Dodd-Frank News Center

CFPB blog post discusses ways to recognize Social Security scams

This story appeared in Bank Digest.

A Consumer Financial Protection Bureau blog post discusses Social Security scams and how to recognize them. According to the author, the Social Security Administration's Office of the Inspector General is "warning the public that scammers are making phone calls and then following up with emails containing falsified documents aimed at convincing people to pay."

The post lists ways to identify that calls or emails relating to Social Security issues are scams and describes how to report these scams.

FDIC releases stress test scenarios

This story appeared in Bank Digest.

The Federal Deposit Insurance Corporation has released the hypothetical economic scenarios for use in the upcoming stress tests for covered institutions with total consolidated assets of more than $250 billion. The Dodd-Frank Act requires certain financial companies, including certain state nonmember banks and state savings associations, to conduct stress tests. In 2018, Congress increased the size of what is considered a covered institution from $10 billion to $250 billion.

CFPB blog post discusses avoiding falling behind on auto loan payments

This story appeared in Bank Digest.

A Consumer Financial Protection Burau blog post provides advice for consumers on how they can work with their lenders to avoid falling behind on their auto loan payments. According to the authors, "If you think you may fall behind on your auto loan, call your lender and explain your situation. The sooner you contact your lender, the more choices the lender may be able to offer you."

The post lists several options that may be available to consumers, such as asking to change the payment due date, requesting a payment plan, asking for a payment extension or deferral, and refinancing the auto loan.

CFPB updates 'Supervision and Examination Manual'

This story appeared in Bank Digest.  

The Consumer Financial Protection Bureau has updated its "Supervision and Examination Manual," which is the Bureau's guide for examiners to use in overseeing companies that provide consumer financial products or services.

Specifically, the Bureau updated the "Consumer reporting, larger participants" examination procedures to incorporate new Fair Credit Reporting Act obligations created under the Economic Growth, Regulatory Relief, and Consumer Protection Act and to add an examination conclusions and wrap-up module.

In addition, the Bureau updated the "Education loan" examination procedures to incorporate a change to the Fair Credit Reporting Act created under EGRRCPA.

CFPB seeks renewal of 'Financial Empowerment Training Programs' information collection

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau is requesting to renew the Office of Management and Budget approval for an existing information collection entitled "Application Forms for Financial Empowerment Training Programs." According to the CFPB's notice, the proposed information collection request consists of application forms that will be used by community-based organizations, local, state, or federal government entities, and national nonprofit organizations to indicate their desire and ability to participate in various initiatives of the Bureau's Office of Community Affairs, which is responsible for developing strategies to improve the financial capability of low-income and economically vulnerable consumers.

On Nov. 15, 2019, the CFPB issued a 60-day notice requesting comments on the proposal. Written comments on the current notice must be received by March 11, 2020, and will be reviewed by the OMB as part of its review of this request.

Fed releases hypothetical scenarios for 2020 stress tests

This story appeared in Bank Digest.

The Federal Reserve Board has released the hypothetical scenarios for its 2020 stress test exercises, which ensure that large banks have adequate capital and processes so that they can continue lending to households and businesses, even during a severe recession. The Fed's stress test framework consists of the Comprehensive Capital Analysis and Review, also known as CCAR, and the Dodd-Frank Act stress tests. The Fed said this year's stress tests will evaluate 34 large banks with more than $100 billion in total assets.

Banks are required to submit their capital plans and the results of their own stress tests to the Fed by April 6, 2020, and the Fed said it will announce the results of its supervisory stress tests by June 30, 2020.

CFPB settles with finance entities over alleged illegal loan collection

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has announced a proposed settlement with Think Finance, LLC, formerly known as Think Finance, Inc., and six subsidiaries (collectively, the "Think Finance Entities") to resolve a Bureau lawsuit filed in November 2017.

As described in the CFPB's press release, the Bureau alleged that the Think Finance Entities engaged in unfair, deceptive, and abusive acts and practices in violation of the Consumer Financial Protection Act in connection with the illegal collection of loans that were void in whole or in part under state laws governing interest rate caps, the licensing of lenders, or both.

The Bureau's proposed stipulated final consent order is a component of the global resolution of the Think Finance Entities' bankruptcy proceeding in the Bankruptcy Court for the Northern District of Texas, which includes settlements with the Pennsylvania Attorney General's Office and private litigants in a nationwide consumer class action.

Foreclosure Prevention and Refinance Report filed

This story appeared in Bank Digest.

The Federal Housing Finance Agency has issued its Foreclosure Prevention and Refinance Report for October 2019. According to the report, Fannie Mae and Freddie Mac (the Enterprises) completed 9,082 foreclosure prevention actions in October, bringing the total to 4,390,118 since the Enterprises were placed into conservatorship in September 2008.

In addition, there were 5,801 permanent loan modifications in October, bringing the total to 2,379,758 since the start of the conservatorships.

The report also said that total refinance volume increased in October and that mortgage rates also increased during the month, with the average interest rate on a 30-year fixed rate mortgage rising to 3.69 percent from a 3.61-percent rate in September.