Current Industry News
Maine is the latest state to pass a law amid frustration with federal inaction over the supervision of student loan companies. On Thursday, Maine Governor Janet Mills signed the “Act To Establish a Student Loan Bill of Rights To License and Regulate Student Loan Servicers,” which will go into effect in September. “Paying back student loan debt is difficult enough without a profit-hungry lender trying to make it harder and more expensive,” Governor Mills said in a statement. “By signing this bill into law, Maine is taking critical action to create oversight, implement accountability, and protect the interests of our borrowers.”
As More Off-Lease Vehicles Go to Market, Used Car Demand for Prime and Above Consumers Rises
While used vehicle financing has traditionally been associated with non-prime borrowers, a new TransUnion (NYSE:TRU) study has found that consumers across the credit spectrum are increasingly evaluating used vehicles as a more practical option. This trend is especially noteworthy among consumers with prime and higher credit scores, and is believed to be driven in part by the influx of off-lease vehicles to the marketplace.
Bank of America CEO: ‘We Want a Cashless Society’
Bank of America CEO Brian Moynihan kicked off Fortune’s inaugural Brainstorm Finance conference in Montauk, N.Y., on Wednesday by discussing the tech-driven strides made by one of the country’s largest financial institutions. Speaking with Fortune editor-at-large Shawn Tully, Moynihan touched on BoA’s embrace of artificial intelligence-driven technology via applications like Erica, a voice-activated virtual assistant used by 7 million customers. By his estimation, the financial institution has “probably spent $30 million on code” over the past eight years to develop and improve its technological infrastructure.
Hospitality Lending: Whose Market?
As the economy continues its upward trajectory, hotels are enjoying the benefits of strong demand from both personal and business travel. Despite these solid operating fundamentals, many lenders are apprehensive about the record length of the current economic expansion and the impact that a future downturn may have on room rates and occupancy levels. In response to these growing fears, many capital sources have either tightened their lending criteria or decided to cease hospitality lending all together. As traditional sources of financing retreat, hospitality owners have had to look far and wide for lenders that remain receptive to this asset class. This has created opportunities for lesser-known sources of capital, like Chicago-based Alliant Credit Union, to finance high quality properties.