Garnet Capital Advisors - Garnet Capital Advisors Blog

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The uncertainty that came about as a result of the Madden v. Midland Funding ruling has been a concern among lenders, but the OCC's final rule confirming the "valid when made" principle may give banks a pass, which is a positive thing for secondary loan markets.
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Regulatory.. Trending

Defining "Valid When Made" by OCC is a Benefit to Banks, Fintech, and the Market

July 30, 2020

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Credit unions have stringent restrictions to comply with when it comes to commercial lending. Considering this, these financial institutions may want to focus more on consumer loans, and Garnet Capital can help.
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Commercial

Credit Union Restrictions on Commercial Lending Increases Focus on Consumer Loans

July 22, 2020

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The PPP comes with plenty of risk, complexities, and compliance issues for institutions holding them. Banks may want to sell these assets to the many willing buyers out there to avoid this risk and see immediate gains.
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Pricing

Banks and Credit Unions Can Sell PPP Loans to Take Profit and Avoid Risk

July 16, 2020

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Despite the fact that bank profits are way down due to the coronavirus pandemic, they were still profitable. Banks may want to revisit their loan portfolio and sell off pre-COVID distressed assets to make room for loans that are just now exhibiting stress.
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Economy / Rates

Banks Remain Profitable Even With a Dip in Results

July 15, 2020

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Home improvement loans are high-quality loan assets for lenders. And while traditionally difficult to find, today's spike in home improvement projects and loans allows lenders to optimize their loan portfolios.
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Industry Outlook

Homeowners Focusing on Home Improvement - Banks and Credit Unions Are Lending Them the Funds

July 14, 2020

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Banks and Credit Unions have seen a drop in lending and a surge in deposits as economic uncertainty continues amidst the coronavirus pandemic. Adding short-term, higher-quality consumer loans that have some yield to them should be the next step for financial institutions.
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July 9, 2020

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The result of limiting dividends and buybacks among banks will be to increase bank capital. This, along with the recent swelling of deposits, is putting added pressure on banks to boost earning assets, which can be helped by adding high-quality, short-term consumer assets to the books.
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