Links in “Lending”

The 1.4% loan increase in July is the largest monthly increase since August, 2005. Leading the way are new auto loans followed by ARM loans, used auto loans, and unsecured loans. [9/2/14]

In the world of residential lending, loan officers frequently trip up when it comes to knowing when they’re dealing with a full-fledged application. Join Alberto Gamez, AffirmX’s Director of Sales and a 22-year mortgage specialist, to learn a simple trick to knowing when you have a complete loan application. [8/29/14]

The Department of Education has changed the way  FFEL lenders should determine if consumers can receive the benefits of the Servicemembers Civil Relief Act. Specifically, lenders are now allowed to use the Defense Manpower Data Center to look for borrowers who qualify for SCRA benefits, even without a request to do so from the borrower. [8/28/14]

Demonstrating once again how important credit unions are to the daily lives of their members, loan officers from $215 million Alliance Credit Union are out on the streets offering local merchants in Ferguson, Missouri, 0% loans to reestablish their businesses, restock their shelves, re-board up windows and to clean up storefronts. [8/21/14]

Wells Fargo has implemented a new strategy to reward its employees with higher commission for loans. Wells Fargo executives believe that this incentive "create[s] a lot of desire for the loan officers to go out and get that extra production.” This strategy is very timely during a period of focus on new home purchases. [8/15/14]

An effective credit migration model that performs regression analyses and other analyses can predict credit risk issues early and can help identify business opportunities going forward. 60% to 80% of total delinquencies and charge offs result from loans that have dropped two or more credit grades from the original risk level. [8/14/14]

A loan modification requires minimal new disclosures, whereas a loan refinancing requires the whole ball of disclosure wax. As such, it's imperative to know when modifying the terms of an existing loan results in a modification or a refinancing. Here's some guidance on the matter. [8/14/14]

The example of Amerisave can serve as a warning to all lending institutions, including credit unions. CFPB's Richard Cordray summarizes: "Amerisave lured consumers in with deceptive advertising, trapped them with costly upfront fees, and then illegally overcharged them for services from an undisclosed affiliate. By the time consumers could have discovered the advertised low rates were too good to be true, they had already committed to pay hundreds of dollars to Amerisave." [8/13/14]

Countrywide's lending program "High Speed Swim Lane," nicknamed "Hustle," emphasized quantity over quality, rewarded employees for producing more loans, and eliminated checkpoints designed to ensure loan quality. Bank of America, which purchased Countrywide in 2008, has been ordered to pay $1.3 billion for those defective loans. A former mid-level Countrywide exec was individually ordered to pay $1 million for her part in the program. [7/31/14]

A recent survey of 286 small business owners reveals that many small business owners don’t apply for business loans because they don’t believe that credit is available for them. However, the findings show that a majority of small business owners are afraid of taking on debt and use other avenues for financing needs, such as personal savings and personal loans from family members. [7/30/14]