Today the Consumer Financial Protection Bureau is taking its first enforcement action under the Bureau’s new mortgage servicing rules. We are entering an order against Michigan-based Flagstar Bank for violating those rules by failing borrowers and illegally blocking them from trying to save their homes. Flagstar took excessive time to process borrowers’ applications, did not tell them when their applications were incomplete, denied loan modifications to qualified borrowers, and illegally delayed finalizing permanent loan modifications. These unlawful practices caused many consumers to lose the homes they had been trying to save. That is wrong and it is unacceptable.
Thank you. Over the years, financial education has become a passion that I have pursued at the local, state, and now federal levels. It is a joy and a privilege to be here amongst others who share that passion and understand its importance to the future of our country.
Thank you. Student loan debt is one of the most significant burdens facing our young people, and it certainly hits close to home for a growing number of Americans. Many of us here borrowed to pay for college and many are still repaying our obligations today. We are well aware of what this issue means for each of us, for our peers, and for our entire nation.
Thank you all for joining us today, and allow me to recognize Chair Tedesco, the Commissioner of the Financial Consumer Agency of Canada, who is here, as well as Director Bassett from the Indiana Department of Financial Institutions. We are here in Indianapolis to discuss a market that matters deeply, both to our everyday lives and to our nation’s economy. That is the market for financing the sales of cars and trucks. Nearly nine out of ten Americans commute to work by automobile, and in vast areas of the country ownership of a vehicle is almost essential to personal mobility.
Thank you for joining us. Today, the Consumer Financial Protection Bureau is announcing an enforcement action against an online payday lender, the Hydra Group, which we believe has been running an illegal cash-grab scam to force purported loans on people without their prior consent. It is an incredibly brazen and deceptive scheme.
oday we are taking a public enforcement action against Corinthian Colleges, a for-profit chain of colleges, to put an end to its illegal predatory lending scheme. We believe Corinthian lured in consumers with lies about their job prospects upon graduation, sold high-cost loans to pay for that false hope, and then harassed students for overdue debts while they were still in school.