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09/01/2020

Bureau report on early effects of COVID-19 on consumer credit

The CFPB has released a special data-point brief describing trends in delinquency rates, payment assistance, credit access, and account balance measures with a focus on the period since the start of the COVID-19 pandemic (March 2020). Based on the credit outcomes analyzed, this report shows that through June 2020 consumers did not experience many of the negative credit consequences that might be expected during periods of high unemployment and large income shocks.

The analysis shows that between March and June of 2020 delinquencies declined on auto loan, mortgage, student loan, and credit card accounts, while the number of accounts with zero payment due (assistance) increased. Financial institutions also appear to have responded by increasing closures of credit card accounts and halting limit increases, but these actions have not significantly limited overall access to credit. As of June 2020, consumers also do not appear to have responded to adverse financial conditions by increasing balances, consistent with reports showing significant decreases in consumer spending since the start of the COVID-19 pandemic.

09/01/2020

FDIC posts CRA exam schedules

The FDIC has released its CRA examination schedules for the fourth quarter of 2020 and first quarter of 2021. CRA regulations require each federal bank and thrift regulator to publish its quarterly CRA examination schedule at least 30 days before the beginning of each quarter.

08/31/2020

FDIC guidance - California wildfires relief

In FIL-85-2020, The FDIC has announced steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of California affected by wildfires that began August 14 and are continuing.

  • The Federal Emergency Management Agency (FEMA) declared a federal disaster for selected areas affected in California on August 22, 2020. FEMA may make additional designations after damage assessments are completed in the affected areas. A current list of designated areas is available at www.fema.gov
  • The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the wildfires.
  • Banks that extend repayment terms, restructure existing loans, or ease terms for new loans in a manner consistent with sound banking practices, can contribute to the health of the local community and serve the long-term interests of the lending institution.
  • Banks may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery.
  • The FDIC also will consider regulatory relief from certain filing and publishing requirements.

08/31/2020

Public listening sessions regarding Fannie and Freddie capital rules

To allow interested parties to elaborate on their public comment letters on the re-proposed capital rule for Fannie Mae and Freddie Mac (the Enterprises), the Federal Housing Finance Agency (FHFA) will host two listening sessions on September 10, 2020 and September 14, 2020. These listening sessions are opportunities for interested parties to elaborate on specific subjects and do not substitute for formal comment letters.

The first session will be held on September 10, 2020 at 10:00 a.m. EDT and will focus on credit risk transfers.

The second session will be held on September 14, 2020 at 10:00 a.m. EDT and will focus on affordable housing access.

Interested parties must request a speaking slot.

08/28/2020

CFPB analysis of HMDA data

The CFPB has published a second data point article analyzing 2019 HMDA data. Some of the key findings in the article include:

  • The top 25 open-end lenders accounted for about 573,000 open-end originations, or 53.6 percent of all open-end originations reported under HMDA.
  • Conventional jumbo loans have the highest mean and median credit scores among closed-end mortgages, with a mean score of 765 and a median of 773.
  • FHA borrowers have the lowest mean and median scores among closed-end mortgages, with a mean score of 668 and a median of 663.
  • Among Black and Hispanic White homebuyers seeking conventional conforming loans, the median combined loan-to-value and debt-to-income ratios are higher than their Asian and non-Hispanic White counterparts.

08/28/2020

Bureau publishes RFI and QM proposal

The CFPB has published in today's Federal Register:

  • its previously-announced Request for Information [85 FR 53299] relating to a review of rules under the CARD Act. Comments are due in 60 days (by October 27, 2020).
  • its previously-announced Notice of Proposed Rulemaking [85 FR 53568] proposing the addition of a new "Seasoned QM Loan" definition for section 1026.43 of Regulation Z. Comments are due in 31 days (by September 28, 2020).

The Top Stories announcing the RFI and NPRM have been updated with this information, and the comment deadlines have been added to the BankersOnline Compliance Deadlines Calendar.

08/28/2020

FHA foreclosure and eviction moratorium extended

The FHA has announced the third extension of its foreclosure and eviction moratorium through December 31, 2020, for homeowners with FHA-insured single family mortgages covered under the Coronavirus Relief and Economic Security (CARES) Act. This extension provides an additional four months of housing security to homeowners, as they will not fear losing their homes as they work to recover financially from the adverse impacts of the pandemic. With this third extension, the FHA has now provided more than nine months of foreclosure and eviction relief to FHA-insured homeowners.

08/27/2020

CFPB issues consent order against mortgage broker

The Bureau has issued a consent order against PHLoans.com, Inc., a California corporation that is licensed as a mortgage broker or lender in about 11 states. The Bureau found that PHLoans sent consumers numerous mailers for VA-guaranteed mortgages that contained false, misleading, and inaccurate statements or that lacked required disclosures, in violation of the Consumer Financial Protection Act’s prohibition against deceptive acts and practices, the Mortgage Acts and Practices–Advertising Rule (MAP Rule), and Regulation Z. The consent order requires PHLoans to pay a civil money penalty of $260,000 and imposes requirements to prevent future violations.

This is the fourth case stemming from a Bureau sweep of investigations of multiple mortgage companies that use deceptive mailers to advertise VA-guaranteed mortgages.

PDF of Consent Order against PHLoans

08/27/2020

Iowa storm-related relief

FDIC FIL-81-2020 provides guidance concerning steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Iowa affected by severe storms on or about August 10, 2020.

A federal disaster for selected areas in Iowa was declared on August 17, 2020. Additional designations may be made after damage assessments are completed in the affected areas. A current list of designated areas is available at www.fema.gov.

The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the severe weather. Extending repayment terms, restructuring existing loans, or easing terms for new loans, if done in a manner consistent with sound banking practices, can contribute to the health of the local community and serve the long-term interests of the lending institution.

Banks may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery. The FDIC also will consider regulatory relief from certain filing and publishing requirements

08/27/2020

Fannie and Freddie extend COVID-19 loan flexibilities

The FHFA has announced that Fannie Mae and Freddie Mac will extend buying qualified loans in forbearance and other loan origination flexibilities until September 30, 2020. The changes are to ensure continued support for borrowers during the COVID-19 national emergency. The flexibilities were set to expire on August 31, 2020. Extended flexibilities include:

  • Buying qualified loans in forbearance;
  • Alternative appraisals on purchase and rate term refinance loans;
  • Alternative methods for documenting income and verifying employment before loan closing; and
  • Expanding the use of powers of attorney to assist with loan closings.

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