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1. The CFPB released a mid-year snapshot of the student loan servicing complaints that it has received. The snapshot is here.
Although the release is specific to student loan servicing, the issues that the CFPB raises can apply across the board to loan servicing in general. The CFPB found the following:
An inability for consumers to modify the repayment terms of their loans.
Overpayments were not allocated to the repayment of principal with respect to a particular loan. Rather, if the borrower had multiple loans, the overage amounts were incorrectly applied to more than one of the loans. Conversely, if the borrower made an underpayment, the servicer distributed the payment among all the loans on a pro rata basis, creating a deficit in all loan accounts and resulting in late fees for all accounts.
Some payment processing policies were not fully explained to the consumers until after they made the payment.
Some customers have difficulties obtaining a copy of the contract or promissory note controlling the loan.
Some customers do not consistently receive disclosures, notice of interest rate changes, billing statements, or other written communications from the servicer.
Co-signers had difficulty accessing information about the status of the loans on which they cosigned.
Co-signers were not provided with clear information on the circumstances under which they would be released of their obligation. For example, co-signers and borrowers received conflicting information with respect to the number of consecutive on-time payments that the borrower must make before the co-signer is released.
2. On August 8, 2013, the CFPB published the International Fund Transfers Small Entity Compliance Guide. As the name suggests, the Guide provides a summary of the remittance transfer rule. All remittance transfer providers must comply with the rule by October 28, 2013. A link to the Guide is here.
3. On August 8, 2013, the CFPB announced that it will be collecting information for a study entitled “Development of Metrics to Measure Financial Well-being of Working-age and Older American Consumers.” The CFPB stated that it is seeking information about the financial well-being of working-age (age 18–61) Americans and older Americans (age 62 and older). The announcement is here.
4. The CFPB has a proposed amendment to Regulation Z, which implements the TILA concerning appraisals for higher risk mortgages. Comments must be received on or before September 9, 2013. Here is a link to the new rule.
That is all for this week. Have a great weekend and please remember that all of our prior updates are on our website, www.cfpaguide.com/weeklyupdates.