- Fannie Mae to Increase Down Payment Requirement to 5 Percent
MortgageOrb.com 16 Oct 2013
An update to Fannie Mae's Desktop Underwriting (DU) system, scheduled to take effect on Nov. 16, includes an option that allows the system to ignore foreclosure information on a credit report if a pre-foreclosure sale is also documented. While this change will offer lenders more leeway in underwriting and approving borrowers who previously unloaded a home through a pre-foreclosure or short sale, another DU provision could make it more difficult for some applicants to qualify for Fannie Mae financing. Specifically, the minimum down payment required from borrowers will rise to 5 percent of the loan balance from 3 percent currently.
- Pawn Shops Soar: More Consumers Depending on These Banks for Broke People
Chattanooga Times Free Press (TN) 16 Oct 2013
Since the start of the Great Recession in 2007, the number of pawn shops in the United States has surged from 6,400 to more than 10,000.
- Kolste Bill Targets Student Debt
GazetteXtra.com 16 Oct 2013
Wisconsin Rep. Debra Kolste (D-Janesville) has proposed a bill to reduce what she called "the crippling burden of student debt" in her state.
- A Shocker With Fees at Cleveland-Area Banks -- Hardly Any of Them Increase in 2013
Cleveland Plain Dealer (OH) 16 Oct 2013
Of the 14 biggest banks in Greater Cleveland surveyed by The Plain Dealer, U.S. Bank was the only one to increase its overdraft fee in 2013, from $35 to $36. None of these banks hiked fees for using another bank's ATM, replacing an ATM card, stopping a payment, requesting a PIN-only debit card, or having a deposit item returned.
- How Medical Debt Affects Your Credit Score
Bankrate.com 16 Oct 2013
Patients should not ignore medical bills, even if they are challenging them, or else their credit score could suffer. Medical debt accounts for nearly half of all reported collections, and almost one in six credit reports contain a medical debt collection, according to the Federal Reserve.
- Stumbling Blocks in Reducing Balance on a Student Loan
New York Times 16 Oct 2013
The Consumer Financial Protection Bureau (CFPB) notes in its second annual report on student loans that problems having payments properly applied to a loan balance is one of the most common complaints the agency receives.
- 5 Ways to Deter Credit Card Fraud
CBS MoneyWatch 15 Oct 2013
Credit-scoring giant FICO reports that credit card fraud is on a rapid rise, especially cases where stolen data is used to make purchases online or by phone. Most banks do not hold customers responsible for a fraudulent charge that is reported on time, but consumers can still take a few steps to protect themselves.
- Housing Alliance Accuses U.S. Bank of Failing to Maintain, Market Foreclosed Homes
Milwaukee Journal Sentinel (WI) 15 Oct 2013
The National Fair Housing Alliance has amended its federal housing discrimination complaint against U.S. Bank to include Milwaukee on its list of cities where the lender has failed to maintain and market foreclosed homes in African-American and Latino neighborhoods.
- Scambook Warns of Instagram Student-Loan Scam
Columbus Dispatch 15 Oct 2013
Scambook warns consumers about fraudulent Sallie Mae accounts on Instagram indicating that loan forgiveness is available due to the partial government shutdown.
- Avoid These Cities With High Overdraft Fees
MainStreet 15 Oct 2013
Annual research by Bankrate.com indicates that U.S. overdraft fees are up about 3 percent this year to an unprecedented $32.20. Some individual cities -- Milwaukee, Atlanta, Denver, Miami, and Houston -- even exceed the nationwide average. Markets on the low end of the overdraft chart, meanwhile, include San Francisco, Los Angeles, Cincinnati, Cleveland, and San Diego.
- CFPB Offers More Guidance on Contacting, Responding to Troubled Borrowers
Housing Wire 15 Oct 2013
The Consumer Financial Protection Bureau has released additional guidance and an interim final rule detailing how mortgage servicers should respond when distressed borrowers experience unexpected life events or other legal problems, like a death in the family or bankruptcy.
- CFPB Planning Big Changes to Exam, Rulemaking Process
American Banker 15 Oct 2013
The Consumer Financial Protection Bureau (CFPB) recently announced that it intends to drastically overhaul its exam procedures to make them more expedient and to free up enforcement officers to pursue other investigations outside of exams.
- Credit Default Rates Increase Nationally
National Mortgage Professional 14 Oct 2013
According to the S&P/Experian Consumer Credit Default Indices, national default rates rose in September. The national composite edged up from 1.34 percent in August to 1.38 percent. Default rates were 1.28 percent for first mortgages, up from 1.23 percent; 0.69 percent for second mortgages, up from 0.57 percent; 1.15 percent for auto loans, up from 1.11 percent; and 3.14 percent for bank cards, up from 3.12 percent.
- California Says Expect Examinations on Payday Lending
Credit Union Times 14 Oct 2013
The California Department of Business Oversight (CDBO) has called on banks and credit unions to monitor and report illegal transactions of unlicensed payday lending activity, warning that it will be examining banks and credit unions to make sure they are taking preventative action.
- Small Business Credit Cards May Lack Consumer Protections
Time 14 Oct 2013
The Credit Card Accountability Responsibility and Disclosure Act of 2009 was meant to protect consumers from unexpectedly higher rates and unwarranted penalty fees. The law does not, however, cover business credit cards.
- Overdraft Services Need Greater Oversight
American Banker 14 Oct 2013
Overdraft service, once an occasional courtesy provided to bank customers, is now a high-cost service that pushes many consumers out of the banking system completely, writes Susan Weinstock of The Pew Charitable Trusts. The penalties when customers spend more than what is in their account average $225 per year, she reports.
- Say No to Payday Loans: 5 Safer Sources of Quick Cash
Daily Finance 13 Oct 2013
Although payday loans may seem like the best choice for consumers with poor credit who need quick cash, these loans come with high interest rates and little transparency about fees, prompting 13 states to ban them or adopt strict usury laws. Compared to the annual percentage rate (APR) of 10 percent to 25 percent for a bank-issued personal loan, the APR on a payday loan can range from 300 percent to over 700 percent.
- BMO Harris Bank Among Companies Sued Over Payday Loans
Bloomberg Businessweek 12 Oct 2013
Bank of Montreal’s BMO Harris Bank is one of the companies being sued in class-action lawsuits by consumers in Maryland and Pennsylvania
- Paying With Cash Costs Americans $200 Billion a Year
Today 11 Oct 2013
Although electronic payments are gaining market share, millions of Americans still use cash for a variety of reasons. While some have no alternative, others find it cheaper, more secure, or more private. A new study by Tufts University, based on a survey responses from 1,000 Americans, estimates that the use of cash costs about $200 billion annually.
- Fed May Fine Community Trust in Ky. for Overdraft Practices
American Banker 11 Oct 2013
The Federal Reserve may soon fine Community Trust Bancorp, a $3.6 billion-asset lender in Pikeville, Ky., for deceptive overdraft practices. Fed officials have recommended that its consumer-affairs division cite the bank for unfair and deceptive methods of levying overdraft fees, Community Trust revealed in an Oct. 11 filing.