Homebuyers embrace digital lending in COVID-19 era, according to Finastra survey results
LAKE MARY, Fla., Nov. 25, 2020 /PRNewswire/ -- New research from Finastra shows that while rates remain consumers' key driver in the mortgage lender selection process, trends relating to COVID-19 have put increased importance on digital experience and time-to-close. The pandemic is having an influence on both of these trends, as consumers demand more robust digital loan processes and surging volumes of mortgage applicants extend time-to-close.
TheOffice of the Comptroller of the Currency(OCC) issued a final rule last week to establish a “simple, bright line test” to determine when a national bank or federal savings association is the true lender.
WHEREAS, the Office of the Comptroller of the Currency (“OCC”) has supervisory authority over JPMorgan Chase Bank, National Association, Columbus, Ohio (“Bank”); WHEREAS, the OCC intends to initiate civil money penalty proceedings against the Bank pursuant to 12 U.S.C. § 1818(i), through the issuance of a Notice of Assessment of a Civil Money Penalty, for engaging in unsafe or unsound practices, including those relating to i
Attorney General Becerra Announces $17.5 Million Settlement Against Home Depot Over Credit Card Data Breach
SACRAMENTO – California Attorney General Xavier Becerra today announced a $17.5 million multistate settlement with The Home Depot, Inc. (Home Depot), resolving allegations that the retailer failed to adequately protect the payment card information of approximately 40 million customers compromised in a 2014 data breach. California will receive more than $1.8 million from the settlement, which includes injunctive terms that require Home Depot to tighten its information security program to prevent future breaches.
Staggering Cyber Security Statistics Amidst Pandemic Hit Q2 2020
Are you concerned about where cyber security stands in this Covid-19 hit situation? You may be wanting to know some figures about cyber security and cyber attacks considering your business as most of you are operating remotely! Cyber attacks are ever-evolving with cybercriminals coming up with innovative game plans to penetrate every vulnerable IT infrastructure. The Covid-19 pandemic situation has just added to this vulnerability and spiked the cases of cyber attacks and data theft globally.
Asurge in coronavirus caseson the cusp of winter has hotel operators and their lenders on high alert. Banks that lend to hotels — as well as motels, resorts and other lodging establishments — had hoped that six months of loan forbearance would be enough to usher the hospitality sector from crisis to recovery and ward off defaults andlofty charge-offs. But most initial deferral periods ended in October, and others will expire in a matter of weeks, leaving hotels to resume payments just as the pandemic enters a new phase.
Baby boomers have an average of $25,812 of debt, not including mortgages—here’s how they compare to other generations
You might think that baby boomers (born between 1946 and 1964 according toPew Research Center) would be past their debt-carrying years. After all, more than28 million boomers retiredin 2020, a major increase compared to previous years, due in part to the coronavirus pandemic. Unlike younger generations, who are still working, covering child-care expenses and buying homes at higher rates, today’s retirees are trying to navigate how to live off of their savings and investments during a time when the stock market is particularly volatile.
Consumer Financial Protection Bureau Issues Final Rule on Regulations to Support and Clarify the Fair Debt Collection Practices Act
In 1977, Congress enacted the Federal Fair Debt Collection Practices Act (FDCPA) to eliminate abusive debt collection practices by debt collectors, ensure debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and promote consistent state action protecting consumers against debt collection abuses.1 Since then, there has been litigation at the state and federal levels to clarify the FDCPA and how it should be applied.
Analysis: With end of crisis programs, Fed faces tricky post-pandemic transition
WASHINGTON (Reuters) - The possible arrival of a coronavirus vaccine in the coming weeks means the Federal Reserve may soon have to lay out its plans for helping the economy navigate the potentially choppy transition to a post-pandemic world.
Director Kraninger’s Remarks During the November 2020 Academic Research Council Meeting
Good afternoon. My thanks to you all for joining today and taking the time to provide us with your valuable insights. We have a lot to talk about but first I’d like to extend my appreciation and thanks to Joshua Wright for his dedication and commitment in serving as chair. Our agenda today focuses on small business lending data and research, the accuracy of credit reporting, and the use of alternative credit data. Let me briefly touch on each one.
U.S Mortgage Rates Hit a 13th Record Low for the Year
Mortgage rates fell for the 2nd time in 4-weeks in the week ending 19th November. Reversing a 6 basis point rise from the week prior, the 30-year fixed-rate slid by 12 basis points. Compared to this time last year, 30-year fixed rates were down by 94 basis points. 30-year fixed rates were down by 222 basis points since November 2018’s most recent peak of 4.94%.
OCC Proposes Rule to Ensure Fair Access to Banking Services
The OCC Friday afternoonproposed a rulestating that banks should provide access to services, capital and credit based on their risk assessment of individual customers and not make broad-based decisions that affect whole categories or classes of customers. This proposed rule would prohibit covered national banks and federal savings associations—generally, those with $100 billion or more in assets—from denying services in an effort to disadvantage or otherwise hinder the customer from competing in a market or business segment, or to benefit another person or business activity.
PayThink Payment tech is needed to drive small business lending
Sweeping coronavirus-related shutdowns across the country have proven thateverybusiness needs a digital presence for business continuity. Banks, in particular, must rethink how they acquire, interact with, sell to, and service their small-business customers in an increasingly virtual world. At the same time, small business success is in jeopardy as lending outside of emergency government aid programs has slowed significantly and may soon dry up completely.
Consumer Financial Protection Bureau Sues Debt Settlement Company FDATR, Inc., and Owners Dean Tucci and Kenneth Wayne Halverson
WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (Bureau) filed a lawsuit against FDATR, Inc., and its owners, Dean Tucci and Kenneth Wayne Halverson. The Bureau alleges that FDATR, Tucci, and Halverson violated the Telemarketing Sales Rule (TSR) by engaging in deceptive and abusive telemarketing acts or practices and the Consumer Financial Protection Act of 2010 (CFPA) through deceptive acts or practices. FDATR was a corporation headquartered in Wood Dale, Illinois, that promised to provide student-loan debt-relief and credit-repair services to consumers nationwide
Nearly 1 in 5 millennials has been denied a credit card this year
About a third of millennials (ages 24-39) say they’ve been rejected when applying for credit cards, mortgages, car loans and other financial products this year because of theircredit score. That’s according to anew online survey from YouGovfielded on behalf of Bankrate in October among 3,780 U.S. adults. And while 32% sounds like a big number, the rate of rejection among this millennials is actually half of what it was whenBankrate asked about credit denials last yearand found that six in 10 were rejected when applying for financial products.
Consumer Financial Protection Bureau Settles with U.S. Equity Advantage, Inc. and Its Owner, Robert M. Steenbergh, for Deceptive Sales Practices
WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (Bureau) issued a consent order against U.S. Equity Advantage, Inc. (“USEA”) and its owner, Robert M. Steenbergh. The Bureau found that the company’s disclosures and advertisements of its auto loan payment program contained misleading statements in violation of the Consumer Financial Protection Act of 2010’s prohibition against deceptive acts or practices. Robert M. Steenbergh is the founder, sole-owner, and chief executive officer of USEA, a nonbank located in Orlando, Florida. The consent order imposes a judgment against them requiring them to pay $9,300,000 in consumer redress and contains requirements to prevent future violations.
Wall Street banks can’t snub certain industry sectors under proposed new rule
WASHINGTON, Nov 20 (Reuters) - Wall Street banks would not be allowed to refuse to lend to categories of businesses under a rule proposed on Friday that aims to address concerns that politically controversial sectors, like oil and gas and gun-makers, are being deprived of funding.
The Office of the Comptroller of the Currency is proposing a regulation to ensure that national banks and Federal savings associations offer and provide fair access to financial services.
10 Key Takeaways From California’s New Consumer Finance Regulatory And Enforcement Regime
Three California laws that affect fintech companies will go into effect on January 1, 2021. The California Consumer Financial Protection Law (CCFPL) expands the scope of the Department of Business Oversight’s (DBO) current regulatory and enforcement powers, and renames it as the Department of Financial Protection and Innovation (DFPI). The Debt Collection Licensing Law (DCLL) requires, among other things, that persons engaged in the collection of consumer debts, including first- and third-party debt collectors and debt buyers, obtain a license from the DFPI.
CFPB Enforcement Action: U.S. Equity Advantage, Inc. and Robert M. Steenbergh
On November 20, 2020, the Bureau issued a consent order against U.S. Equity Advantage, Inc. (USEA) and its owner, Robert M. Steenbergh. Robert M. Steenbergh is the founder, sole-owner, and chief executive officer of USEA, a nonbank located in Orlando, Florida. USEA and Steenbergh operate an auto loan payment program called AutoPayPlus that charges fees to deduct payments from consumers’ bank accounts every two weeks and then forwards these payments every month to the consumers’ lenders.
CFPB Enforcement Action: FDATR, Inc., Dean Tucci, and Kenneth Wayne Halverson
On November 20, 2020, the Consumer Financial Protection Bureau (Bureau) filed a lawsuit against FDATR, Inc., and its owners, Dean Tucci and Kenneth Wayne Halverson. FDATR was a corporation headquartered in Wood Dale, Illinois, that promised to provide student-loan debt-relief and credit-repair services to consumers nationwide. FDATR involuntarily dissolved in September 2020. Tucci and Halverson both owned and managed FDATR. The Bureau alleges that FDATR, Tucci, and Halverson violated the Telemarketing Sales Rule (TSR) by engaging in deceptive and abusive telemarketing acts or practices and the Consumer Financial Protection Act of 2010 (CFPA) by engaging in deceptive acts or practices.
Credit card debt is falling. That’s good news — and bad news
We learned this week that household debt is rising, according to the New York Federal Reserve. You can thank the booming housing market for that, along with student and auto loans. However, that same report found that credit card debt is falling. That’s good news, right? Well, yes and no. Ever since the pandemic started, many people have been receiving government relief. Kathy Jones, chief fixed-income strategist at Charles Schwab, said people have also had fewer ways to spend that money.
Joint Fact Sheet on Bank Secrecy Act Due Diligence Requirements for Charities and Nonprofit Organizations
The FDIC, the Board of Governors of the Federal Reserve System, the Financial Crimes Enforcement Network (FinCEN), the National Credit Union Administration, and the Office of the Comptroller of the Currency (referred to collectively as the Agencies) are issuing a joint fact sheet to provide clarity on how to apply a risk-based approach to meeting the customer due diligence (CDD) requirements contained in FinCEN’s 2016 CDD Final Rule when providing services to charities and other non-profit organizations (NPOs).
Survey: 45% of Federal Student Loan Borrowers Unsure They Can Pay
When the deadly COVID-19 pandemic began taking a toll on the economy and Americans' finances earlier this year, monthly payments were suspended automatically for more than 42 million federal student loan borrowers.
Fintech and big tech credit markets around the world
In the last decade, two new types of credit intermediation have grown rapidly. Both use new technology to compete with banks in their core lending function (Stulz 2019).
Mnuchin pulls plug on some pandemic lending programs that Fed considers essential
(Reuters) - U.S. Treasury Secretary Steven Mnuchin said on Thursday that key pandemic lending programs at the Federal Reserve would expire on Dec. 31, putting the outgoing Trump administration at odds with the central bank and potentially adding stress to the economy as President-elect Joe Biden organizes his administration.
Student loan debt relief scammer Brandon Frere and his companies, including Ameritech Financial, have entered into an agreement with the Federal Trade Commission to settle charges they misled approximately 40,000 consumers about lowering their student loan debt.
California Department of Financial Protection and Innovation Provides Update on California Consumer Financial Protection Law and Debt Collection Licensing Act Rulemaking
On November 16, 2020, the California Department of Financial Protection and Innovation (DFPI) held a “listening session” relating to the implementation of the California Consumer Financial Protection Law (CCFPL). The DFPI’s intent of the session was to gather feedback on the CCFPL to help inform and prioritize its rulemaking and implementation efforts.
Google moves into Venmo and bank territory with checking accounts and updated payment app
Google is moving deeper into consumer finance. The tech giant will let users open bank accounts, pay friends and manage budgets through a new version of its Google Pay app rolling out Wednesday. The Mountain View, California-based company partnered withCitiand Stanford Federal Credit Union to launch the mobile bank accounts and said it plans to add 11 new partner institutions next year. Google Pay will also let users send peer-to-peer payments — a feature that madePayPal’sVenmo andSquare’sCash App household names as people shift to digital payments during the pandemic.
FTC Alleges Mobile Banking App Misled Users About Access to Their Funds, Failed to Deliver on Promised High Interest Rates
The Federal Trade Commission sued the operators of a mobile banking app, alleging that they falsely promised users high interest rates on their accounts and “24/7” access to their funds.
Consumer borrowing up $16.2 billion in September in credit card bounce back
WASHINGTON — U.S. consumers increased their borrowing in September, helped by the first gain in the category that covers credit cards in seven months. The Federal Reserve reported that total borrowing rose by $16.2 billion in September, rebounding after a drop of $6.9 billion in August.
The Ten Biggest Stories Covering Ten Years of Fintech
It was November 17, 2010 when I published my first ever article on fintech, ten years ago today. At the time I really believed in the concept of peer to peer lending but I had no idea how this glorified hobby would change my career and my life. For the select few that have been with us for a long time, the pre-cursor to this site was called Social Lending Network (www.sociallending.net) which is the blog I purchased in 2010 to get started in this industry. I rebranded to Lend Academy in 2012 and LendIt Fintech was started in 2013.
Recent reports of401(k) thefts and an ongoing concern aboutcybersecurity (should) have everybody on the alert. Here’s some things you, your plan sponsor clients, and their participants should check out—now.
