There are fewer structural protections in today’s speculative-grade securities backed by subprime auto loans compared to below-investment grade issuances in the 1990s, according to an S&P Global analysis of the subprime auto loan ABS sector.

Kathy Kraninger, President Trump’s nominee to be the next CFPB director, last week responded to questions sent by Democrat members of the Senate Committee on Banking, Housing, and Urban Affairs. The questions followed on the heels of a confirmation hearing earlier in July where Democrats accused the nominee of stonewalling. The Democratic lawmakers sent three lists of questions, over 10 pages, covering issues ranging from the nominee’s day-to-day job ...

The U.S. Treasury Department in a recent report urged the CFPB to rescind its payday lending rule because the states already have regulatory structures in place for the industry. “Treasury recognizes and supports the broad authority of states that have established comprehensive product restrictions and licensing requirements on nonbank short-term, small-dollar installment lenders and their products,” said the agency’s long-awaited report on fintech that was ...

Two public interest groups recently asked the CFPB’s inspector general to open an investigation into Acting Director Mick Mulvaney’s relationship with the payday lending industry. Americans for Financial Reform and Change to Win requested the IG, Mark Bialek, investigate whether Mulvaney has violated ethics regulations governing the conduct of executive branch employees by giving preferential treatment to the payday lending industry. Americans for Financial Reform ...

House Bill Would Strengthen Online Credit Card Disclosures. Rep. David Price, D-NC, recently introduced the Online Credit Card Disclosure Act, legislation which would require credit card companies to inform consumers about the risks associated with minimum debt payments by regularly publishing clear, personalized pay-down disclosures online, including websites and mobile apps. “As more and more Americans handle their financial affairs [Includes three briefs] ...

After months of gathering and reviewing comments on credit-scoring options, the Federal Housing Finance Agency abruptly called off its plan to announce new guidelines for Fannie Mae and Freddie Mac by the end of this year. The two major credit-score providers aren’t happy with the news.

During a heated hearing last week on Capitol Hill, the nominee to become the next CFPB director, Kathy Kraninger, identified some of her broad priorities for the consumer agency if she gets the job. Kraninger appeared to embrace the industry-friendly approach for the bureau that has been set by her boss at the Office of Management and Budget, Mick Mulvaney, who is also the acting director at the CFPB. Sen. Sherrod Brown, D-OH, said Kraninger showed a philosophy ...

The CFPB recently fined Kansas-based National Credit Adjusters and its former chief executive $800,000 for illegal debt collection practices. The bureau originally ordered a $6 million civil money penalty but suspended most of it based on the financial condition of NCA and its former CEO. The CFPB said in a consent order that NCA and its former CEO, Bradley Hochstein, purchased consumer debt and used a network of debt collection companies that frequently ...

CFPB Joins Task Force on Market Integrity and Consumer Fraud. The CFPB recently joined a new Task Force on Market Integrity and Consumer Fraud, created by President Trump pursuant to an executive order. The task force is led by the Department of Justice, with the participation of the CFPB, the Securities and Exchange Commission, and the Federal Trade Commission. The task force will provide guidance for the investigation and prosecution of cases [Includes four briefs] ...

The CFPB asked Citibank to pay $335 million to credit card customers who did not receive legally mandated interest rate reductions as part of a recent legal settlement, but the agency – interestingly – did not fine the bank for its misconduct. The bureau said it did not assess civil money penalties based on the fact that “Citibank self-identified and self-reported the violations to the bureau, and self-initiated remediation on affected consumers.” It’s not the first time the ...