Dodd-Frank News Center

Democrats accuse CFPB of failing to make borrowers aware of mortgage relief options

This story appeared in Bank Digest.

Senate Banking Committee members have sent a letter to CFPB Director Kathleen Kraninger regarding what they term as the agency’s failure to use its authority to ensure that borrowers are aware of the mortgage relief options they are legally entitled to during the COVID-19 pandemic. The Senators’ cite the recently released Fannie Mae’s National Housing Survey, which found that 56 percent of borrowers surveyed that made less than $50,000 were not familiar with the mortgage relief options under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The letter accused the Bureau of not meeting its duty and authority “to take actions that ensure families can stay in their homes and prevent a series of irreversible foreclosures” and “coddling the largest banks and mortgage servicers while doing virtually nothing to help borrowers.”

CFPB Blog post explains Economic Impact Payments for new dependents

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has written a blog post describing how to claim economic impact payments for new dependents. In April, the IRS began issuing Economic Impact Payments (EIP) to provide financial relief during the coronavirus pandemic. The blog post describes how to receive the payment for new qualifying dependents, and notes that the process for qualifying, including when payments are received and how much is received, depends on if the child was born in 2019 or 2020.

CFPB releases FAQs on CARES Act credit reporting requirements

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has released frequently asked questions regarding the consumer reporting requirements of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136). According to a related Bureau blog post, the CARES Act “places important requirements on companies that furnish information to consumer reporting agencies about consumers affected by the COVID-19 pandemic.” The Bureau previously issued a statement informing lenders that they must comply with these requirements.

CFPB and Conference of State Bank Supervisors issue guidance on CARES Act forbearance provisions

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau and the Conference of State Bank Supervisors have issued joint guidance to mortgage servicers on forbearance provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136). The guidance includes links to relevant rules and guidelines and a set of relevant questions and answers.

 

CFPB reports on complaints mentioning coronavirus keywords

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau’s Office of Consumer Response has released a Complaint Bulletin that reflects complaint data from complaints submitted in 2020, as of May 11, and highlights trends in complaints mentioning coronavirus keywords. The Complaint Bulletin also highlights changes in overall complaint volume before and after the declaration of the coronavirus national emergency.

CFPB outlines responsibilities of financial firms during COVID-19 pandemic

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has released a statement and frequently asked questions outlining the responsibility of certain financial firms during the COVID-19 pandemic. In the statement, the Bureau outlines the billing error responsibilities of credit card issuers and other open-end, non-home secured creditors during the COVID-19 pandemic.

The Bureau released two FAQ documents. The first document reminds checking, savings, or prepaid account providers that they can offer consumers immediate relief by changing account terms without advance notice where the change in terms is clearly favorable to the consumer. The second document focuses on existing regulatory flexibilities for open-end credit (that is not home-secured) that may be useful for assisting customers.

 

CFPB and FHFA announce Borrower Protection Program

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau and Federal Housing Finance Agency have announced the Borrower Protection Program, a new joint initiative that enables the CFPB and FHFA to share servicing information to protect borrowers during the coronavirus national emergency. Under the program, the CFPB will make complaint information and analytical tools available to the FHFA via a secure electronic interface, and the FHFA will make available to the Bureau information about forbearances, modifications, and other loss mitigation initiatives undertaken by Fannie Mae and Freddie Mac.

CFPB issues interpretive rule to facilitate coronavirus relief payments

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has issued an interpretive rule that is intended to make it easier for consumers to receive pandemic-relief payments, including the economic impact payments authorized in the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136), through prepaid accounts. The interpretive rule is effective upon publication in the Federal Register.

According to the Bureau, government agencies are prohibited by the Electronic Fund Transfer Act (EFTA) and its implementing regulation, Regulation E, from requiring consumers to establish accounts for receipt of electronic fund transfers with a particular financial institution as a condition of receipt of a government benefit (known as the compulsory use prohibition). The Bureau’s interpretive rule concludes that, if certain conditions are met, certain pandemic-relief payments are not “government benefits” for purposes of Reg. E and thus are not subject to the compulsory use prohibition.

 

CFPB issues policy statement on remittance transfers during COVID-19 pandemic

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has issued a policy statement announcing a flexible approach to the Bureau’s supervision and enforcement of remittance transfers during the COVID-19 pandemic. The statement is intended to ensure that consumers will be able to continue to send remittance transfers without disruption during the pandemic.

CFPB issues policy statement on credit reporting responsibilities during COVID-19 pandemic

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has released a policy statement outlining the responsibility of credit reporting companies and furnishers during the COVID-19 pandemic. In response to the pandemic, many lenders are being flexible when it comes to consumers' making payments, and the CFPB's statement underscores that consumers benefit if lenders report accurate information about these arrangements to credit bureaus.

The Bureau issued the policy statement in light of the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (H.R. 748), which provides critical emergency assistance to consumers and businesses affected by COVID-19 and includes provisions addressing consumer reporting requirements.