CFPB: Agency Warns Against Deception in Contract Fine Print
Companies using illegal or unenforceable terms and conditions risk breaking the law The Consumer Financial Protection Bureau (CFPB) today issued a circular warning against the use of unlawful or unenforceable terms and conditions in contracts for consumer financial products or services. Companies use this fine print tactic to try to trick consumers into believing they have given…
Agencies Issue Host State Loan-to-Deposit Ratios
Federal bank regulatory agencies today jointly issued updated host state loan-to-deposit ratios that are used to evaluate compliance with the Riegle-Neal Interstate Banking and Branching Efficiency Act. Each respective host state loan-to-deposit ratio shows the ratio of total loans in a state to total deposits in the state for all banks that have that state…
SBA: New Actions and Resources Announced to Advance Clean Energy Economy
SBA Removes Cap on Loans for Clean Energy Projects Today, Administrator Isabel Casillas Guzman, head of the U.S. Small Business Administration (SBA) and the voice in President Biden’s Cabinet for America’s more than 33 million small businesses, announced that the agency has removed its 504 Loan Program’s cap on lending for clean energy projects as part of broader…
CFPB: Inquiry Launched into Junk Fees in Mortgage Closing Costs
Rising fees are draining down payments, pushing homeownership out of reach The Consumer Financial Protection Bureau (CFPB) today launched a public inquiry into junk fees that are increasing mortgage closing costs. The CFPB wants to understand why closing costs are increasing, who is benefiting, and how costs for borrowers and lenders could be lowered. According to a CFPB…
FHFA: Enhancements Announced to Flex Modification for Borrowers Facing Financial Hardship
The Federal Housing Finance Agency (FHFA) today announced that Fannie Mae and Freddie Mac (the Enterprises) will enhance their Flex Modification policies to allow more borrowers facing longer-term hardships to achieve meaningful payment reductions. The updated Flex Modification policies will promote sustainable homeownership and the safety and soundness of the Enterprises. “The Enterprises have completed over half a million modifications through their Flex Modification offerings since…
OCC: Project REACh 2.0 Launched
The Office of the Comptroller of the Currency (OCC) today announced the launch of REACh 2.0 at its Project REACh Financial Inclusion Summit. Project REACh, the Roundtable for Economic Access and Change, brings together leaders from the banking industry, national civil rights organizations, business, and technology to identify and reduce barriers that prevent full, equal,…
CFPB: Interpretive Rule Issued to Ensure Consumers Can Dispute Charges and Obtain Refunds on Buy Now, Pay Later Loans
Agency’s interpretive rule addresses Buy Now, Pay Later lender obligations to investigate disputes and refund charges The Consumer Financial Protection Bureau (CFPB) today issued an interpretive rule that confirms that Buy Now, Pay Later lenders are credit card providers. Accordingly, Buy Now, Pay Later lenders must provide consumers some key legal protections and rights that apply to…
EDA: $800,000 Invested to Capitalize a Revolving Loan Fund and Support Small Businesses in South Dakota
Today, the U.S. Department of Commerce’s Economic Development Administration (EDA) is awarding an $800,000 grant to the Northeast Council of Governments Development Corporation in Aberdeen, South Dakota, to capitalize and administer a Revolving Loan Fund (RLF) serving small businesses in 12 counties in Northeast South Dakota. The RLF will support businesses facing obstacles in obtaining…
CFPB: New Report Highlights Consumer Frustrations with Credit Card Rewards Programs
Consumers report losing benefits to devaluation, limited redemption opportunities, and vague or hidden terms and conditions The Consumer Financial Protection Bureau (CFPB) issued a new report finding consumers encounter numerous problems with credit card rewards programs. Consumers tell the CFPB that rewards are often devalued or denied even after program terms are met. Credit card companies focus…
HUD: Additional Relief Extended to Borrowers in Maui, HI
Federal Housing Administration to extend foreclosure moratorium through August 4, 2024, to help homeowners impacted by 2023 wildfires. Today, the U.S. Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), announced it is extending its foreclosure moratorium for borrowers with FHA-insured mortgages in Maui County, HI, through August 4, 2024. FHA is taking…