The Hill reports today: Students who start at four-year, nonprofit colleges only have about a 50-50 chance of graduating, according to a new report released Wednesday. Third Way, a centrist think tank in Washington, studied students with loans at the colleges and found what it called “stunning levels of institutional failure.” The report said private […]
Separate from its new proposed rule on payday lending, the Consumer Financial Protection Bureau today issued a "request for information" concerning potentially high-risk loan products and practices that are not specifically covered by the proposed rule. The request for information is focused on: Concerns about risky products not covered: The Bureau is seeking information about […]
The Consumer Financial Protection Bureau today proposed a rule aimed at ending payday debt traps by requiring lenders to take steps to make sure consumers have the ability to repay their loans. The proposed rule would also cut off repeated debit attempts that rack up fees. The proposed rule would cover payday loans, auto title loans, […]
From the announcement: Key Industry and Policymaker Questions to be Addressed at the Conference: Is subprime financing fueling a bubble in the market for used cars? What are the parallels and differences between subprime auto lending today and subprime mortgage lending leading up to the financial collapse? What are bank regulators, […]
We have discussed the Obama Administration's new overtime rule. It will significantly raise the pay threshold that triggers exceptions to the general rule that entitles workers to time-and-a-half for every hour they work over 40 per week. We also posted about holes in the overtime rules that exempt various workers entirely. Now, this article by Natalie Kitroeff says that the new […]
Here. Here's the beginning of the piece: Bill Doak and his wife, Linda, were preparing to buy a new house this spring when a mortgage broker made an ominous declaration after scanning their credit report: “Oh my God, you’re in trouble.” The couple discovered five late payments on the loan on the home they were selling in […]
by Jeff Sovern Here. Excerpt: The draft bill approved by the House Appropriations Financial Services Subcommittee on Wednesday included a provision that would change the CFPB from a director-led agency to a bipartisan commission, as well as language that would make funding for the bureau subject to the annual appropriations process. Both measures largely pit […]
The Consumer Financial Protection Bureau has taken action against a former Wells Fargo employee for an illegal mortgage fee-shifting scheme. The CFPB found that David Eghbali referred a substantial number of loan closings to a single escrow company, which shifted its fees from some customers to others at Eghbali’s request. Eghbali could then manipulate loan […]
This week, the Federal Trade Commission and the State of Florida fled cases against two operations charged with running phony student loan debt relief schemes, and the FTC settled a case brought earlier this year against a operators of a debt-relief scheme. In the first case, the FTC and the State of Florida allege in […]
The Food and Drug Administration today finalized a new food safety rule under the landmark, bipartisan FDA Food Safety Modernization Act. The rule requires companies in the United States and abroad to take steps to prevent intentional adulteration of the food supply. Although the FDA says that intentional adulteration is unlikely, the new rule advances […]