b'CFPB Renews Interest in Reverse Mortgage ProviderCFPB Reaches $40.6 Million Agreement With Subject to Previous Consent OrderLendUp, Company Must Cease OperationsIn October, the CFPB filed a complaint and proposedIn December, the CFPB announced that it reached an administrative consent order alleging that one of theagreement with a California-based fintech company, nations leading providers of reverse mortgages usedLendUp, that would require the company to cease (1) deceptive home estimates to entice consumers intomaking new loans; (2) collecting on outstanding loans taking out such mortgages. A reverse mortgage is ato harmed consumers; (3) selling consumer information; type of home loan, available to individuals who areand (4) making misrepresentations when providing 62 or older, that does not require borrowers to makeloans or collecting debt or helping others that are monthly payments; instead, a borrower may accessdoing so. The stipulated final judgment and order, the equity in its home while living in the home, and theentered later the same month, requires the company loan is repaid when the borrower no longer lives in theto pay $40.5 million to the CFPB for the purposes of home or defaults on the loan. The CFPB previouslyproviding consumer redress, and a $100,000 civil filed an administrative consent order against the samemonetary penalty. The agreement would resolve a reverse mortgage provider in December 2016 (2016September 2021 lawsuit brought by the CFPB in the consent order) for related violations, and the 2021U.S. District Court for the Northern District of California complaint alleges that the company violated the termsalleging violations of the CFPA, ECOA, and Regulation of the 2016 consent order. The proposed consent orderB. The CFPBs complaint also alleged that the company would prohibit the reverse mortgage provider fromwas in violation of a 2016 CFPB order by continuing future unlawful conduct and require the company toillegal and deceptive marketing practices, deceiving pay $173,400 in consumer redress and a $1.1 million civilconsumers about the benefits of repeat borrowing, and money penalty. This action is consistent with Directorfailing to provide notices required by fair lending laws. Chopras statement regarding the CFPBs increasedAccording to the CFPB, LendUpwhich was backed focus on preventing recidivism (as described above).by prominent venture capital investorsoffered single-Fintechs offering reverse mortgage services shouldpayment and installment loans to consumers online be aware of this consent order, and all companiesthat it marketed as an alternative to payday loans. The previously involved in CFPB enforcement activityCFPB alleged that the lender marketed a program of should anticipate renewed scrutiny. free courses and told consumers that after completing courses, they would be eligible for lower interest rates CFPB Orders Large Technology Companies toand larger loan amounts on any future loans. However, Provide Information on Payment System Plansaccording to CFPB, despite completing the courses, In October, the CFPB issued a series of ordersconsumers did not qualify for larger loans and were requiring certain large technology companies, includingoffered similar or less favorable interest rates. several fintech companies, to turn over information related to payment system plans and practices. TheLaws, Rules and RegulationsCFPB seeks the requested information in order toNew York DFS Issues New Commercialunderstand how these entities manage data access andFinancing Disclosuresuse personal payments data. The CFPB acknowledgedIn September, the New York Department of Financial that, although faster and less expensive paymentServices (NYDFS) announced a proposed regulation systems may benefit consumers, these changes alsothat would require companies that offer commercial present risks and may jeopardize a fair, transparent,financing in amounts under $2.5 million to make and competitive marketplace. The CFPBs orders willstandardized disclosures about the terms of credit. compel these companies to provide information on (i)Subject providers, which could include fintechs, data harvesting and monetization, (ii) access restrictionmust comply with non-substantive formatting and user choice, and (iii) other consumer protections. 21'