CFPB, Federal Agencies, State Agencies, and Attorneys General
The CFPB has issued its final rule that will prohibit the inclusion of medical debts in credit reports lenders use to make credit decisions and that will also generally prohibit lenders from using medical debt information in making credit decisions.
But the rule faces challenges on several fronts.
“People who get sick shouldn’t have their financial future upended,” said CFPB Director Rohit Chopra, in issuing the rule.… Continue Reading
The U.S. Department of Housing and Urban Development (HUD) has extended from January 1, 2025 until July 1, 2025, the compliance date for certain provisions of the department’s rule entitled “Modernization of Engagement with Mortgagors in Default.’’
That rule requires mortgagees to conduct meetings with all mortgagors in default.
As revised by the Modernization of Engagement with Mortgagors in Default final rule, 24 CFR 203.604(a)(3) the HUD rule will require that ‘‘[a] reasonable effort to arrange a meeting with the mortgagor shall consist of, at a minimum, two verifiable attempts to contact the mortgagor utilizing methods determined by the Secretary.’’… Continue Reading
The CFPB will hold two virtual sessions later this month to answer questions about its Nonbank Enforcement Action Registry rule. The rule, issued in June 2024, will require certain nonbank entities to register certain covered administrative or court orders, and certain nonbank entities to comply with ongoing attestation requirements on the entity’s compliance with such orders
The two sessions—the first on December 11 and the second on December17—will feature staff from the bureau’s Nonbank Registration Team.… Continue Reading
The U.S. Department of Veterans Affairs (VA) recently proposed rules to modify the requirements for the reporting of VA guaranteed mortgage loans, and the rules regarding when the VA would assert a defense for a partial or total loss of a guaranty for a VA guaranteed mortgage loan. Comments on the proposal are due by January 21, 2025.… Continue Reading
Saying that it wants to provide sufficient time to brief issues in pending litigation, the CFPB has announced that it is extending the effective date of its advisory opinion on medical debt from Dec. 3, 2024 to Jan. 2, 2025.
ACA International, the association representing the accounts receivable industry, has filed suit in the U.S.… Continue Reading
ACA International, the association representing the accounts receivable industry, has filed suit against the CFPB, alleging that the bureau’s advisory opinion on medical debt was overtly political, issued in violation of the Administrative Procedures Act (APA) and should be nullified.
The association charged that although the CFPB was designed to be independent, the bureau’s advisory opinion was announced at an event at the White House and was first introduced by Vice President Kamala Harris, who at the time was running for president.… Continue Reading
California Gov. Gavin Newsom has signed legislation covering a range of consumer protection issues. The bills aim to “strengthen protections for consumers, addressing issues that have put financial strain on Californians while setting new standards for transparency and accountability across industries.”
The legislative package includes the following bills:
The Federal Emergency Management Agency (FEMA) has announced it will allow National Flood Insurance Program (NFIP) premiums to be paid on an installment basis. The final rule implements an installment payment option that was mandated by Congress in the Biggert-Waters Flood Insurance Reform Act, adopted in 2012, for policyholders who are not required to pay into escrow for flood insurance premiums. … Continue Reading
This summer, the CFPB issued its long-awaited proposed rule amending the mortgage servicing rules under Regulation X, with a focus on loss mitigation procedures, foreclosure protections, and language access. These changes were previewed by the CFPB as a means to streamline, and add flexibility to, the loss mitigation process, in light of the industry’s successful efforts during the COVID-19 pandemic.… Continue Reading
The CFPB is in the process of completing its final rule intended to ban the inclusion of medical debts in credit reports, bureau Director Rohit Chopra said at a White House session intended to focus on practices in the medical debt collection industry.
“Often, predatory companies threaten to put medical debt on people’s credit reports, where lenders, landlords, and employers presume their accuracy,” Chopra said, in his prepared remarks.… Continue Reading
