Joint Disclosure Deadline Proposal Seeks October 3, 2015 Effective Date

As promised, the CFPB has announced, via a proposed amendment, that the effective date of the new Joint Disclosure Rule (TRID) will be Saturday, October 3, 2015.  According to the CFPB, implementation on a weekend will allow software providers the opportunity to test systems in anticipation of the workweek launch. For more information on the CFPB’s announcement, please click here: http://www.consumerfinance.gov/newsroom/cfpb-proposes-two-month-extension-of-know-before-you-owe-mortgage-rule/ Again, the effective date of the new Joint Disclosure is October 3,...

TRID Deadline Changed to October 1st

The CFPB announced yesterday that it had issued a new proposal to amend and move the TRID implementation deadline from August 1, 2015 to October 1, 2015 in order to address an “administrative error” that would have required the CFPB to push back implementation of the TRID rule for two weeks.  Director Richard Cordray indicated in his prepared remarks on the subject that the 60 day extension would allow settlement providers further time to address compliance and to avoid the end of summer buying season in the real estate marketplace.  The move has been welcomed by the settlement services industry who continue to push for a “hold-harmless” period that would last until January 1, 2016.  So far, those efforts have not succeeded.  Nevertheless, the proposed amendment to extend the TRID deadline is expected to go final shortly. Due to federal rulemaking guidelines, the decision to extend the deadline will now be subject to public comment.  Once the amendment is formally announced through the Federal Register, all of you will be able to voice your concerns over the proposal and the rule.  Please take a moment to share your comments and concerns with the CFPB as they seek to implement the final TRID rule on October 1, 2015.  We will have more information on how you can do that once it is announced. For all intents and purposes, the TRID deadline will now be October 1,...

Prepared Remarks of CFPB Director Richard Cordray at the Field Hearing on Student Loans

FOR IMMEDIATE RELEASE: May 14, 2015 CONTACT: Office of Communications Tel: (202) 435-7170 Prepared Remarks of Richard Cordray  Director of the Consumer Financial Protection Bureau Field Hearing on Student Loans Milwaukee, Wisconsin  May 14, 2015 Thank you all for joining us today in Milwaukee.  Plato once said, “The direction in which education starts a man will determine his future life.”  More Americans are heeding that advice and going to college at record rates – including both women and men, I might add, unlike in Plato’s day.  At the same time, the high price of college has created pressure and anxiety for students and families across the country. Today the Consumer Financial Protection Bureau is here in Wisconsin to focus on how tens of millions of Americans are affected by their student debt load, which in the aggregate now tops $1.2 trillion.  Wisconsin alone has about 812,000 federal student loan borrowers who owe $18.2 billion.  This does not even include the expensive private student loans that many Wisconsin students most likely took out to get through school.  This is a significant burden now being carried by many of our best and brightest. Student loans are now the largest source of consumer debt outside of mortgages.  Two-thirds of graduates are finishing their bachelor’s degrees with debt that averages nearly $30,000.  Among the most careful observers of economic data, there is a growing consensus that a strain of this magnitude can have repercussions that threaten the economic security of young Americans and economic growth for all Americans.  Significant debt can have a domino effect on the major choices people make in their lives: whether...

CFPB Launches Public Inquiry Into Student Loan Servicing Practices

FOR IMMEDIATE RELEASE: May 14, 2015 CONTACT: Office of Communications Tel: (202) 435-7170 CONSUMER FINANCIAL PROTECTION BUREAU LAUNCHES PUBLIC INQUIRY INTO STUDENT LOAN SERVICING PRACTICES Bureau Seeks Information On Industry Practices That Can Create Student Debt Stress   WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) is launching a public inquiry into student loan servicing practices that can make paying back loans a stressful or harmful process for borrowers. The issues that the Bureau is seeking information on include: industry practices that create repayment challenges, hurdles for distressed borrowers, and the economic incentives that may affect the quality of service. The CFPB is also re-launching an enhanced version of its Repay Student Debt online tool to help borrowers figure out their options for affordable repayment. “Student debt stress can make borrowers feel like they are walking a tightrope where any false move in paying back a loan can cause them to fall,” said CFPB Director Richard Cordray. “Today’s inquiry seeks information on the pain points in student loan servicing that make repayment a more difficult and stressful process.” The Request for Information is available at: http://files.consumerfinance.gov/f/201505_cfpb-rfi-student-loan-servicing.pdf  Student loans make up the nation’s second largest consumer debt market. The market has grown rapidly in the last decade. Today there are more than 40 million federal and private student loan borrowers and collectively these consumers owe more than $1.2 trillion. The market is now facing an increasing number of borrowers who are struggling to stay current on their loans. Servicers are a critical link between the borrowers and the lenders. They manage borrowers’ accounts, process monthly payments, and communicate directly...

CFPB Files Suit Against Nationwide Biweekly for Luring Consumers with False Promises of Mortgage Savings

OR IMMEDIATE RELEASE: May 11, 2015 CONTACT: Office of Communications Tel: (202) 435-7170 CONSUMER FINANCIAL PROTECTION BUREAU FILES SUIT AGAINST NATIONWIDE BIWEEKLY FOR LURING CONSUMERS WITH FALSE PROMISES OF MORTGAGE SAVINGS Consumers Paid $49 Million in Fees for Deceptive Mortgage Payment Program   WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) filed a lawsuit in federal district court against Nationwide Biweekly Administration, Inc., Loan Payment Administration LLC, and the companies’ owner, Daniel Lipsky, alleging that Nationwide misrepresents the interest savings consumers will achieve through a biweekly mortgage payment program and misleads consumers about the cost of the program.  The CFPB is seeking compensation for harmed consumers, a civil penalty, and an injunction against the companies and their owner. “These companies and their owner, Daniel Lipsky, took advantage of consumers with false promises of savings on their mortgage,” said CFPB Director Richard Cordray. “Homeowners deserve accurate information in the financial marketplace. Today we are taking action to end these illegal and deceptive practices, and to hold these companies accountable for their actions.” Nationwide Biweekly Administration is an Ohio-based company that transmits funds from consumers to their mortgage servicers. Loan Payment Administration LLC is a wholly owned subsidiary of Nationwide. Daniel Lipsky is the founder, president, and sole owner of Nationwide, and has managerial responsibility for both companies. Nationwide offers a product for mortgage borrowers that it calls the “Interest Minimizer.”  Most consumers who enroll in the Interest Minimizer program send Nationwide half their monthly mortgage payment every two weeks, effectively making one additional monthly payment per year. Nationwide charges consumers a setup fee of up to $995 to enroll...

Prepared Remarks of CFPB Director Richard Cordray on the Credit Reporting Press Call

  FOR IMMEDIATE RELEASE: May 5, 2015 CONTACT: Office of Communications Tel: (202) 435-7170 Prepared Remarks of Richard Cordray Director of the Consumer Financial Protection Bureau Credit Reporting Press Call Washington, D.C.  May 5, 2015 Thank you for joining us on this call.  Today we are releasing a report finding that about one in 10 adults in this country, or about 26 million consumers, are “credit invisible.”  Consumers that are credit invisible do not have credit history with any of the three nationwide credit reporting companies.  An additional 19 million Americans have credit histories containing insufficient or stale information that were “unscored” by a commercially-available credit scoring model that is consistent with most credit scores used today. Consumers’ credit histories reflect how they have repaid their debts to those lenders that report to the credit reporting companies.  Details about how much consumers have paid and owe on their credit cards, mortgages, student loans, car loans, and more may all be included.  Credit histories may also contain information about tax liens, bankruptcy filings, and court judgments. Credit history is compiled into credit reports and used to produce credit scores, which lenders then use to help assess how likely consumers are to repay their debts.  Without credit reporting and credit scoring, it would be harder for financial service providers to assess and manage credit risk, and the supply of credit would be more expensive, more erratic, and more constrained. These reports and scores play an incredibly important role in the lives of American consumers. Although the vast majority of Americans have a credit file at the three nationwide credit reporting companies, about...