The CFBP issued an advance notice of proposed rulemaking (ANPR) on debt collection practices, seeking information from the public on many issues including:
The accuracy of information used by debt collectors;
How to ensure consumers know their rights; and
The communication tactics collectors employ to recover debts.
Comments are due by Feb. 10, 2014. The CFPB obtained rulemaking authority under Dodd- Frank amendments to the Fair Debt Collection Practices Act.
The CFPB also added consumer complaints about debt collections to its public Consumer Complaint Database. The database allows the public to see: what consumers complained about; and why, how, and when the company in question responded.
Overwhelmed by New Mortgage Rules?
Credit unions can turn to two CUNA tools for help with the CFPB’s new mortgage lending requirements: CompNOTES and Compliance Charts.
CUNA’s CompNOTES break the CFPB’s mortgage lending regulations into more manageable pieces. CompNOTES summaries provide credit unions with the specific regulatory requirements for each area of the new mortgage rules, including official interpretations of the rules and any helpful guidance issued by the CFPB.
CUNA’s Compliance Charts present compliance information in a nonnarrative format. Like Comp- NOTES, the Compliance Charts include both the regulatory requirements and official staff interpretations. They include citations which allow the user to quickly scan down the left side of the chart to find a specific regulatory provision.
Also, check out the compilation Web page (“Compliance Resources–CFPB Mortgage Rules”) on cuna.org/compliance for all of CUNA’s compliance resources.
Guidance on Home Ownership Counseling Lists
The Consumer Financial Protection Bureau’s (CFPB) 2013 Home Ownership and Equity Protection Act (HOEPA) final rule requires lenders to provide mortgage applicants with a written list of Department of Housing and Urban Development (HUD)-approved housing counseling agencies. Consumers should receive the list shortly after they apply for a mortgage.
Credit unions can comply with this new rule, effective Jan. 10, 2014, by using the CFPB’s Housing Counseling List online tool, or by generating their own lists using the same HUD data that CFPB uses to develop its lists.
The CFPB’s tool:
Shows consumers their closest options: The tool uses a search box and mapping function to show the consumer the 10 closest counseling agencies to their zip code.
Provides contact information for HUD-approved counselors: The tool only draws on information from the HUD’s official list of housing counselors.
Displays services offered by counseling agencies: When counselors are listed, the tool shows the consumer which services are available there, such as rental housing counseling, prepurchase counseling, or default resolution counseling.
Lists the languages offered: For those consumers who would prefer to receive housing counseling in a language other than English, the tool lists the languages that each housing counseling agency offers.
Credit unions choosing to build their own lists should follow the instructions in CFPB Bulletin 2013-13.
If a credit union is unable to provide the lists in time for the rule’s Jan. 10, 2014, effective date, they should consider directing borrowers to the CFPB’s new tool.
CUNA’s compliance staff was recently asked about a garnishment order for a member’s that receives federal benefits. The credit union determined the member did not have enough and the member asked the order be paid in full using those funds.