The government watchdog said most of the bureau enforcement attorneys and examiners it interviewed did not recall the director’s office or SEFL leadership communicating clear goals for the reorganization after its announcement or during the implementation.
The bureau said it no longer finds “persuasive” the previous CFPB leadership’s belief that Congress had not granted the agency examination authority under the Military Lending Act.
New delinquencies on auto loans and credit cards have risen somewhat since July 2020, but are still below pre-pandemic levels, the CFPB said in a new report.
While Black and Hispanic first-lien borrowers had denial rates of 17.2% and 11.2%, respectively, the rate for non-Hispanic whites and Asians came in at 6.1% and 9.1%, respectively.
In testimony before lawmakers, executives of the big three credit reporting agencies said borrowers’ heightened concern over their financial obligations during the pandemic is to blame for the rise in grievances.
One industry analyst sounded a note of caution. Jaret Seiberg of Cowen believes the CFPB will investigate whether minority borrowers have been offered forbearance at the same rate as white consumers.
Roughly 150 new cases have been filed under the FDCPA since a three-judge panel of the 11th Circuit Court of Appeals found that debt collectors’ use of letter vendors violates the law.
The bureau has filed an amicus brief in support of a HELOC borrower’s claim that the Truth in Lending Act’s arbitration restriction applies not only to the mortgage documents but related agreements as well.
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