Links in “Lending”
- Redliners Caught Red Handed
Midland States Bancorp has settled with HUD over allegations of redlining in Missouri and Illinois neighborhoods. Though required to pay $200,000 to EHOC, the majority of the agreement deals with improved lending practices. [10/3/14]
- CFPB Signals Possible Initiatives on Mobile Homes
The Bureau released a white paper finding that manufactured home owners typically pay higher interest rates for their loans than site-built borrowers. Look for more data collection via HMDA and more efforts to protect mobile homeowners. [10/2/14]
- DOD Proposes Expansion of Military Lending Act Rate Ceiling to More Consumer Credit Products
A proposed rule from the DOD would extend the Military Lending Actâs rate cap of 36% to all forms of payday loans, vehicle title loans, refund anticipation loans, deposit advance loans, installment loans, and some unsecured lines of credit and credit cards. Currently, the Act only applies to specific short term loans and refund anticipation loans. [10/1/14]
- Manufactured Homes: The (Expensive) Less Expensive Option
The CFPB has released a report detailing apparent dissimilarities between homes built onsite versus manufactured homes. In 2012, 68% of manufactured homes were considered high-priced mortgage loans, whereas only 3% of site-built homes were classified as such. See the full report here. [10/1/14]
- OCC’s Southern Revival
The OCC's Southern District is seeing increased health of banks and FSAs within its bounds. The improved conditions are attributed to, among other things, organic growth: increased loan originations rather than loan purchases. [10/1/14]
- How Proposed MLA Changes Would Affect Credit Unions
The Department of Defense proposed drastic amendments to the Military Lending Act, including: a broadened list of credit products subject to the 36% cap on the APR rate, additional required disclosures for military borrowers, and more. [9/29/14]
- CFPB Applauds Department of Defense for Defending Military
There have been loopholes in the Military Lending Act which has allowed lenders to abuse the system. The Department of Defense has proposed amendments which would better protect military families. [9/29/14]
- First Look at New HMDA Data: Lending to Minorities Hits 14-year Low
Since the collapse of the subprime market and the rise of more stringent lending requirements, more minorities are finding themselves shut out of the housing market. Upshot? Expect more fair lending scrutiny. [9/24/14]
- Scheme Takes $100 Million from Bank Accounts of Online Payday Loan Shoppers
The CFPB and FTC have shut down two operations that swindled consumers who were looking for loans online and had money withdrawn from their bank accounts under false pretenses over a period of time. Victims said they couldn't stop the companies from drawing money out of their accounts. [9/18/14]
- What’s Putting the Brakes on HAMP?
Since the Home Affordable Modification Program came online in 2009, 1.3 million homeowners have modified their loans through the program. But 70% of those occurred between 2009 and 2011. At this pace, HAMP modifications are expected to be only 10% next year. Here are some thoughts as to why and what lenders can do about it. [9/18/14]
