- Lenders Say Foreclosure Mediation in R.I. Has No Limits on Expense, Time
Providence Journal (Rhode Island) 04 Nov 2013
In Rhode Island, people living in their houses while they fight foreclosure have paid nearly $4.5 million in "use and occupancy" fees, according to a new report on a federal court plan established to mediate the state's foreclosure crisis.
- U.S. Banks Ease Business-Loan Standards, Fed Survey Shows
Bloomberg 04 Nov 2013
U.S. banks are making loans more easily accessible, relaxing lending policies to businesses as competition picks up and loosening criteria for mortgages as home loan demand ebbs, a Federal Reserve survey reveals.
- Many Used-Car Loans Are Lemons
MarketWatch 04 Nov 2013
Used-car buyers paid an average of 8.56 percent the second quarter to finance their purchase, compared to 4.46 percent for buyers of new vehicles, according to Experian.
- Reforming Minnesota Payday Lending
Twin Cities Daily Planet (MN) 04 Nov 2013
Some payday lending companies have taken advantage of a loophole in Minnesota’s law that allows exorbitant interest rates. Between 2007 and 2011, the number of payday loans in the state ballooned from 172,000 to 338,000. Data from the Minnesota Department of Commerce indicate that the typical payday borrower takes out an average of 10 loans a year. In 2012, the city of Minneapolis alone accounted for more than $8.6 million of payday loans, at annual percentage rates of 400 percent and higher.
- Corinth TX Mulls Rules on Lending
Denton Record-Chronicle (TX) 02 Nov 2013
Officials in Corinth, Texas, are contemplating a move to regulate credit-access, payday, and title lending companies within city limits, which would make it the eighth city to do so, according to a Texas Municipal League report. The paper notes that many states have enacted laws “to restrict predatory lending practices, but meaningful reforms have failed to pass the Texas Legislature in the last three sessions.”
- FHFA Nominee Is Blocked, But Reform Debate Inches Forward
American Banker 01 Nov 2013
Senate Republicans have blocked the nomination of U.S. Rep. Mel Watt (D-N.C.) to head the Federal Housing Finance Agency. Senate Majority Leader Harry Reid (D-Nev.) and Sen. Tim Johnson (D-S.D.), chairman of the Senate Banking Committee, plan to continue the fight to confirm Watt.
- CARD Act Disclosures May Have Little Sway Over Consumers
American Banker 01 Nov 2013
Although the 2009 CARD Act promised clearer disclosures to consumers, such as suggested payment amounts for a card balance and toll-free phone numbers for credit counseling, analysts are questioning whether those requirements have driven borrowers to handle their accounts more responsibly. A September report by several economists calculated that the share of borrowers on track to pay off their balance in 36 months rose by only 0.5 percentage points since the law took effect.
- Credit Bureaus Taking Closer Look at How You Use Your Credit Card
Pittsburgh Post-Gazette 31 Oct 2013
The big three credit bureaus -- TransUnion, Experian, and Equifax -- are putting new information in credit profiles that could help credit card issuers flag low-risk customers. The data will indicate whether a borrower is a "revolver" who carries a balance into each month and incurs interest or a "transactor" who tends to pay off purchase costs in full before the next billing cycle.
- Young and Smart, But Millennials Face Homebuying Hurdles
CNNMoney.com 31 Oct 2013
The percentage of 18-to-32-year olds heading their own households was 34.3 percent this past March, compared to 36.1 percent in 2007, according to a recent Pew survey. And for the first time, the homeownership rate among college graduates was less than that of non-graduates, reports the New York Federal Reserve. High debt levels and the weak job market have made it more difficult for young Americans to get mortgages; and more grads are returning to their parents' home to live, which limits their ability to build credit histories.
- Phantom Debts: How to Avoid Zombie Debt Collectors
Forbes 31 Oct 2013
Halloweens come and go, but "zombie" debt collectors try all year round to coerce consumers into paying "phantom" debts that they do not owe.
- Payday Loans Drop as Lenders Exploit Loophole
Madison Capital Times (WI) 31 Oct 2013
Payday loans in Wisconsin have declined significantly since 2010, when former Gov. Jim Doyle signed into law legislation intended to limit predatory lending. In 2010, 460 lenders provided over 1.15 million loans worth $482 million; but by the next year, the number of lenders dropped to 423 and the number of total loans fell to 255,117 with an aggregate value of $76.6 million. Experts say, however, that the data only shows how easily payday loan operators exploit legal loopholes.
- The Consumer Perils of a Car Title Loan
Bankrate.com 30 Oct 2013
Lawmakers and financial regulators have put adjustable-rate mortgages and payday loans under a spotlight, while auto title loans have been largely overlooked. Consumers in 21 states depend on the loans when they do not have conventional options, according to consumer advocacy groups, which criticize title loans for their triple-digit interest rates and balloon payments that are due within a month as well as for their threat to repossess borrowers' cars.
- Minnesota AG Sues Florida Debt Buyer Over Fake Affidavits
Minneapolis Star Tribue (Minnesota) 30 Oct 2013
Minnesota Attorney General Lori Swanson is suing Florida-based United Credit Recovery LLC, a major buyer of overdraft debt from Minnesota banks, for allegedly producing reams of fake bank affidavits to use in debt collections. The electronically robo-signed documents were used on a “mass scale” for years, persuading people that they owed money and convincing courts to award judgments
- Foreclosure Rescue Scam Complaints More Than Double
Housing Wire 30 Oct 2013
Data collected by the Government Accountability Office (GAO) and other federal regulatory agencies shows that foreclosure rescue schemes have more than doubled in the past three years. Such scams have become more complex, too, involving lawyers and the bankruptcy code, among other intricacies.
- Senate Hears Testimony on Housing Finance Reform
Mortgage News Daily 30 Oct 2013
The Senate Banking Committee heard testimony from six witnesses Oct. 29 on the matter of overhauling the country's housing-finance system.
- CFPB Publishes Guidelines for Financial Caregivers
National Mortgage Professional 30 Oct 2013
The Consumer Financial Protection Bureau (CFPB) has published "Managing Someone Else's Money," a series of guides for financial caregivers. "In order to protect our seniors, we must educate the caregiver generation," said CFPB director Richard Cordray. Millions of Americans act as fiduciaries, managing money or property for a loved one.
- Two Tribes Agree to End Payday Loan Practices
Tulsa World 29 Oct 2013
Payday lenders owned by two Oklahoma Indian tribes will cease the use of aggressive collection techniques, such as threatening borrowers with court action and arrest. The concessions are included under a partial settlement with the Federal Trade Commission (FTC), approved by a U.S. District Court judge in Nevada this month.
- Federal Help Slow to Homeowners
USA Today 29 Oct 2013
Three years after the Hardest Hit fund launched, only 22 percent of the money set aside to help homeowners dodge foreclosure has been disbursed. A report from the Office of the Special Inspector General for the Troubled Asset Relief Program also noted that the $7.6 billion federal initiative, initially slated to help nearly 550,000 borrowers, now is likely to reach only about 370,000.
- Auto Loans Move Into Slow Lane
USA Today 29 Oct 2013
Some financial experts are throwing up a red flag as buyers of new vehicles increasingly spread their payments out over longer periods of time. Data from Experian Automotive indicates that most new-car loans, 41.7 percent, are repaid over a period of 61 to 72 months. But the share of borrowers taking 73 to 84 months to pay for a new auto has jumped by more than 25 percent over the past year to now account for 19.5 percent of the market.
- Missouri Banks Are Among U.S. Leaders in Fee Income
St. Louis Business Journal 29 Oct 2013
Bank Director magazine has assembled a list of the U.S. banks generating the most income from fees, including overdraft charges, checking accounts and debit card transactions, and non-depository lines of business.