CFPB Uncovers Problems in Credit Reporting, Next Steps Unclear


More than 26 million consumers are effectively “credit invisible” because they have no credit record and another 19 million are “unscored” because they have an insufficient or stale credit history, according to a report released Tuesday by the Consumer Financial Protection Bureau.

The study was part of the agency’s ongoing efforts to examine the flaws in the credit reporting industry, but it was unclear how the new information will be used by the CFPB.

“What we’re trying to do in this report, and other work that we’re doing, is better understand the scope of credit reporting. And understand how it’s affecting consumers, which consumers it’s working well for, and which perhaps it may not be working as well for,” said Ken Brevoort, section chief within the CFPB’s Office of Research, during a conference call with reporters. The agency wants “to have a better understanding […]

Five global banks to pay $5.7 billion in fines over rate rigging


Authorities fined five of the world’s largest banks, including JPMorgan Chase & Co and Citigroup inc, roughly $5.7 billion, and four of them agreed to plead guilty to U.S. criminal charges over manipulation of foreign exchange rates, the U.S. Department of Justice said on Wednesday.
The fifth bank, UBS AG, will plead guilty to rigging benchmark interest rates, the Justice Department said.
U.S. banks JPMorgan Chase and Citigroup will pay $550 million and $925 million in criminal fines, respectively, as part of their guilty pleas.
British banks Barclays will pay $650 million in criminal penalties and Royal Bank of Scotland $395 million. Each will plead guilty to one felony count of conspiring to fix prices and rig bids for U.S. dollars and euros in the foreign exchange spot market.
The $5.7 billion includes $1.6 billion in fines separately imposed by the U […]

CFPB Sues Individuals in Large Mortgage Kickback Scheme


A mortgage title company and a handful of individuals are being sued by the Consumer Financial Protection Bureau and Maryland Attorney General related to an alleged mortgage kickback scheme with banks such as Wells Fargo and JPMorgan Chase.

The CFPB said Wednesday that it filed complaints jointly with the Maryland AG against six individuals who were tied to Genuine Title, a now-defunct title company in Maryland, as well as several other limited liability companies that allegedly transferred mortgage kickback payments. The defendants are being accused of trading cash and marketing services in exchange for mortgage referrals.

Wells Fargo and JPMorgan Chase have already been cited for the activities since loan officers were involved in the alleged scheme with Genuine Title. Authorities are requesting the court to ban five of the six named persons from the mortgage industry and pay a total of $662,500 in redress and penalties. Actions […]

NewDay Agrees to $5M Consent Order Over Licensing Exam ‘Cheating’


NewDay Financial found itself embroiled in another regulatory order, this time stemming from allegations of rampant cheating on mortgage licensing examinations by company employees, including its chief operating officer.

The Multi-State Mortgage Committee issued the settlement agreement and consent order between 43 state mortgage regulators and NewDay Monday, following investigations by officials in New Hampshire and Maryland. NewDay will have to pay nearly $5.3 million fine as part of the order.

The test-cheating investigations were sparked by complaints filed by a former employee, and regulators found that NewDay violated the Nationwide Multi-State Licensing System and Registry Rules of Conduct for Test Takers or Education Students in multiple ways.

The findings showed that NewDay employees would take and store test information to teach co-workers what was being examined.

NewDay is owned by Chrysalis Holdings. In March 2013, the private equity firm acquired Abacus Mortgage Training and […]