Posts Tagged ‘scrutiny’

CFPB Takes Action, Faces Additional Scrutiny

December 21st, 2016 Comments off

Paradoy of CFPB logo – credit, Plus 1 Properties. Cartoon credit, MHProNews.

As the year draws to a close, the Consumer Finance Protection Bureau (CFPB) is taking action, and is also facing scrutiny.

According to Mortgage Daily News, The CFPB has entered into a consent order with Moneytree to settle allegations that the company engaged in deceptive advertising, sent consumers deceptive collection letters, and did not obtain written authorization for electronic repayments.

The consent order requires the company to pay approximately $255,000 in consumer redress and a civil money penalty of $250,000 to the CFPB. Moneytree did not admit to any wrongdoing in the matter.

The agency has also taken action against took action against four pawnbrokers in Virginia for “deceiving consumers about the actual annual costs of their loans.

Lawsuits filed in federal court by the CFPB alleged that the four companies broke the law by misstating the charges associated with pawn loans, and the suit seeks to get restitution for customers in addition to imposing penalties.


Credit: Wikipedia, CFPB, HubPages.

CFPB Hurting the Middle Class?

A scathing op-ed from the Competitive Enterprise Institute (CEI) says that the CFPB has “imposed rule after rule that hurts consumers and the middle class especially,” and lays out a number of ways that the organization could be causing financial problems, including the CFPB’s qualified mortgage (QM) rules, making short term loans difficult to get, encouraging suing in disagreements as opposed to arbitration and compiling mass amounts of consumer data.

On consumer data, CEI points to an article written by former House Speaker Newt Gingrich in The Wall Street Journal.

Every month the CFPB … gathers data on 22 million mortgages, 5.5 million student loans, two million bank accounts with overdraft fees, and hundreds of thousands of auto sales, credit scores and deposit advance loans.


Still from an Inside MH video, reflecting how Richard Cordray himself said that there was never much high cost lending in the manufactured housing industry market. To see the video of Cordray and others, click here.

Daily Business News readers are no strangers to the ongoing saga of the CFPB and the Dodd-Frank Act, with extensive coverage of the impact on the manufactured housing industry, the CFPB being ruled unconstitutional by a D.C. Circuit Court, and both Dodd-Frank and the CFPB being deep in the cross-hairs of President-elect Donald Trump.


James Cox. Credit: Duke.

According to some experts, while an all out repeal of Dodd-Frank is unlikely, significant changes to key parts of the law are a real possibility.

I don’t think it eviscerates Dodd-Frank, but I think it takes away some parts,“ said James Cox, a Duke University expert on securities law speaking on the Trump team’s approach. ##

(Image credits are as shown above.)


RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

New FHA Proposal could Cost Lenders more

August 15th, 2013 Comments off

It will more expensive for lenders to do business with the Federal Housing Administration (FHA) if a new method for determining lenders’ liability for poorly written loans that default is adopted. Currently, when defects are discovered lenders have to eat the losses on those loans. Under the new proposal, FHA would conduct a sampling of loans, determine the percent that have underwriting errors, extrapolate that number to the portfolio and the lender than pays an “estimated total risk” to FHA. Phillip Schulman of K&L Gates law firm, and a former lawyer with HUD, says, “If this goes through, it means it will be a lot more expensive to be an FHA lender. If a lender runs the risk that every time he makes a mistake it will be multiplied against his entire portfolio, he has to be very cautious.” In June 2013, of 6,251 loans FHA reviewed from the first quarter, only 19 percent had no mistakes, while 44 percent were unacceptable, and 37 percent were deficient, according to nationalmortgagenews. In addition, if the percent of loans with defects crosses a particular line, MHProNews has learned it would automatically trigger more scrutiny.

(Image credit: hansafx)

Foreclosures Remain a Threat to Stabilizing Prices

July 12th, 2012 Comments off

NationalMortgageNews reports RealtyTrac says foreclosure activity dropped eight percent in Q2 2012 from a year ago. 608,235 foreclosure filings—default notice, auction sale notice, or bank repossession—were reported on U.S. properties Q2 2011, as compared to 558,310 for this year’s filing. has learned while banks repossessed 40,000 fewer properties in Q2 2012 than in Q2 2011, foreclosure starts rose annually for the first time since the fourth quarter of 2009. However, the foreclosure process increased nine percent in the second quarter of 2012 over the first quarter. Brandon Moore, CEO of RealtyTrac, said, “Additional scrutiny on how lenders and servicers process foreclosures, along with aggressive foreclosure prevention efforts by the federal government and several state governments, continue to keep a lid on the foreclosure problem at a national level.”

(Image credit: CondoMetropolis)