Consumer finance publications

PwC brings years of experience to provide in-depth discussion and insight to the critical issues of the consumer finance industry. Click on the following links to read our most recent newsletters and publications:
Mortgage Servicing Transfer Bulletin: The revised CFPB guidelines should be a key chapter in your transfer playbook
This article provides an overview of the Consumer Financial Protection Bureau’s Bulletin 2014-01, including insight into key compliance considerations and overall thoughts for implementing an effective transfer program. Read more.


Servicing advances: Show me the money
Why do servicing fees and advances deserve attention? Read our latest paper to learn why. Read more.


CFPB’s Integrated Mortgage Disclosures under RESPA/TILA – “Know Before You Owe”
Understanding key elements of the new rules and preparing for potential operational and compliance impacts, particularly the new definition of an “application,” and its impact to the origination process, including interactions with applicants, borrowers, and business channels. Read more.


CFPB’s Proposed Rule Defining Larger Participants in a Market for Auto Finance
Who could be a “larger participant” and how should they prepare for CFPB supervision? Exploring how the proposed rule could impact auto lenders and preparing for potential operational and compliance impacts. Read more.


CFPB Mortgage Disclosure Rules - An analysis of the Consumer Financial Protection Bureau's "Know Before You Owe" disclosure forms
This paper provides an analysis of the new mortgage disclosure forms as well as the keys to successfully implementing these changes by the required August 2015 deadline. Click here to read more.


Do you know what the hidden challenges are that may impact a successful servicing portfolio transfer?
Click here to read more.


CFPB Mortgage Servicing Standards: Post-implementation considerations: enhancing internal reporting to manage non-compliance risks
This edition focuses on how servicers can more effectively manage the ongoing risk of non-compliance in operational functions by improving the quality of internal reporting.


CFPB Mortgage Servicing Standards: New CFPB mortgage rules - Focusing on the customer
This edition discusses possible impacts on the customer experience as a result of the new rules and strategies that companies may wish to consider to mitigate them.


PwC's Experience Radar 2013: Learning from the mortgage Industry
This paper provides quantitative insights on customer experiences in the lending process that can help financial institutions better understand their customers to help unlock competitive advantage in an era of tight margins, new regulations and an evolving consumer.


Objects in the mirror are closer than they appear: Auto finance industry keeps its sights on impending regulation
Although most auto dealers are exempt from the Consumer Financial Protection Bureau’s (CFPB’s) supervisory authority, CFPB’s oversight of automobile finance transactions is expanding. In the upcoming months, auto lenders and dealers are likely to see increased regulatory scrutiny around consumer protection matters, and this could mean significant changes for the industry.


Consumer Finance Group Accounting and Finance Considerations – Winter 2014
Consumer Finance Group Accounting and Finance Considerations provides key perspective on the complex accounting, finance and reporting issues that are impacting the consumer finance industry.


CFPB Mortgage Servicing Standards: A closer look into the last step of readiness preparation for compliance
This edition of the CFPB Mortgage Servicing Standards provides an overview of what a readiness review entails and highlights the importance of performing this validation step.


The calm before the storm: Act now to mitigate risk from upcoming mortgage modification resets
This paper discusses the upcoming mortgage servicing modification resets and what actions mortgage services companies should consider to prevent costly defaults and remain competitive in the marketplace.


New OCC guidance calls for comprehensive third-party risk management and oversight
This brief newsletter highlights the key changes reflected in Bulletin 2013-29, and the recommended actions for our clients to take now.


CFPB Mortgage Servicing Standards: Understanding periodic statement rules
In this paper, we explore the components of the CFPB's periodic statement rules that are still under discussion across the industry.


Evolution of vendor risk management practices in consumer finance companies
Consumer finance companies should consider re-examining their internal processes and align vendor assessment and monitoring activities to the risk of the type of service being provided to derive greater business value from their investments.


CFPB Mortgage Servicing Standards: Understanding early intervention and continuity of contact
What constitutes a “good faith effort” to contact the borrower? In this paper, we highlight the early intervention and continuity of contract sessions of the CFPB mortgage servicing standards regulation.


ATR, QM & QRM: Document it or lose it
In this paper, we discuss the six questions that companies should ask themselves to help them consider the issues involved in making the necessary changes to comply with the ATR and QM standards.


CFPB Mortgage Servicing Standards: Understanding loss mitigation procedures
Standards related to loss mitigation procedures, including dual tracking, are an area of much industry discussion for mortgage servicing companies.


CFPB Mortgage Servicing Standards: Understanding their impact - error notice and information request rules
The new standards for error notices and information requests are expected to have a substantial impact on all mortgage servicers. Implementing the changes will require careful review and possibly significant updates to processes, systems, roles and responsibilities to achieve the desired level of certainty as to compliance.


CFPB Mortgage Servicing Standards: Understanding their impact
This newsletter series is focused on helping you deepen your understanding of the requirements of the new Consumer Finance Protection Bureau (CFPB) rules.


Strategic Cost Management for Mortgage Lenders and Consumer Finance
This paper discusses four critical elements that should be considered if an organization is to deliver sustainable cost reduction through transforming its expense base.


Student lending in 2013 and beyond
Private student lenders face many challenges. What will it take to be successful in the re-emerging private student lending market place?


Strategy and transformation: Managing strategic change within consumer finance companies
PwC has identified four areas where consumer finance organizations can improve how they develop and execute strategy to create lasting competitive advantage and consistent improvement in business performance.


Automotive Leasing Insight
This paper discusses the factors that can be attributed to the growing popularity of leasing, the advantages of having a well-designed customer experience lease strategy and how this can help support long-term customer retention and loyalty and serve as a springboard to capture additional market share as well as help to offset potential regulatory risk issues.


CFPB lets lenders decide the fate of the auto dealer rate mark ups but outlines expectations
The Consumer Finance Protection Bureau (CFPB) released a bulletin that outlines their intent to hold indirect auto lenders responsible for compliance with fair lending requirements of the Equal Credit Opportunity Act regarding dealer interest rate mark ups, participation and reserves.


CFPB Mortgage Servicing Standards: Analysis for RESPA (Reg. X) and TILA (Reg, Z) final rules
In this joint Point of View from our Consumer Finance & Financial Services Regulatory Group, we provides our insights into key provisions of the new servicing rules both under RESPA and under TILA, including the relationships between the final rules and the rules as proposed. We also provide our perspectives on the operational impacts servicers face integrating compliance with each new provision into their servicing operations.


Answering the call: How call recording and speech analytics can enhance regulatory compliance and redefine the customer experience
In this paper, we discuss how financial institutions can use call recording and speech analytics to deliver long-term value in the following three key areas: Strengthening regulatory compliance; improving the customer experience across all channels; and enhancing fraud detection and prevention.


CFPB “Ability-to-Repay” standard
On January 10, 2013, the CFPB issued its much anticipated final “Ability-to-Repay” rule. Lenders have 12 months to implement the new requirements, which become effective January 10, 2014. To provide some insights as to the Ability-to-Repay rule, we summarize the key provisions of the rule, identify some possible impacts of those provisions; and describe some specific steps lenders can take to successfully adapt to the new rule.


Private Student Lending: The challenges and opportunities in the Consumer Financial Protection Bureau’s annual report
This point-of-view describes the 5 “forward-leaning” actions PSL industry participants should consider as part of their plan for future success.


Inside the Valuation Nexus: Strengthening your valuation program to help limit losses, reduce costs, and deliver a positive customer experience
This viewpoint helps clients to understand the best practices around managing your property valuation process.


Superstorm Sandy: Consumer finance industry perspectives
This viewpoint helps clients to understand the best practices in response to and potential ramifications of the damage caused by Superstorm Sandy.


California homeowner bill of rights: Are you ready?
This viewpoint helps clients to understand the details and potential ramifications of the California Homeowner's Bill of Rights.

A familiar foe: Combating a new wave of mortgage fraud
Mortgage fraud reports rose 31% in 2011, costing the industry $3 billion as fraudsters have changed their target from loan origination to default servicing, loan modifications, short sales, and property liquidations. This point-of-view describes the 10 steps each mortgage company should consider taking to combat mortgage fraud.

Successful integrations: Mergers and integrations in consumer finance companies
This point-of-view will help companies to assess their integration plans and can help to provide leading practices and a framework to help prevent common pitfalls.

CFPB national servicing standards proposal
The Consumer Financial Protection Bureau (CFPB) released proposed national servicing standards for comment for the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA).

Private Student Loans: An analysis of the Consumer Financial Protection Bureau and Department of Education report on the Private Student Lending Industry
This report highlights shortcomings in the practices of the Private Student Lending (PSL) industry leading up to the 2008 financial crisis and changes since then. The authors also suggest that PSL lenders focus on better underwriting, applying loss mitigation options, and on increasing transparency.

Student lending default management: A guide to improved portfolio performance
Forecasts predict the federal student loan default rate, reported by the Department of Education, will reach double digits in 2012, with no relief in sight. By understanding the causes of why student lending default continues to rise, default managers can work to insulate themselves against this trend.

The "Plan to Help Responsible Homeowners and Heal the Housing Market": A look at what it means to mortgage servicers
This document reviews President Obama's Plan to Help Responsible Homeowners and Heal the Housing Market released in February 2012 and assesses the components of the plan and its potential impact on mortgage servicers.

Enhancing origination revenue through price optimization modeling
This paper discusses the core concepts and potential profit enhancement opportunities with creating a dynamic loan pricing strategy based on customer demand by using quantitative Pricing Optimization. Several market factors, such as the current interest rate environment, population demographics, and competition, should be considered when modeling mortgage demand and the impact on price changes to consumer's price elasticity in order to realize potential improvements.

Prepare now to manage REO (real estate-owned) inventory growth
Now is the time to start strengthening your REO (real estate-owned) infrastructure to control costs and optimize returns. The predicted surge of REO properties will likely place financial institutions at risk for increased losses. These challenges not only can - but must - be overcome as the costs of maintaining and liquidating REOs will only increase as they continue to saturate the market.

Enhancing the customer experience in consumer lending Enhancing the customer experience in consumer lending
By enhancing the customer experience, lenders can open the door for increased customer loyalty and retention, more opportunities for cross-selling, and new customers - all of which can contribute to greater profitability and a better brand in the marketplace.