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The CFPB has released the Spring 2024 edition of Supervisory Highlights.  The report discusses CFPB examinations in connection with credit reporting and furnishing that were completed from April 1, 2023 through December 31, 2023.

Key findings by CFPB examiners are described below.

Examinations of credit reporting companies (CRCs) found the following deficiencies:

  • CRCs failed to timely implement blocks of information after receiving the requisite information relating to an alleged identity theft, without otherwise making a reasonable determination with respect to one of the permitted bases for declining to block such information as provided in the Fair Credit Reporting Act (FCRA) and Regulation V. 
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The CFPB has released a new issue of Supervisory Highlights that carries the title “Junk Fees Update Special Edition.”  The report discusses the CFPB’s examinations involving fees in the areas of deposits, auto servicing, and remittances  that were generally completed between February 2023 and August 2023.   The report updates the CFPB’s “Junk Fees Special Edition” of Supervisory Highlights issued in March 2023. … Continue Reading

The CFPB has released the Fall 2022 edition of its Supervisory Highlights.  The report discusses the Bureau’s examinations in the areas of auto servicing, consumer reporting, credit card account management, debt collection, deposits, mortgage origination, mortgage servicing, and payday lending that were completed between January 1, 2022 and June 31, 2022. … Continue Reading

In addition to rescinding seven policy statements providing flexibility to companies in meeting certain compliance obligations during the pandemic, the CFPB has also rescinded its 2018 bulletin (2018-01) that announced changes to supervisory communications.  The Bureau has replaced the 2018 bulletin with a new bulletin (2021-01).

In the 2018 bulletin, the Bureau announced that it was adding a new category of findings that convey supervisory expectations to the existing category of matters requiring attention (MRAs). … Continue Reading

The CFPB has issued “Supervisory Highlights COVID-19 Prioritized Assessments Special Edition.”

The report indicates that in May 2020, the Bureau rescheduled about half of its planned examinations and instead conducted prioritized assessments (PAs) in response to the COVID-19 pandemic.  The Bureau describes PAs as “higher-level inquiries than traditional examinations [that are] designed to obtain real-time information from a broad group of supervised entities that operate in markets posing elevated risk of consumer harm due to pandemic-related issues.” … Continue Reading

We review the following findings and discuss their compliance implications: FCRA violations based on obtaining credit reports without a permissible purpose, incorrectly reporting the date of first delinquency, failing to conduct reasonable dispute investigations; Reg. E violations based on waivers of consumers’ dispute rights, use of incorrect date to determine timeliness of error notices, providing inadequate notices of error investigation results; and Reg.… Continue Reading

We review the CFPB’s findings that lenders engaged in deceptive practices and violated Regulation Z advertising requirements based on the following conduct and discuss the findings’ compliance implications: false representations about consumers’ ability to apply for loans online and the absence of credit checks; false threats in collection letters about lien placement, asset seizure, and charging late fees; and advertising “free loans” without including the additional information required when using a “triggering term” or where the loan was free only if prepaid.… Continue Reading

Mortgage origination and servicing continue to be a CFPB supervisory focus.  We review the CFPB’s findings involving the following areas and discuss the findings’ compliance implications: redlining based on nonbank lenders’ advertising practices, improper consideration of applicants’ public assistance income in determining eligibility for mortgage modifications, and violations of servicing requirements relating to providing periodic statements to certain consumers in bankruptcy, force-placed insurance, escrow accounts, and servicing transfers.… Continue Reading

The CFPB has released the Summer 2020 edition of its Supervisory Highlights.  The report discusses the Bureau’s examinations in the areas of consumer reporting, debt collection, deposits, fair lending, mortgage servicing, and payday lending that were completed between September 2019 and December 2019.

Key findings are described below.

Consumer reporting. … Continue Reading

We look at the CFPB’s key findings related to payday lending and mortgage servicing, discuss their implications for the CFPB’s approach to supervision and enforcement, and share practical takeaways for lenders and servicers, including how the CFPB’s findings related to loss mitigation requirements might be used by servicers to inform how they approach disruptions arising from the current coronavirus outbreak.… Continue Reading