Links in “Lending”

The Department of Education recently issued a new regulation addressing the fees that can be charged to student accounts receiving federal student aid. However, the regulation does not affect all credit unions that have student members. It affects only those credit unions that engage in specific activities. [11/10/15]

The CFPB is advertising a position with the title "Assistant Director for Small Business Lending Markets," a signal that the bureau may be stepping up its efforts to implement the small business lending data requirements of Dodd-Frank. [11/10/15]

Avant, the quickest online-loan startup to reach $1 billion, has only one product: installment loans for people with a few dings on their credit report. Its founder doesn't call them subprime, he calls them the "underbanked middle class," and intends to see his company become "the Amazon of financial services." Will his business model hold up? [11/3/15]

A survey shows the cost of a mortgage in the first quarter of 2015 was $1,600 higher than one in the fourth quarter of 2012. Loan balances also went up over that period by about $15,000. What factors contributed to those increases? [10/28/15]

If creditors lowball an estimate outside specified tolerances, they have to make up the difference. So the temptation may be to highball estimate. But there are hidden drawbacks to this strategy. [10/21/15]

Yesterday, the CFPB released its annual report on student loan complaints and the picture it paints is anything but pretty, particularly for private student loan borrowers. The report notes that borrowers with federal loans issued by private lenders claim they run into roadblocks when they try to access income-driven repayment plans. In addition, more than 20% of these borrowers are not making payments or are past due (but not in default) and 95% are not enrolled in any kind of repayment plan. [10/15/15]

The declining value of taxi medallions could have an impact beyond the doors of the four credit unions that have traditionally originated these loans and which are now experiencing rising delinquencies. As of June 30, 2015, the four credit unions have collectively sold participation interests in more than 1,442 MBLs totaling more than $814.5 million. However, NCUA has not revealed what percentage of those MBLs are medallion loans or how many of those loans are currently delinquent. [9/30/15]

The CFPB with the Department of Justice (DOJ) announced a joint action against Hudson City Savings Bank for discriminatory redlining practices that denied residents in majority-Black-and-Hispanic neighborhoods fair access to mortgage loans in neighborhoods in New York, New Jersey, Connecticut, and Pennsylvania. The proposed consent order, if upheld, will mandate $25 million in direct loan subsidies, $2.25 million in community programs and outreach, and a $5.5 million penalty. [9/25/15]

Steering stage coaches is one thing. But steering minority borrowers into higher-cost loans? That's what the city of Oakland is alleging that Wells Fargo is doing, and it has filed suit against the bank for violating the Fair Housing Act. [9/23/15]

The CFPB's consumer complaint database crossed the 700,000 complaint line in August. Consumer loan complaints showed the greatest percentage increase. Nebraska and Nevada had the greatest complaint volume increases. The complaint snapshot also focused its geographic spotlight this month on Denver. [9/23/15]