The Consumer Financial Protection Bureau (CFPB) recently issued a “Supervisory Highlights” report that outlined several areas of concern its examiners have found related to deposits, mortgage origination, fair lending, consumer reporting and debt collection. The report stated that several institutions had changed the way they assess overdraft fees, such as by switching from a “ledger-balance” to an “available balance” method, but failed to properly disclose these changes. Because the changes increased the likelihood that consumers would incur fees, the practices were deemed to be unfair and deceptive. Examiners also found instances of weak compliance management systems, including inadequate board and employee training; social media advertisements by loan originators that failed to include the required disclosures; and fair lending violations stemming from automatic denials of applicants that rely on non-employee income, such as Social Security. Other issues highlighted relate to improper mortgage loan originator compensation, delayed delivery of good faith estimates and insufficient or untimely adverse action notices, among other things.
To read the full report, click here.