Removing Barriers Blog

Day 2: Combined Advisory Groups Examine Debt Collection, Mortgage Market Trends
Posted June 06, 2019 by CUNA Advocacy

In the second day of a two-day meeting of the CFPB Credit Union Advisory Council (CUAC) the group discussed the recent debt collection proposal, the Bureau’s work to educate and engage consumers, and trends in the mortgage market.  In today’s meetings, the CUAC was joined in a combined session by the Community Bank Advisory Council (CBAC) and Consumer Advisory Board (CAB).  

The session on debt collection included a presentation on the proposal by John McNamara, Assistant Director of the Office of Consumer Lending, Reporting, and Collection Markets. The presentation included a high-level overview of the rule’s proposed requirements on Fair Debt Collection Practices Act (FDCPA) covered debt collections – also referred to as “third-party debt collectors.”  The CFPB’s proposal does not directly affect credit unions collecting their own debts, but CUNA has raised concerns about the potential indirect effects on credit unions that assign out charged off loans. 

In the second session, staff from the Office of Financial Education and Office of Older Americans discussed the Bureau’s efforts to raise awareness about the importance of financial education. The discussion also included an overview of the Bureau’s concerns about trends in suspicious activity reports on elder financial exploitation. 

In the day’s final session, Mark McCardle, Assistant Director of the Office of Mortgage Markets, discussed trends the Bureau has been monitoring in the nation’s mortgage markets. In general, the CFPB noted that the national homeownership rate is recovering after a low in 2016 but post-crisis gains vary by race and ethnicity.