Keep an eye on your financial institution because regulator found errors in examination of consumer transactions
“Today’s report reveals that irresponsible or mismanaged firms harmed Americans during the COVID-19 pandemic," said CFPB Director Rohit Chopra. "We will continue to supervise firms to halt harmful practices before they become widespread."
The report, “Supervisory Highlights,” includes auto loans, consumer reporting, debt collection, deposits, fair lending, mortgages, private student loans, payday lending, and student loan servicing.
Mortgage servicers charged improper fees to borrowers enrolled in CARES Act forbearance. Forbearance is the temporary postponement or reduction of mortgage payments.
Examiners found fair lending violations. Mortgage lenders discriminated against African American and female borrowers in the granting of pricing exceptions, compared to non-Hispanic white and male borrowers. Pricing exceptions are when an originator, branch manager, or other executive is allowed a degree of “discretion” in the pricing to get a loan. Examiners also found for religious institutions applying for small business loans, some lenders improperly used a questionnaire that contained inquiries about an applicant’s religion.
Payday lenders improperly debited consumer bank accounts. When these mistakes were made, consumers didn’t have access to their funds or had the risk of nonsufficient fund fees or overdraft fees levied by their banks.
Remittance providers failed to investigate notice of errors in timely fashion. Remittances are funds sent to people in other countries,
The CFPB checks on large banks, thrifts, credit unions with assets over $10 billion, and some nonbanks, including mortgage companies, private student lenders, payday lenders, and others.