FFIEC Issues New HMDA Resubmission Guidelines

As expected, the Federal Financial Institution Examination Council (FFIEC) member agencies issued new data resubmission guidelines under the Home Mortgage Disclosure Act (HMDA) effective for the 2018 data collection year.  The change coincides with the substantial expansion of the HMDA data reporting fields that is effective January 1, 2018. View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

Director Cordray’s Op-Ed Disregards Many Inconvenient Facts

In an op-ed published in today’s New York Times, CFPB Director Richard Cordray argues against congressional repeal of the agency’s final arbitration rule by “correcting the record.”  He contends that the CFPB’s March 2015 study of consumer arbitration shows that consumers fare much better in class action litigation than in individual arbitration.    View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

D.C. Accepting Student Loan Servicer License Applications; CT Adopts Student Loan Servicing Standards

D.C. License Applications. The District of Columbia Department of Insurance, Securities and Banking recently started to accept applications and transition fillings for a Student Loan Servicer License on the National Mortgage Licensing System (NMLS). The District of Columbia’s Student Loan Act, which became effective on February 18, 2017, provides that no person or entity, unless exempt, can service a “student education loan” of a “student loan borrower” in the District, directly or indirectly, without first obtaining a license.  View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

DOJ Confirms Termination of Operation Chokepoint; OCC Welcomes DOJ Statement

In a letter dated August 16, 2017 to House Judiciary Committee Chairman Bob Goodlatte, Assistant U.S. Attorney General Stephen Boyd stated that “[a]ll of the [DOJ’s] bank investigations conducted as part of Operation Chokepoint are now over, the initiative is no longer in effect, and it will not be undertaken again.”  Acting Comptroller of the Currency Keith Noreika, in a letter sent yesterday to House Financial Services Committee Chairman Jeb Hensarling, indicated that the OCC “welcome[d] the recent clarification by the [DOJ] of its position ending Operation Chokepoint” and would “continue to articulate [the OCC’s] position rejecting the tactics and goals of Operation Chokepoint….” “Operation Chokepoint” was a federal enforcement initiative involving various agencies, including the DOJ, the FDIC, and the Fed.  View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

Minnesota AG Files Lawsuit Against Pension Advance Companies

The Minnesota Attorney General announced that she has filed a lawsuit in state court against two pension advance companies. According to the AG’s press release, the companies often solicited borrowers through their own websites or websites of “lead generators” who marketed “pension loans” or “loans that can fit your needs.”  The press release states that the transactions required military veterans and senior citizens to assign portions of their monthly pension payments for up to ten years in exchange for much smaller cash amounts (usually less than $5,000) on which the AG claimed the companies typically charged annual percentage rates of 200 percent. View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

CFPB Creates Online Form for Regulatory Questions

The CFPB has created a new online form for obtaining informal staff guidance on questions about CFPB regulations.  A link to the new form appears on the CFPB’s website on the “Compliance and guidance” page. It is unclear whether the new form is intended to replace the email address and phone number previously given by the CFPB for regulatory questions (CFPB_reginquiries@cfpb.gov; (202) 435-7700) since the website’s eRegulations page still invites questions at that email address and phone number. View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

CFPB Issues Reports On Student Loan Repayment and Repayment Assistance Programs

The CFPB has issued two new reports concerning student loans.  The first report, “CFPB Data Point: Student Loan Repayment,” examines how the payment patterns of student loan borrowers have changed over the last 14 years.  The second report, “Innovation highlights: Emerging student loan repayment assistance programs,” discusses assistance programs offered by employers and other third parties and makes recommendations to student loan companies, student loan servicers, policy makers, and third-party assistance program providers and administrators for improving the operation of such programs. View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

Five State Regulators Enter into Settlement Agreement with Debt Collectors for Alleged Federal and State Law Violations

Regulators from the states of Connecticut, Idaho, Massachusetts, Minnesota and North Dakota (“Participating States”) have entered into a settlement agreement with three affiliated debt collection companies to settle allegations that the companies engaged in collection activities that violated the Fair Debt Collection Practices Act, the FTC Act, and state laws and regulations.  View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

CFPB Warns Consumers About Debt Relief/settlement Companies; Ballard to Hold Nov. 9 Webinar

Last week, the CFPB published a blog post with tips for consumers facing a cash flow emergency. We were glad to see that the blog post included a warning to consumers about debt relief or settlement companies.  The CFPB advised consumers to beware of for-profit debt relief or settlement companies that promise to pay off consumers’ debts for “pennies on the dollar” or charge fees before settling debts, guarantee to eliminate unsecured debt, or tell consumers to stop communicating with creditors. View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

California Department of Business Oversight Wins Award for Process Improvements

On July 28, 2017, California Governor Jerry Brown’s Office of Business and Economic Development recognized the California Department of Business Oversight for a successful Lean Six Sigma project that dramatically reduced the processing time for applications to amend financial services licenses.  View Full Post
Tweet Like LinkedIn LinkedIn Google Plus