The results of the 2018 midterm elections are sure to have implications for the CFPB. The questions are what and to what extent. One thing is almost for sure: the CFPB will have a new director – Kathy Kraninger – next year, because Senate Republicans netted three more seats, a comfortable 54-46 margin. “We will see a new leader at the CFPB in the next year and it will be interesting to see the interaction of that CFPB leadership with Congress ...

A federal court recently allowed asset-backed securities investors to intervene in a case brought by the CFPB against securitization trusts. Industry participants said it is an important and favorable decision for the securitization industry. Back in September 2017, the CFPB brought an enforcement action against National Collegiate Student Loan Trusts regarding certain student loan debt-collection practices. While the CFPB acknowledged that subservicers – not the trusts themselves ...

The CFPB and the Federal Housing Finance Agency last week for the first time released survey results from the National Survey of Mortgage Originations, a loan-level dataset the two agencies administer jointly. The quarterly survey queries borrowers about their experiences getting a mortgage, their perceptions of the mortgage market, and future expectations among others. The data cover closed-end first-lien residential mortgages newly reported to one of the ...

S&P Global Ratings last week urged mortgage servicers to continue to follow the best practices established after the financial crisis, even as some federal regulators are adopting less assertive regulatory approaches. “While we believe the regulatory landscape has changed and that these actions offer some promising developments for servicers, this overture could still prelude some hurdles,” an S&P report said. “Since servicers have invested considerable capital ...

Industry groups last week petitioned the CFPB to issue formal rules on the role of supervisory guidance. The Bank Policy Institute and the American Bankers Association urged the bureau to codify its recent statement clarifying the role of supervisory guidance as a formal rulemaking under the Administrative Procedure Act. The CFPB joined other federal regulators in issuing a statement clarifying that supervisory guidance does not have the force and effect of law ...

Lenders no longer need to start complying with the CFPB’s payday-lending rule on Aug. 19, 2019, a judge ruled. In an unexpected development, Judge Lee Yeakel of the U.S. District Court for the Western District of Texas Austin Division last week reversed his prior orders that denied the request to delay the compliance date of the payday rule. The case was filed by two industry groups – Community Financial Services Association of America and Consumer Service Alliance of Texas ...

A union representing CFPB employees recently asked the agency to halt the reorganization of the fair lending office, alleging the bureau did not bargain with the union in good faith. The reorganization was announced in January, but the CFPB is still negotiating the matter with the National Treasury Employees Union. The NTEU in late October filed a mass grievance against the CFPB over its handling of racially tinged blogs posted by Eric Blankenstein

The CFPB’s information security program has improved in the past year with more effective incident responses to detected cybersecurity events, according to a recent report from the bureau’s Office of Inspector General. On a scale of one to five, the CFPB’s overall information security program is operating at a level three or “consistently implemented.” Several activities are being performed at a higher level, according to the OIG. The major improvement ...

The CFPB’s recent complaint snapshot report hinted at a possible focus of the upcoming debt collection rules, said attorneys. Credit reporting, debt collection, and mortgage continued to be the three categories that drew the most consumer complaints, according to the report. Among public gripes regarding debt collection practices, some 40 percent said companies “attempt to collect debt not owed.” It is a significant trend, said attorneys, because Acting CFPB Director Mick Mulvaney ...

An Illinois-based mortgage company will pay $1.2 million in restitution to consumers after a state investigation found a company’s branch manager defrauded consumers. Diamond Residential Mortgage Corp., Lake Forest, IL, recently settled with Illinois Attorney General Lisa Madigan and the Illinois Department of Financial and Professional Regulation, resolving a mortgage fraud allegation. Diamond’s Springfield branch manager, Chris Schaller ...