Links in “Lending”

The asset qualification threshold for HMDA reporting will increase from $43 million to $44 million for 2015. The threshold is adjusted each year based on the annual percentage increase in the average Consumer Price Index for urban wage earners and clerical workers. [12/30/14]

The FRB announced the annual adjustment of the dollar amount used to determine whether a small loan is exempt from the special appraisal requirements that apply to higher-priced mortgage loans. The exemption threshold is being adjusted from $25,000 to $25,500 and will, for covered loans, require creditors to obtain a written appraisal based on a physical visit to the home's interior. [12/24/14]

Attorneys General from 22 states are saying that the DoD didn’t go far enough with the proposed Military Lending Act to protect service members from predatory lenders. In particular, they cite the fact that the proposed rule allows for an exemption from the MAPR calculation for reasonable and customary “bona fide” fees, which they believe could result in even higher fees for applicants. [12/23/14]

Several trade associations write to the Department of Defense regarding the proposed changes to the Military Lending Act, warning that some of the proposals could end up segregating servicemembers and their families from "needed and beneficial mainstream credit products." [12/19/14]

Due to a statue of limitations for New Jersey mortgage foreclosures, a delinquent borrower of six years has essentially been awarded a "free house." The lender received only three monthly payments on a $520,000 note before the borrower defaulted on the loan; due to technicalities, the lender has no lien position in the property and the borrower owns it free and clear. [12/17/14]

The new credit scoring model is designed to better assess the risk of small dollar borrowers and to make the process more cost effective for lenders. The model is now available for use with all 7(a) loans of $350,000 or less. [12/15/14]

The FHA has released its loan limit schedule for high-cost and lower-cost areas to become effective January 1, 2015. The 2015 loan limits for highest and lowest cost areas will remain the same as 2014. [12/8/14]

Credit unions have experienced the highest annual loan growth since 2006. As a result, NCUA is reporting that credit unions are relying less on long-term investments, which should better position the industry to minimize interest rate risk when interest rates begin to rise. [12/5/14]

In 2013 the Lending Club, an online alternative lender, originated $2 billion in new loans, many of which are loans that consumers traditionally sought from credit unions. How do you compete with the speed and convenience that online lenders can offer? You need to understand and learn from their business model. [12/3/14]

Cook County, which includes Chicago, has accused Wells Fargo of predatory lending, the practice of targeting minority borrowers for more costly home loans than their white counterparts. The county is seeking an amount that may exceed $300 million. [12/2/14]