Links in “Lending”

The CFPB and the FTC have announced that they have levied a $15 million civil money penalty and ordered restitution to consumers in the amount of $48 million to be paid by Green Tree Servicing, LLC.  The agencies found that the servicer had illegally failed to honor loan modifications for loans from other servicers, demanded payment before offering loss mitigation options, delayed decisions on short sales, and harassed and threatened borrowers—in some cases calling borrowers as many as 20 times per day. [4/22/15]

The Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC) took action against Green Tree over mistreatment of borrowers. [4/22/15]

Two companies that process military allotments were hit with $3 million in judgments for "unfairly" charging various fees to residuals of military allotments, such as $5 for each letter notifying servicemembers or their creditors that there was a residual balance, monthly dormant fees of $12 to $20, and fees for requesting an account history to see the fees. [4/22/15]

Green Tree Servicing failures included harassing borrowers with up to 20 calls per day, delaying decisions on short sales, deceptive tactics to charge convenience fees, and failure to honor prior loss-mitigation agreements. The company will be $63 million in restitution and civil money penalties. [4/22/15]

The CFPB reiterated guidance from 2013 regarding lenders providing housing counselors for mortgage applicants. The CFPB also provided guidance for lenders in compiling lists of housing counselors and qualifications for high-cost mortgage counseling. [4/16/15]

CUs providing services to oil workers should expect higher delinquency rates and charge-offs if job losses in the sector continue. Agricultural cultural unions could face similar hardships due to changes in prices from farming products as well. NCUA chairwoman Debbie Matz said that the price fluctuations will influence the Dakotas differently but will present challenges. Now is the time to prepare! [4/16/15]

The NCUA is rescheduling a webinar entitled NCUA 2015:  Grant and Loan Opportunities that was originally scheduled to air this afternoon to Thursday, April 28^th at 2:00 pm EST. NCUA representatives will be discussing the grant process and four new grant initiatives that NCUA will be funding. [4/15/15]

Last night the House passed the Mortgage Choice Act, which clarifies the definition of points and fees for the qualified mortgage test in order to make loans more available to low and moderate income credit union members. [4/15/15]

More than 24% of the loans made by credit unions went to low- to moderate-income borrowers. That pool of $18 billion in loans is very attractive to banks seeking to bolster their performance under the Community Reinvestment Act. [4/10/15]

The fine itself, $250,000, against a California mortgage lender may not have been huge, but the CFPBs action got plenty of coverage, helping to send a clear signal: don't imply a government agency affiliation in your marketing materials. See coverage here and here and here. [4/10/15]