Links in “Lending”

Two earlier cases were settled before the U.S. Supreme Court could rule on disparate impact, the controversial finding that lending practices that are on their face neutral could still be considered discriminatory if they have an adverse impact on members of a protected class. However, a third case from Texas appears to be headed toward the Supreme Court and could be addressed as soon as September. [7/29/14]

The Community Lending Enhancement and Regulatory (CLEAR) Relief Act (S. 1349) celebrates its one-year anniversary, but remains a work in progress in the Senate, along with its companion bill in the House. [7/25/14]

CFPB's complaint database is rapidly expanding to include prepaid cards, debt settlement services, credit repair services and pawn and title loans. [7/22/14]

A bill has been introduced in the House that would exempt business loans to veterans from counting against a credit union's 12.25% of assets member business lending cap. [7/21/14]

JPMorgan's CEO Jamie Dimon says the bank, the nation's second largest mortgage lender, is rethinking its participation in Federal Housing Administration mortgage programs, in light of its recent $614 million settlement. [7/16/14]

Some mortgage brokers have been switching to a "mini-correspondent" model, and the CFPB is worried that these institutions—rather than intending to grow into a full correspondent model—believe that this status makes them exempt from consumer protection rules regarding broker compensation. Cordray stated that “they cannot avoid those rules by calling themselves by a different name.” [7/14/14]

Emboldened by recent court decisions, more cities and counties are filing "predatory lending" cases under the Fair Housing Act using the claim of disparate impact. Claims involve traditional redlining (excluding minority areas) or reverse redlining (targeting minority areas for high-cost loans). [7/14/14]

Consumer borrowing is on the rise after a not-so-hot first quarter. The $19.6 billion increase reflects a rebounding economy and greater consumer confidence. [7/9/14]

The CFPB has been very clear about the requirements for qualified mortgages. So what about non-QM loans? Well, they happen to be one of the most profitable ventures for lenders, and therefore lenders are trying to figure out how to do this kind of lending safely. [7/7/14]

Young adults in their 20s and 30s are the prime candidates for loans and related services—from student loans to home mortgages—which is why credit unions with a limited young adult membership are missing out. And that might apply to most credit unions, seeing as the average membership age for credit unions in the United States is 47. Read the article to find out what your institution can do to lower that number. [7/3/14]