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estimated $66.7 billion as of 2015.
The majority of older borrowers – roughly 75 percent – said they have taken on debt to
help pay for a child or grandchild’s education, either directly or as co-signers for a
younger borrower, and the survey noted that many are struggling to make their
monthly payments. Among borrowers age 50 to 64, 29 percent were in default, and
among borrowers 65 or older, 40 percent could not make their monthly payments.
Student debt obligations also affected older borrowers’ ability to save for retirement,
the CFPB found. A comparison of borrowers approaching retirement (those age 50-
59) showed that those with student debt had less saved in a retirement fund than
The survey identified several obstacles older borrowers face with respect to student
loan servicing, including trouble enrolling in income-driven payment plans, the
incorrect application of payments made by co-signers and an inability for co-signers to
access loan information. In addition, some older borrowers reported accounting errors
that led to servicers threatening to garnish federal benefits, such as Social Security.
Read the report.
REPORTS: TRUMP MAY REMOVE CORDRAY
A spokesman for President-Elect Donald Trump said on January 12 that Trump has interviewed former Rep.
Randy Neugebauer (R-TX) for the post of CFPB director – indicating that Trump may be considering removing
current director Richard Cordray from his post before his term expires in 2018. According to the Huffington Post,
Trump met the day before with Neugebauer, and no other candidates are currently under consideration.
Neugebauer recently retired from Congress after seven terms. He served on the House Financial Services
Committee and chaired the Subcommittee on Financial Institutions and Consumer Credit in the 114th Congress.
Trump would be able to take this action under the federal appellate ruling in PHH Mortgage v. CFPB, which
invalidated the Bureau’s leadership structure. Under the Dodd-Frank Act, the director may be removed not at the
president’s discretion but only “for cause,” a distinction that departs from historical practice and risks arbitrary
decision-making and abuse of power, according to the court’s decision, making the director removable at the
The possibility of Trump requesting Cordray’s early resignation has triggered volleys between Republicans and
Democrats on Capitol Hill over the decision. Under the ruling, the president now has the power to remove the
CFPB director, unless a higher court rules otherwise. ABA will continue to monitor the PHH case as the appeal
proceeds. Other reports have indicated that Cordray would sue if Trump attempts to remove him from his post.
OTHER CFPB NEWS
► ABA Offers Mortgage Servicing Rule Staff Analysis
To help bankers comply with the recent amendments to the CFPB’s mortgage servicing regulations, ABA has
released an extensive new members-only staff analysis of the changes. The summary reviews the new
regulatory requirements, official commentary and key takeaways from the preamble to the amendments. Also
included are two charts that address successors in interest and early implementation restrictions. Read the
CFPB Updates HMDA Resources
The CFPB has published additional resources to help banks comply with the Home Mortgage Disclosure Act
rule filing requirements. The resources include a 2017 loan/application register formatting tool, and an
updated technology preview, filing instructions guide and frequently asked questions document. View the
resources. Visit our HMDA page for more information.