Revolving Payday Loans, Will it Ever Stop?

(Source: CFPB) – During the past year, the Consumer Financial Protection Bureau (CFPB) has engaged in an in-depth review of short-term small dollar loans, specifically payday loans extended by non-depository institutions and deposit advance products offered by a small, but growing, number of depository institutions to their deposit account customers. This review began with a field hearing held in Birmingham, Alabama in January 2012. At that event, CFPB Director Richard Cordray noted that “the purpose of th[e] field hearing, and the purpose of all our research and analysis and outreach on these issues, is to help us figure out how to determine the right approach to protect consumers and ensure that they have access to a small loan market that is fair, transparent, and competitive.” Director Cordray went on to state that “[t]hrough forums like this and through our supervision program, we will systematically gather data to get a complete picture of the payday market and its impact on consumers” including how consumers“are affected by long-term use of these products.”

Read CFPB’s white paper on payday loans and deposit advance products.

Underwater Refinance Program (HARP) Deadline Extended to December 31, 2015

(LoanSafe.org) – The Federal Housing Finance Agency announced today that they are extending the deadline for borrowers to apply for the Home Affordable Refinance Program (HARP). Although the program was originally set to expire at the end of 2013, the FHFA determined it would be in everyone’s best interest if the program was extended. It took quite some time for lenders to get this program up and running and establish sound processing for this type of refinance. (more…)