A quick check of rates this morning found that firms such as Sebonic and Aurora Financial were offering 30-year fixed-rate loans at 3.75 percent with no points.
The Federal Financial Institutions Examination Council should institute an official transition period to provide lenders greater clarity and certainty in anticipation of the CFPB’s new TILA/RESPA integrated disclosure rule (TRID) slated to take effect Oct. 3, the American Bankers Association said in a letter to the financial regulatory group. The CFPB is one of the regulatory bodies that comprise the FFIEC. “We request that the FFIEC – on behalf of all banking regulators – formally establish a transition period and clarify how regulators will oversee and examine regulated institutions for TRID compliance during this time,” the ABA said in a recent letter to the council. “In so doing, the FFIEC would provide needed certainty to the credit markets and encourage lenders to ...
The CFPB, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency brought a combined $37.3 million enforcement action against Citizens Bank earlier this month for allegedly failing to credit consumers the full amounts of their deposited funds. The regulatory agencies accused the bank of keeping money from deposit discrepancies when receipts did not match actual money transferred. “Citizens Bank regularly denied customers the full credits of their deposits when there were discrepancies between deposit slips and the actual money transferred into the bank,” said CFPB Director Richard Cordray. “The bank chose to ignore these discrepancies and harmed many consumers by pocketing the difference.” The CFPB said its investigation found that from January 1, 2008, to ...
In another example of joint agency enforcement and jurisdictional cooperation, the CFPB and the New York Department of Financial Services filed a lawsuit in federal court last week against Pension Funding LLC and Pension Income LLC, and three of the companies’ managers over allegations they deceived consumers about the costs and risks of their pension advance loans. From 2011 until about December 2014, Pension Funding and Pension Income, two California-based companies, offered consumers lump-sum cash advances for agreeing to redirect all or part of their pension payments over a period of eight years, according to CFPB and the NYDFS. More specifically, the joint complaint alleges that the companies and individual defendants Steven Covey, Edwin Lichtig and Rex Hofelter represented to ...
The CFPB last week ordered Springstone Financial LLC of Westborough, MA – now known as Lending Club Patient Solutions – to provide $700,000 in relief to roughly 3,200 victims of allegedly deceptive credit enrollment tactics. The bureau said the business practices at issue took place mostly before the company’s acquisition by LendingClub Corp., a $140 million transaction that took place back in April 2014 with financing provided from funds and accounts handled by T. Rowe Price Group Inc., Wellington Management Company LLP, BlackRock Inc. and Sands Capital, according to Bloomberg News. According to the CFPB, a number of consumers who signed up for Springstone’s deferred-interest loan product at dental offices to finance dental work were led to believe that the product was ...
The CFPB has denied a recent petition from Selling Source, LLC, a lead-generation company in Las Vegas, and Tim Madsen, a company employee and recipient of a civil investigative demand from the bureau, to modify or set aside the action. “Petitioners raise a number of objections to the CID, none of which warrants setting aside or modifying the CID,” said the bureau. First, the petitioners contend that the CID’s notification of purpose is too vague and thus fails to comply with legal and regulatory requirements, according to the CFPB’s decision. The bureau said the related statute and regulation do not require a detailed narrative and that it may draw the boundaries of its investigation quite generally. Second, the petitioners contend ...
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