In the 17th issue of Supervisory Highlights, the Consumer Financial Protection Bureau ("CFPB") reported on (i) supervisory observations between December 2017 and May 2018, (ii) remedial actions and (iii) supervision program developments.
The report covered examinations in the following areas: (i) auto loan servicing, (ii) credit card account management, (iii) debt collection, (iv) mortgage servicing, (v) payday lending and (vi) small business lending. The CFPB's examinations in these areas identified, among other things, that:
- billing statements revealed "paid-ahead status after applying insurance proceeds";
- some debt collectors routinely failed to mail debt verifications before pursuing further collection activities;
- some recent mortgage servicing examinations found unfair acts relating to the conversion of trial modifications to permanent status and the initiation of foreclosures after customers accepted loss mitigation offers;
- unfair and deceptive acts, and violations of Regulation E (prepaid accounts under the Electronic Fund Transfer Act); and
- institutions that collect and maintain only limited data on small business lending decisions.
The CFPB added that Supervisory Highlights "provides a convenient and easily accessible resource for information on the Bureau's guidance documents."
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