When mortgage servicers use periodic statements sent under the Truth in Lending Act (TILA) to collect a debt, they can be held liable under the Fair Debt Collection Practices Act (FDCPA) for any misleading or unconscionable representations made in those statements. Applying this reasoning, the Eleventh Circuit recently overturned a dismissal of a FDCPA case — Lamirand v. Fay Servicing, LLC — by a district court, which found that the statements were not subject to the FDCPA because they were required to be sent by the TILA.
The Government National Mortgage Association (GNMA, or Ginnie Mae) issued an amendment to its mortgage-backed securities guide removing credit unions’ categorization as non-bank mortgage lenders and recognizing them as insured depositories regulated by prudential regulator. CUNA has engaged with Ginnie Mae on this topic several times in recent months to get the categorization altered.
Attorney General Bonta Urges Californians to Take Advantage of Limited-Time Waiver Expanding Access to Public Service Loan Forgiveness Program
OAKLAND – California Attorney General Rob Bonta today urged Californians to take advantage of recent changes to the Public Service Loan Forgiveness (PSLF) and Temporary Expanded Public Service Loan Forgiveness (TEPSLF) programs. Last year, the Department of Education (ED) launched a limited-time PSLF Waiver Opportunity that runs through October 31, 2022, allowing eligible borrowers to receive credit for past payments made on loans that would otherwise not qualify under the PSLF program. This move by ED to improve the PSLF program followed a lawsuit and yearslong advocacy by state attorneys general and others urging ED to take robust action to fix the broken PSLF program. Following the resolution of the lawsuit, Attorney General Bonta has continued to advocate for changes to the PSLF program and today announced that the California Department of Justice will take part in the California Student Loan Debt Challenge to raise awareness about the PSLF program and help DOJ employees access loan forgiveness.
California Privacy Protection Agency Unanimously Opposes the American Data Privacy and Protection Act
The new California privacy regulatory body, the California Privacy Protection Agency (CPPA), has loudly voiced its opposition to the proposed federal American Data Privacy and Protection Act (ADPPA).
Attorney General Bonta Leads Coalition in Support of Federal Effort to Strengthen Access to Banking and Credit Services for Underserved Communities
OAKLAND – California Attorney General Rob Bonta today led a coalition of 19 attorneys general in a comment letter in support of a joint effort by the Federal Reserve Board of Governors, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency to revise and strengthen regulations under the Community Reinvestment Act (CRA). The CRA is a critical civil rights law enacted by Congress to prevent racially discriminatory redlining in housing, and encourage banks to help meet the credit needs of all segments of their communities, including low- and moderate-income (LMI) neighborhoods and individuals. In the comment letter, the coalition expresses its support for the federal agencies’ proposed rule, and urges them to go even further in implementing reforms to help tackle persistent racial and economic disparities exacerbated by COVID-19.
Household Debt Rises to $16.15 Trillion Amid Growth in Housing and Non-Housing Balances
Total household debt rose $312 billion, or 2 percent, in the second quarter of 2022 to reach $16.15 billion, according to the latest Quarterly Report on Household Debt and Credit. Mortgage balances—the largest component of household debt—climbed $207 billion and stood at $11.39 trillion as of June 30. Credit card balances saw their largest year-over-year percentage increase in more than twenty years, while aggregate limits on cards marked their largest increase in over ten years. Transitions into delinquency ticked up but remained very low compared to historical levels.
On July 27, CFPB Director Chopra was interviewed in multiple publications, here and here, about, among other topics, how the CFPB could seek to help mortgage borrowers strained by the Federal Reserve’s battle against inflation and how the agency is looking at cryptocurrency. Below are some of the more important updates from the interviews.
Ford Credit – the automaker’s financing arm – has earned its fair share of accolades recently, including scoring the top spot among mass-market brands in J.D. Power’s 2021 U.S. Consumer Financing Satisfaction Study, as well as first place in the 2022 Canada Dealer Financing Satisfaction Study and the 2022 U.S. End of Lease Satisfaction Study. Even amid concerns that we’re in a bit of an automotive bubble, Ford Credit isn’t expecting an influx of delinquencies this year, either. Now, the finance company is aiming to expand its scope considerably after seeking to establish an industrial bank subsidiary in the United States dubbed Ford Credit Bank.
Proposed New Data Security Rules Could Prove Duplicative, Forcing Banks to Turn Over Dangerous Amounts of Secured Data
An amendment to the National Defense Authorization Act passed by the House in July would create a “systemically important entity” designation, applying new regulations and offering priority aid to certain critical infrastructure companies. But the American Bankers Association and Bank Policy Institute say the amendment as applied to financial institutions would duplicate existing regulations under the Dodd-Frank Act, while also requiring the turnover of a substantial amount of cybersecurity-related data that could prove dangerous in the wrong hands.
Battle of the Brokers – at Debt Connection Symposium, Sept 7-9 at the Red Rock in Las Vegas. Don’t miss this super addition to the Debt Connection Symposium agenda. Three leaders of the industry take the stage – Lou DiPalma of Garnet Capital Advisors, Dave Ludwig of NLEX, and Bob Picone of Connect1 LLC. Hear competitors in the space each offering unique and different perspectives on topics including historical perspectives on debt purchasing, importance of relationships, technological innovation, and company culture. An unscripted panel discussion, guaranteed to deliver benefit to creditors, servicers, and debt buyers equally. More details at: www.dcs2022.com