CFPB Shuttered By Trump Administration

CFPB Shuttered By Trump Administration

The Consumer Financial Protection Bureau was effectively shut down by officials over the weekend. The AP broke the news that an email sent Saturday night by Russell Vought, Trump’s director of the Office of Management and Budget, directed employees to stop working on new and unfinalized rules, as well as halt any investigations. “Effective immediately,…

Treasury Secretary Scott Bessent Named Temporary Head Of CFPB

Treasury Secretary Scott Bessent Named Temporary Head Of CFPB

Scott Bessent, the newly confirmed Treasury Secretary, has been named acting director of the Consumer Financial Protection Bureau.  Bessent replaces Rohit Chopra, who was fired by President Donald Trump, an outcome analysts expected. Chopra has headed the agency since 2021. Bessent is a billionaire hedge fund manager whose operating style is expected to benefit wealthy…

CFPB Says Vanderbilt Mortgage Mislead Manufactured Home Borrowers

CFPB Says Vanderbilt Mortgage Mislead Manufactured Home Borrowers

The Consumer Financial Protection Bureau has accused Vanderbilt Mortgage & Finance of misleading borrowers looking to finance manufactured homes. In a new lawsuit, the CFPB claims Vanderbilt ignored obvious signs that borrowers could not afford loans, resulting in excessive financial struggle for families struggling to make payments. Vanderbilt allegedly charged fees and penalties on delinquent…

CFPB Says Mortgage Servicers Burden Borrowers After Deaths, Divorce

CFPB Says Mortgage Servicers Burden Borrowers After Deaths, Divorce

Mortgage servicers push homeowners to take on debt or burden them with needless paperwork requests after divorce or the death of an original borrower, according to the Consumer Financial Protection Bureau. Federal rules require mortgage servicers to help homeowners learn how to make payments and evaluate the possibility of a loan modification. But a new…

HMDA Data: Mortgage Activity Suffered In 2023

HMDA Data: Mortgage Activity Suffered In 2023

Mortgage activity declined significantly in 2023, with refinances hit especially hard, while IMBs took market share from banks and CUs. Data from the Home Mortgage Disclosure Act, collected by the Consumer Financial Protection Bureau, found that both applications and originations fell by about a third in 2023. Since 1975, the HDMA has required financial institutions…

CHLA Asks CFPB To Move On Trigger Leads

CHLA Asks CFPB To Move On Trigger Leads

The Community Home Lenders of America (CHLA) sent a letter to the Consumer Financial Protection Bureau (CFPB) pressing for action on trigger leads. A trigger lead provision was dropped from the National Defense Authorization Act (NDAA). The provision, Senate Amendment 2358, would prevent the national credit agencies from selling credit reports of consumers to mortgage…

Fairway To Pay $9.9M To Settle Redlining Claims

Fairway To Pay $9.9M To Settle Redlining Claims

Fairway Independent Mortgage must pay nearly $10 million to settle allegations of redlining in Birmingham, AL. The Consumer Financial Protection Bureau accused Fairway of withholding credit from predominantly Black neighborhoods, a form of illegal lending discrimination. According to the Bureau, Fairway refused to act on data showing it didn’t serve majority-Black neighborhoods in the area…

CFPB Orders Fay Servicing To Pay $2M Penalty
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CFPB Orders Fay Servicing To Pay $2M Penalty

The Consumer Financial Protection Bureau ordered Fay Servicing to pay a $2 million penalty for allegedly breaking mortgage servicing laws and violating an agency order. The CFPB contends that Florida-based non-bank servicer Fay Servicing ignored a 2017 order and took prohibited foreclosure actions against borrowers requesting mortgage assistance. The company failed to offer borrowers the…

CFPB Proposes New Foreclosure Servicing Rules

CFPB Proposes New Foreclosure Servicing Rules

The Consumer Financial Protection Bureau proposed new servicing rules geared towards saving homeowners from foreclosure. If finalized, the proposal would require mortgage servicers to prioritize helping borrowers make payments over foreclosure. The Bureau is requesting comments on this topic and possible approaches to ensuring that servicers are producing accurate credit reporting data for borrowers undergoing…

CFPB To Create Repeat Offender Registry

CFPB To Create Repeat Offender Registry

The Consumer Financial Protection Bureau finalized a rule creating a registry of repeat corporate offenders to deter further infractions. The goal is to identify financial institutions that have violated consumer laws and government or court orders on multiple occasions, helping it hold lawbreaking companies accountable. Court orders and agency actions against companies that have broken…

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