The Consumer Financial Protection Bureau (CFPB) banned Performant Recovery from servicing or collecting any student loan debts and ordered the company to pay a $700,000 penalty after finding that it used unlawful debt collection practices. The regulator’s order alleged that Performant delayed borrowers’ loan rehabilitation processes to generate fees for itself, the CFPB said in a Monday (Dec. 9) press release.
AI-driven credit scoring powers financial institutions with more accurate predictions by utilizing intelligent AI models that take into account a wider array of real-time indicators. This capability empowers lenders to make more informed decisions. Through proactive management of credit risk within their portfolios, banks and financial institutions can refine their lending strategies and mitigate potential losses.
Late last year, we discussed the Consumer Financial Protection Bureau’s (CFPB or Bureau) proposed rule aimed at supervising larger technology companies offering digital wallets and payment apps. On November 21, the CFPB finalized this rule, which will bring significant changes to the oversight of nonbank digital payment companies. This final rule is set to take effect 30 days after its publication in the Federal Register.
As previously reported in May 2024 FHA announced a requirement for FHA approved lenders to notify the U.S. Department of Housing and Urban Development (HUD) of Significant Cybersecurity Incidents, and the requirement was effective immediately. Apparently in response to industry criticism, in Mortgagee Letter 2024-23 FHA announced revised requirements.
Acting Comptroller of the Currency Michael J. Hsu today issued the following statement in support of the Financial Stability Oversight Council’s (FSOC) Annual Report:
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