Current Industry News
Fed Chair Powell: Business debt is rising but does not pose a threat to the system
Federal Reserve Chairman Jerome Powell said rising levels of corporate debt need watching but so far do not pose a threat to the financial system. The central bank chief spoke Monday at the Financial Markets Conference in Amelia Island, Florida, on assessing risks to the financial system a decade after the end of the financial crisis that caused the economy to sink into its worst downturn since the Great Depression.
Fannie Mae and Freddie Mac are refinancing fewer mortgages than at any point since the crisis
Recently released data from the Federal Reserve Bank of New York’s Center for Microeconomic Data revealed that the first quarter of this year was the mortgage business’ worst quarter in more than four years, but a deeper dive into the data shows that on the refinance side of things, it may have been the worst quarter since the financial crisis.
Servicemembers exhibit higher levels of financial well-being than the U.S. population over
Recently, the Department of Defense (DoD) released its Annual Report on the Financial Literacy and Preparedness of Members of the Armed Forces, which shows that servicemembers exhibit slightly higher levels of financial well-being compared to the general U.S. population. Last month, the CFPB’s Office of Servicemember Affairs (OSA) released a research brief on the financial well-being of veterans. The research showed that veterans, similarly to servicemembers, experience somewhat higher levels of financial well-being than non-veterans.
CFPB takes action against frivolous debt-collection lawsuits
The Consumer Financial Protection Bureau is cracking down on a debt-collection firm it says files lawsuits against consumers who may not actually owe debts. The CFPB is suing Forster & Garbus, a debt-collection law firm that contracts with Citibank and Discover, among other clients, in US District Court. The firm collects on home-equity loan, student loan, credit card and auto loan debts, among others, according to the complaint filed by the CFPB. The bureau alleged that Forster & Garbus violated the Fair Debt Collection Practices Act by representing that attorneys were “meaningfully involved” in preparing and filing its lawsuits. In fact, the CFPB alleged, Forster & Garbus basically rubber-stamped its lawsuits, giving debt files only a cursory review before deciding to sue consumers.