On July 10, the CFPB announced proposed rules for mortgage servicers, aimed at helping homeowners avoid foreclosures. The new rules, which would modify RESPA and Regulation X’s existing mortgage servicing framework, are designed to streamline the process for obtaining mortgage assistance, and incentivize servicers to prioritize borrower aid over foreclosure.Continue Reading CFPB Proposes Revamped RESPA Mortgage Servicing Rules

On July 2, the CFPB released its Summer 2024 Supervisory Highlights, which focused on the servicing and collection of consumer debt. The report shared key findings from recent supervisory examinations of auto and student loan servicing companies and debt collectors. In addition, the report highlighted issues with deposit and prepaid accounts, with a focus on medical credit card practices. Continue Reading Latest CFPB Supervisory Highlights Focuses on Servicing and Debt Collection Practices

On June 25, the CFPB issued its annual fair lending report covering its fair lending activity in 2023. The Bureau noted that in 2023 it undertook 28 fair lending examinations and announced four enforcement actions. It separately referred 18 matters to the Department of Justice. Continue Reading Key Takeaways from the CFPB’s 2023 Fair Lending Report

On June 25, the CFPB released a formal action to extend the compliance deadlines for its Section 1071 small business lending rule (previously discussed here, here, and here). Once issued, the rule was challenged in the United States District Court for the Southern District of Texas and stayed pending the Supreme Court’s decision in CFPB v. CFSA. After the Bureau prevailed at the Supreme Court, the federal court ordered the Bureau to extend the compliance deadline to compensate for the stay. Continue Reading CFPB Extends Compliance Deadline for Section 1071 Rule

On June 24, the OCC, Federal Reserve Board, FDIC, NCUA, CFPB, and FHFA approved a final rule to implement the quality control standards mandated by the Dodd-Frank Act to address the use of artificial intelligence in estimating home values. The Bureau noted that over the years, the real estate and mortgage industry have made use of computer models to estimate a property’s value. As these AI-based models grow in complexity and include more variables, they can produce inaccurate or discriminatory results.Continue Reading Federal Regulators Finalize Rule Enacting Safeguards for AI-Driven Home Valuations

On June 14, the CFPB published a press release announcing that its 2017 Payday, Vehicle Title and Certain High-Cost Installment Loans Rule (“Payday Lending Rule”) will go into effect on or about March 30, 2025. According to the Bureau, the rule will target unfair and abusive practices in short-term installment lending and will aim to curb lenders’ efforts to repeatedly withdraw payments from a borrower’s bank account, even after knowing the borrower’s account was shown to have insufficient funds. The CFPB determined such debiting practices rarely benefited lenders and created negative consequences for borrowers such as overdraft and insufficient fund fees, or even account closures by their banks.Continue Reading Payday Lending Rule Slated to Take Effect, 7 Years Later

On June 17, the Consumer Financial Protection Bureau filed an order to resolve its 2023 lawsuit against the former CEO of a short-term small dollar lender and his spouse, in connection with a series of fraudulent transfers they utilized to evade the civil penalties imposed by the CFPB against the company.Continue Reading CFPB Takes Action Against Owners of Small Dollar Lender for Hiding Money to Avoid Penalties

On June 18, the CFPB settled enforcement actions (found here and here) against two mortgage servicers who serviced reverse mortgages on behalf of HUD, for their systemic failure to respond to consumer requests for assistance, resulting in financial harm to many elderly borrowers.Continue Reading CFPB Cracks Down on Mortgage Servicers, Alleging Harmful Practices Against Older Homeowners

On June 18, the CFPB filed a proposed final judgment that would require a Florida-based nonbank mortgage originator and servicer to pay a $3.95 million civil money penalty and implement corrective actions requiring the company to audit, test, and correct the company’s HMDA data, which the Bureau alleged was riddled with errors. Continue Reading CFPB Files $3.95M Proposed Order to Settle HMDA Lawsuit Against Florida-Based Mortgage Company

On June 11, the CFPB announced a proposed rule amending Regulation V, which implements the Fair Credit Reporting Act, to alter the treatment of medical debts in credit reporting. The rule proposes to remove medical bills from most credit reports, disallow the consideration of medical debts in credit decisions, enhance privacy protections, and curtail credit reporting practices that the Bureau deems coercive.Continue Reading CFPB Proposes Rule to Transform Credit Reporting Practices on Medical Debt