Links in “Lending”
- Alabama Seeks New Loan for Convicted Fraudster
They say truth is stranger than fiction and that certainly appears to be the case with Alabama One Credit Union, which has been much in the news lately due to a large fraud and a cease and desist order from NCUA. Now the credit union is drawing more attention by asking the state regulators and NCUA for permission to make a $120,000 business loan to Danny Butler, who is in federal prison for fraud and check kiting. [5/13/15]
- CFPB, DOD Threaten Small Dollar Loans
According to NCUA Chair Debbie Matz, new regulations proposed by the CFPB and Department of Defense could put at risk credit unionsâ ability to offer members small, reasonably priced loans as alternatives to payday loans. The DOD proposal, for example, would cap the loan rate at 36% including fees, which would cause many credit union loan rates to exceed the cap. [5/7/15]
- Americans Unhappy with How They Financed College
A recent article from the Journal of Accountancy states that "68% of Americans are unhappy with the way they financed college." Many of the college grads surveyed would have financed college in a different manner if possible, and some even question if college was worth it. The time to prepare and save for college is right now. [5/6/15]
- Changes Are Ahead for Servicemembers’ Payday Lending Options
Recent regulatory proposals from the Defense Department and the CFPB may cause significant changes to payday lending options available to military members through credit unions. [5/6/15]
- Servicemembersâ Complaints Calling for Stronger CFPB Crackdown
Lending to military members is an ever-increasing concern, and itâs an area the CFPB has more than cracked down on. But due to a high volume of complaints from servicemembers, veterans, and their families as exposed in a recent report, the CFPB may be coming down even harder. [5/5/15]
- Could QM Rules be Watered Down for Portfolio Loans?
Qualified Mortgage rules could be watered down for loans that banks hold on their own balance sheets. The Senate Banking Committee is scheduled to vote on the matter on May 14. [5/4/15]
- FTC goes after Mortgage scam Operation
The Federal Trade Commission announced the suspension of operations of a sham mortgage relief entity and is seeking to permanent closure. The entity operated under different names and included a principal that was previously barred from mortgage relief activities. [5/1/15]
- Reduce Your Chances of Accusations of Discriminatory Lending Practices
Pricing is one aspect of lending discrimination that is increasingly coming under focus. If you use a risk-based pricing model, your pricing must be based on a sound methodology that evaluates risks and costs and not simply based on what competitors are charging. [4/24/15]
- ECOA Alive and Kicking
As of the end of 2014, DOJ and the CFPB were conducting 10 joint fair lending investigations. The investigations involve race, national origin, sex, marital status, age and source of income. In addition, each agency has its own set of investigations it is conducting. [4/24/15]
- Cordray Signals Continued Emphasis on Student Loans
In a speech to college presidents, CFPB Director Cordray indicated that the bureau's focus on student loan issues isn't going away anytime soon. 8 million Americans are now in default on their students loans. Cordray sees strengthening servicing as the key to getting the growing problem of defaults under control. [4/23/15]
