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Friday, August 22, 2014

NCRC: CFPB Should Enhance Small Business Loan Data

The National Community Reinvestment Coalition (NCRC) is making recommendations to the CFPB regarding the collection of data on small business loans as the bureau implements Section 1071 of the Dodd-Frank Act. Section 1071 requires that the CFPB improve the publicly available information on small business loans by including information on the applicant’s race and gender, as well as the revenue size of the small business and action taken on the loan. The NCRC made the following recommendations:

  • Expand the disclosure on race and ethnicity to include sub-categories of various nationalities
  • Require more specific disclosure of revenue size of the small business, other than simply above or below $1 million in revenue
  • Include the action taken on loan applications, adding information regarding approvals and denials
  • Provide information on the loan type and purpose to determine if lending is responsibly meeting credit needs

The NCRC also suggested enhancing the collection of other data elements such as pricing data, creditworthiness and the number of employees.

Read the NCRC white paper.

CFPB Announces Mortgage EClosing Pilot Participants

The CFPB announced the participants of the eClosing pilot program. EClosing solutions, part of the CFPB’s “Know Before You Owe” mortgage initiative, is meant to leverage technology to ease the mortgage closing process. The pilot will evaluate eClosing solutions, allowing the CFPB to conduct targeted research and to release the findings publicly. The CFPB is conducting the pilot to determine if eClosing solutions can be effective in:

  • Enabling consumer understanding
  • Incentivizing consumer engagement through early document review
  • Making processes more efficient through an updated online process

Participants in the program includes lenders and technology vendors that will assist the lender in closing loans using eClosing solutions.

Read the press release.
Read the guidelines.

Thursday, August 21, 2014

CFPB Takes Action Against Auto Finance Company

The CFPB is ordering a Texas-based auto finance company to pay a $2.75 million fine, fix its errors and change its business practices. The company is charged with distorting consumer credit records.

The auto finance company, which offers loans directly to consumers to finance the purchase of motor vehicles, was found to have reported wrong payments and overdue amounts, distorted the dates of first delinquency, inflated the number of delinquencies for some customers and mischaracterized of the vehicle surrender.

Read more.

ABA Guide Offers Comprehensive Review of Bank Regs

ABA’s extensive Reference Guide to Regulatory Compliance covers federal regulations, consumer legislation and all the rules needed to manage bank compliance in key areas — including compliance risk management, credit, deposits, bank operations, Bank Secrecy Act and anti-money laundering, the Community Reinvestment Act, the Home Mortgage Disclosure Act, privacy, securities and insurance.

The guide’s 24th edition is now available in print or ebook format, and includes updated sections on the CFPB’s mortgage-related rulemaking, the TILA-RESPA integration, the Protecting Tenants at Foreclosure Act, FACT Act updates and new MSRB rules. Those pursuing the Certified Regulatory Compliance Manager designation will find the guide’s self-study and review questions and answers useful — along with its cross-reference of book section titles and CRCM exam topics.

Order now.

Wednesday, August 20, 2014

CFPB Requests Comment on Teacher Training Initiative

The CFPB is proposing a new information collection titled “Teacher Training Initiative (TTI) Local Education Agencies (LEA) Partnership Application”. The bureau is requesting comments on the proposed collection of information from LEAs interested in partnering with the bureau with the aim of designing and implementing a model for training K-12 teachers to include financial education in their curriculum.

Comments are due October 20, 2014.

Read more.

ABA Opposes CFPB Debt Collection Study

ABA urged the Office of Management and Budget not to approve the CFPB’s proposed consumer survey on debt collection. The bureau’s revised request to conduct the survey failed to respond to comments on its first request.

In May, ABA highlighted several methodological and design flaws in the survey — for example, failing to distinguish between experiences with first-party and third-party debt collectors and insufficient management of response bias — but the CFPB responded “only perfunctorily” to feedback from ABA and other groups, the association said. ABA wrote:

The information collection request the bureau has submitted demonstrates a troubling lack of commitment to transparency, public participation, and collaboration. As a consequence, the impact of potential sources of error very likely will be under-disclosed and under-reported.

Read ABA’s letter.