States’ lawsuit alleges OCC rule enables ‘rent-a-bank’ schemes
The complaint filed by New York, California and Illinois argues that the regulation, issued in response to the 2015 Madden decision, undermines state laws intended to protect consumers.
Financial institutions
Custody banks hurt by absence of commercial lending
While rival banks reported increases in loans and deposits, thanks largely to their participation in the Paycheck Protection Program, State Street and Bank of New York Mellon saw their balance sheets shrink in the second quarter.
FSOC to look more closely at secondary mortgage market
The council created by the Dodd-Frank Act to identify systemic risks launched a review of the market as part of an activities-based approach that shifts focus away from targeting individual firms.
SoFi applies to open a national bank
If it’s approved, the charter is expected to lower the fintech’s cost of funds and allow for more product offerings. It comes nearly three years after SoFi pulled the plug on an earlier effort to open an industrial bank.
5 ways mortgage companies may be able to maintain liquidity
Nonbank servicers have been seeking more sources of cash since the coronavirus disrupted markets and elevated forbearance rates. These are some strategies they may be able to use.
Bank interest in Main Street Lending Program ‘substantial,’ Powell says
The Fed chairman updated senators about the agency's new credit facility for midsize firms struggling in the pandemic. He also left open the possibility of additional stress tests to gauge the industry’s coronavirus response.
Congressional scrutiny of PPP grows amid national focus on racism
Evidence suggests some minority-owned businesses can’t access loans, and the Trump administration is under pressure to report borrower demographics. The issue is gaining attention against the backdrop of protests over the George Floyd killing.
OCC finishes rule meant to sidestep ‘Madden’ ruling
The new regulation is intended as a workaround for banks affected by the 2015 decision that created legal uncertainty for loans sold across state lines.
Cash-out refis dry up as price hikes prove too costly
Mortgage lenders have imposed steep pricing adjustments for cash-out refinancing as more borrowers seek forbearance.
Mnuchin says U.S. has no plans for mortgage servicer lifeline
The Treasury secretary said recent government moves will help the firms get through the risk of millions of borrowers missing their loan payments.
As coronavirus strains mortgage servicing, co-issuing gets tougher
Lenders that split their sales of loans and servicing between two different investors may be facing yet another challenge due to the coronavirus outbreak.
MBA fires back at FHFA head’s incendiary comments
Mark Calabria needs to be working to secure a Fed facility for servicer advances and to support, not denigrate, smaller servicers, the Mortgage Bankers Association said.
Ocwen gives liquidity update on potential servicing advances
Ocwen Financial has approximately $749 million of liquidity from various sources to deal with servicing issues arising from the coronavirus, a company press release said.
Big banks get Fed’s blessing to extend leverage amid market stress
The change — effective immediately — will reduce capital demands by about 2% overall, the Fed estimated, and will be open for a 45-day comment period.
Does FSOC have a role to play in coronavirus response?
After budget cuts and a strategic transition, the interagency body conceived by Dodd-Frank to identify systemic threats has largely been silent as the pandemic roils the economy.
Nonbank mortgage group calls for guidance on coronavirus forbearance
Mortgage servicers need direction from federal agencies on how to implement the forbearance plans called for in the CARES Act, according to the Community Home Lenders Association.
Banks tolerate credit-line draws in coronavirus crisis — for now
Draw-downs on C&I credit more than quadrupled in a seven-day period ended March 25. Lenders may try to rein them in if the crisis drags out, but legal precedent isn’t on their side.
Virus scare creates perfect storm for mortgage lenders
Refinancing activity is surging, existing borrowers are inquiring about loan modifications, loan closings are being delayed by more complex credit checks — and banks are short on people to handle it all.
ILC freeze breaks with federal approvals for Square, Nelnet
In signing off on deposit insurance for the payments giant and student loan servicer, the FDIC sanctioned the first new industrial loan companies in over a decade.
Opinion Virus is Dodd-Frank’s first real test
If banks are unable to weather the economic fallout from the outbreak, calls for more dramatic reforms could get louder.
Rob Blackwell
IntraFi Network
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