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Loans/Lending

Online Mortgages: Improving Efficiency

NBKC increased volume and customer satisfaction with direct-to-consumer model.

By Rajesh Bhat

NBKC Bank had an online mortgage experience problem. While borrowers were offered a digital mortgage application, it wasn’t a complete solution. Furthermore, the system had so many drawbacks that it created more headaches than it solved – the opposite goal of an online experience. It was clear that something needed to change for the Overland Park, Kan.-Based bank.

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Disrupt the Disrupter

Beating marketplace lenders at their own game.

By Naseer Nasim

Following the 2008 financial crisis, marketplace lenders began taking a competitive edge in the industry. Meanwhile, banks have faced increasing regulatory requirements, shifting customer expectations, the emergence of disruptive technology and historically low interest rates. These factors have led to a tightening of consumer and small business lending by banks. Conversely, private equity and venture capitalist firms have invested billions of dollars in marketplace lenders while media portray some of these lenders as contributing to the “Uber-ization” of banking.

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Pin Down the Possibilities

A spreadsheet has been developed for evaluating loan-repayment alternatives.

By Elizabeth A. Yeager and Freddie L. Barnard

This article is the first in a three-part series on evaluating repayment capacity and alternatives. Subsequent articles in the next two issues of Ag Banking will examine the effectiveness of operating strategies and loan-term changes on repayment capacity for firms with different levels of financial leverage.

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Changing the Lending Game for Pro Athletes

By Charles Upchurch

Far too often, young athletes find themselves starting their professional careers needing to borrow money to keep themselves afloat until proceeds from their contracts roll in. But for some players, a limited credit history can make the lending market treacherous territory to navigate.

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Program Strives to Educate Multicultural Borrowers on Home Buying

January 17 – National Mortgage Insurance Corp., a subsidiary of NMI Holdings Inc., is helping to educate mortgage lenders on how to best reach out to multicultural borrowers. The company is educating lenders through speaking engagements, webinars and social media. (more…)

Credit Solutions for a Change of Ownership

EDITOR’S NOTE: The following case study is from the website of VITAL Financial Services, specialists in SBA lending and risk mitigation. The lender is an Iowa-based community lender and the borrower is a livestock auctioneer business.      
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OCC Plans to Offer Special Purpose Charters to FinTechs

December 5 – The Office of Comptroller of the Currency plans to move forward with issuing charter applications for financial technology companies to become special purpose national banks. (more…)

Mortgage Study Finds Industry Execs See Easing of Credit Standards

December 1 – Half of industry executives believe underwriting standards are overly restrictive, according to results from a survey of industry executives conducted at the 2016 Mortgage Bankers Association Annual Convention and Expo in Boston. This compares with 61 percent of respondents at the 2014 MBA Annual Convention and Expo in Las Vegas. The findings, detailed below, also measure sentiment on affordability challenges, regulatory requirements, industry headwinds and technology. 

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FDIC, SBA Announce Training Update

November 28 – The FDIC and the Small Business Administration have announced several enhancements to Money Smart for Small Business, a resource that provides practical guidance for starting and managing a small business.

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Number of New Credit Cards Hits Post-Recession High

November 7 – The credit card market continued to expand in the second quarter amid a tightening labor market and robust consumer spending, according to the American Bankers Association’s latest Credit Card Market Monitor. Monthly purchase volumes rose 5.1 percent for subprime accounts, 6.9 percent for prime accounts and 8.3 percent for super-prime accounts in the second quarter compared to the same period a year earlier. (more…)

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