Links in “Lending”

CUNA President/CEO Jim Nussle in a recent op-ed piece in the New York Times highlighted credit union programs that help their members end the payday lending and predatory lender cycles, while encouraging savings. Nussle’s comments were in response to a previous editorial that asked how to best protect consumers who need help in restoring their credit. [10/28/14]

As credit unions struggle to build their loan portfolios, many are turning to loan participations. To do this successfully, you must understand the regulatory and due diligence requirements. [10/24/14]

Credit unions, which are typically known for avoiding lending risk, have been participating in more subprime auto lending, contributing a great amount to the auto credit "boom" of recent months. [10/20/14]

The Federal Reserve Board is planning to vote on a final regulation on qualified residential mortgages at its October 22^nd board meeting. The Wall Street Journal is reporting that the expectation is that the standards for mortgages that are packaged into mortgage-backed securities will be loosened in order to make credit more available. [10/16/14]

The case Perez v. Mortgage Bankers Association involves the issue of whether loan officers must be paid overtime. Thomas Perez is the Secretary of Labor and his agency’s opinion letter stated that mortgage loan officers are non-exempt employees under their interpretation of the Fair Labor Standards Act. The Mortgage Bankers Association sued, claiming this change in interpretation required a notice and comment period before it could become effective. [10/15/14]

Up until recently, the CFPB has seemingly been satisfied with imperfect compliance with the new mortgage servicing rules, so long as a “good faith effort” to comply with the rules is demonstrated. But the recent actions against Flagstar Bank seem to signify that the good faith effort isn’t enough anymore. In this video, AffirmX’s SVP and In-House Counsel Jane Pannier discusses what has happened and what it means for your institution. [10/10/14]

On October 22^nd, the federal banking regulators will be presenting a webinar on emerging fair lending issues. This is a hot button issue with all of the regulatory agencies, so don’t miss this opportunity to get direct information about their areas of concern. [10/10/14]

The HUD announced a $5 million settlement with Wells Fargo, continuing the recent trend of going after lenders discriminating against pregnant women and women on maternity leave. [10/10/14]

Anaheim, Calif.-based online lender used a subsidiary that originated the loans on a South Dakota Indian reservation to issue loans in Iowa that hit up to 169% on an annual basis. The tribal angle didn't fly with the Iowa Division of Banking, which revoked the license and hit the lender with $1.5 million in restitution of 3,400 loans to Iowans. [10/9/14]

Many thought that the increased loan demand from a recovering economy would offset the dampening effect of tighter mortgage regulation. However, over 70% of mortgage and housing professionals in a recent survey said that increased regulation has resulted in less money being made available for mortgage loans. [10/8/14]