Bank worker advocacy group dings major US lenders for COVID-19 mortgage policies

September 22, 2020.
U.S. Bancorp and Wells Fargo performed the worst for struggling U.S. mortgage borrowers at the height of the COVID-19 pandemic, according to a new analysis published Tuesday by an advocacy group for front-line bank employees.

CFPB, 47 states settle with ITT Tech, Deutsche Bank trusts over private student loans

September 16, 2020.
Former students at ITT Technical Institute, a for-profit college that went bankrupt in 2016, will be forgiven of $330 million in private student loans that trusts set up by Deutsche Bank made, under a settlement with U.S. authorities.

Wells Fargo agrees to pay $2M in penalties over investment product sales

September 2, 2020.
Wells Fargo agreed to pay over $2 million to settle regulatory claims that it failed to supervise advisors who steered customers out of variable annuities into investment products and caused them to pay high fees.

US consumer credit steady despite pandemic, CFPB finds

Last modified September 1, 2020. Published September 1, 2020.
Consumers have not experienced significant increases in delinquency or other negative credit outcomes because of COVID-19, with credit card balances declining since the start of the pandemic, according to the U.S. Consumer Financial Protection Bureau.

PayPal flagged by consumer groups over ‘aggressive’ shadow student lending

Last modified August 21, 2020. Published August 21, 2020.
A PayPal product marketed as consumer financing engaged in “aggressive” nonbank lending to student borrowers at exorbitant rates, helping to prop up for-profit schools that frequent the platform, consumer groups said.

TD Bank to pay $122M to resolve CFPB claims over overdraft practices

August 21, 2020.
The U.S. division of Toronto-Dominion Bank has agreed to pay $97 million in restitution and a $25 million penalty to a U.S. regulator for improperly marketing and charging customers through its optional overdraft service.

Fintech Plaid hires former Capital One, CFPB attorney as new general counsel

Last modified August 20, 2020. Published August 20, 2020.
Plaid has brought on board a general counsel who formerly worked at Capital One and at the Consumer Financial Protection Bureau, providing the U.S. fintech with more legal talent as it navigates an acquisition by Visa and a class-action lawsuit.

CFPB proposes new category of qualified mortgages

Last modified August 19, 2020. Published August 19, 2020.
The U.S. Consumer Financial Protection Bureau is proposing a new category of high-quality loans, called seasoned qualified mortgages, that would protect lenders from legal liability for making risky loans, marking the regulator’s latest shake-up in the qualified mortgage space.

Serious US mortgage delinquencies show first annual climb in a decade: CoreLogic

August 12, 2020.
The share of U.S. mortgages that are 90 days or more past due recently saw its first year-over-year increase since the aftermath of the Great Recession, according to data supplied by CoreLogic on Tuesday.

Financial agencies prepare guidelines for extending COVID-19 relief loans

August 4, 2020.
A U.S. financial standards body is considering whether to extend loan accommodations across the country in response to the continued coronavirus pandemic, according to a set of new principles released Monday.

Senators accuse Upstart, SoFi of discriminatory credit evaluation standards

July 31, 2020.
Three U.S. lawmakers accused fintechs including Upstart and SoFi of using credit assessment methods that could result in systemic racial discrimination, and called on the Consumer Financial Protection Bureau to curb those practices.

Appeals court urged to uphold decision nixing special purpose charters

July 31, 2020.
Fair lending groups asked a federal appeals court to uphold a ruling that struck down a U.S. banking regulator’s proposal to issue special purpose charters to fintech companies, asserting that the special purpose charters would open the door to predatory lenders.

CFPB plans to propose new standards on financial data sharing

July 27, 2020.
The Consumer Financial Protection Bureau said it is taking steps toward proposing clearer standards on how third-party companies can access consumers’ financial records, while navigating privacy and security concerns.

CFPB slaps Chicago’s Townstone Financial with redlining lawsuit

July 16, 2020.
The Consumer Financial Protection Bureau on Wednesday filed a lawsuit accusing Townstone Financial of engaging in discriminatory mortgage-lending practices by discouraging African-American applicants from applying for home loans.

Fifth Third execs hit with lawsuit over alleged unauthorized transactions

July 14, 2020.
A shareholder accused Fifth Third Bancorp executives in federal court Monday of operating a “toxic sales culture” that resulted in unauthorized transactions for customers, following the U.S. Consumer Financial Protection Bureau’s allegations that the Cincinnati-based bank spent years opening and managing accounts in unwitting consumers’ names.

Consumers may face heavy debt-collection pressure in the next recession, CFPB warns

July 10, 2020.
Consumers could face added pressure to settle debts in a future economic downturn as higher volumes of debt are turned over to collectors and alternatives for handling delinquencies remain scarce, the Consumer Financial Protection Bureau said Friday.

CFPB nixes mandatory underwriting requirements for small-dollar lending, drawing criticism

July 7, 2020.
The U.S. Consumer Financial Protection Bureau on Tuesday rescinded underwriting requirements established to prevent lenders from issuing small-dollar loans to customers without first assessing their ability to repay.

Bill introduced to ease U.S. electronic-signature laws

July 6, 2020.
Banks, credit unions and debt collectors are throwing their weight behind a bill that would make it easier for customers to receive financial documents electronically after members of the U.S. Senate committee that oversees technology and consumer protection introduced the legislation Thursday.

Wells Fargo abruptly stops taking on new student loan customers amid higher ed uncertainty

July 2, 2020.
Wells Fargo will no longer take on new student loan customers, instead issuing loans only to people who currently have an outstanding balance on a previously issued student loan with the bank or who submitted an application before July 1.

US banking regulators warn of more litigation, financial risk from clumsy LIBOR transition

July 1, 2020.
Banks could face greater risk of litigation and reputational damage if they do not implement better plans for replacing the world’s most-quoted interest rate, top U.S. financial regulators said Wednesday.