At a glanceFriday, May 29, 2020

Collection Industry News At A Glance - May 29, 2020
Friday May 29, 2020
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AB 2501 (LIMON) COVID-19: HOMEOWNER, TENANT AND CONSUMER RELIEF OPPOSE – AS AMENDED MAY 11, 2020

The California Chamber of Commerce and the organizations listed are OPPOSED to AB 2501 (Limon), which has been labeled a JOB KILLER by CalChamber. This bill imposes significant new obligations on financial services businesses, that will limit the financial opportunities for Californians, further harming the housing market, and creating job loss. Specifically, the bill requires financial institutions to carry homeowner loans for a year or more without payment and without assessing fines or penalties, prohibits repossession of mobile homes or motor vehicles for non-payment and without assessing fines and penalties, and places onerous restrictions on deferred deposit loans. The provisions of the bill are unprecedented and will restrict Californians’ ability to access credit now and in the future.

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Federal student loans will be at cheapest level ever this school year

College students who plan to take out a student loan to pay for school next year will be the beneficiaries of the cheapest borrowing costs in history. For the 2020-2021 academic year, undergraduate loans will be 2.75 percent, a drop from 4.53 percent last year. Loans for parents of undergraduate students, meanwhile, will fall to 5.3 percent from 7.08 percent. The lower rates will only apply to new loans for the upcoming academic year.

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Small-business loan terms eased under U.S. House-passed bill

WASHINGTON (Reuters) - The U.S. House of Representatives on Thursday approved legislation increasing the amount of time, to 24 weeks from the current eight weeks, for small businesses to use Paycheck Protection Program (PPP) loans spurred by the coronavirus outbreak.

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U.S. mortgage rates tumble to a record 3.15% for 30-year loans

U.S. mortgage rates fell to a record low for the third time since the coronavirus started roiling global markets. The average for a 30-year fixed-rate loan was 3.15 per cent, down from 3.24 per cent last week and the lowest in Freddie Mac data going back to 1971. The previous record, 3.23 per cent, was reached last month, shattering March’s low of 3.29 per cent.

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Summary of Commentary on Current Economic Conditions By Federal Reserve District

Economic activity declined in all Districts – falling sharply in most – reflecting disruptions associated with the COVID-19 pandemic. Consumer spending fell further as mandated closures of retail establishments remained largely in place during most of the survey period. Declines were especially severe in the leisure and hospitality sector, with very little activity at travel and tourism businesses. Auto sales were substantially lower than a year ago, although several Districts noted recent improvement.

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House votes to ease restrictions on coronavirus small business loans

The House passed a bill Thursday designed to give small businesses owners more flexibility in how they spend money from a key coronavirus aid program.  The chamber approved the legislation in a nearly unanimous 417-1 vote. The Senate has put forward a plan similar to the House bill, but has not yet passed it. Senators will not convene again until next week.

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CFPB study examines retirees’ finances

The Consumer Financial Protection Bureau (CFPB) has released a first of its kind study examining the financial resources and expenses of retirees. The study examined the first five years of retirement among Americans who retired between 1992 and 2014.   “Given that a growing number of retirees are not experiencing the expected gradual reduction in spending after they retire, the study helps identify ways to protect retirees from overspending their savings in early retirement,” the CFPB said.

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U.S. mortgage applications rise for sixth straight week

WASHINGTON (Reuters) - U.S. applications for home mortgages jumped last week, in a sixth straight weekly increase, suggesting the housing market could lead the economy’s recovery from the novel coronavirus crisis even as high unemployment is expected to linger.

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Coronavirus crisis mobile banking surge is a shift that’s likely to stick

Digital banking isn’t new, but with the coronavirus pandemic, young and old Americans suddenly flocked to online and mobile banking en masse. The sudden uptick in online and mobile traffic even created outages. Among those affected: online platforms for U.S. Bank, PNC, Fifth Third Bank, Bank of America, T.D. Bank and BB&T. 

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CFPB makes it easier for mortgage servicers to digitize loss mitigation process amid pandemic

Mortgage servicers will soon be able to embrace a digital loss mitigation process without fear of punishment by the Consumer Financial Protection Bureau. The CFPB announced Friday that it is issuing a “No-Action Letter Template,” which will enable mortgage servicers that are “seeking to assist struggling borrowers to avoid foreclosure and engage in loss mitigation efforts” to apply for their own no-action letter.

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Dimon sees good chance for rapid U.S. economic recovery

Jamie Dimon sees “pretty good odds” of a fast economic rebound starting in the third quarter thanks to the U.S. government’s stimulus programs and the strength of the consumer going into the pandemic. “You could see a fairly rapid recovery,” the JPMorgan Chase chairman and chief executive said Tuesday at a virtual conference hosted by Deutsche Bank AG. “The government has been pretty responsive, large companies have the wherewithal, hopefully we’re keeping the small ones alive.” Dimon, who runs the largest U.S. bank, pointed to economists’ forecasts that show unemployment spiking to around 18% this quarter, then falling to 14% in the third quarter and declining to about 10% or 11% by the end of the year.

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U.S. new home sales unexpectedly rise in April

WASHINGTON (Reuters) - Sales of new U.S. single-family homes unexpectedly rose in April, but the gains are likely temporary as the coronavirus crisis ravages the economy, unleashing record unemployment.

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5 principles for effective cybersecurity leadership in a post-COVID world

As more people are working from home during the COVID-19 pandemic, cybersecurity operations are facing tremendous new challenges. Cybersecurity leaders, particularly Chief Information Security Officers (CISOs), must take stronger and more strategic leadership roles within their businesses during the crisis. Five cybersecurity leadership principles would ensure effective business continuity in the "new normal." COVID-19 is forcing business leaders to adapt operating models faster than ever before to ensure existential survival. The large-scale adoption of work-from-home technologies, exponentially greater use of cloud services and explosion of connectivity allow companies to continue operations even with social distancing and “stay at home” orders. However, the paradigm shift is putting immense pressure on cybersecurity operations. As organizations are making extraordinary efforts to protect their workers and serve their customers during the pandemic, exposure to cyberthreats is increasing significantly.

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Extension of Temporary Regulatory Guidance Regarding Working from Home Due to Coronavirus/COVID-19 Concerns or Quarantines

On March 12, 2020, the Idaho Department of Finance issued a Temporary Regulatory Guidance pertaining to the ability of individual employees of licensees to work from their own residence, without obtaining an Idaho branch license or registration for the location, and under specific requirements. The intent of the Guidance was to offer licensees the ability to continue business operations remotely while taking precautions to avoid the risk of exposure to COVID-19, and to comply with any quarantine requirements or stay-at-home orders.

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Auto Dealership Bronx Honda, General Manager to Pay $1.5 Million to Settle FTC Charges They Discriminated Against African-American, Hispanic Car Buyers

New York City car dealer Bronx Honda and its general manager, Carlo Fittanto, will pay $1.5 million to settle Federal Trade Commission charges they discriminated against African-American and Hispanic car buyers and engaged in numerous other illegal business practices.

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Consumer Financial Protection Bureau and Commonwealth of Massachusetts File Suit Against Credit-Repair Telemarketers

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) and Commonwealth of Massachusetts Attorney General Maura Healey today jointly filed a lawsuit against Commonwealth Equity Group, LLC, which does business as Key Credit Repair, and Nikitas Tsoukales (also known as Nikitas Tsoukalis), Key Credit Repair’s president and owner. As alleged in the complaint, from 2016 through 2019 alone, Key Credit Repair enrolled nearly 40,000 consumers nationwide, and since 2011, it collected at least $23 million in fees from consumers. The Bureau alleges that in their telemarketing of credit-repair services, the defendants violated the Consumer Financial Protection Act’s (CFPA) prohibition against deceptive acts or practices and the Telemarketing Sales Rule’s (TSR) prohibitions on deceptive and abusive telemarketing acts or practices.

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Millions of PPP loan-forgiveness requests are about to rain on banks

Banks are preparing for a flood of applications for loan forgiveness under the U.S. Paycheck Protection Program, marshaling staff to help borrowers navigate a complicated process that recalls the fraught early days of the COVID-19 small-business relief effort.

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Fintech Lenders are Better Equipped to Issue Loans to SMEs, Compared to Traditional Lending Platforms: Report

A blog post recently published by the World Economic Forum notes that SMEs throughout the world have been struggling to maintain operations due to the COVID-19 outbreak, nationwide lockdowns, and resulting economic challenges. WEF’s blog acknowledges that traditional lending models have been an obstacle preventing small businesses from accessing financial services, particularly in developing economies.

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CFPB Reaches $18 Million Settlement with Mortgage Lender for Alleged FCRA Violations

The Consumer Financial Protection Bureau (CFPB) reached an $18 million settlement with Monster Loans and a number of related companies and individuals for illegally obtaining credit reports to further an alleged student loan debt relief scam.

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Robocalls are spiking as fraudsters prey on Covid-19 fears

Add robocalls to scammers' methods of capitalizing on the coronavirus crisis. As Americans adjust to life in the midst of a global pandemic, roughly a quarter of individuals say they've experienced an increase in robocalls and about 20% have received a call or text regarding the illness, according to a survey from Provision Living, a retirement community company.

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CFPB data shows Americans were terrified about their finances as pandemic raged

Despite the efforts of the government over the last few months, there are still a great number of people confused about their financial relief options in the wake of the pandemic. Things have likely gotten at least a little better in the last few weeks as Fannie Mae, Freddie Mac, and the government itself have taken a more proactive stance on addressing issues involving people’s mortgages and other financial services. But, new data from the Consumer Financial Protection Bureau shows just how scared and absolutely befuddled people were about their finances as the pandemic raged across the U.S. The CFPB revealed Friday that it received the highest number of complaints it’s ever received in both March and April.

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CFPB Takes Action to Help Struggling Homeowners Seeking Mitigation Efforts; Consumers Seeking Small-Dollar Loans

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today announced that it issued two No-Action Letter (NAL) Templates under its innovation policies. Regulatory uncertainty can hinder the development of innovative products and services with the potential to benefit consumers. To encourage innovation, last year the Bureau introduced an improved NAL Policy that includes, among other things, a more streamlined review process focusing on the consumer benefits and risks of the applicant’s product or service. NALs provide increased regulatory certainty through a statement that the Bureau will not bring a supervisory or enforcement action against a company for providing a product or service under certain facts and circumstances.

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Industry Events

 
Digital Banking 2020 – Postponed to December 7 – 9

American Banker

Austin Convention Center 500 East Cesar Chavez Street
Austin , TX
June 08 - 10 , 2020

(212) 803-8456

NACTT 55th Annual Seminar 2020

National Association of Chapter 13 Trustees (NACTT)

Marriott Marquis San Diego Marina 333 West Harbor Drive San Diego, CA 92101
San Diego , CA
July 08 - 11 , 2020

800-445-8629 | 803-765-0860

RMAi EXECUTIVE SUMMIT 2020

Receivables Management Association International


The Lodge at Spruce Peak
July 28 - 30 , 2020
Debt Connection Symposium & Expo 2020

Resource Management Services, Inc.

Red Rock Casino Resort & Spa
11011 W Charleston Blvd , Las Vegas, NV 89135
September 15 - 17 , 2020

562-906-1101

LendIt Fintech USA

Save 15% with our Discount Code: DC15%

Javits Center, New York
New York
September 30 - October 01 , 2020

www.lendit.com

LendIt Fintech Europe 2020

LendIt Fintech Europe

Hilton London Angel Islington 53 Upper Street
London , N1 0UY, UK
October 19 - 20 , 2020

646-971-1645

Auto Finance Summit 2020 – Virtual

Royal Media

Wynn Las Vegas
3131 S Las Vegas Blvd , Las Vegas, NV 89109
October 20 - 22 , 2020

https://www.autofinancesummit.com/contact-us

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