Links in “Lending”
- A Hello to ARMs
Tim Mislansky (chief lending officer at Wright-Pratt Credit Union Inc.) and Tracy Ashfield (CEO of Ashfield and Associates) have observed that adjustable rate mortgages offer better rates to those consumers who do not plan to reside in a property for more than 10 years. The trick, according to Mislansky, is to help the member avoid the "knee-jerk" negative reaction to the offer of an ARM. [9/17/14]
- CFPB Stands in Servicemembers’ Corner
The CFPB's "Tell Your Story" program highlights a servicemember who was targeted by a deceptive auto lending program and decided to take a stand. An investigation into the situation resulted in enforcement action against the lender in 2013, and required the lender to refund nearly $6.5 million to over 50,000 servicemembers. [9/17/14]
- Current Expected Credit Losses (CECL) Gets a Makeover (and Five Steps to Success)
The process for accounting for loan loss is currently undergoing changes that could be implemented in 2017. Director of special projects for MainStreet Technologies gives credit unions five steps for success in complying with these changes. [9/16/14]
- CFPB’s Student Loan Ombudsman Chastises Industry
Rohit Chopra, assistant director at the CFPB and the agency's student loan ombudsman chastised the industry for lack of data, lack of transparency, failure to provide adequate loan modifications, and faulty servicer payment processing. [9/15/14]
- New Legislation Would Target Credit Reports
New legislation unveiled by Rep. Maxine Waters (D-Calif.), the ranking Democrat on the Financial Services Committee, would remove detrimental info from credit reports from borrowers who take out a predatory loan, and reduce the number of years adverse information can remain on a credit report to three years, among other provisions. [9/11/14]
- NCUA Issues State-by-State Growth Data
The data released by NCUA for the year ending June 30, 2014, shows an increase in the median rate of loan growth, with Arizona and Iowa showing the highest rate of growth. The median growth rate for shares and assets has declined somewhat, but delinquency rates have remained steady. See how your state fared compared to others. [9/10/14]
- NY Takes Aim at Zombie Properties
New York bill would require banks to maintain properties in the foreclosure process that have been abandoned by their owners. It would also require lenders to notify owners that they do not have to move out until the process is complete, which can take years. The move is designed to reduce the number of "zombie" properties that fall prey to vandalism, decay and crime, which impacts their surrounding community as well. [9/9/14]
- Private v. Public Loan Mods
The redefault rate of loan modifications remains near 30%. However, the success rate of private-money modifications is huge. Here's why. [9/8/14]
- ED Changes SCRA Procedures for Servicers of Student Loans
Rather than wait for a loan borrower called to military service to request relief under the Servicemembers Civil Relief Act, the Department of Education (ED) announces new procedures that allow servicers to proactively check their database of borrowers against the Department of Defense's database to identify candidates for a servicemember's rate reduction. [9/5/14]
- Spouse-related Cases Are Not Only for Divorce Courts
Recent court cases held in the Sixth Circuit Court of Appeals and the Eighth Circuit Court of Appeals regarding whether or not spousal cosigners are considered applicants have produced contradictory rulings. The intended determination is whether or not spousal cosigners should receive the protection of Reg. B that applicants receive. Although this specific contradiction may result in appeals to the Supreme Court, institutions should understand that they must continue to be cautious in requiring a spousal guarantor or cosigner and that applicants remain entitled to protection by ECOA. [9/4/14]
