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Transworld Systems Inc. to Acquire Alltran’s Financial Services Business

LAKE FOREST, Ill., Dec. 3, 2019 /PRNewswire/ — Transworld Systems Inc. (“TSI” or the “Company”), the leading analytics and technology driven provider of accounts receivable management, healthcare revenue cycle and loan servicing solutions, announced today that TSI and certain affiliates entered into a definitive agreement with Alltran to acquire its Financial Services business. Transaction terms were not disclosed.   Alltran Financial Services is a first- and third-party accounts receivable management provider for the financial services, automotive, debt buyer, and marketplace lending industries, with approximately 900 employees working from three operations centers located in the southwestern United States.

The Navy commander behind the credit union banks love to hate

When bankers complain to Capitol Hill about the competitive threat posed by large credit unions, they are almost certain to mention Navy Federal Credit Union.   With more than 8 million members, 300 branches nationwide and over $100 billion of assets, Navy Federal is the largest credit union in the world and ranks among the top 50 financial institutions in the country. Its net income in 2018, on which it didn’t pay federal or state income tax, was $1.55 billion.

CFPB proposes increase to remittance safe harbor

The CFPB Tuesday issued a proposal related to its remittance rule that includes a NAFCU-sought increase to the safe harbor threshold under the rule, though it is not as high as NAFCU recommended. NAFCU has expressed concerns about its highly burdensome compliance costs that have caused many credit unions to stop offering these services and urged the bureau to exempt credit unions from the rule.

DeVos proposes spinning off federal student loans from Education Department into independent agency

RENO, Nev. — The Trump administration proposed Tuesday to break off the nearly $1.5 trillion federal student loan portfolio from the Education Department and have it instead be managed by a new independent federal agency. Education Secretary Betsy DeVos pitched the proposal for federal student loans to be operated by “a stand-alone government corporation, run by a professional, expert and apolitical board of governors,” instead of by the department’s Office of Federal Student Aid.

Panels announced for December 10th FTC-CFPB Accuracy in Consumer Reporting workshop

How central is accuracy to the credit reporting system? It’s important enough that Congress mentioned it in the second line of the Fair Credit Reporting Act – and more than 70 times in the text of the statute. On December 10, 2019, the FTC and CFPB will host a public workshop to talk about issues affecting the accuracy of both traditional credit reports and background screening reports used by employers and landlords. It’s a discussion you and your clients won’t want to miss.

Consumer Financial Protection Bureau Issues Notice of Proposed Rulemaking on Remittance Rule

WASHINGTON, D.C. –The Consumer Financial Protection Bureau (Bureau) issued today a Notice of Proposed Rulemaking (NPRM) relating to the Remittance Rule (Rule).   The Rule generally requires companies that provide remittance transfers in the normal course of business disclose to consumers certain fees and the exchange rates that apply to transfers. The Rule also includes an exception that allows certain banks and credit unions to estimate certain fee and exchange rate information instead of disclosing exact amounts in certain circumstances, but this exception expires by statute in July 2020.  

U.S. banking regulators urge ‘responsible use’ of alternative lending data

WASHINGTON (Reuters) – U.S. banking regulators said on Tuesday that lenders must have robust compliance tools in place to ensure “responsible use” of non-traditional sources of financial data to help determine whether a potential customer is credit worthy. In a joint statement, the country’s five chief regulators acknowledged that using consumer information originating outside of traditional sources could expand the access and affordability of credit for certain borrowers.

Low mortgage rates will push home lending to 12-year high

Low mortgage rates will push home lending this year to a 12-year high of $2.07 trillion, the Mortgage Bankers Association said in a forecast. The volume for mortgages to purchase homes probably will total $1.27 trillion, the highest since the peak of the housing bubble in 2006, according to the group’s Nov. 20 forecast. Refinancing probably will reach $796 billion, the most since 2016, MBA said.

Small Contractors Struggle to Meet Cyber Security Standards, Pentagon Finds

Small companies are struggling to meet the Pentagon’s newish network security rules, and even larger contractors aren’t doing as well as they think they are, a recent department study has found. “For the most part, the big companies do very well,” Kevin Fahey, assistant defense secretary for acquisition, told reporters at the Pentagon on Monday. “But in no case do they meet everything that they thought they met.” For one thing, big companies tend to give their smaller subcontractors a lot of data they don’t need, which then becomes vulnerable to foreign hackers. 

New rules for robocalls take effect Tuesday

Pennsylvanians will be receiving an early holiday gift Tuesday: Another layer of protection when it comes to avoiding unsolicited phone calls.   That’s when a bill signed by Gov. Tom Wolf in October will go into effect. The law will place additional restrictions and require more procedures for companies that use telephone marketing and automated solicitation phone calls, known as robocalls.   “Telemarketing remains legal,” said Tom Flynn, Slippery Rock University professor of communication. “But the law is a great thing because it gives people more control over their communication environment.”