Federal and state financial regulators will adopt a flexible supervisory and enforcement approach regarding certain communication requirements under mortgage servicing rules during the pandemic period.
Democratic senators criticized the CFPB’s response to the economic pain caused by COVID-19 as “tepid and inefficient.” Meanwhile, the bureau’s former director, Richard Cordray, outlined his suggestions.
The CFPB and other federal financial regulators last week reminded servicers and lenders of consumer protection requirements in updated guidance on loan modifications, while giving broad discretion to implement prudent modification programs.
CFPB examiners continue to work from home; enforcement action against a short-term lender; FTC’s suggestions on the use of artificial intelligence and algorithms.
The CFPB has eased reporting of quarterly HMDA data. Nevertheless, the bureau is continuing with its supervisory activities and other essential functions.
The CFPB, along with other federal and state regulators, will not criticize financial institutions for certain loan modifications offered to borrowers facing coronavirus-related economic hardships.
The Supreme Court justices hearing oral arguments in the CFPB constitutionality case appeared divided, which means any sweeping change to the consumer watchdog is unlikely, according to industry attorneys.
Senate Democrats during a hearing last week questioned CFPB Director Kathy Kraninger on the bureau’s plans to help out borrowers impacted by the coronavirus.
Low staff levels make it difficult for the CFPB to conduct follow-up monitoring of previous enforcement actions, according to the bureau’s Office of Inspector General.
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