September 28 – The Consumer Financial Protection Bureau has announced two separate actions against Cincinnati-based Fifth Third Bank, for discriminatory auto loan pricing and for illegal credit card practices. The joint CFPB and Department of Justice auto-lending enforcement action requires Fifth Third to change its pricing and compensation system to minimize the risks of discrimination, and to pay $18 million to harmed African-American and Hispanic borrowers. The CFPB’s action against Fifth Third’s deceptive marketing of credit card add-on products requires the bank to provide an estimated $3 million in relief to eligible harmed consumers and pay a $500,000 penalty. (more…)
Search Results: Lending
September 1 – The Independent Community Bankers of America (ICBA) expressed strong opposition to the National Credit Union Administration board’s proposed rule to relax business-lending rules for tax-exempt credit unions. In a comment letter, ICBA wrote that the proposed rule to expand lending authority while relaxing regulatory oversight would jeopardize the safety and soundness of federally insured credit unions and place undue risk on U.S. taxpayers.
Financial institutions that offer certain types of residential mortgage products must also provide the ability for another party to assume the terms of that mortgage. This process is called a mortgage assumption. Historically, mortgage assumption transactions lacked automation because of demand variations given interest rate fluctuations. Due to intense regulatory requirements, mortgage assumptions are expensive and challenging transactions to process, with data collection, calculations, content and process challenges.
The problem is exacerbated by the TILA-RESPA Integrated Disclosures (TRID) regulation, which dictates new disclosure documents for mortgage assumptions.
ComplianceOne assumption lending is unique in that it automates a process that is almost entirely manual today. It leverages an existing lending platform — ComplianceOne — that was originally designed to help smaller institutions document lending and deposit transactions. ComplianceOne assumption lending contains functionality that automates processes beyond document generation and allows tracking from the start of the assumption loan to servicing. It also offers e-delivery of new TRID disclosures vs. the paper routing approach usually used in mortgage assumption transactions.
ComplianceOne assumption lending pivots existing technology architecture to capitalize on a small but highly lucrative market adjacency leveraging an existing platform. It solves data collection, calculation, content and process challenges for assumption lending, significantly reducing institutions’ operational expenses.
Four Key Advantages:
- Most competing solutions are expensive, manual-based processes. ComplianceOne assumption lending is unique because it automates the necessary calculations and documentation, helping institutions manage the entire workflow — from application through closing documents — for the assumption process.
- Institutions benefit from the elimination of manual processes, reduction in time and labor to produce transactions, and efficiency gains in regulatory and process compliance.
- The solution allows financial institutions to be compliant with TRID regulatory requirements.
- The solution creates a sustainable approach to mortgage assumption transactions that is automated and repeatable.
Wolters Kluwer Financial Services
July 9 – Mirador Financial, provider of a cloud-based small business lending platform that helps financial institutions make smarter, faster lending decisions, has forged a strategic partnership with Synergy by Association, Inc. that will enable banks around the country to leverage Mirador’s advanced technology platform to originate more small business loans, quickly and efficiently. Synergy by Association, a wholly owned subsidiary of the Oregon Bankers Association, will initially offer the Mirador platform to banks in Oregon with plans to expand the program to state bankers associations across the U.S. (more…)
June 29 – Proposed rules described as regulatory relief for credit unions by the National Credit Union Administration drew sharp rebukes from the American Bankers Association and the Independent Community Bankers of America. (more…)
May 11 – DH Corporation has announced that the Florida Bankers Association (FBA) has extended an agreement that endorses five of the company’s consumer, commercial and mortgage lending solutions. The Board of Directors and staff of BancServ, Inc., a wholly-owned subsidiary of the FBA, conduct a rigorous examination process to select a single endorsed solution for each critical area, helping member banks save precious time on vendor evaluation and selection.
April 27 – LendKey, the innovative online lending platform that connects borrowers with credit unions and local banks, has announced that its platform will power online student lending for Navy Federal, the world’s largest credit union. Using LendKey’s platform, Navy Federal will offer private student loan options to all of its members.
April 21 – Wolters Kluwer Financial Services has announced that it has broadened its long-term relationship with Texas Bankers Association through TBA’s endorsement of the company’s CASH Suite™ solution, a nine-module offering that supports community banks’ commercial lending efforts. The endorsement is an extension to a longstanding product and services endorsement agreement between the two organizations initiated in 1989.
How Commerce Bank met customers’ home-financing needs without excessive costs and risks.
By Dennis Hardiman
Offering mortgage products is critical to a bank’s success; however, the risk, complexity and cost of lending has forced some institutions to exit the business completely. For those leaving — and even those that have yet to enter — there are also challenges to not offering mortgage products. Consumers expect their banks to provide a full array of financial products and services, including mortgages, and failure to do so means customers will shop elsewhere.
March 13 – East Idaho Credit Union recently changed its forms provider and in doing so, turned to IMM for a document presentment and eSignature solution.