Top Story Lending Related

The CFPB has filed a complaint in a federal district court against the debt collection law firm, Weltman, Weinberg & Reis, Cleveland, Ohio, for falsely representing in millions of collection letters to consumers that attorneys were involved in collecting the debt. The law firm made statements on collection calls and sent collection letters creating the false impression that attorneys had meaningfully reviewed the consumer’s file, when no such review had occurred. The CFPB is seeking to stop the unlawful practices and recoup compensation for consumers who have been harmed.

• Press release

The NCUA has published a notice of an open meeting of its Board at 10:00 a.m. EDT, April 20, at which the NCUA Board will consider quarterly reports on the Share Insurance and Corporate Stabilization funds, and proposed changes to Illinois' Member Business Loan Rule. The open meeting will be followed by a closed meeting to consider a share insurance appeal.

The Bureau has released its fifth Fair Lending Report. The CFBP reports that, during 2016:

• To protect consumers and better understand issues facing lenders, the Bureau engaged in significant outreach with industry, civil rights advocates, consumer groups, and other stakeholders to ensure a diverse set of viewpoints are incorporated into our work
• The CFPB protected consumers by working with other government regulators and agencies to ensure companies reimbursed harmed consumers and put tools and processes in place to protect consumers
• The Bureau encouraged lenders to find ways to expand access to credit in responsible ways, including to consumers with limited proficiency in English

In 2017, the CFPB plans to monitor institutions for compliance in redlining, mortgage and student loan servicing, and small business lending.

• Fair Lending Report

The Federal Emergency Management Agency published in today's Federal Register a corrected list of communities in the State of Washington that were suspended on March 7, 2017, from the National Flood Insurance Program for non-compliance with the flood plain management requirements of the program. The list corrects the list published in FEMA's final rule published on March 13, 2017. The communities in the updated list are the cities of Lakewood and Ruston, both in Pierce County.

The OCC Office of Innovation will host two days of office hours for national banks, federal savings associations, and financial technology companies (fintech companies) wishing to discuss the OCC’s perspective on responsible innovation. This initial round of meetings will be held in the OCC's San Francisco Field Office on May 16 and 17, 2017. For more information see the agency's Innovation Home Page.

The Consumer Financial Protection Bureau has released a proposed rule to help financial institutions comply with the 2015 HMDA Final Rule by clarifying the information they will be required to collect and report about their mortgage lending. The proposed rule contains a number of clarifications, technical corrections, and minor changes to the HMDA regulation. These include clarifying certain key terms, such as "temporary financing" and "automated underwriting system." The proposal would also, for example, establish transition rules for reporting certain loans purchased by financial institutions. Another proposed change would facilitate reporting the census tract of a property, using a new geocoding tool the CFPB plans to provide online. Comments on the proposal will be accepted for 30 days after its publication in the Federal Register.

• UPDATE:Published at 82 FR 19142 on April 25, 2017, with a comment deadline of May 25, 2017.

The OCC has issued Bulletin 2017-15 to introduce a new “Retail Lending” booklet for the Comptroller’s Handbook. This new booklet, part of the “Safety and Soundness” category of the Handbook, discusses the risks associated with retail lending and provides a framework for evaluating retail credit risk management activities. This booklet supplements the core assessment sections of the “Large Bank Supervision,” “Community Bank Supervision,” and “Federal Branches and Agency Supervision” booklets of the Handbook. Examiners should refer to the “Retail Lending” booklet when specific retail lending products, services, activities or risks warrant review beyond the core assessment because they have a material impact on the risk profile and financial condition of national banks and federal savings associations.

In a presentation to the Operation Hope Global Forums Annual Meeting in Atlanta, CFPB Director Cordray discussed how the credit reporting market exerts a tremendous influence over consumers' financial lives. He said, "Credit reports, also known as consumer reports, can make or break whether someone gets a car loan, a credit card, a bank account, or a mortgage — and the interest rate they have to pay. They can also affect whether someone can rent an apartment or get a job." Cordray added, "Five years ago, the Consumer Bureau became the first government agency to supervise the nationwide credit reporting companies." Director Cordray concluded, "Our ultimate vision is a credit reporting market based on highly accurate information, where consumers who dispute erroneous information can get their disputes resolved timely and effectively."

The Federal Reserve Board has released the minutes of its discount rate meetings from February 13–March 15, 2017.

The Federal Reserve Board has released the results of the February 2017 E.2 Survey of Terms of Business Lending.