CFPB, Federal Agencies, State Agencies, and Attorneys General
The new year heralds many new developments in the state regulation of student loan servicers. California, Illinois, and Washington have each taken significant steps in implementing their existing laws while legislation has been introduced in Virginia and New Mexico to regulate student loan servicers for the first time.
California. California’s Department of Business Oversight…
The District of Columbia Department of Insurance, Securities, and Banking (DISB) has issued a second round of revised emergency and proposed rules under the Student Loan Ombudsman Establishment and Servicing Regulation Amendment Act of 2016. The latest revision, backdated to April 20 from its May release, provides “numerous substantive changes” in response to public comments. …
The CFPB recently issued its final rule amending the timing requirements for transitioning between unmodified periodic statements and modified statements for consumers in bankruptcy. Initially proposed on October 4, 2017, the CFPB finalized the amendments without further revision. These changes will go into effect on April 19, 2018, along with the other servicing rule…
The District of Columbia Department of Insurance, Securities, and Banking (DISB) has released for comment a revised “Student Loan Borrower’s Bill of Rights.” The District of Columbia Student Loan Ombudsman Establishment and Servicing Regulation Act of 2016 (Servicing Act), which became effective February 18, 2017, directed the DISB to draft the Bill of…
The Illinois House of Representatives and Senate have voted to override the veto by the state’s Republican governor of Senate Bill 1351, known as the Illinois Student Loan Servicing Rights Act. The override means that the new law will become effective on December 31, 2018. The bill was drafted by the office of Lisa…
Senate Bill 1351, known as the Illinois Student Loan Bill of Rights, was vetoed at the end of last week by the state’s Republican Governor. The bill would have created a student loan ombudsman and implemented new requirements for student loan servicers, including a licensing requirement.
The bill was drafted by the office of Lisa…
D.C. License Applications. The District of Columbia Department of Insurance, Securities and Banking recently started to accept applications and transition fillings for a Student Loan Servicer License on the National Mortgage Licensing System (NMLS).
The District of Columbia’s Student Loan Act, which became effective on February 18, 2017, provides that no person or entity,…
The CFPB recently issued two updates for its Mortgage Servicing Rule amendments to Regulations X and Z. Issued on August 4, 2016, the Mortgage Servicing Final Rule amended various aspects of the existing Mortgage Servicing Rules. These changes will become effective either on October 19, 2017 or April 19, 2018.
First, the CFPB issued non-substantive,…
Education Finance Council, a national trade association representing state-based nonprofit higher education finance organizations, has asked the Department of Education to “publicly state” that the ED’s rules governing servicers of federal student loans preempt state laws and regulations that would impose conflicting requirements on such servicers.
In a letter to Education Secretary Betsy DeVos, EFC…
The CFPB will hold a public event on June 22, 2017 in Raleigh, N.C. about student loan servicing. The CFPB’s announcement provides no description other than that the event will feature remarks from Director Cordray and North Carolina Attorney General Josh Stein.
The CFPB may be labeling the event a “public event” rather than a…
