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Stablecoins, digital assets backed by currencies or government bonds, are being adopted for fast, low-cost global payments, especially in high-inflation economies. New legislation in the US and other countries is accelerating adoption. Risks include increased dollarization, capital flow volatility, weakened banking systems, and potential for financial crime. Fintech and technology companies are challenging traditional banks, while governments are developing advanced payment systems such as India's Unified Payments Interface. Nonbank institutions are leveraging AI and big data for lending, prompting calls for updated regulations to balance innovation, consumer protection, and financial stability.Learn more on this news by visiting us at: https://greyjournal.net/news/ Hosted on Acast. See acast.com/privacy for more information.
Nonbank auto lenders may soon have a reason to celebrate, following a proposed rule change by the Consumer Financial Protection Bureau to how it defines larger participants of the auto market. On Aug. 7, the bureau filed an advanced notice of proposed rulemaking to change the definition of a larger participant in auto to nonbank entities with up to 1.1 million aggregate annual originations, an increase from 10,000. This followed the CFPB's July 14 motion filed with the Office of Management and Budget which would rule on the request. The change, if approved, would reduce the number of financiers considered larger participants to five from 63, according to the notice. Traditional lenders and nonbank entities would still be subject to state laws even if they are no longer under CFPB jurisdiction. While this unfolds, lenders are also working to seize opportunities in the market. Auto lenders are continuing to lean into refinance programs on the heels of stabilizing interest rates and consumers' search for affordability and better loan terms. Subprime lender Arivo Acceptance Chief Executive Landon Starr told Auto Finance News that the company is ramping up its refinance program with a goal of $60 million in average monthly origination volume. In fact, TransUnion estimates 18 million consumers, or 23% of borrowers with open auto loans, have interest rates that exceed the average APR in the industry. Also, average vehicle transaction prices jumped 5.2% year over year in the second quarter to $31,216, according to an Edmunds report published Aug. 12. In this episode of the “Weekly Wrap,” Auto Finance News Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across second-quarter bank earnings for the week ended Aug. 15.
Enova reported a 28 percent year-over-year increase in small business loan originations, reaching $1.8 billion in the second quarter, with total loan and finance receivables at $4.3 billion. Small and medium-sized business revenue rose 30 percent to $326 million. Surveys show over 90 percent of small business owners expect growth, and 76 percent prefer nonbank lenders for speed and convenience. Only 37 percent of small businesses have any credit card access, and 32 percent have business credit cards, prompting a shift toward alternative financing. Enova's consumer segment maintained stable credit quality with a net charge-off ratio of 8.1 percent. The company's diversified portfolio and a stable competitive landscape support its growth and risk management. American businesses are absorbing increased tariff costs, and small businesses face added pressure, increasing demand for flexible financing.Learn more on this news by visiting us at: https://greyjournal.net/news/ Hosted on Acast. See acast.com/privacy for more information.
In this episode of The Consumer Finance Podcast, host Chris Willis is joined by Jesse Silverman and Matt Morris to explore the complexities of the CFPB's nonbank registry rule. This regulation, introduced in 2024, has generated significant confusion due to its intricate requirements. They discuss the rule's purpose, its impact on nonbank financial services, and the detailed steps companies must take to ensure compliance. Tune in to understand the key definitions, registration deadlines, and the broader implications for the industry.
In this episode of The Consumer Finance Podcast, Chris Willis discusses the recent changes the Consumer Financial Protection Bureau (CFPB) made to its rules for designating nonbanks subject to supervision due to potential risks to consumers. Willis provides a background on this authority granted to the CFPB by the Dodd-Frank Act and discusses the CFPB's increased use of this authority in recent years. He also delves into the implications of the CFPB's updated rules, emphasizing the need for nonbanks to prepare for potential supervision and to build robust compliance management systems. The episode provides valuable insights for nonbanks navigating the regulatory landscape and the potential for CFPB supervision.
Our special guest is Brian Johnson, Managing Director of Patomak Global Partners and former CFPB Deputy Director. In Nov. 2023, the CFPB issued a proposed rule to supervise nonbank companies that qualify as larger participants in a market for “general-use digital consumer payment applications.” We first discuss the CFPB's authority to supervise nonbank entities considered to be “a larger participant of a market for other consumer financial products or services” and its previous use of that authority. We look next at how the CFPB has defined the relevant market in its current proposal and its rationale for the proposal. We then discuss the deficiencies in the CFPB's cost benefit analysis of the proposal and how the proposal reflects changes to the CFPB's approach to rulemaking under Director Chopra. We conclude with a discussion of possible litigation challenges to a final rule and issues companies likely to be covered by a final rule should be considering. Alan Kaplinsky, Senior Counsel in Ballard Spahr's Consumer Financial Services Group, leads the conversation.
The RBI's recent actions on certain fintech businesses have sparked debate. Is it a necessary clean-up or an excessive crackdown? Host Anurpiya Nair explores this hot topic as she delves into the recent strict orders and what it means for the future of fintech in India. Is this a positive step towards a healthier financial ecosystem, or an unnecessary hurdle for innovation? Listen to R Gandhi, Former, Deputy Governor of Reserve Bank of India, Abizer Diwanji, Head, Financial Services at EY, and Pratish Kumar, Partner, JSA Advocates & Solicitors for a nuanced discussion on the evolving relationship between the RBI and fintech businesses on The Morning Brief podcast! If you like this episode from Anupriya Nair, check out her other interesting episodes on Evergreening & AIFs: An impractical solution to a genuine problem?, Outlook 2024 with JPMorgan: Will Cuts be the Catalysts for Macros and Markets? India's Surge In Satta: How cheap options can turn very costly, and much more! You can follow our host, Anupriya Nair on her social media: Twitter & LinkedIn. Catch the latest episode of ‘The Morning Brief' on ET Play, The Economic Times Online, Spotify, Apple Podcasts, JioSaavn, Amazon Music and Google Podcasts.See omnystudio.com/listener for privacy information.
This week's episode features Ray Drew. Ray is a top-producing SBA 7a Lender, podcast host, and SMB investor. He is currently working as the Managing SBA Business Development Officer at Fund-Ex Solutions Group. Throughout his career, Drew has focused on assisting small business owners with the complexities of small business administration loans. It is his responsibility to assist the entrepreneur in developing a tailored loan solution that addresses the specific requirements of the business. He joined us today to talk about the primary business loan program of SBA, change of ownership, non-bank lenders, the role of a business development officer, and more. [05.00] 7(a) loans - The primary business loan program offered by the SBA to small businesses in need of funding. [12.53] Past and present – Ray explains the big changes in SBA in 2023. [16.14] Change of ownership – Ray explains the partial change of ownership in SBA. [27.09] Business development – The role of a business development officer. [32.17] Nonbank lender - A loan provider who isn't a conventional bank. [36.13] Real-estate – Ray's thoughts on commercial real estate for small business owners. [39.53] Terms on loans – Ray explains what you can do to improve your terms on loans. Resources sbaray.com/ fundexsolutions.com/
Providers of consumer financial services that rely on federal preemption to charge customers uniform interest rates and fees on a nationwide basis are currently facing a series of legislative and litigation challenges. In this episode, which repurposes a recent webinar, we first discuss the U.S. Supreme Court's grant of certiorari in Cantero v. Bank of America on the question whether the National Bank Act preempts state laws requiring the payment of interest on mortgage escrow accounts and look at the competing arguments and preemption standards under consideration. We then look at the Dodd-Frank Act's provisions on federal preemption for national banks and federal savings associations, OCC regulations addressing the scope of federal preemption, and federal statutes providing interest rate exportation authority for national and state-chartered banks and other institutions. We then turn to current legal challenges to rate exportation authority, focusing on state laws opting out of federal law allowing interest rate exportation by state banks, state laws defining “true lender” to target nonbank/bank partnerships seeking to take advantage of federal interest rate exportation authority, and the California trial court's recent ruling in a very important “true lender” lawsuit. We conclude with a discussion of the potential implications of a U.S. Supreme Court override of the Chevron deference framework for OCC and FDIC regulations interpreting federal statutes on interest rate authority of national and state banks. Alan Kaplinsky, Senior Counsel in Ballard Spahr's Consumer Financial Services Group, leads the discussion, joined by John Culhane, Reid Herlihy, and Ronald Vaske, partners in the Group, and Mindy Harris, Of Counsel in the Group.
US Treasury regulate more with nonbank rules even more. This is absolutely nuts as they can easily contradict themselves in so many ways,. They make life much tougher but you do lose faith in all these regulatory bodies. Protect your wealth by creating your Bank banking – QUANTLABS.NET Get my links here US Treasury regulate more with nonbank rules even more - QUANTLABS.NET
House Financial Services Committee Chairwoman Maxine Waters and Ranking Member Patrick McHenry have been working to reach an agreement on the stablecoin legislation. In addition to addressing what unfolded with Terra, the bill would allow banks and nonbanks to issue stablecoins. Bank issuers would seek approval from their typical federal regulators, such as the OCC. The legislation would direct the Fed to establish a process for making decisions on applications from nonbank issuers. Nonbank stablecoin issuers approved at the state level and that register with the Fed within 180 days of that approval would be able to operate under the bill. On this episode, we're taking a look at all the details in the draft bill (which may or may not change).~This episode is sponsored by iTrust Capital~iTrustCapital | Get $100 Funding Reward + No Monthly Fees when you sign up using our custom link! ➜ https://bit.ly/iTrustPaul
Karen Thomas, the outgoing senior executive vice president of government relations and public policy at the Independent Community Bankers of America, talks about how the political influence of community banks has changed in the past two decades—and the biggest policy challenges facing them now. Those include closing the ILC loophole, CBDCs, and more.
We first review the scope of the CFPB's supervisory authority granted by Dodd-Frank and the source of its authority to supervise nonbanks that present risks to consumers. We then discuss how we expect the CFPB to use its risk-based authority, including the types of products it may target and its decision to make public the identities nonbanks. We also look at the practical impact of CFPB supervision for targeted nonbanks and what steps companies can take both to avoid becoming a CFPB target and to prepare for the possibility of a CFPB examination. Finally, we consider how the CFPB's action could impact the approach of state regulators to nonbank providers of alternative credit products. John Grugan, a partner in Ballard Spahr's Consumer Financial Services Group, hosts the conversation, joined by Michael Gordon and Lisa Lanham, partners in the Group.
The OCC's true lender rule was intended to create a bright line test for when a national bank or federal savings association should be considered the “true lender” in the context of third party partnerships but Congress overturned the rule. After reviewing the relevant background, we examine the Congressional override's implications for future federal true lender rulemaking and its impact on existing law, key federal and state court challenges and decisions, state legislative and administrative developments, and risk mitigants for bank/nonbank partnerships, including potential loan program structures. Alan Kaplinsky, Ballard Spahr Senior Counsel, hosts the conversation, joined by Jeremy Rosenblum and Ron Vaske, partners in the firm's Consumer Financial Services Group, and Mindy Harris, Of Counsel in the Group.
Median sales prices for existing homes have risen over the past year. Nonbank mortgage loans hit their highest share on record. And Microsoft is set to become the second U.S.-listed company to hit the $2 trillion threshold. Host: Jacob Passy. Producer: Katie Ferguson.
Please join Mayer Brown partners Larry Platt and Andrew Olmem for a discussion on the prospects of regulatory reform for nonbank financial companies and what it could mean for the future of US financial markets, especially the US mortgage market.
The current expected credit losses standard, or CECL, had been hotly debated in banking and accounting circles long before COVID-19 surfaced earlier this year. While the resulting market and economic disruptions caused by the pandemic delayed a full rollout of CECL, many financial institutions that had begun the hard work of incorporating the standard into their models are living through a real-life stress test of CECL's approach to accounting for credit losses. In this episode of the Financial Executive Podcast we speak with Amnon Levy, managing director and head of Moody's Analytics Portfolio and Balance Sheet Research group regarding what the current financial crisis reveals about financial credit models and the unintended consequences of CECL. Links: Incorporating Emerging Risks within Credit Models: Lessons from Sociological Reactions to COVID-19 (https://www.moodysanalytics.com/articles/2020/incorporating-emerging-risks-within-credit-models) Nonbank players are ready for CECL — are banks? (https://www.americanbanker.com/opinion/nonbank-players-are-ready-for-cecl-are-banks) Earnings Volatility, Share Price Performance, and Credit Portfolio Management Under CECL and IFRS 9 (https://www.moodysanalytics.com/articles/2019/earnings-volatility-share-price-performance) Special Guest: Amnon Levy.
When COVID-19 accelerated customer movement into mobile and online banking solutions — and triggered consumers to push their funds into bank accounts — banks that had made investments in the digital customer experience were positioned to capitalize. On the latest episode of the ABA Banking Journal Podcast, Radius Bank President and CEO Mike Butler discusses the branchless bank’s fintech-forward strategy and how it helped the bank double account openings in the post-pandemic environment, a core part of the bank’s deposit-focused strategy. In the wide-ranging conversation, Butler also discusses: Radius Bank’s “banking as a service” partnerships with fintech firms and how it vets potential partners to “create an Amazon-like experience for our clients.” The bank’s pending acquisition by nonbank fintech firm Lending Club and how the deal may rebundle some core banking functions in the combined organization. How fintech firms have prepared for the economic downturn. The persistent value of the traditional banking bundle of lending, payments and insured deposits.
Nonbank small business and real estate investment lending have helped many succeed. Have you considered how this source of capital may fit into your overall plan? In this episode, Adam Torres and H. Jack Miller, President at Gelt Financial, explore nonbank small business lending and what investors need to know. Follow Adam on Instagram at https://www.instagram.com/askadamtorres/ for up to date information on book releases and tour schedule.Apply to be interviewed by Adam on our podcast:https://missionmatters.lpages.co/podcastguest/
This week, Carl Tyree, the executive vice president, and chief sales officer at Arch Mortgage Insurance, joins the Housing News Podcast to discuss how the growth of the nonbank originator channel is impacting the housing industry.In this episode, Tyree discusses the amount of servicing volume that Independent mortgage bankers are retaining and how they've managed to navigate the COVID-19 pandemic.Additionally, Tyree explains how mortgage insurance companies work with lenders throughout the forbearance process and explains why the implementation of new technology has been critical for ensuring the mortgage industry's survival.The Housing News Podcast is a weekly wrap of the top news stories by HousingWire CEO Clayton Collins. Each week, HousingWire interviews financial services experts who can help make sense of the latest headlines, sponsored by our partners at Arch MI and Quicken Loans Mortgage Services.Here are links to the topics discussed:Share of mortgages in forbearance rises to 8.5%Fannie Mae, Freddie Mac forbearance rate is ‘manageable,' Calabria saysDavid Stevens stresses the important role of IMBs[PULSE] The value of warehouse lenders in the mortgage market
In today's Daily Download episode, HousingWire Digital Producer Alcynna Lloyd interviews Mountain Lake Consulting CEO David Stevens, who is also the former head of the Federal Housing Administration and former Mortgage Bankers Association president, on the growing liquidity pressure that nonbanks are facing. Stevens comments on whether or not the Federal Housing Finance Agency is doing enough to address the nation's uptick in forbearance requests from financially strained borrowers, stating, “There's still an outrageous amount of liquidity being advanced for servicing that Freddie and Fannie own that these services are servicing for them on their behalf.”He added that it's putting an “outrageous amount of liquidity pressure onto the nonbank community in particular, but also for servicers across the board.”But before jumping into the interview, HousingWire's HW+ Managing Editor Brena Nath touches on today's top stories ranging from the coronavirus' impact on California's real estate market and Movement Mortgage's decision to lower its minimum FICO credit scores on Federal Housing Administration and Department of Veterans Affairs loans. The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.HousingWire articles covered in this episode:What effect is the pandemic having on California real estate and lending?Movement Mortgage lowers FICO minimums, rolls back overlays, will retain servicing
GoldenCoin Suisse is a family owned Private Swiss Nonbank. The family has been engaged in business and law for generations, including defending the gold standard and its right in constitution.Incorporated in Switzerland and the United States, the company started its operations with a vision of providing a safer alternative for clients seeking Wealth Preservation without the financial risks, using vaulted and segregated gold bullion coins, with technology that provides clients with instant liquidity through a mobile app connected to a payments card.The only difference between a "Bank" and a "Nonbank" is that Nonbanks do not engage in savings and lending out clients money, and do consequently not have the same high risks as other financial institutions.Banking has suffered a lot in recent years, from insolvency, hardened regulations and a heavy cost structure with many of them closing down. In 2013 it became so bad that Cypriot banks had to seize client deposits in order to stay afloat, and bank deposit guarantees do not cover deposits over specific thresholds.GoldenCoin Suisse provides an efficient alternative with zero risk, using segregated gold bullion and "regular deposits" instead of fiat currency, and without leveraging client assets, through a mobile app "the Bullion Master OSX" that allows clients to convert their physical gold bullion to cash in seconds.Clients benefit from a traditional wealth and privacy preservation solution based on gold bullion, which goes back to the very early days of banking, when gold was currency and leveraging client funds was not permitted.In the US, the company is currently working on offering more liquidity to Gold IRA accounts and a Gold Bullion Health Savings Accounts - an untapped multi-billion dollar market - by offering a combination of vaulted gold bullion coins and the Bullion Master OSX app with its connected payment card.For more information visit:http://www.goldensuisse.com/
As nonbanks have grown their market footprint, regulators are looking at ways to modernize the regulatory approach to these entities. At CSBS, we refer to these efforts as "reengineering nonbank supervision."
Professor Isil Erel of The Ohio State University Fisher College of Business joins NCMM Executive Director Thomas A. Stewart to talk about her research on non-bank lending and what it might mean for middle market companies.
As banks across the country mark American Housing Month in June, the ABA Banking Journal Podcast sat down with Michael Petrie, who leads the $4 billion Merchants Bancorp in Carmel, Ind.—one of the nation’s largest affordable housing lenders. With affordable homes accounting for 40% of the company’s originations through its bank and nonbank subsidiaries, Petrie discusses: How staff at Merchants' nonprofit affiliate, which owns 2,500 affordable housing units, help developers apply for tax credits, bonds and grants. “We’ve taken developers who have never done affordable housing through a 4% tax credit, and they’re now quite successful at it,” says Petrie. Why Merchants employs both banks and nonbanks in its housing finance strategy—including its start as a nonbank lender that acquired a bank. The state of the real estate market and the challenges facing newly formed households. “Today it’s pretty tough, especially for the first-time home buyer,” he says. “There’s just not enough supply.” How Merchants retains a skilled workforce to support its specialized lending programs, including multifamily, single-family and warehouse lending, and develop partnerships with Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
This week on CFTC Talks, we talk with Counselor to the Secretary of the US Department of Treasury Craig Phillips about the Treasury’s latest research report on regulatory reform, “Nonbank financials, Fintech, and Innovation.” We discuss technological advances in financial services, digitization of finance and the economy, and how there are significant opportunities to accelerate innovation in the United States.
To Fail or Not to Fail? A Discussion of Banking's "Too Big to Fail" Problem
Non-Bank Lending and Systemic Risk: Problem or Solution? at LendIt Europe 2016.