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50 EQUIFAX SETTLES CFPB LAWSUIT FOR $700M e Consumer Financial Protection Bureau (CFPB) announced along with the Federal Trade Commission (FTC), and 48 states, the District of Columbia and Puerto Rico announced a settlement with Equifax, providing up to $700 million in monetary relief and penalties. According to a complaint and proposed stipulated judgment filed in federal district court in the Northern District of Georgia, the CFPB alleges that Equifax engaged in unfair and deceptive practices in connection with the 2017 data breach of Equifax's systems that impacted approximately 147 million consumers. "[e] announcement is not the end of our efforts to make sure consumers' sensitive personal information is safe and secure," said Kathleen L. Kraninger, Director, CFPB in a statement. "e incident at Equifax underscores the evolving cyber security threats confronting both private and government computer systems and actions they must take to shield the personal information of consumers. Too much is at stake for the financial security of the American people to make these protections anything less than a top priority." If approved by the court, the settlement will provide up to $425 million in monetary relief to consumers, a $100 million civil money penalty, and other relief, adding up to around $700 million in relief and penalties. "For consumers impacted by the Equifax breach, the settlement will make available up to $425 million for time and money they spent to protect themselves from potential threats of identity theft or addressing incidents of identity theft as a result of the breach. We encourage consumers impacted by the breach to submit their claims in order to receive free credit monitoring or cash reimbursements," Kraninger concluded. "Companies that profit from personal information have an extra responsibility to protect and secure that data," said Joe Simons, Chairman, FTC. "Equifax failed to take basic steps that may have prevented the breach that affected approximately 147 million consumers. is settlement requires that the company take steps to improve its data security going forward, and will ensure that consumers harmed by this breach can receive help protecting themselves from identity theft and fraud." FINTECH'S INFLUENCE ON HOME FINANCING Much of the real estate market has made strides in integrating fintech, but much of the market remains untapped, according to the Urban Institute. Compared with other goods, the online share of all home sales (to owner occupants, investors, fix-and-flippers, and others) is less than 15%, the Urban Institute states in its report, titled "FinTech Innovation in the Home Purchase and Financing Market." "Every step of the homebuying process is heavily regulated at the federal, state, and local level," the Urban Institute states. "Despite these barriers, technology has made inroads within specific pockets of the housing market: helping consumers build credit and save for a down payment, search for and purchase a home, shop for and obtain mortgage financing, navigate mortgage servicing, and extract home equity to eventually sell the home." Fintech firms can cause transformations in two ways: through improved efficiency and through reduced structural barriers. For example, credit scoring firms have enhanced their technology and modeling techniques and incorporated some additional data into the credit scoring process. FICO, for example, is rolling out new programs where borrowers can allow the use of their bank statements, and has arranged for limited use of telecom data for consumers with limited credit histories. While mortgage lenders currently do not take this data into account, Fannie Mae and Freddie Mac are investigating the use of these "alternative data" and, in limited circumstances, will extend mortgages to consumers without credit scores. Post-purchase, insurance start-ups such as Lemonade and Hippo utilize advanced tech to generate quotes and sell insurance online. With the process fully automated, Hippo claims to offer 25% lower premium. Other startups can offer reverse mortgages online, without requiring a mortgage and monthly payments by taking a portion of the house value when the property is sold. "In conclusion, substantial innovation has taken place across the mortgage ecosystem, producing clear benefits for consumers," Urban states. "But major gaps in the availability of fintech services exist." Urban expects some of these improvements to take place in the coming years as fintech start-ups mature into more established companies. Find the full report here.

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