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07/10/2020

PA communities on FEMA suspension list

The Federal Emergency Management Agency has published [85 FR 41195] a notice identifying communities in Pennsylvania scheduled for suspension from the National Flood Insurance Program for noncompliance with the program's floodplain management requirements on Wednesday, July 8. The notice lists the communities of Bethel, Cleona, Cornwall, East Hanover, Heidelberg, Jonestown, Lebanon, Millcreek, Mount Gretna, Myserstown, North Cornwall, North Londonderry, Palmyra, South Lebanon, South Londonderry, Swatara, and West Cornwall.

If a listed community took the required floodplain management measures before the July 8 effective date, it was not suspended. Lenders should verify the status of the listed communities before proceeding with any loan to be secured by real estate in those areas.

07/09/2020

Student-loan debt-relief business settles with CFPB

The CFPB has reported that it has settled with Timemark, Inc., a company based in Deerfield Beach, Florida, that provides debt-relief services to consumers with federal student-loan debt, and with its owners and officers, Timothy Lenihan Sr., Mark Nagler, and Casey Gassaway. The Bureau alleged that the defendants charged illegal advance fees in violation of the Telemarketing Sales Rule (TSR) to consumers who were seeking to renegotiate, settle, reduce, or alter the terms of their loans. A complaint filed by the CFPB alleged that from 2016 through October 2019, the defendants used telemarketing campaigns to convince more than 7,300 consumers to pay up to $699 in fees to file paperwork to reduce or eliminate their monthly payments for their federal student loans, through loan consolidation, forgiveness, or income-driven repayment plans.

If the proposed stipulated judgment is approved, the defendants would be permanently banned from providing debt-relief services. The order would impose a judgment on the defendants, jointly and severally, in the amount of about $3.8 million for consumer redress. Full payment of this amount will be suspended if, within 10 days after the order is entered, Timemark pays $5,000, Nagler pays $7,000, and Gassaway pays $10,000. The full amount of redress was suspended because of defendants’ purported limited ability to pay more based on sworn financial statements. The defendants would also be required to each pay a $1 civil money penalty, in light of their financial circumstances.

07/09/2020

Consumer credit down in May

The Federal Reserve Board has posted the G.19 Consumer Credit Report for May 2020, which indicates consumer credit decreased at a seasonally adjusted annual rate of 5-1/4 percent. Revolving credit decreased at an annual rate of 28-1/2 percent, while nonrevolving credit increased at an annual rate of 2-1/4 percent.

07/09/2020

FHA home retention measures expanded

Yesterday the FHA announced additional home retention measures to help homeowners with FHA-insured single family mortgages who are financially impacted by the COVID-19 pandemic to bring their mortgage current at the end of their COVID-19 forbearance. Effective immediately, mortgage servicers will be able to use an expanded menu of loss mitigation tools, known as a “waterfall,” to assess homeowners’ eligibility for other options to bring their mortgages current if they do not qualify for FHA’s COVID-19 National Emergency Standalone Partial Claim. These options are available for homeowners whose mortgages were current or less than 30 days past due as of March 1, 2020.

07/09/2020

HUD eviction prevention and stability toolkit

HUD Secretary Carson has announced the Eviction Prevention and Stability Toolkit, to encourage public housing authorities and housing choice voucher landlords to plan for and implement strategies to keep families stably housed and mitigate economic hardships due to the COVID-19 pandemic. The toolkit comprises a public housing authority best practices guide, a tenant brochure with tips to avoid eviction, a housing choice voucher landlord flyer to encourage engagement with tenants before the moratorium expires, and repayment agreement guidance in addition to sample documents to provide increased clarity for landlords and renters utilizing the resources. The elements of the toolkit are linked on HUD's Public and Indian Housing COVID-19 Resources webpage.

07/09/2020

Fed lists MSLP lenders

The Federal Reserve Bank of Boston has posted on its Main Street Lending Program Information for Borrowers webpage an interactive map with a listing of lenders participating in the MSLP who are currently accepting applications from new customers.

Registered lenders wishing to be added to the lender list or change their status can contact MSLP@bos.frb.org for such requests.

07/08/2020

Final rule on small dollar lending issued

The CFPB has issued a final rule amending its Payday, Vehicle Title, and Certain High-Cost Installment Loans regulations at 12 CFR part 1041. The final rule, which will be effective 90 days after its Federal Register publication, rescinds the mandatory underwriting provisions of the 2017 rule but does not rescind or alter the payments provisions of the 2017 rule.

The Bureau had received a petition to commence a rulemaking to exclude debit and prepaid cards from the payments provisions of the small dollar lending rule, and the agency has denied that petition. The Bureau has also issued guidance clarifying the payments provisions’ scope and assisting lenders in complying with those provisions. In addition, today the Bureau released a ratification of the payment provisions in light of the Supreme Court’s recent decision in Seila Law. Although the payments provisions are currently stayed by court order, the Bureau will seek to have them go into effect with a reasonable period for entities to come into compliance.

PUBLICATION UPDATE: Published 7/22/2020 with effective date of 10/20/2020.

07/07/2020

Consumer Financial Protection Week announced

The Bureau has announced the launch of Consumer Financial Protection Week, which will take place from July 14–17, 2020. During the week, activities will focus on how the CFPB is protecting consumers in the financial marketplace, the issues consumers are confronting, and how consumers can communicate to the Bureau any issues they may have with a financial services provider.

07/07/2020

Credit union CLF borrowing capacity exceeds $25M

The NCUA announced yesterday that the Central Liquidity Facility (CLF) has experienced a significant increase in its membership and borrowing capacity. In total, 3,797 credit unions, or 73 percent all federally insured credit unions, have access to the CLF, either as a regular member or through their corporate credit union. Under the temporary authority granted by the CARES Act, the CLF can borrow sixteen times its total capital. As of May 31, the facility’s borrowing authority stood at $25.8 billion, an increase of $15.3 billion since April.

07/07/2020

PPP loan data released

The SBA, in consultation with Treasury, yesterday announced it was releasing detailed loan-level data regarding the loans made under the Paycheck Protection Program (PPP). This disclosure covers each of the 4.9 million PPP loans that have been made. The release includes loan-level data, including business names, addresses, NAICS codes, zip codes, business type, demographic data, non-profit information, name of lender, jobs supported, and loan amount ranges.

The data release also includes overall statistics regarding dollars lent per state, loan amounts, top lenders, and distribution by industry. The loans have reached diverse communities proportionally, across all income levels and demographics.

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