Wells Fargo Bank finds itself in yet another legal quagmire, accused of illegally making “stealth modifications” to mortgage payments of borrowers in bankruptcy without their permission – a charge the bank vehemently denies. A class-action lawsuit filed recently in the U.S. Bankruptcy Court for the Western District of North Carolina alleges that Wells Fargo made unauthorized mortgage modifications that neither the bankrupt debtors, their attorneys nor the bankruptcy court requested or approved. In some cases, 30-year loans were...
In a new report mandated by the Trump administration, per Executive Order 13772, the Treasury Department slammed the CFPB on multiple counts and called for an overhaul on how the bureau is managed. The Treasury’s perspective was summed up succinctly: “The CFPB was created to pursue an important mission, but its unaccountable structure and unduly broad regulatory powers have led to regulatory abuses and excesses. The CFPB’s approach to enforcement and rulemaking has hindered consumer choice and access to credit, limited innovation, and imposed undue compliance burdens, particularly on small institutions.” The report then detailed a number of more specific criticisms, as follows. “The bureau’s structure renders it unaccountable to the American people,” it began. Also, the CFPB’s substantive authority ...
RSS