On June 27, 2023, the CFPB issued an order against ACI Worldwide and one of its subsidiaries, ACI Payments, for improperly initiating approximately $2.3 billion in unlawful mortgage payment transactions. According to the CFPB, ACI’s data handling practices negatively impacted nearly 500,000 homeowners with mortgages serviced by Mr. Cooper (formerly known as Nationstar).

Jun 27
Jun 27 FDIC Updates Supervisory Guidance on Multiple Re-Presentment NSF Fees

Adam Witmer

Regulatory Update

On June 16, 2023, the FDIC updated its Supervisory Guidance on Multiple Re-Presentment NSF Fees (FIL-40-2022) to clarify its supervisory approach for corrective action when a violation of law is identified. In August of 2022, the FDIC issued the original guidance to address certain consumer compliance risks associated with assessing multiple non-sufficient funds (NSF) fees arising from the re-presentment of the same unpaid transaction.

Jun 26
Jun 26 CFPB Aims to Simplify Mortgage Servicing Rules

Adam Witmer

Regulatory Update

On June 15, 2023, the CFPB published a blog post authored by CFFP Director Rohot Chopra that talks about the Bureau’s intention to identify ways to simplify and streamline the existing mortgage servicing rules. According to Chopra, the CFPB will be using inputs from commenters to propose ways to simplify and streamline mortgage servicing rules.

Jun 14
Jun 14 CFPB Takes Action Against Phoenix for Medical Debt Collection and Credit Reporting Violations

Adam Witmer

Regulatory Update

On June 8, 2023, the CFPB took action against medical debt collector Phoenix Financial Services (Phoenix) for numerous debt collection and credit reporting violations. According to the CFPB, Phoenix continued to attempt to collect on debts that were not substantiated even after consumers disputed the validity of the debt.

Jun 13
Jun 13 CFPB Issues Spotlight Regarding Use of AI Chatbots in Banking

Adam Witmer

Regulatory Update

On June 6, 2023, the CFPB released an issue spotlight that examines the use of chatbots in the banking industry. The spotlight specifically focuses on the use of artificial intelligence (AI) chatbots and the potential risks of violating the regulations when customer needs are not met.

Jun 12
Jun 12 PAVE Task Force Takes Action to Address Appraisal Bias

Adam Witmer

Appraisals, Regulatory Update

On June 1, 2023, the Biden-Harris Administration’s PAVE Task Force announced a new set of actions to address appraisal bias in the housing market. The Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) was created in June 2021 by President Biden, with the aim of rooting out bias in the home appraisal process.

Jun 8
Jun 8 FTC Submits Annual Report on TILA, CLA, and EFTA Enforcement

Adam Witmer

Regulatory Update

On June 8, 2023, the FTC submitted its annual enforcement report to the CFPB on its enforcement efforts and related activities in 2022 on the Truth in Lending Act (TILA), Consumer Leasing Act (CLA), and Electronic Fund Transfer Act (EFTA). The report highlights the FTC’s enforcement actions related to the acts and their implementing regulations, including in the areas of automobile purchases and financing, payday lending, credit repair and debt relief, other credit, and electronic fund transfers.

Jun 5
Jun 5 Agencies Propose Rule on AVMs Quality Control Standards

Adam Witmer

Regulatory Update, Appraisals

On June 1, 2023, the federal regulatory agencies requested public comment on a proposed rule designed to ensure the credibility and integrity of models used in real estate valuations. Specifically, the proposed rule would implement quality control standards for automated valuation models (AVMs) used by mortgage originators and secondary market issuers in valuing real estate collateral securing mortgage loans.

Jun 5
Jun 5 CFPB Warns Consumers That Funds on Payment Apps May Be Unsafe

Adam Witmer

Regulatory Update

On June 1, 2023, the CFPB published an issue spotlight on digital payment apps heavily used by consumers and businesses. The CFPB also issued a consumer advisory for customers holding funds in these apps and how they can make sure their funds remain safe.

Jun 1
Jun 1 CFPB Fines OneMain for Deceptive Sales Practices

Adam Witmer

Regulatory Update, UDAAP

On May 31, 2023, the CFPB has ordered installment lender OneMain Financial to pay $20 million in redress and penalties for failing to refund interest charged to 25,000 customers who cancelled purchases within a purported “full refund period,” and for deceiving borrowers about needing to purchase add-on products to receive a loan. According to the CFPB, OneMain pushed its employees to hit sales targets and illegally withheld funds.

Jun 28
Jun 28 CFPB Takes Action Against ACI for Illegally Processing Mortgage Payments

Jun 27
Jun 27 FDIC Updates Supervisory Guidance on Multiple Re-Presentment NSF Fees

Jun 26
Jun 26 CFPB Aims to Simplify Mortgage Servicing Rules

Jun 14
Jun 14 CFPB Takes Action Against Phoenix for Medical Debt Collection and Credit Reporting Violations

Jun 13
Jun 13 CFPB Issues Spotlight Regarding Use of AI Chatbots in Banking

Jun 12
Jun 12 PAVE Task Force Takes Action to Address Appraisal Bias

Jun 8
Jun 8 FTC Submits Annual Report on TILA, CLA, and EFTA Enforcement

Jun 5
Jun 5 Agencies Propose Rule on AVMs Quality Control Standards

Jun 5
Jun 5 CFPB Warns Consumers That Funds on Payment Apps May Be Unsafe

Jun 1
Jun 1 CFPB Fines OneMain for Deceptive Sales Practices

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