Lawsky's New Ocwen Fight Threatens Wells Fargo Servicing Sale
Mounting regulatory and political problems may prevent Ocwen Financial from completing its purchase of $39 billion in mortgage-servicing rights from Wells Fargo.
Bloomberg News
UNOFFICIAL END? Benjamin Lawsky, superintendent of New York's Department of Financial Services, has not made a formal decision on Wells Fargo's sale of mortgage-servicing rights to Ocwen, but observers said his latest crackdown on Ocwen could spell doom for the deal.
  more »
FORCES OF DRAG: Zions has "tightened the belt on some kinds of loans that exhibit high losses," CEO Harris Simmons said. Meanwhile, struggles among Regions Financial's small-business customers have caused its growth to be "more muted," CEO Grayson Hall said.
Regional bank executives are tinkering with ways to accelerate loan growth yet avoid risks that would alarm regulators. more »
Consumer credit default ranks showed an uptick in September, according to the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults. more »
"Private student loans far outperform federal loans," said the CBA's Steve Zeisel
WASHINGTON — To hear the Consumer Financial Protection Bureau tell it, the private student loan market is a mess, filled with angry borrowers many of whom claim to have been taken advantage of by banks and servicers. more »
Foreclosure filings increased in the third quarter but were down on a monthly basis, according to RealtyTrac’s latest Foreclosure Market Report. more »
"This case is really about what is a regulation," said one expert.
WASHINGTON — A long-running battle between the Mortgage Bankers Association and the Labor Department is headed for the Supreme Court in December and the outcome could have a significant impact on banks and other mortgage lenders. more »
"It is troubling then that banks or credit unions may use a credit report to exclude some consumers from these basic financial services," said CFPB Director Richard Cordray.
WASHINGTON — The Consumer Financial Protection Bureau is raising questions about the policies and data banks use to vet consumers before allowing them to open a checking account. more »
In Australia, more than 2 million people, or 13% of the estimated 16 million in the country who are using credit, are at risk of credit default. more »
KEEP IT SIMPLE: "If you're comfortable that you've met 'ability to repay' [requirements], you don't have concerns," said Elliot Salzman, senior v.p. and director of consumer policy and underwriting at BBVA Compass, on how to approach the ambiguity surrounding nonqualified mortgage loans.
Elliot Salzman, an executive at the $76 billion-asset BBVA Compass, belongs to a small club of lenders: those willing to take a chance on making home loans to risky borrowers. more »
The U.S. Department of Defense has issued a proposal that would expand the types of credit products that are covered by the 36% rate cap and other military-specific protections under the Military Lending Act. more »
Bloomberg News
"Fifty billion dollars [in assets] was a demarcation at the time" but "it doesn't necessarily mean you're engaged in that activity that" a rule is "trying to target," Curry said.
WASHINGTON — Congress should revisit the $50 billion-asset test used to subject larger banks to enhanced regulations and allow supervisors to look beyond an institution's size to assess its riskiness, Comptroller of the Currency Thomas Curry said Monday. more »
"I believe controls have been put in place on both sides," for lenders and consumers to ensure increasing access to mortgage credit is done responsibly, said HUD Secretary Julian Castro.
In theory, lenders are generally receptive to regulators' calls for broader consumer access to credit, but they're also concerned about the increased risk it might entail. more »
Rental applicants, especially those applying for less expensive units, are seeing improvements in their credit risk, according to TransUnion. more »

Email Newsletters

Get the Payments Update and the Morning Scan when you sign up for a free trial.

Already a subscriber? Log in here
Please note you must now log in with your email address and password.