Financial Services Perspectives

Regulatory, compliance, and litigation developments in the financial services industry

Blog Authors

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Grant A. Premo

R. Aaron Chastain

Courtney Achee

Latest from Financial Services Perspectives

Financial Services Perspectives

CFPB Updates Mortgage Servicing Exam Procedures

By Jason R. Bushby, Christy W. Hancock, Jonathan R. Kolodziej & Robert Maddox

February 2, 2023

On January 18, 2023, the Consumer Financial Protection Bureau (CFPB) released an updated version of its Mortgage Servicing Examination Manual. As the CFPB described in a corresponding blog post, the manual outlines “the types of information that CFPB examiners gather to evaluate mortgage servicers’ policies and procedures; assess whether servicers are complying with applicable laws; and identify risks to consumers related to mortgage servicing.” Therefore, it is an important tool for servicers’ compliance…

Financial Services Perspectives

FHA Implements COVID-19 Property Charge Repayment Plan for HECM Borrowers

By James W. Wright Jr. & Britney M. Crawford

January 17, 2023

On December 15, 2022, the Federal Housing Administration (FHA) issued Mortgagee Letter 2022-23, establishing the COVID-19 Home Equity Conversion Mortgage (HECM) Property Charge Repayment Plan. The COVID-19 HECM Property Charge Repayment Plan would aid HECM borrowers in covering costs associated with standard property charges. As a condition of their loan, HECM borrowers are required to pay property charges such as property taxes, insurance and Homeowner Association fees, etc. In the event HECM borrowers are…

Financial Services Perspectives

FHA Extends Partial Waiver of Face-to-Face Meeting Requirement

By Christy W. Hancock, James W. Wright Jr. & Britney M. Crawford

December 29, 2022

On December 19, 2022, the Federal Housing Administration (FHA) issued an additional extension of the temporary waiver of face-to-face contact required under 24 CFR § 203.604 Contact with the Mortgagor, under Mortgagee Actions under Subpart C – Servicing Responsibilities of 24 CFR Part 203 Single Family Mortgage Insurance. Pursuant to 24 CFR § 203.604, a “mortgagee must have a must have a face-to-face interview with the mortgagor, or make a reasonable effort to arrange such…

Financial Services Perspectives

We Wish You a Happy Thanksgiving as We Count Our Blessings

By Christy W. Hancock, Jonathan R. Kolodziej, Gregory B. Pipes, Caroline Waters, Andrew J. Narod, Christopher K. Friedman, Shelby D. Lomax, Elizabeth R. Brusa & Alexandra Dugan

November 23, 2022

As we all hit the grocery store for that forgotten cranberry sauce and send a few last urgent work emails, we hope everyone is able to be with friends and family this Thanksgiving. Here at Bradley, we are counting our blessings and looking back at another remarkable year. We are thankful for being able to return to our offices and to visit clients in person this year, but also for Teams calls with distant colleagues…

Financial Services Perspectives

CFPB Plans to Increase Regulation over “Buy Now, Pay Later” Lenders

By David T. Long Jr. & Andrew J. Narod

September 22, 2022

The Consumer Financial Protect Bureau (CFPB) issued a release on September 15, 2022, announcing its intent to issue additional interpretive guidance or rules to ensure “Buy Now, Pay Later” (BNPL) lenders comply with the same or similar regulations already established for credit cards following a study on the industry. In its press release, the CFPB Director Rohit Chopra noted the rapidly growing use of “Buy Now, Pay Later is a rapidly growing type of loan…

Financial Services Perspectives

CFPB Releases RFI on Mortgage Servicing Rules Signaling Potential for Future Regulatory Reform

By Jonathan R. Kolodziej

September 22, 2022

On Thursday, September 22, 2022, the Consumer Financial Protection Bureau (CFPB) issued a new request for information (RFI) regarding mortgage servicing, potentially opening the door for much-needed regulatory reforms. The RFI is focused on inquiries regarding refinances and, more generally, ways to streamline short and long-term loss mitigation options. It includes 37 specific requests, allowing 60 days for the public to submit comments and responses. With respect to refinances, the CFPB broadly indicates that it…

Financial Services Perspectives

Fannie Mae and Freddie Mac Direct Collection of Borrower Information to Further Fair Lending and Fair Servicing Aims

By Christy W. Hancock, Jonathan R. Kolodziej & Christopher K. Friedman

August 16, 2022

Two recent announcements by the Federal Housing Finance Agency (FHFA) will push the mortgage servicing industry to increase its collection and maintenance of consumer demographic and language preference data. On May 3, 2022, the FHFA announced that Fannie Mae and Freddie Mac (the GSEs) will require lenders submitting loans to the GSEs to use the Supplemental Consumer Information Form (SCIF) as part of the application process. The SCIF collects information about the borrower’s language…

Financial Services Perspectives

CFPB’s Release Highlights “Unlawful Auto Repossessions” and Failures to Conduct Reasonable Investigations on Disputed Debts

By David Long Jr., Andrew J. Narod & Christopher K. Friedman

May 3, 2022

The Consumer Financial Protection Bureau (CFPB) issued a release on May 2, 2022, announcing the release of its Supervisory Highlights outlining identified consumer protection violations during the second half of 2021. In particular, the CFPB highlighted two industries of concern in its press release: auto servicers and credit reporting companies. As for auto servicers, the CFPB noted the issues related to repossessions and the impact on the consumer. The CFPB focused on the consumer’s loss…

Financial Services Perspectives

CFPB Sends Signal to Student Loan Servicers Through UDAAP Consent Order

By Keith S. Anderson, R. Aaron Chastain & Grant A. Premo

April 18, 2022

The Consumer Financial Protection Bureau’s (CFPB) focus on ensuring loan servicers’ compliance with the implementation of the Public Service Loan Forgiveness (PSLF) program continues. On March 30, 2022, the CFPB entered into a Consent Order with student loan servicer EdFinancial Services, LLC, to settle the CFPB’s allegations that EdFinancial committed deceptive servicing acts and practices related to PSLF. The Consent Order sends another signal to student loan servicers that the CFPB intends to ramp up…

Financial Services Perspectives

First DOJ Enforcement Action Against PPP Lender Presages Increased Government Scrutiny of Bank and Non-Bank PPP Lenders

By Elisha Kobre

April 11, 2022

Until last month, government enforcement and regulatory scrutiny of fraud and other misconduct relating to COVID-19 relief programs was generally limited to end recipients of the relief. These efforts have mostly been directed to fraud in connection with the Paycheck Protection Program (PPP), a nearly $1 trillion business loan program administered by the Small Business Administration (SBA), which allowed entities to apply for low-interest private loans to pay for their payroll and certain other costs.…