CFPB Finds Hundreds of Thousands of Mortgages in Southeast and Central Southwest US Likely Underinsured Against Flood Risk
January 13, 2025 / Source: CFPB
Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued a new report that found significant differences in the likelihood that homeowners with a mortgage are adequately insured against flooding based both on location and on income and assets. According to findings, homeowners in coastal areas were most likely to have flood insurance and generally…
CFPB Research Reveals Heavy Buy Now, Pay Later Use Among Borrowers with High Credit Balances and Multiple Pay-in-Four Loans
January 13, 2025 / Source: CFPB
WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) released a study of Buy Now, Pay Later (BNPL) borrowers, finding that more than one-fifth of consumers with a credit record used BNPL loans in 2022, with most of those consumers having subprime or deep subprime credit scores. The CFPB research also revealed that more than…
CFPB Proposes Rule to Ban Contract Clauses that Strip Away Fundamental Freedoms
January 13, 2025 / Source: CFPB
Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) proposed a rule that would stop financial companies from forcing Americans to choose between participating in the financial system or giving up their rights, including those guaranteed by the Constitution. The proposed rule seeks to stop companies from using a variety of contract clauses that limit…
Federal Housing Administration Supports Homeownership Affordability and Provides Greater Program Transparency for Mortgage Servicers
January 13, 2025 / Source: HUD
WASHINGTON – Today, the U.S. Department of Housing and Urban Development (HUD), and the Federal Housing Administration (FHA), announced two actions that increase homeownership affordability and enhance clarity and transparency for mortgage servicers in its Single Family program. First, FHA is providing greater underwriting flexibility for borrowers who rent space inside their homes to qualify for affordable FHA-insured…
HUD Reaches Historic Settlement with PHH Mortgage Corporation to Refund Wrongfully Charged Junk Fees
January 13, 2025 / Source: HUD
WASHINGTON – Today, the U.S. Department of Housing and Urban Development (HUD) reached a historic settlement with PHH Mortgage Corporation (PHH) to resolve allegations that PHH unlawfully charged fees to borrowers when the borrower made a mortgage payment – a violation of HUD’s Federal Housing Administration (FHA) requirements. The settlement provides the largest reimbursement amount to…
HUD Announces $10 Million Funding Opportunity to Support Housing and Community Development Research at Minority-Serving Institutions
January 12, 2025 / Source: HUD
WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today announced the availability of $10 million in funding through its Office of Policy Development & Research (PD&R) to support eligible minority-serving institutions (MSIs) in researching critical housing and community development topics. This funding opportunity aims to advance knowledge in the field while strengthening research capacity within eligible…
CFPB Seeks Input on Digital Payment Privacy and Consumer Protections
January 12, 2025 / Source: CFPB
WASHINGTON, D.C. – Today, the CFPB announced that it is seeking public input on strengthening privacy protections and preventing harmful surveillance in digital payments, particularly those offered through large technology platforms. The agency is requesting comment on implementing existing financial privacy law and how to address intrusive data collection and personalized pricing. Additionally, the CFPB requested…
New protections for payday and installment loans take effect March 30
January 12, 2025 / Source: CFPB
Starting March 30, 2025, payday and installment lenders must begin complying with important new requirements when they try to collect money from borrowers’ accounts. The CFPB issued a regulation in 2017 adopting a two-strikes-and-you’re-out rule for covered lenders. Under that rule, after two tries to withdraw money from a borrower’s account have failed, covered lenders can’t try…
Civil Money Penalties: Notice Adjusting Maximum Civil Money Penalties for 2025
January 12, 2025 / Source: OCC
Summary On January 10, 2025, the Office of the Comptroller of the Currency (OCC) published in the Federal Register the attached notice to adjust the maximum amount of each civil money penalty (CMP) within its jurisdiction pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act…
HUD Streamlines and Modernizes Affordable Housing Regulations, Making Housing More Accessible for Families Nationwide
January 9, 2025 / Source: HUD
WASHINGTON – Today, the U.S. Department of Housing and Urban Development (HUD) published a Final Rule in the Federal Register to modernize and strengthen regulations for the HOME Investment Partnership Program (HOME). HOME is the largest federal grant program specifically for creating housing for disadvantaged households. The regulatory updates, announced today, incorporate feedback from stakeholders, community leaders, and…
Speech – Reflections on 2024: Monetary Policy, Economic Performance, and Lessons for Banking Regulation
January 9, 2025 / Source: FRB
Let me begin by recognizing the devastation caused by the fires in the Los Angeles area. My thoughts and prayers are with those who have been impacted and the first responders who are fighting to bring the fires under control. I would like to thank the California Bankers Association for the invitation to speak to…
FTC Sends Refunds to Consumers Harmed by Mortgage Relief Scheme
January 8, 2025 / Source: FTC
The Federal Trade Commission is sending refunds to consumers who paid a sham mortgage relief operation that told financially distressed homeowners it would help get their mortgages modified, but instead effectively stole their mortgage payments. The FTC first filed suit against the defendants, who operated under the names HOPE Services and HouseHoldRelief, in 2015. The complaint…
U.S. Department of the Treasury Releases Final Rules to Expand Clean Energy Investments and Lower Costs in Low-Income Communities
January 8, 2025 / Source: Treasury
WASHINGTON – Today, the U.S. Department of the Treasury and the IRS released final rules and procedural guidance for the Section 48E(h) Clean Electricity Low-Income Communities Bonus Credit Amount Program. The 48E(h) program is an expansion of the first-of-its-kind 48(e) bonus credit designed to lower home energy costs and spur clean energy investments in low-income communities and benefitting low-income…
OCC Allows National Banks and Federal Savings Associations Affected by California Wildfires to Close
January 8, 2025 / Source: OCC
WASHINGTON—The Office of the Comptroller of the Currency (OCC) today issued a proclamation allowing national banks, federal savings associations, and federal branches and agencies of foreign banks to close offices in areas of California affected by wildfires. In issuing the proclamation, the OCC expects that only those bank offices directly affected by potentially unsafe conditions…
CFPB Approves Application from Financial Data Exchange to Issue Standards for Open Banking
January 8, 2025 / Source: CFPB
WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued an order recognizing Financial Data Exchange, Inc. (FDX) as a standard setting body under the CFPB’s Personal Financial Data Rights rule. The order of recognition is the first to be issued under the rule. The Personal Financial Data Rights rule, which was released in October 2024, requires…
Biden-Harris Administration Delivers $12 Billion in Long-Term Assistance to Communities Impacted by Disasters
January 7, 2025 / Source: HUD
WASHINGTON – Today, the U.S. Department of Housing and Urban Development (HUD) announced the allocation of nearly $12 billion in Community Development Block Grant-Disaster Recovery (CDBG-DR) funds for communities across 24 states and territories. To provide guidance for the implementation of this funding, HUD also published the Universal Notice for Community Development Block Grants – Disaster Recovery (CDBG-DR)….
CFPB Finalizes Rule to Remove Medical Bills from Credit Reports
January 7, 2025 / Source: CFPB
WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) finalized a rule that will remove an estimated $49 billion in medical bills from the credit reports of about 15 million Americans. The CFPB’s action will ban the inclusion of medical bills on credit reports used by lenders and prohibit lenders from using medical information in their lending…
CFPB Sues Experian for Sham Investigations of Credit Report Errors
January 7, 2025 / Source: CFPB
WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) sued Experian, the nationwide consumer reporting agency, for unlawfully failing to properly investigate consumer disputes. The CFPB alleges that Experian does not take sufficient steps to intake, process, investigate, and notify consumers about consumer disputes, resulting in the inclusion of incorrect information on credit reports. Inaccurate or…
HUD Invests Over $140 Million to Support Families Achieving Economic Self-Sufficiency
January 6, 2025 / Source: HUD
WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today announced over $140 million in funding to 836 existing grantees through the Family Self Sufficiency (FSS) Program. These awards will fund 1,537 service coordinator positions across the country. The FSS program provides grants to public housing agencies and multifamily property owners to support the…
Federal Reserve Board announces Michael S. Barr will step down from his position as Federal Reserve Board Vice Chair for Supervision, effective February 28, 2025, and will continue to serve as governor
January 6, 2025 / Source: FRB
The Federal Reserve Board announced on Monday that Michael S. Barr will step down from his position as Federal Reserve Board Vice Chair for Supervision, effective February 28, 2025, or such earlier time as a successor is confirmed. Barr will continue to serve as a member of the Federal Reserve Board of Governors. Barr, who…
CFPB Sues Mortgage Company for Setting Borrowers Up to Fail in Manufactured Home Loans
January 6, 2025 / Source: CFPB
WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) sued Vanderbilt Mortgage & Finance for setting families up to fail when they borrowed money to buy a manufactured home. The CFPB alleges that Vanderbilt’s business model ignored clear and obvious red flags that the borrowers could not afford the loans. As a result, many families found themselves…
FDIC Issues List of Banks Examined for CRA Compliance
January 5, 2025 / Source: FDIC
WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) today issued its list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in October 2024. The CRA is a 1977 law that requires the FDIC to assess a bank’s record of…
The Financial Security of Small Business Owners: Evidence from the Making Ends Meet Survey
January 5, 2025 / Source: CFPB
Small businesses1 are critical to the U.S. economy, employing 47 percent of workers and generating 38 percent of private sector revenue.2 Owners of small businesses often rely on their personal assets and consumer credit to finance their enterprises. Thus, small business owners face unique challenges that may ultimately impact both their personal and business finances. In this…
Treasury Department and Federal Housing Finance Agency Amend Preferred Stock Purchase Agreements for Fannie Mae and Freddie Mac
January 2, 2025 / Source: Treasury
WASHINGTON – The U.S. Department of the Treasury (Treasury) and the Federal Housing Finance Agency (FHFA) today announced an agreement to amend the Preferred Stock Purchase Agreements (PSPAs) between Treasury and each of Fannie Mae and Freddie Mac (the GSEs) to help ensure that the eventual release of the GSEs from conservatorship will be orderly…
OCC Releases CRA Performance Evaluations for 16 National Banks and Federal Savings Associations
January 2, 2025 / Source: OCC
WASHINGTON—The Office of the Comptroller of the Currency (OCC) today released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of December 1, 2024, through December 31, 2024. Under the CRA, the OCC assesses an institution’s record of meeting the credit needs of its entire community, including low- and…