Daily Archives: July 16, 2015

CFPB releases first monthly snapshot of consumer complaint database

Report shows lenders trends in consumer complaints


Today’s report provides complaint highlights as of July 1, 2015. Information includes:

Complaint volume: For June 2015, the most-complained-about financial product or service was debt collection, representing about 32% of complaints submitted. Of the 23,400 complaints handled, more than 7,400 of them were about debt collection. The second most-complained-about consumer product was mortgages, accounting for more than 4,700 complaints. Credit reporting, came in third, accounting for more than 4,300 complaints.

Product trends: Consumer loan complaints showed the greatest percentage increase from the same time last year, nearly doubling from approximately 660 complaints to 1,020 complaints on average per month.

State information: Hawaii, West Virginia, and Maine experienced the greatest complaint volume increases from the same time last year; with Hawaii up 41%, and West Virginia and Maine up 38%. South Dakota, Iowa, and Rhode Island experienced the greatest complaint volume decrease from the same time last year, with South Dakota down 40%, Iowa down 14%, and Rhode Island down 12%.

Most-complained-about companies: While company-level information should be considered in the context of company size, the top three companies that received the most complaints from CFPB for February through April 2015 were Equifax, Experian, and Bank of America. Equifax experienced the greatest jump in complaints over the same period last year, up 8%.

Experian, Equifax, BofA Top Chart For CFPB Gripes

Law360, Washington (July 16, 2015, 3:32 PM ET) — Experian PLC, Equifax Inc. and Bank of America drew more consumer complaints to the Consumer Financial Protection Bureau from February through April this year than any other company, the agency revealed in a first-of-its-kind report on Thursday.

The three financial services giants caught a combined 2,633 gripes to the watchdog agency over the period in question, with Equifax experiencing an 8 percent bump from last year. The complaints cover a variety of consumer issues, such as debt collection practices, consumer loans and credit reporting.

Source: Law360

Deutsche Bank probed by UK regulator for ‘laundering Russian cash’

Britain’s Financial Conduct Authority (FCA) has begun an investigation into whether Deutsche Bank breached anti money laundering laws for its Moscow clients, it has emerged.

The Financial Times reports the inquiry focuses on the bank’s so-called mirror trades executed in London and Moscow.

Deutsche Bank reported the matter itself to the FCA and Germany’s financial watchdog, BaFin.

The investment bank remains under “special measures” instigated by the FCA after several allegations of regulatory breaches.

Read on.

Germany Blasts Deutsche Bank Over Culture

German regulators accused a half-dozen current Deutsche Bank AG executives of failing to stop or tell regulators about years of attempted market manipulation, according to a confidential report reviewed by The Wall Street Journal that portrays the German bank as suffering from a badly broken corporate culture.

Read more: http://www.nasdaq.com/article/germany-blasts-deutsche-bank-over-culture-20150716-00918#ixzz3g5KALzxF

Eleventh Circuit: No Wrongful Foreclosure Claim Under Georgia Law Where Foreclosure Was Result of Borrowers’ Default

In Haynes v. McCalla Raymer, LLC, No. 14–14036, __ F. 3d __, 2015 WL 4188459 (11th Cir. July 13, 2015), the Eleventh Circuit Court of Appeals affirmed the Northern District of Georgia’s grant of summary judgment in favor of Bank of America, N.A. (“BANA”) on the mortgagors’ wrongful foreclosure claim. The court held that the mortgagors lacked standing to challenge any alleged deficiencies in the assignment of the security deed from MERS to BANA and that the borrowers’ own default, rather than any alleged defect in the foreclosure notice, led to the foreclosure.

With respect to the assignment of the security deed, the mortgagors claimed that “the security deed was facially defective and not fit for recording” because there was not an official witness to the assignment. They also claimed that signatures on the security deed were forged, thereby rendering the assigned deed a nullity. The Eleventh Circuit rejected these arguments outright on the basis that the borrowers lacked standing to challenge the assignment under Georgia law because they were not parties to the assignment and were not intended beneficiaries thereof.  The court further noted that, while security deeds must be notarized in order to be recorded, deeds with even patent defects in attestation are still binding between the parties.  The court explained that “the inability to record the deed impacts only subsequent purchasers of the property” who may acquire the property in good faith and without notice of other interests in the property. The court also pointed out that Georgia’s foreclosure statute only provided a “limited” protection to consumers, and does not even require that the security deed be recorded prior to foreclosure, only that it be “filed.”  See O.C.G.A. § 44-14-162(b).  The court therefore saw “no reason that the patent defect in attestation at issue here would provide [the mortgagors] with standing to challenge an otherwise effective, if not properly recordable, assignment of their security deed.”

Read on.

Consumers’ Changing Banking Habits Led To 1,400 Bank Of America Branches Shuttering, More Cuts To Come

Over the past several years, Bank of America has revamped the way it provides banking services in an effort to cut costs and respond to consumers’ changing banking habits. Those operation modifications have not only included shutting down some drive-thru windows, but the closure of nearly a fifth of the company’s branches.

Quartz reports that while many of those closures have occurred over the last five years, the bank warns that more of its 4,800 branches are likely to shutter in the future.

“We took 1,400 branches out of the system, which is bigger than some entire companies out there,” CEO Brian Moynihan said on a call with analysts. “We expect there to be more pressure downward.”

Moynihan says that the expected cuts would likely continue to be a reaction to customer behavior, noting that the number of mobile banking customers has grown to 17 million people in the past four years. Additionally, about 13% of the company’s checks are now deposited via the company’s mobile app, Quartz reports.

“We are moving because customers are moving in how they conduct business,” Moynihan said.

Read on.

Goldman Sachs in talks to settle DOJ probe into sales of mortgage securities before the crisis

Goldman Sachs Group Inc. reported second-quarter earnings that fell 49% from a year earlier on higher legal costs tied to a potential settlement of mortgage-related probes.

Net income dropped to $1.05 billion, or $1.98 a share, from $2.04 billion, or $4.10, a year earlier, the New York-based company said Thursday in a statement. Excluding the legal costs, earnings were $4.75 a share, beating the $3.96 average estimate of 24 analysts in a Bloomberg survey.

Goldman Sachs set aside $1.45 billion for litigation and regulatory proceedings this quarter, about five times more than a year earlier. The firm is in talks to be the latest major bank to settle a Justice Department probe into sales of mortgage securities before the financial crisis.

Read on.