Current Industry News
FHA raises loan limit by nearly $25,000 for 2021
Given massive year-over-year gains in home prices, the Federal Housing Administration (FHA) is increasing its 2021 loan limit in most of the U.S. to $356,362, an increase of nearly $25,000 over 2020’s loan limit of $331,760. That loan limit figure is determined as a percentage of the national conforming loan limit for Fannie Mae and Freddie Mac, which is increasing in 2021 to $548,250. FHA’s 2020 minimum national loan limit, or “floor,” of $356,362 is 65% of the national conforming loan limit of $548,250. This floor applies to low-cost areas, which are counties where 115% of the median home price is less than the floor limit.
For 42 million student loan borrowers, monthly payments will resume in January
Monthly payments for most federal student loans have been on pause since March, when the CARES Act gave 42 million borrowers relief during the coronavirus pandemic. For the more than 37 million of those borrowers that haven’t made a payment in months, the unprecedented break is coming to an end. The moratorium will lapse in December, meaning payments will resume again in January unless another extension comes soon.
Cyber-security in the age of Covid-19
In June, Israeli business daily Calcalist reported that Sapiens, a software company, had paid $250,000 in bitcoin to end a ransomware attack. The breach is thought to have happened when employees started working from home due to Covid-19, according to the article. Sapiens has neither confirmed nor denied the story, and did not respond to a request for comment.
Debt Collection Practices (Regulation F)
The Bureau of Consumer Financial Protection (Bureau) is issuing this final rule to revise Regulation F, which implements the Fair Debt Collection Practices Act (FDCPA) and currently contains the procedures for State application for exemption from the provisions of the FDCPA. The Bureau is finalizing Federal rules governing the activities of debt collectors, as that term is defined in the FDCPA. The Bureau’s final rule addresses, among other things, communications in connection with debt collection and prohibitions on harassment or abuse, false or misleading representations, and unfair practices in debt collection.