CFPB cracks down on FCRA violations

first_imgLast month, the CFPB fined JPMorgan Chase (JPMorgan) $4.6 million for various alleged violations of the FCRA. According to the consent order, the CFPB found that JPMorgan failed to have reasonable policies and procedures in place to ensure it provided accurate information to consumer reporting agencies, failed to inform consumers of the results of dispute investigations and failed to identify the consumer reporting agency on adverse action notices.Policies and Procedures. The FCRA does not require financial institutions to provide information to consumer reporting agencies. However, if a financial institution elects to do so, the FCRA requires it to provide accurate information. Regulation V requires these financial institutions to have reasonable policies and procedures in place to ensure that information provided to consumer reporting agencies is accurate. The procedures should be designed based on the institution’s complexity and scope of activities and updated periodically. The rule also requires institutions to consider the interagency guidelines in developing their policies. continue reading » 46SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more

Third of Aussies lie to get the cash needed to buy a home

first_imgUBS report warns up to a third of Australians lie to get the cash needed to buy a home.QUEENSLAND borrowers are among the least likely to lie to get the cash they need to buy a home, despite a global banking giant warning up to a third of Australian mortgages could be so-called “liar loans”.A survey of more than 900 home loan borrowers conducted by investment bank UBS over the past 12 months has found only 67 per cent had a mortgage based on “completely factual and accurate” information.Not surprisingly, the nation’s two most expensive property markets — New South Wales and Victoria — were also the ones with the highest rate of less-than-honest mortgage applications, followed by the ACT and Tasmania.But almost three quarters of Queenslanders (73 per cent) were totally honest in their loan documents.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:51Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:51 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p270p270pAutoA, selectedAudio Trackdefault, selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenHousehold Debt00:51This information is of a general nature and does not constitute professional advice. You should always seek professional advice in relation to your particular circumstances.False statements included saying they earnt more than they really did, inflating the value of assets, and underestimating living expenses.More from newsMould, age, not enough to stop 17 bidders fighting for this homeless than 1 hour agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investorless than 1 hour agoUBS estimates this means there is about $500 billion of so-called “liar loans” on banks’ books.With just under $1.7 trillion of mortgage debt outstanding, that means home loans based on inaccurate or fraudulent information account for 29 per cent of the total, and 18 per cent of all private sector debt in Australia.Dirty Aussie landlord sex requestsSuburban stunner sells for big sumFrom listed to sold in just 24 hours“While household debt levels, elevated house prices and subdued income growth are well known, these findings suggest mortgagors are more stretched than the banks believe, implying losses in a downturn could be larger than the banks anticipate,” UBS warned in the report.The report stated that UBS believed 26 consecutive years of GDP growth in Australia had led to a large level of complacency within the economy.“This survey suggests many people have come to take house price inflation as a given and are prepared to be factually inaccurate on their mortgage application to ensure they get access to housing leverage.”Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:03Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:03 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p270p270pAutoA, selectedAudio Trackdefault, selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenInterest-Only Loans01:03ANZ had the highest proportion of mortgages that were not “completely factual and accurate”, with 45 per cent falling into the investment bank’s category of “liar loans”.That was significantly above the industry average of 33 per cent, as was NAB’s level of loan approvals that contained misrepresentations or inaccuracies.All four major banks recorded a much higher level of dodgy mortgage approvals than the rest of the financial sector.last_img read more