their assets. The companies were accused of fraudulently overstating the values of non-agency mortgage-backed security investments and reporting false net asset values per share, resulting in significant losses to investors in four closed-end mutual funds ... [Includes three briefs]
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