NCHER 2017 Spring Convention Regulatory Round-Up Part II: Federal Efforts Impacting Student Loan Servicing and Collections Kelly Lipinski June 7, 2017

FCC and TCPA All About the Message Petition Technology would deliver a message to a voicemail box without causing the phone to ring Seeks confirmation that technology is not an ATDS or a wavier TCPA is on the radar of House Chair, but modest changes Definition of ATDS Revocation of consent Reassigned number list Trump administration prioritized reform, Pai is also in favor

CFPB: Alternative Data Request for information regarding the use of alternative data and credit modeling techniques Defines alternative data by what it is not – not traditional data Includes trending data, non-loan items, data related to customer stability, and education Challenges Lack of privacy Challenging to dispute accuracy Fair lending

CFPB: Student Loan Servicing Data Monitoring Request for public comment on student loan servicing monitoring Require quarterly reports on volume of accounts, account balances, borrower contacts, and IBR Organized by loan type Consumer advocates: Servicing market is opaque Lawsuits against industry support need for greater monitoring Similar gathering worked well in mortgage lending Servicing industry Request is duplicative and burdensome Fails to recognize realities of systems, industry and existing reporting requirements

CFPB: Supervisory Highlights and Fair Lending Report April 2017 Report Failure to correct adverse financial consequences of incorrect enrollment data Unclear explanation of how interest will be capitalized (final deferral, every deferral)

CFPB: Supervisory Highlights and Fair Lending Report CFPB 2016 Fair Lending Report, April 2017 Increased focus on student loan servicing Potential steering risks in student loan servicing Similar concerns noted in P. Ficklin’s December 16, 2016 CFPB Fair Lending blog post, also noted in April 2017 Monthly Complaint Report

CFPB: Supervisory Highlights and Fair Lending Report Whether borrowers who are behind on student loans have more difficulty working out a solution with their servicer because of their race, gender, ethnicity or age Compare outcomes of all borrowers who are in default on federal and PELs CFPB has certain servicers in its cross-hairs, but has not named the servicers

QUESTIONS?