On September 3, the CFPB warned credit card companies against deceptively marketing interest-rate promotions, over concerns about companies luring in consumers with offers of reduced or zero interest for a specific purchase or balances transferred from another credit card and then hitting them with surprise interest charges. Release.
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CFPB Report on Mortgage Servicing
On January 30, the CFPB issued a report highlighting mortgage servicing problems in 2013, including various violations of the Dodd-Frank Act’s ban on unfair, abusive and deceptive acts. CFPB Release. CFPB Report.
New CFPB Mortgage Resources
On January 7, the CFPB released additional resources for consumers in anticipation of the January 10 effective date for its mortgage rules, including sample letters and mortgage tips. CFPB Release. CFPB Guide.
CFPB, State Authorities Settle with Ocwen
On December 19, CFPB and 49 states and the District of Columbia filed a proposed court order requiring Ocwen Financial Corporation, the fourth-largest mortgage servicer in the country, to provide $2 billion in principal reduction to underwater borrowers. Ocwen was previously charged with engaging in illegal and deceitful foreclosure practices and other violations. Press Release. Consent Order.
FDIC and CFPB Settle with American Express Centurion Bank Charges of Unfair and Deceptive Practices
On December 24, the FDIC and CFPB announced a settlement with American Express Centurion Bank concerning charges of unfair and deceptive marketing practices related to credit card “add-on products” in violation of Section 5 of the Federal Trade Commission (FTC) Act. Together, the FDIC and CFPB will require restitution of no less than $40.9 million. The OCC and CFPB also announced actions against other American Express affiliated institutions for the same unfair and deceptive practices. Release. Order.
Final Rules on Appraisal Exemptions for Higher-Priced Mortgages
On December 12, the Fed, FDIC, CFPB, FHFA, NCUA and OCC issued a final rule that creates exemptions from certain appraisal requirements for certain higher-priced mortgage loans. The final rule provides that loans of $25,000 or less and certain “streamlined” refinancings are exempt from the Dodd-Frank Act appraisal requirements, which go into effect on January 18, 2014. Joint Release. Joint Final Rule.
CFPB Issues a Rule to Oversee Nonbank Student Loan Servicers
On December 3, the CFPB issued a rule that allows it to supervise certain nonbank student loan servicers. The CFPB estimates that it will have authority to supervise the seven largest student loan servicers. Press Release. Rule.
Joint Release on QM Fair Lending Risks
On October 22, the Fed, CFPB, FDIC, NCUA and OCC issued a joint statement to address industry questions on fair lending risks associated with offering only qualified mortgages. Joint Release. Joint Statement.
Joint Release on Borrowers Affected by Government Shutdown
On October 9, the Fed, CFPB, FDIC, NCUA and OCC issued a release encouraging financial institutions to work with borrowers affected by the government shutdown to provide workout arrangements. Joint Release.
JPMorgan Chase to Pay Penalties for Oversight Deficiencies
On September 19, JPMorgan Chase entered into a consent Order of Assessment of a Civil Money Penalty with the Fed, the OCC, the SEC and the Financial Conduct Authority of the United Kingdom. The penalties issued by the agencies total approximately $920 million. The fine resulted from the deficiencies identified by the regulators in JPMorgan Chase’s risk management oversight, model validation, internal financial reporting and internal audit, and failure to elevate certain issues to the attention of the board of directors. In a separate action, the OCC and CFPB ordered JPMorgan Chase to refund $309 million for illegal credit card practices and to pay $80 million in civil penalties. Fed Release. CFPB Release. Fed Consent Order. OCC Consent Order.