In a joint comment letter, the Mortgage Bankers Association and the National Mortgage Servicing Association said they support the proposed rule’s objectives but many of the CFPB provisions require “several critical improvements.”
A repeal of the rule under the Congressional Review Act would be a largely symbolic gesture, with the risks for marketplace lenders remaining unchanged, according to attorneys tracking the issue.
The Comprehensive Debt Collection Improvement Act would amend several consumer finance statutes in order to enhance protections for consumers, students, servicemembers and small businesses.
Ninth Circuit refuses to rehear Seila Law case; new TRID rule guidance; U.S. Bank faces scrutiny; Wells Fargo monthly fees on CFPB radar; landlords get notices; agencies extend comment period deadline for AI; debt-settlement firm settles charges; new hire at California’s DFPI.
Lawmakers are trying to push the CFPB to reconsider the delay in the mandatory compliance date of the general qualified mortgage rule, urging the bureau instead to commit to a longer-term approach to monitoring the broader implications of lending under the rule.
Legal experts believe the CFPB’s findings are “warning shots” to servicers. That means the bureau is investigating how servicers are treating borrowers and will initiate enforcement actions if it finds issues.
Wells Fargo, the nation’s largest servicer that until recently ranked on the top of the complaint list, dropped to third position in the first quarter of 2021.
The New Jersey-based lender will pay $140,000 to settle CFPB charges that it misinformed consumers about the costs and risks involved with reverse mortgages. It marks the first significant regulatory action against a reverse mortgage firm under the Biden administration. More to come?
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