On December 21, Congress overwhelmingly passed a consolidated bill (H.R. 133) that contains $1.4 trillion in appropriations to keep the federal government funded until October 2021 and $900 billion in coronavirus economic relief. The latter is found in Division N of the lengthy bill (which runs over 5600 pages) entitled “Additional Coronavirus Response and Relief.”
COVID-19
Department of Education extends pandemic-related benefits
By John L. Culhane, Jr. on
Without elaborating on its authority for doing so, the Department of Education recently announced the extension, through January 31, 2021, of certain pandemic-related benefits for federal student loan borrowers.
In particular, the administrative forbearance period, the 0% interest rate (pause in interest accrual), and the suspension of administrative wage garnishment and other collection activity will…
CFPB Private Education Loan Ombudsman issues annual report
By Bowen "Bo" Ranney on
The CFPB Private Education Loan Ombudsman has issued an annual report containing an analysis of approximately 5,000 federal student loan complaints, 1,900 private student loan complaints, and 1,700 debt collection complaints related to private or federal student loans submitted by consumers between September 1, 2019 and August 31, 2020. The report notes that total student…
Ballard Spahr attorneys author article on COVID-19’s effect on real-time payments
By Barbara S. Mishkin on
Among the unfortunate consequences of the pandemic has been COVID-19-related scams targeting businesses and consumers. As real-time payments (RTP) become more popular in the U.S., fraudsters can be expected to increasingly engage in fraudulent RTP transactions.
A new article titled “The Effect of COVID-19 on Real-Time Payments” written by Ballard Spahr Of Counsel Judy Mok…
Potential regulatory and legislative implications of blue wave on consumer financial services highlighted in Ballard Spahr webinar
By Barbara S. Mishkin on
For our webinar last week, “What a Blue Wave in the November 2020 Elections Could Mean for the Consumer Financial Services Industry,” we were joined by special guest Isaac Boltansky, Director of Policy Research at Compass Point Research & Trading. The webinar examined the potential implications for the consumer financial services industry should Joe Biden…
This week’s podcast: A look at COVID-19’s impact on credit reporting, credit scoring, and underwriting
By Barbara S. Mishkin on
We are joined by Kelly Cochran, formerly with the CFPB and now Deputy Director of FinRegLab, a non-profit focused on the use of data and technology in financial services. We examine credit reporting, credit scoring, and underwriting issues arising from the pandemic and CARES Act requirements, including the use of comment codes by furnishers and…
President Trump Takes Executive Action to Continue Federal Student Loan Relief During the COVID-19 Pandemic
On August 8, 2020, President Trump signed four executive orders that are designed to provide additional COVID-19 relief as talks on Capitol Hill collapsed on August 7 between White House negotiators and Democratic leaders over a fifth coronavirus stimulus package. One of those actions, which is directed to the Secretary of Education in the form…
FFIEC Issues Joint Statement on Additional Loan Accommodations Related to COVID-19
By Lori J. Sommerfield on
On August 3, 2020, the Federal Financial Institutions Examination Council (“FFIEC”) issued a joint statement to provide prudent risk management and consumer protection principles for financial institutions to consider when working with borrowers as consumer and business loans near the end of initial loan accommodation periods during the coronavirus pandemic. The guidance notes that the…
Federal and State Banking Regulators Issue New Examination Procedures on Sampling Methodologies, UDAP/UDAAP, and CARES Act
By Scott A. Coleman & Lori J. Sommerfield on
Recently, the federal banking regulators issued four new sets of examination procedures. The OCC issued two significant examination booklets on sampling methodologies and UDAP/UDAAP, and the federal banking regulators, together with state financial regulators, issued interagency exam guidance for assessing safety and soundness of financial institutions in light of the ongoing impact of the COVID-19…
House Financial Services Committee to hold July 30 hearing on the CFPB’s pandemic response
By Barbara S. Mishkin on
On July 30, 2020, the House Financial Services Committee will hold a hearing entitled, “Protecting Consumers During the Pandemic? An Examination of the Consumer Financial Protection Bureau.”
The hearing will convene in a “hybrid” format, which allows Committee members to participate remotely or from the hearing room.