- Consumer-Finance Watchdog Warns Payday Lender Cash America of Possible Enforcement Action
Wall Street Journal 24 Oct 2013
One of the largest U.S. payday lenders, Cash America International Inc., is preparing for a crackdown by the Consumer Financial Protection Bureau, which may file an enforcement action against the company and require it to improve certain procedures.
- Changes Proposed to Where Payday and Title Loan Companies Can Go
Richmond Times-Dispatch (VA) 24 Oct 2013
Chesterfield County officials, who earlier in the year approved a measure to allow payday and title lenders to operate in the Virginia jurisdiction, are now looking to revise their decision. The county board of supervisors will consider a change that would force the lenders to operate inside shopping centers or in multi-use structures rather than in independent storefronts.
- Boston, Minneapolis Mandate 'Responsible' Lending by Banks
American Banker 23 Oct 2013
Boston and Minneapolis are the latest in a string of cities -- including Pittsburgh, Kansas City, and at least 10 others -- to pass "responsible banking ordinances" that demand more lending activity in poor neighborhoods.
- Homeownership Becomes an Elusive Dream as Affordability Tumbles
Housing Wire 23 Oct 2013
A U.S. household earning the median national income can afford an average-priced home in just eight of the country's 25 biggest metropolitan areas, according to Bankrate.
- Delinquencies Increase in September, Number of Loans in Foreclosure Lowest Since 2009
Banker & Tradesman 23 Oct 2013
The share of home loans in foreclosure slid last month to the lowest level since January 2009, reports Lender Processing Services, but mortgage delinquencies continued to pile up.
- Deferred-Interest Loans Face New Scrutiny
American Banker 23 Oct 2013
The Consumer Financial Protection Bureau (CFPB) is raising concerns about deferred-interest credit card loans offered by retailers. These accounts often waive interest on all purchases during an introductory period but then hit borrowers with stiff costs later.
- EBay Probed by Regulator Over Loans Pioneered by Payday Lenders
Bloomberg 22 Oct 2013
The Consumer Financial Protection Bureau (CFPB) is investigating EBay Inc. over the Bill Me Later loan program, which imitates a structure that high-interest lenders have used in the past to avoid state rules.
- Bank Regulators Assure Lenders on Mortgage Standards
Wall Street Journal 22 Oct 2013
A group of five federal bank regulators have issued a joint statement assuring lenders that tighter mortgage standards set to take effect next year will not result in government allegations of lending bias.
- Orgs Seek Alternatives to Powerful, Expensive Payday Loans
KCUR 22 Oct 2013
Missouri has found itself in the midst of a national debate over payday loans -- partly because of a growing, grassroots consumer movement against the industry, which holds a great deal of political clout in the state.
- The Dangers of Online Lending
U.S. News & World Report 22 Oct 2013
Although regulators and consumer advocates have worked for years to curtail payday lending, more and more firms are moving the business to the Web -- raising new policy challenges and threatening consumer protections at the state level, writes Tom Feltner of the Consumer Federation of America.
- More U.S. Students Borrowing for College
CBS MoneyWatch 21 Oct 2013
U.S. students increasingly are borrowing money for college, but fewer graduates are paying off the loans. According to a new report from the Department of Education, 64 percent of graduates from the class of 2008 borrowed for college, compared to 49 percent of the class of 1993.
- Massachusetts Enhances Mortgage Foreclosure Protections
Republican (MA) 21 Oct 2013
The Massachusetts Division of Banks is filing regulations that will increase homeowner protections by preventing national and state lenders from foreclosing on a property if an application for a loan modification is underway.
- New Bill Would Protect Federal Retirees From Predatory Lenders
Government Executive 21 Oct 2013
House legislators are working on a bill to create the Annuity Safety and Security Under Reasonable Enforcement (ASSURE) Act, which would protect retired federal and military personnel from predatory "pension advances." While federal statute forbids the transfer of pensions to a third party, some companies have discovered loopholes that let them skirt the law.
- Foreclosures Dog Even Wealthiest Home Buyers
MarketWatch 20 Oct 2013
Jumbo borrowers who defaulted on their mortgages in the last few years have found it virtually impossible to buy another home. Many are self-employed borrowers whose incomes have recovered since the recession ended, and some are borrowers who walked away from underwater mortgages but now want to take advantage of recent home-price gains. The few lenders willing to do business with these borrowers tend to require long waiting periods, higher down payments, and higher interest rates.
- Lawmaker Attempting to Reform Payday Loans
Sioux Falls Argus Leader (SD) 20 Oct 2013
Eighteen states and the District of Columbia have banned the loans or capped their interest rates. In South Dakota, State Rep. Steve Hickey (R-Sioux Falls) is attempting to crack down on them there. He used a coalition of backers and a poll to win approval for an initiated measure asking voters to cap interest rates to 36 percent.
- JPM to Shutter Litigation Group for Consumer Debt Collection
American Banker 18 Oct 2013
JPMorgan Chase plans to shut down its collection-litigation services division, which sues consumers to recover delinquent debts, two years after deciding to no longer file collections suits. It ended the activity in 2011 after facing questions about the accuracy of records tied to accounts sold to third-party collections firms.
- Nevada AG Secures $11.5M Settlement From Securitizer of Alt-A Loans
Housing Wire 18 Oct 2013
Loan securitizer DB Structured Products, an arm of Deutsche Bank, agreed to pay $11.5 million to settle the Nevada Attorney General's investigation into DB's packaging and sales of subprime and Alt-A loans. Nevada Attorney General Catherine Cortez Masto first launched the investigation to determine if the original lenders used tricks to disguise underwriting and loan-quality issues.
- Bank of America Weighs Prohibiting Overdrafts
Wall Street Journal 18 Oct 2013
Bank of America reportedly is weighing a plan to introduce a checking account that would not allow customers to overdraw their balances at an automated teller machine or when making an automatic bill payment.
- How Much Can Collectors Legally Boost Charged-Off Debts?
CreditCards.com 17 Oct 2013
When a consumer defaults on a loan, collectors may try to inflate the debt with interest and fees -- even though card issuers generally stop charging interest after they have written off the debt. In one example, a collector tried to charge Montana resident Tim McCollough $5,500 in additional interest on an unpaid $3,800 credit card balance.
- Big Banks Close to Satisfying Obligations Under Mortgage Settlement, Report Says
Washington Post 17 Oct 2013
Despite scrutiny over how they have handled the process, the country's biggest banks appear to be on the brink of satisfying their obligations to aid struggling homeowners under national settlement to remedy flawed foreclosure practices.