A home equity line of credit, or “HELOC,” is a loan product that allows a consumer to borrow money, using their equity in their home as collateral. William Lyons had taken out a HELOC from a predecessor to PNC Bank. Years later, PNC withdrew money from Lyons’ deposit account to offset outstanding payments on the […]
Category Archives: Consumer Financial Protection Bureau
Today, the CFPB released a report about a form of home seller financing called “contract-for-deed” financing, under which the seller agrees to turn over a home’s deed only after the buyer completes a series of payments. The report found that such deals often involve inflated home prices, high interest rates, and balloon payments — and […]
Christopher Lewis Peterson of Utah and Jeffrey Paul Ehrlich of St. Thomas University and McGuireWoods LLP have written Corrupt Joint Ventures in the Market for Residential Real-Estate-Settlement Services. Here’s the abstract: Closing costs in residential-real-estate sales have long acted as a significant barrier to American home ownership. In the Real Estate Settlement Procedures Act of 1974 […]
Here (may be behind paywall). Disclosure: I am a member of the Editorial Advisory Board. The piece discusses possible challenges to the Bureau in Congress and the courts.
One of the insidious sides of junk fees is that these charges tacked on to everyday goods and services are often hidden and mandatory. This is evident in the Consumer Financial Protection Bureau’s latest report, Costs of Electronic Payments in K-12 Schools, which describes the hidden fees in online processing systems that facilitate payment for […]
The Consumer Financial Protection Bureau has released a report on payment processing companies that help school districts process children’s school lunch payments. The CFPB explains: “These private companies process payments made by parents who may have limited or zero payment alternatives. With a captive customer base, these companies can have broad control over fees assessed […]
Many financial services companies require their employees to enter into broad nondisclosure agreements. Today, the CFPB issued a circular to law enforcement agencies and regulators explaining that such agreements are unlawful to the extent they prevent employees from disclosing misconduct or cooperating with investigations. The circular is available here, and the CFPB’s press release is […]
Today, the CFPB issued a report on the growth of “earned wage” cash advances , by which employers partner with third party companies to offer employees loans based on earned wages. The report found that, in addition to fees, these loans typically have an APR of 109.5%. Along with the report, the CFPB issued a […]
Kate Berry has an interesting article with some nice alliteration in the American Banker, Debt collectors defend doctors in skewering CFPB medical debt plan (behind paywall but available at Lexis). The CFPB has proposed to block medical debt from appearing in credit reports. The proposal is based in part on the theory that medical debt, because […]
The Consumer Financial Protection Bureau has proposed “new rules to make it easier for homeowners to get help when they are struggling to pay their mortgage. The proposal, if finalized, would require mortgage servicers to focus on helping borrowers, not foreclosing, when a homeowner asks for help. The proposed changes would also make it simpler […]