On November 20, the Consumer Financial Protection Bureau proposed measures aimed at mortgage servicers. These proposed measures provide surviving family members and other homeowners with the same protections as the original borrowers. Additionally, the proposal seeks to add protections to homeowners and borrowers struggling to make payments under their mortgages. The new mortgage rules can
CFPB Publishes Compliance Bulletin and Policy Guidance for Mortgage Servicing Transfers
On October 22, the CFPB published in the Federal Register the compliance bulletin and policy guidance regarding mortgage servicing transfers that it issued on August 19, 2014 (link to full text can be found here). It states that “[t]his bulletin is effective October 23, 2014 and applicable beginning August 19, 2014.” The bulletin
FTC Stops Debt Collection Scheme that Targeted Spanish-Speaking Consumers
At the request of the Federal Trade Commission, a U.S. district court judge in Miami has temporarily shut down a fraudulent phantom debt collection operation that allegedly deceived Spanish-speaking consumers across the country.
On October 20, the FTC filed a complaint against Centro Natural Corp., Sumore LLC, and several individual defendants alleging that defendants illegally
OCC Warns on Auto Lending, HELOC, and Debt Sale Risks
On October 28, the Deputy Comptroller for Supervision of Risk Management Darrin Benhart of the Office of the Comptroller of the Currency discussed auto and home equity lending risks and consumer debt sales. A copy of his remarks, which were made before the Financial Services Collections and Credit Risk Conference, can be found here.
CFPB and FTC File Amicus Brief Urging Application of FDCPA Beyond Initial Debt Collection Notice
On August 20, the Consumer Financial Protection Bureau and the Federal Trade Commission jointly filed an amicus brief in Hernandez v. Williams, Zinman & Parham, P.C. The case concerns the interpretation and enforcement of the Fair Debt Collection Practices Act, and is currently on appeal to the U.S. Court of Appeals for the Ninth Circuit.
New York AG and FTC Allege New York Based Debt Collector Used Illegal and Fraudulent Methods to Collect Debts
The Federal Trade Commission and the New York Attorney General’s Office filed a joint complaint against a New York based debt collector that goes by several names, including National Check Registry. As a result of the complaint, the U.S. District Court for the Western District of New York froze the operation’s assets and appointed a
Cordray Testifies before Senate Committee Regarding CFPB’s Semi-Annual Report
On June 10, 2014, CFPB Director Richard Cordray appeared before the Senate Committee on Banking, Housing and Urban Affairs in conjunction with the May 2014 release of the Bureau’s fifth Semi-Annual Report. Cordray highlighted a variety of topics, including mortgages, student loans, complaint numbers, and proposed data collection efforts.
Senator Mike Crapo (R-Idaho) questioned
FTC Urges Regulation of Data Brokers
On May 27, 2014, the Federal Trade Commission issued a long-awaited report on the data broker industry. The report, titled “Data Brokers: A Call for Transparency and Accountability,” is the result of an eighteen-month study of certain data brokers that represent a cross-section of the industry.
The report encouraged Congress to step in to enact
CFPB Issues Supervisory Highlights Focusing on Nonbank Compliance Programs
On May 22, 2014, the Consumer Financial Protection Bureau issued its spring 2014 supervisory highlights report. The report zeros in on the debt collection and consumer reporting industries, highlighting numerous violations uncovered at payday lenders, debt collection firms, and consumer reporting agencies. Specifically, it appears that the CFPB’s largest concerns with these groups surrounds
CFPB Issues New (TILA-RESPA) Guidelines
The Consumer Financial Protection Bureau recently issued guidelines aimed to increase clarity regarding the Truth in Lending Act-Real Estate Settlement Procedures Act (TILA-RESPA) integrated mortgage disclosure rule. The CFPB stated that the “TILA-RESPA Integrated Disclosure Rule Small Entity Compliance Guide” makes mortgage disclosures easier for consumers to understand and use, while also helping