On September 6, 2018, the CFPB released their 17th edition of Supervisory Highlights. This current edition covers supervision activities from the CFPB during the time period of December 2017 through May of 2018. This current edition shares observation in the areas of auto loan servicing, credit card account management, debt collection, mortgage servicing, payday lending, and small business lending. The report also shares a number of public enforcement actions taken with supervised backs as well as providing a discussion on recent Bureau rules and guidance.
The publication concludes with a section devoted to fair lending developments. This section contains two main parts: 1) HMDA implementation and new data submission platform 2) Small business lending review procedures, 3) FFIEC HMDA examiner transaction testing guidelines effective date, 4) and the Upstart-Network, Inc. no-action letter.
Of particular note in this publication, the CFPB found that automobile loan servicers had engaged in deceptive practices by sending billing statements indicating that consumers did not need to make a payment until a future date when in fact the consumer needed to make a monthly payment. These instances resulted when a consumer had a one-time total loss insurance payment that did not payoff the loan balance, meaning that the remaining balance was to be collected according to the consumer’s regular billing schedule. Upon review, the CFPB discovered that the the billing statements contained eue dates inconsistent with the note and the servicer’s insurance payment application and that certain servicers were treading consumers who failed to pay by the next month as late and even reported negative information to consumer reporting agencies.
It is also important to note that the CFPB continues to communicate their expectations for small business fair lending. In this edition of their Supervisory Highlights, the CFPB explains their current review process and what methodologies examiners may utilize during a fair lending review, including statistical analysis, policy and procedure reviews, interviews with management and staff, and review of individual loan files.
The entire edition of the CFPB Supervisory Highlights can be found here.
