The Consumer Financial Protection Bureau (CFPB) recently
announced its efforts to provide relief to consumers victimized by an illegal
student loan debt-relief operation.
Learn more about this matter, as well as what new
information the Federal Deposit Insurance Corp. (FDIC) has to share in its
latest update on the ongoing independent investigation into its workplace
culture, along with news from the Federal Housing Finance Agency (FHFA) and the
Federal Reserve.
CFPB to distribute $10.9 million to students harmed by
debt-relief business
More than $10.9 million in restitution checks will be
distributed to 8,500 consumers charged illegal fees for student loan
debt-relief services, according to the CFPB. From 2015-2022, Performance SLC
collected $9.2 million in illegal upfront fees from borrowers seeking loan
forgiveness programs offered for free by the Department of Education. The
company was charged with violating the Telemarketing Sales Rule by making
deceptive claims and failing to provide required disclosures to convince
borrowers to pay for unnecessary services. More details are available here.
FDIC releases update on third-party review of agency
culture
The FDIC recently published an update from the special committee
which tapped law firm Cleary Gottlieb to conduct an independent review of the
agency’s workplace culture. The committee is encouraging anyone who experienced
harassment, abuse or misconduct at the FDIC to anonymously share their stories
with the firm. More than 350 people have been interviewed, and the firm is
continuing to seek more employee feedback to access FDIC’s culture and
practices around reporting and responding to harassment and misconduct. Read
more details here.
Barr discusses monetary policy, liquidity risk management
Federal Reserve Vice President of Supervision Michael Barr
discussed his optimistic outlook based on recent economic developments, such as
lowering inflation and economic growth, among other factors at the 40th Annual
National Association for Business Economics (NABE) Economic Policy Conference
in Washington, D.C. These developments, he said, have led to improvements in
supply chains, the labor market and productivity. He described the state of the
banking sector as sound, acknowledging that risks remain related to real estate
and recent earnings reports. He also noted that bank runs can happen faster and
more severely than previously thought possible, underscoring the need for
strong liquidity risk management. His full speech can be read here.
FHFA to host multifamily property insurance symposium
The FHFA will host its next session in a series of property
insurance symposiums on March 13, as a part of its ongoing effort to facilitate
meaningful discussions about challenges concerning property insurance
availability and affordability.
“The availability and affordability of insurance is a
profoundly critical issue impacting every region of the country,” FHFA Director
Sandra Thompson said in a press release. “This next forum allows multifamily
industry leaders and stakeholders the opportunity to exchange and openly
discuss creative ideas to address the escalating insurance market stress and
how we can help those impacted.”
The event will feature panels with various stakeholders,
including Fannie Mae and Freddie Mac, the U.S Department of Housing and Urban
Development Multifamily Office, insurance industry experts, multifamily lenders
and borrowers. Learn more here.