Dodd-Frank News Center

CFPB and FHFA release dataset on borrowers' mortgage experiences

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau and Federal Housing Finance Agency have released for public use a new loan-level dataset collected through the National Survey of Mortgage Originations that provides insights into borrowers' experiences in getting a residential mortgage. According to the CFPB's press release, the NSMO is a component of the National Mortgage Database, launched by the Bureau and FHFA in 2012, which is the first comprehensive repository of detailed mortgage loan information designed to support policymaking and research efforts and to help regulators better understand emerging mortgage and housing market trends. 

According to FHFA Deputy Director Sandra Thompson, "The goal of the survey is to obtain information to help improve lending practices and the mortgage process for future borrowers." CFPB Acting Director Mick Mulvaney said the data collected through the survey "will allow greater transparency, accountability, and effectiveness around borrowers' mortgage experiences."

OIG issues audit of CFPB's information security program

This story appeared in Bank Digest.                                   

The Office of Inspector General for the Consumer Financial Protection Bureau and the Federal Reserve Board has issued an audit of the Bureau's information security program, as required by the Federal Information Security Modernization Act of 2014. The OIG evaluated the program's maturity level (from a possible low of 1 to a possible high of 5) across several areas and concluded that the program is operating at level 3 (consistently implemented), with the Bureau performing several activities indicative of a higher maturity level. 

According to the report, the CFPB also has opportunities to mature its program in FISMA domains across all five Cybersecurity Framework security functions--identify, protect, detect, respond, and recover--to ensure that its program is effective. The OIG made four recommendations to strengthen the Bureau's information security program in the areas of configuration management, identity and access management, and data protection and privacy.

CFPB settles with payday lender over debt collection practices

This story appeared in Bank Digest.                                   

A payday lender has agreed to pay a $200,000 penalty and $32,000 in restitution to settle Consumer Financial Protection Bureau charges arising from the company's methods of collecting unpaid loans. According to the Bureau, Cash Express, LLC, sent consumers dunning letters that misrepresented its collection methods and improperly withheld amounts needed to repay prior loans when it cashed subsequent checks for consumers. The company did not admit any violations of the law in agreeing to the settlement. 

According to the consent order, Cash Express and an affiliate, First Cash Express, LLC, provide short-term, small-dollar loans and check cashing services in Alabama, Kentucky, Mississippi, and Tennessee. Cash Express has been in operation since 1998. In addition to making the required payments, the two companies are obligated by the consent order to meet other conditions, including refraining from making certain misrepresentations and creating a compliance plan.

 

CFPB blog post highlights role of Ombudsman's Office

This story appeared in Bank Digest.                                   

A blog post by Consumer Financial Protection Bureau Ombudsman Wendy Kamenshine noted that October 11 was the first Ombuds Day, which she said was intended to increase awareness and understanding of the ombudsman profession. According to Kamenshine, an ombudsman "employs alternate ways to informally resolve conflict and advocates for a fair process rather than someone's desired outcome."                                  

She said the CFPB Ombudsman's Office is "an independent, impartial, and confidential resource that helps consumers, financial entities, and others, resolve process issues arising from their interactions with the Bureau. In short, we advocate for fair process in consumer financial protection." The post goes on to list ways the CFPB Ombudsman's Office provides assistance.

FDIC issues guidance on CFPB's rule clarifying HMDA amendments

This story appeared in Bank Digest.                                   

The Federal Deposit Insurance Corporation has issued a financial institution letter regarding the Consumer Financial Protection Bureau's interpretive and procedural rule to implement and clarify amendments to the Home Mortgage Disclosure Act made by the Economic Growth, Regulatory Relief, and Consumer Protection Act. According to the FDIC, the Economic Growth Act's HMDA amendments provide eligible insured depository institutions with a partial exemption from reporting certain data points with respect to closed-end mortgage loans, open-end lines of credit, or both. 

The CFPB's rule became effective on Sept. 7, 2018, but as interpreted by the Bureau, the HMDA amendments became effective when the Economic Growth Act was signed into law on May 24, 2018.

 

CFPB blog post discusses ways to increase income

This story appeared in Bank Digest.                                     

A Consumer Financial Protection Bureau blog post discusses ways consumers can increase their income in order to help pay down their debt and save money for the future. According to the author, the two main ways to increase income are: (1) a one-time activity, such as a garage sale; and (2) bringing in more money on a regular basis by getting a part-time job or applying for benefits you may qualify for. The post also includes a list of other ways to save money, as well as links to CFPB resources.

 

CFPB settles with companies over alleged delay in sending payments to third-party debt buyers

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau has reached a settlement with Bluestem Brands, Inc.; Bluestem Enterprises, Inc.; and Bluestem Sales, Inc. (the Bluestem companies) to resolve the Bureau's allegations that after consumers made payments to the Bluestem companies on debts that the companies had already sold, the Bluestem companies substantially delayed sending those payments to the third-party debt buyers. According to the CFPB's release, the Bluestem companies are headquartered in Eden Prairie, Minn., and do business throughout the United States under the names Fingerhut and Gettington.com. 

Under an administrative consent order, the Bluestem companies must pay a civil money penalty of $200,000 and improve their processes to timely identify and forward customer payments on accounts that they have sold to third-party debt buyers, among other conditions.

Waters introduces bill to support CFPB

This story appeared in Bank Digest.                                     

House Financial Services Committee Ranking Member Maxine Waters (D-Calif) has introduced the Consumers First Act (H.R. 6972), which a committee minority press release said was intended "to block the Trump Administration's anti-consumer agenda" and reverse the Administration's efforts, led by Consumer Financial Protection Bureau Acting Director Mick Mulvaney, to "dismantle" the Bureau. 

According to Waters, the bill "would reverse the harmful changes the Trump Administration has imposed on the Consumer Bureau by restoring the agency's supervisory and enforcement powers and increasing the transparency and accountability needed for the agency to carry out it's important mission."

CFPB issues guidance on its communication of supervisory expectations

This story appeared in Bank Digest. 

The Consumer Financial Protection Bureau has issued a bulletin announcing changes to how it articulates supervisory expectations to institutions in connection with supervisory events. According to the bulletin, the Bureau will continue to communicate findings to institutions in writing by way of examination reports and supervisory letters. 

Effective immediately, the Bureau said, those reports and letters will include two categories of findings that convey supervisory expectations: Matters Requiring Attention and Supervisory Recommendations. The uses of both categories are explained in the bulletin. 

 The CFPB said that neither MRAs nor SRs are legally enforceable but that the Bureau will consider an institution's response in addressing identified violations of federal consumer financial law, weaknesses in compliance management systems, or other noted concerns when assessing the institution's compliance rating or otherwise considering the risks the institution poses to consumers and markets.

Crist requests CFPB investigation of Marlin Financial

This story appeared in Bank Digest.                                   

Representative Charlie Crist (D-Fla) has written a letter to Consumer Financial Protection Bureau Acting Director Mick Mulvaney calling for a federal investigation into Marlin Financial, an auto loan company operating in Florida, following a Tampa Bay Times examination of alleged deceptive practices. Crist said, "According to the reporting, Marlin Financial has engaged in unscrupulous business practices including requiring the purchase of unnecessary debt cancellation insurance, charging consumers usurious interest rates, seizing consumers' personal items within repossessed vehicles, and failing to respond to customer complaints." 

In calling for a CFPB investigation, Crist said that if any of the "outrageous behaviors" the Tampa Bay Times has reported violate federal consumer financial protection laws, he urged the Bureau "to hold the company accountable and make its victims whole."