As hotels sit empty, loan delinquencies pile up
More details have emerged about the damage the coronavirus pandemic is inflicting on the hospitality industry. One servicer alone has received 2,000 workout requests in the past month.
Credit
Ally girds for surge in auto loan defaults
After more than tripling its loan-loss provision, the $182 billion-asset company became the first large U.S. bank to report a quarterly loss as a result of the coronavirus pandemic.
Banks meet ‘mad scramble’ for loan deferments, but at what cost?
By helping borrowers now, banks hope customers can quickly catch up on payments once the coronavirus pandemic ends. If they can’t, interest income will remain low and charge-offs could pile up if the crisis drags on.
MBA applauds Fed’s CMBS stimulus as credit index hits 5-year low
The Federal Reserve's $2.3 trillion loan stimulus includes plans for outstanding commercial mortgage-backed securities and newly issued collateralized loan obligations.
How the coronavirus crisis is upending auto lending
Closed showrooms, temporary bans on repossessions and a sudden spike in unemployment have dimmed the prospects of a sector that has boomed since the last recession.
Congress mulls further coronavirus relief for consumers
If Capitol Hill plans another round of stimulus, Democrats could have more leverage to demand steps such as suspending overdraft fees or placing a temporary cap on consumer lending rates.
CFPB clarifies credit reporting procedures in light of coronavirus
The agency said lenders should avoid reporting delinquent payments to credit bureaus for consumers who have sought payment relief due to the pandemic.
Will coronavirus permanently change CRE lending?
Commercial real estate lenders have to consider not only how they’ll weather the COVID-19 downturn, but whether worker and consumer habits have changed for good.
Banks get break they needed on loan workouts
Regulators' decision to delay reporting for troubled-debt restructurings should allow banks and credit unions to be more nimble modifying loans impaired by the coronavirus outbreak.
Fed announces aggressive actions to boost liquidity amid virus turmoil
The Federal Reserve committed Monday to conducting more asset purchases of Treasury securities and mortgage-backed securities and announced $300 billion in new financing for credit facilities.
Leveraged loan risk remains ‘elevated,’ regulators warn
Nonbanks hold a disproportionate percentage of the worst-rated loans, but banks hold a majority of the market, and risk management safeguards are largely untested, according to an interagency report on shared national credit.
House nears passage of bills to overhaul credit reporting
The six bills championed by Democrats aim to reduce consumer burdens and provide opportunities for borrowers to rehabilitate their credit, but the legislation has garnered no Republican support.
Opinion GSE investors better beware underlying risks
The FHFA’s attempt to move some of its balance sheet into the private sector could leave investors with greater liabilities than they were initially told.
Tobias Peter
American Enterprise Institute’s Housing Center
‘Out of the shadows’: Use of alternative data in lending gains ground
Financial regulators’ statement cautiously encouraging lenders to go beyond traditional underwriting in their lending decisions is a big step forward for the use of alternative data and artificial intelligence, bankers say.
Consumer credit will remain strong in 2020: TransUnion
Casting aside recession fears, the credit bureau predicts credit cards, mortgages, auto loans and unsecured personal loans should all perform well — including those extended by online lenders.
Labor shortage crimps demand for commercial loans, bankers say
Many business customers are putting off expansion because they can’t find enough workers to fill available jobs.
Subprime mortgage origination share remains small, but it’s growing
The percentage of recent mortgage borrowers with subprime credit scores still resides in the single digits, but nearly doubled what is was in 2013, according to TransUnion.
‘Absolute scam’: Complaints about credit monitoring plans flood CFPB
Regulators have long warned the credit bureaus about deceptive marketing that causes consumers to sign up unwittingly for paid monitoring services. But the practice has persisted, according to complaint data.
The risk lurking in banks’ car loan portfolios
While demand is strong and loan performance generally remains solid, the prevalence of longer loan terms has sparked concern that losses will eventually spike.
Can Freddie Mac’s embrace of AI pull the industry along?
Freddie Mac's test of artificial intelligence to make lending decisions could be a significant turning point in broadening the use of the technology.
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