First, they have questioned whether credit reporting for COVID-19 affected loans is truly mandatory, in light of the long-established general rule that there is no affirmative obligation to provide credit reporting. Unfortunately, neither the CFPB’s statement nor the HUD Mortgagee Letter fully clarifies the confusing credit reporting requirements included in the CARES Act. The CFPB recently issued its “Consumer Reporting FAQs Related to the CARES Act and COVID-19 Pandemic,” addressing 10 credit reporting issues. The statement both recognizes that “companies generally are not legally obligated to furnish information to consumer reporting agencies,” and also describes the CARES Act as “generally requir[ing] furnishers to report as current certain credit obligations for which furnishers make payment accommodations to consumers affected by COVID-19 ….” Thus, the CFPB’s statement is broad enough to cover all three interpretations of the act: (1) credit reporting can be suppressed; (2) all accounts given an accommodation can be reported as current; or (3) furnishers must report delinquent accounts in forbearance as delinquent. CFPB, Federal Agencies, State Agencies, and Attorneys Generalby the Consumer Financial Services Group at Ballard Spahr LLPThe Consumer Financial Services Group is nationally recognized for its guidance in structuring and documenting new consumer financial services products, its experience with the full range of federal and state consumer credit laws throughout the country, and its skill in litigation defense and avoidance, including pioneering work in pre-dispute arbitration programs. The CFPB issued ten FAQs for industry that address the CARES Act’s credit reporting requirements and other COVID-19-related credit reporting issues.. Several of the FAQs discuss the Bureau’s Policy Statement issued in April 2020 concerning COVID-19 considerations relevant to how the Bureau will exercise its supervisory and enforcement authority regarding FCRA and Regulation V … Our Financial Services Litigation and Compliance Team offers the full spectrum of legal services to banks, bank holding companies, mortgage servicers, home mortgage lenders, and other consumer finance companies. Our more than 500 attorneys provide business clients around the world with a full suite of legal services in dozens of industries and practice areas. Our Financial Services Litigation and Compliance Team offers the full spectrum of legal services to banks, bank holding companies, mortgage servicers, home mortgage lenders, and other consumer finance companies. Without specific guidance, the CFPB’s representation that it will not “cite in examinations or take enforcement actions against those who furnish information to consumer reporting agencies that The FHA also weighed in on the credit reporting issue on April 1, issuing In short, furnishers are in a difficult position right now. As with HMDA, the CFPB intends to issue additional guidance about when and how entities should submit this required information.Regulated entities will undoubtedly welcome the CFPB’s temporary relaxing of administrative burdens, although institutions need to be prepared to report the information at a later date. Bradley is a national law firm with a reputation for skilled legal work, exceptional client service, and impeccable integrity. Additionally, the CFPB offers financial education tools and information for consumers. The phrasing of that section of the act is odd; it states that if the furnisher offers the consumer an “accommodation,” it “shall report the credit obligation or account as current; In short, furnishers would greatly benefit from further guidance. Such commitments are rare from the CFPB, but they provide valuable assurance to the industry. On June 16, 2020, the Bureau issued COVID-19 pandemic guidance related to the CARES Act and FCRA requirements. The Fair Credit Reporting Act (FCRA) requires servicers that furnish information to consumer reporting agencies to ensure the accuracy of data placed in the consumer reporting system.
The CFPB offers additional resources to help industry comply with credit reporting requirements. Rules. The CFPB noted that it expected furnishers to comply with the CARES Act, specifically related to the requirements on how to report accounts that were not delinquent prior to COVID-19.
For consumers who are current when they enter forbearance, they will continue to be reported as current during the forbearance period (so long as they make any payments required under the forbearance plan). Our more than 500 attorneys provide business clients around the world with a full suite of legal services in dozens of industries and practice areas.
The Bureau indicated that in evaluating compliance with these dispute investigations timeframes, the Bureau will consider the individual circumstances that consumer reporting agencies and furnishers face as a result of the COVID-19 … Home mortgage disclosure reporting requirements (HMDA) Resources to help industry understand, implement, and comply with the Home Mortgage Disclosure Act and Regulation C. Featured topic. The FCRA is a part of a group of acts contained in the Federal Consumer Credit Protection Act. To recap, Fannie Mae , Freddie Mac , and the Veterans Administration were the first major federal entities to announce a change in policy for credit reporting for COVID-19-affected loans. [I]f a furnisher makes an accommodation with respect to 1 or more payments on a credit obligation or account of a consumer, and the consumer makes the payments or is not required to make 1 or more payments pursuant to the accommodation, the furnisher shall—(I) report the credit obligation or account as current; or(II) if the credit obligation or account was delinquent before the accommodation—(aa) maintain the delinquent status during the period in which the accommodation is in effect; and(bb) if the consumer brings the credit obligation or account current during the period described in (aa), report the credit obligation or account as current.Under the CARES Act, suppressing credit reporting does not seem to be an option.