Garnet Capital Advisors - Garnet Capital Advisors Blog

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Banks looking for means to offset losses from regulated interchange fees also should explore debt sales as part of their profit and compliance program. Garnet Capital Advisors can explain how debt sales work, and help your financial institution run a compliant and efficient sales process.
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Regulatory..

Push to Expand Durbin Amendment Misses True Consequences

June 30, 2022

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The Consumer Financial Protection Bureau (CFPB) released a much-anticipated report in which they revealed a new regulation known as Reg F that directly relates to the collection of consumer debt. Banks, credit card companies, and debt collectors of all stripes have been pushing for the CFPB to release specific regulations regarding when and how often debt collectors may contact those who owe them money, and they got what they wished for.
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Regulatory.. C/O and BK

The Early Implications Of Reg F On The Debt Collections Industry

October 29, 2021

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Smaller banks have been a huge contributor to PPP loans over the past few months, but growth in balance sheets puts them over asset thresholds that would place them under greater scrutiny. But federal regulators are offering relief.
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Regulatory..

Banks That Issued PPP Loans to Get Regulatory Relief

December 8, 2020

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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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The combination of COVID-19 and the FASB CECL impementation can have a significant impact on banks' capital. But either with or without CECL, estimates of losses will be increasing as well as distressed loans and borrowers. Loan sales can be an integral tool in a bank or credit union workout strategy.
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Regulatory..

COVID-19 is Affecting CECL Implementation

June 10, 2020

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Regulatory..

CECL Standard to Be Phased in for Credit Unions

October 2, 2019

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New rent regulations in New York are negatively affecting community banks, prompting lenders to revisit their loan portfolios to ensure they're well-balanced.
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Regulatory.. Industry Outlook

New Regulations Are Impacting Community Banks -- Here's How to Protect Yourself

July 10, 2019

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What sets Garnet Capital's approach to closing deals apart from others?
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Regulatory.. Industry Outlook

How to Close Deals the Garnet Capital Way

July 2, 2019

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>The Financial Accounting Standards Board (FASB), which establishes accounting rules for American companies, tuned down banks' proposal to modify CECL to alleviate its effect on earnings.
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Regulatory..

The Latest on the CECL: It's Coming -- Here's How to Get Ready

June 21, 2019

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It's proposed that the Community Reinvestment Act (CRA) be amended to help banking institutions remain more competitive while continuing to serve the needs of consumers in specific types of communities. But there is a consensus that all three major federal banking agencies be on board with how such modernization should come into play, which could prove to be a challenge.
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Regulatory..

Financial Institutions Seek Clarity Amidst Conflicting CRA Regulations

March 12, 2019

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Regulatory..

Dodd-Frank Restrictions Eased for Many Banks

June 12, 2018

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Trending Regulatory..

The Future of Dodd-Frank: Pulling Back Bank Regulations

March 21, 2018

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Regulatory..

Increased Regulation for Nonbank Mortgage Lenders Leads to Consolidation

June 24, 2016

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Regulatory..

Uncertainty for Online Lenders: The Supreme Court Weighs In

April 8, 2016

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In October, the Consumer Financial Protection Bureau unveiled proposed restrictions on "arbitration clauses" in financial products. The argument goes that legal language prohibiting customers from filing class action claims undermines a key individual right. If the rule goes into effect, it could come close to a ban on arbitration clauses, writes American Banker.
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Regulatory..

Proposed limits on arbitration fuel latest CFPB controversy

November 17, 2015

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While the reform will certainly sail through the Republican-dominated House, its chances of getting enough Democratic support in the Senate to override a likely veto by President Barack Obama remain slim.
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Regulatory..

Odds are stacked against CFPB commission bill - for now

October 20, 2015

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Regulatory..

Student Loans: New Rules - New Concerns

October 19, 2015

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Regulatory..

Student Loans: New Rules - New Concerns

October 9, 2015

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Treasury announced this summer it would begin taking comment letters on the burgeoning marketplace lending industry, which provides loans online, free from many of the regulations and due diligence requirements shouldered by traditional banks. Those letters recently began being made public.
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Regulatory..

Banks push back on lack of marketplace lending regulations

October 6, 2015

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The federal crack-down on perceived racial bias in the car loan sector continued as Fifth Third Bank agreed to pay $18 million to settle allegations brought by the Consumer Financial Protection Bureau.
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Regulatory..

Ohio's largest bank settles over racial bias in car loans

September 29, 2015

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Has the Dodd-Frank Act been the death knell for community banks? The answer depends on who you ask.
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Trending Regulatory..

Dodd-Frank: Good or bad for community banks?

August 19, 2015

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While marketplace lending isn't as tightly regulated as traditional lending, some business owners are taking action to reshape this industry.
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Consumer L.. Trending Regulatory..

What does the future hold for marketplace lending?

August 10, 2015

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Regulatory..

Banks Benefit From Outsourcing Loan Production & More

July 23, 2015

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One of the biggest problems with Internet lending has been the lack of regulation. That has changed recently, however, as more regulation is seeping into this sector.
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Trending Regulatory..

Regulation and enforcement spreading across Internet lending

July 17, 2015

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You drop your mail off at the post office, but would you deposit your check at the post office too?
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Trending Regulatory..

The 'post office bank' hits obvious roadblock

July 16, 2015

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The Consumer Financial Protection Bureau has immense oversight powers over a number of many financial industries, including residential financing and payday lending. However, one area where CFPB purview has lagged behind has been in auto lending.
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Consumer L.. Trending Regulatory..

CFPB push to oversee auto lending continues to grow

July 14, 2015

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Regulatory.. Trending

CFPB Expands Consumer Complaint Options About Financial Services

June 15, 2015

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An opportunity for consumers today could be FICO itself, which has recently announced it is working on a new score that would be catered to underbanked borrowers.
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Consumer L.. Trending Regulatory..

New FICO scores feel resistance from established bankers

April 30, 2015

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The mortgage industry has faced substantial criticism following the financial crisis, and many critics and government officials have pounced on the opportunity to disparage this particular sector. While these views have been growing less harsh, those looking to spearhead meaningful reform have encountered numerous challenges, according to American Banker.
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Pricing Consumer L.. Trending Regulatory.. Residential C/O and BK

Mortgage industry faces political hurdles in undergoing reform

April 29, 2015

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The banking sector has been benefiting from strong mergers and acquisitions activity, as economic conditions continue to improve and financial institutions look toward consolidation as a means of cutting costs, meeting capital requirements and even diversifying their businesses.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Bank M&A heats up

April 29, 2015

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While they are frequently identified as being competitors of banks, marketplace lenders have asserted repeatedly that they want to work with these more traditional financial institutions.
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Pricing Consumer L.. Trending Regulatory.. Commercial C/O and BK

Marketplace lenders can partner with banks

April 28, 2015

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Home Bancshares recently took an innovative approach to bolstering loan growth, buying nearly $300 million worth of national commercial real estate loans. The Conway, Arkansas-based bank was able to snap up this loan portfolio after Doral Bank's failure, purchasing it from private equity firm J.C. Flowers & Co.
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Pricing Trending Regulatory.. Commercial

Home Bancshares takes creative approach to loan growth

April 27, 2015

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Online lending marketplace Lendio recently raised more than $20 million through a funding round led by Napier Park Financial Partners. South Jordan, Utah-based Lendio, which uses innovative technology to connect small businesses with lenders, plans to use the money to enhance its relationships with lenders, invest in improving its online resources and expand its partnership program.
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Pricing Trending Regulatory.. Commercial

Lendio raises $20 million to invigorate online lending

April 27, 2015

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Many banks are making major changes as they take steps to comply with the liquidity coverage ratio, including selling off assets and running off deposits that do little to help them meet the requirement.
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Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Banks face challenges complying with LCR requirements

April 23, 2015

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Recently, the U.S. Supreme Court heard a consolidated lawsuit that involved whether a secondary lien placed on the asset of a debtor can be reduced to the value of the collateral securing the obligation obligation and reduced to zero if there is no asset coverage. The decision could have broad implications, potentially impacting many bankruptcy proceedings that followed the nationwide housing crisis, according to Inman Magazine.
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Consumer L.. Trending Regulatory.. Residential C/O and BK

Supreme Court considers underwater second liens

April 20, 2015

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A bill designed to help protect Montana bankers recently passed The Treasure State's House and Senate. Senate Bill 280 was introduced after the Montana Supreme Court ruled in 2014 that borrowers can press legal action in lending disputes on the basis of presumed oral agreements, according to American Banker.
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Consumer L.. Trending Regulatory.. Residential

Bill to protect Montana bankers from oral modification claims generates momentum

April 20, 2015

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Loan demand has been rising all over the nation, according to figures provided in the Federal Reserve's March Beige Book. The Fed report revealed that most regions have been enjoying promising economic conditions, and banking activity stood out as a strong point in many cases.
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Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Loan demand keeps climbing

April 19, 2015

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Puerto Rico's banking industry has undergone some seismic shifts in the aftermath of Doral Bank's failure earlier this year. While this troubled bank entered receivership, several competitors benefited from the situation, bolstering their market share by snapping up its branch locations, loans, deposits and mortgage servicing rights.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Puerto Rico banking industry faces uncertain future

April 16, 2015

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Non-banks have been gaining an increasingly large share of the market for FHA-backed mortgage lending, according to a recent study conducted by the American Enterprise Institute's International Center on Housing Risk. These financial institutions, which are outside the reach of bank regulations and capital requirements, have been increasing issuance of these home loans as major banks retreat from this market.
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Consumer L.. Trending Regulatory.. Residential C/O and BK

Non-banks grab FHA market share as large banks retreat

April 6, 2015

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The peer-to-peer lending market recently benefited from a move by the U.S. Securities and Exchange Commission to revise existing regulations, as this decision gave smaller companies greater ability to raise money and investors more flexibility to participate in this particular industry.
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Pricing Consumer L.. Trending Regulatory.. C/O and BK

P2P lending benefits from SEC decision

March 30, 2015

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PacWest Bancorp recently announced an agreement to purchase Square 1 Financial, Inc., a lender that focuses primarily on the technology industry. Pursuant to this deal, Square 1 bank, owned by Square 1 Financial, will merge into Pacific Western Bank, a Los Angeles subsidiary of PacWest Bancorp.
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Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

PacWest agrees to buy Square 1

March 29, 2015

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Pinnacle Bank recently purchased a minority stake in an online health care lender, and this strategic move should provide the Nashville-based bank with numerous benefits. Pinnacle Bank, a subsidiary of Pinnacle Financial Partners, Inc., made this move at a time when traditional banks are facing numerous headwinds and online lending has been experiencing impressive growth. Garnet Capital believes this is a positive trend and is helping other banks and lenders create partnerships.
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Trending Regulatory.. Commercial C/O and BK

Pinnacle's investment example of innovative bank venture

March 28, 2015

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While small business lending fell sharply after the financial crisis, there are signs this crucial activity is gaining steam. This development presents banks with new opportunity, but they should know the market has changed significantly, and many non-bank lenders have sprung up to fill the higher demand for small business loans, according to American Banker.
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Pricing Trending Regulatory.. Commercial C/O and BK

Rising small business lending presents great opportunity

March 28, 2015

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Consumer Financial Protection Bureau Director Richard Cordray took a minute to delve into some of the agency's current concerns, as well as the disagreements its staff are having.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

CFPB's Cordray helps shed light on agency's plans

March 3, 2015

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Community banks need to either innovate or face extinction in the current environment, according to several industry participants who spoke at the American Bankers Association's National Conference for Community Bankers.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Community banks must innovate or perish

March 3, 2015

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Regulators shut down Doral Bank on Friday, Feb. 27, after the financial institution faced a string of challenges including a dispute surrounding a tax refund, government investigations and sharp declines in stock prices. The Office of the Commissioner of Financial Institutions of Puerto Rico announced in a statement Friday that it had appointed the Federal Deposit Insurance Corporation receiver.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Regulators close failing Doral

March 2, 2015

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Many banks have been focusing on deposits in the current environment, building up these resources instead of taking on additional credit risk. This approach reflects a more conservative stance, as financial institutions are unsure when the Federal Reserve will opt to push its benchmark interest rates higher.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Banks turn to deposits ahead of Fed rate hikes

February 24, 2015

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Mergers and acquisitions activity involving banks has been increasing, and this momentum has grown to include not only smaller banks in the U.S., but also midsize and international financial institutions.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Bank M&A activity is heating up

February 18, 2015

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Banks could run into challenges generating revenue growth as their ability to tap into loan-loss reserves deteriorates.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Bank revenue under pressure

February 18, 2015

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Bank of America recently moved a $2.7 billion student loan portfolio to hold-for-sale status, chief financial officer Bruce Thompson told analysts during a conference call in January.
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Pricing Consumer L.. Trending Regulatory.. C/O and BK

BOA readies student loan portfolio for sale

February 12, 2015

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While many bemoan the challenges less-experienced borrowers face, San Francisco-based startup Earnest has been using an innovative new approach to assess their creditworthiness.
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Pricing Consumer L.. Trending Regulatory.. C/O and BK

Lending startup Earnest harnesses innovative underwriting approach

February 12, 2015

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BlackRock is planning to securitize loans purchased via internet origination channels.
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Pricing Consumer L.. Trending Regulatory.. Commercial C/O and BK

BlackRock looks to securitize purchased P2P loans

February 11, 2015

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New York Community Bancorp, Inc. has been generating many benefits by selling assets, keeping its balance sheet below the $50 billion mark and improving its financial results in the process.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

New York Community Bancorp strengthens balance sheet through asset sales

February 9, 2015

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A handful of innovative banking startups have been working on creating lending algorithms that consider more than the traditional variables such as one's credit score. Amid this push, companies are developing risk evaluation methods that account for how much time an applicant spends reading terms and conditions or whether they only use capital letters when filling out forms, The New York Times reported.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Innovative startups focus on lending algorithms

February 2, 2015

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Many banks have been reporting falling interest income in the current environment of low rates and tight competition.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Banks suffer falling interest income

January 28, 2015

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Banks have had a hard time generating satisfactory earnings growth lately, and this difficulty could easily continue in 2015. Banks both large and small have suffered these challenges, as the major financial institutions and the regional ones have been reporting lackluster earnings so far this year. Legal costs and compressed loan margins are the major drags for the larger banks. Community banks are also feeling the pinch in generating good quality assets.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Banks face uphill battle with earnings

January 27, 2015

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U.S. economic conditions have been steadily improving, and this development has helped bolster the performance of major banks such as Wells Fargo, whose executives have been rather vocal about how much faith they have in the nation's recovery.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Improving economic conditions increase loan volume and performance, for now

January 20, 2015

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While many U.S. consumers have been benefiting significantly from sharply dropping oil prices, they may find they have even more money in their pockets after the Federal Housing Administration's recent decision to reduce its annual premiums.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Broad market developments could affect loan portfolios

January 13, 2015

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The Consumer Financial Protection Bureau has been quite active in recent years, and there is no sign that this trend will stop in 2015.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

CFPB's agenda to remain ambitious this year

January 7, 2015

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American Banker recently named marketplace lending its Innovation of the Year.
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Pricing Consumer L.. Trending Regulatory.. Commercial C/O and BK

American Banker names marketplace lending Innovation of the Year

December 18, 2014

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Many banks have been encountering challenges in their efforts to originate high-quality loans, but have been taking steps to compensate for this situation.
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Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Banks are finding it difficult to generate prime loans

November 20, 2014

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While some banks may feel challenged by their constantly-changing environment, the situation grants them an opportunity to better their reputation and stand out from the competition, two experts wrote recently in an American Banker opinion piece.
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Pricing Trending Regulatory.. Commercial Residential C/O and BK

Rapidly-changing environment provides strong opportunity for banks

November 18, 2014

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The legal fees plaguing major banks continue to climb higher, and nobody knows when these financial institutions will get past these challenges.
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Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Legal challenges pile up at major banks

November 14, 2014

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As auto lending activity strengthens across the country, banks have been viewing it with fresh eyes, looking to this particular activity as an opportunity where they can potentially benefit from low default rates, attractive rates, short duration and significant demand.
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Pricing Consumer L.. Trending Regulatory.. C/O and BK

Auto lending provides banks with strengthening prospects

November 5, 2014

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The Office of the Comptroller of the Currency recently published final risk management and governance guidelines for major financial institutions, giving them different expected timelines for compliance based on their size.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

OCC finalizes heightened standards

October 20, 2014

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Banks are on a mission to increase their loan income, and their desire to meet this objective has helped fuel mergers and acquisitions.
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Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Banks thirsty for loan income step up M&A activity

September 18, 2014

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Fledgling startup companies could one day dominate the banking industry, financial expert Richard Magrann-Wells wrote in a recent American Banker piece.
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Pricing Consumer L.. Regulatory.. Commercial Residential C/O and BK

Startups could one day dominate the banking industry

August 26, 2014

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The Consumer Financial Protection Bureau recently provided guidance for mortgage brokers that want to operate using a mini-correspondent lender model, outlining the questions it uses to evaluate these industry participants to determine whether they meet the definition of mini-correspondent.
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Consumer L.. Trending Regulatory.. Residential

CFPB sheds light on mini-correspondent model

August 22, 2014

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Bank mergers and acquisitions have surged lately, as the industry struggles to overcome numerous headwinds including a challenging compliance environment, higher capital requirements and the proliferation of alternative lending.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

Bank M&A activity heats up amid myriad challenges

August 19, 2014

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The Office of the Comptroller of the Currency recently took action to clarify best practices surrounding debt sales when it issued guidelines on Aug. 4.
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Consumer L.. Trending Regulatory.. Commercial Residential C/O and BK

OCC sheds light on debt sales with latest guidance

August 12, 2014

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Concerned that traditional underwriting methods are leaving some would-be borrowers behind, peer-to-peer lender Upstart has responded by developing a unique process to vet credit applicants.
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Consumer L.. Trending Regulatory.. Commercial C/O and BK

P2P lender Upstart takes innovative approach to credit

July 29, 2014

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Nigel Morris, who co-founded financial services firm Capital One, recently joined the board of Prosper Marketplace, the parent company of peer-to-peer online loan marketplace Prosper.
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Pricing Consumer L.. Trending Regulatory.. C/O and BK

Capital One co-founder Nigel Morris has joined Prosper's board

June 24, 2014

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Regulators have been intensifying their scrutiny of banks, and more specifically the relationships these institutions have with their vendors.
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Consumer L.. Trending Regulatory.. Commercial Residential

Regulators are turning up heat on bank use of vendors

June 12, 2014

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The Bank Director's 2014 Risk Practices Survey recently provided some insight into the risk management challenges that lending institutions are facing.
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Pricing Consumer L.. Trending Regulatory.. Commercial Residential

2014 Risk Practices Survey details bank risk management

June 5, 2014

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The Consumer Financial Protection Bureau has been pushing U.S. lenders offering auto loans through car dealerships to price this debt using a flat-rate structure, and BMO Harris Bank was the first sizable financial institution to adopt this approach.
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Consumer L.. Trending Regulatory.. C/O and BK

BMO Harris Bank first sizable lender to adopt flat rate financing

May 8, 2014

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Jonathan Lippman, chief judge of the state of New York, recently proposed reforms to debt collection lawsuits, 100,000 of which are filed against residents of the state each year.
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Consumer L.. Trending Regulatory.. C/O and BK

NY chief judge proposes debt lawsuit reforms

May 7, 2014

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Banks have been purchasing loans that have been originated through the internet as credit markets undergo significant structural changes.
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Pricing Regulatory..

Changes in credit market structure increases internet-based loan originations

March 27, 2014

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Consumer Financial Protection Bureau Deputy Director Steven Antonakes recently spoke about how important accurate information is for completing various activities involved in debt collection, including debt sales.
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Pricing Regulatory..

CFPB official emphasizes crucial nature of having accurate information in debt sales

March 24, 2014

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Key members of the Senate Banking Committee recently released the text of a proposal that could impact U.S. debt sales by reforming current housing finance regulations.
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