Articles

Ditech files for Chapter 11 bankruptcy for second time in 14 months

It appears that the financial troubles of Ditech Holding Corp., the nonbank formerly known as Walter Investment Management, are far from over.  Last year, the company emerged from Chapter 11 bankruptcy after completing a financial restructuring plan that eliminated $800 million in corporate debt and changed its name to Ditech Holding.

Attorney General Becerra Opposes CFPB Proposal to Exempt Companies from Oversight

SACRAMENTO – California Attorney General Xavier Becerra has joined a multistate comment letter opposing the Consumer Financial Protection Bureau’s (CFPB) proposal to revise its policy offering companies binding exemptions from oversight and consumer protection laws. The proposal would grant the CFPB additional authority to offer product- and industry-wide exemptions from CFPB-administered statutes and regulations.

CUs need equal access to CFPB No Action Letters, Product Sandbox

CUNA submitted a letter Monday in response to the Consumer Financial Protection Bureau’s (CFPB) proposal to amend its No-Action Letter (NAL) Policy and create a “Product Sandbox” to facilitate innovation, urging the bureau avoid creating an uneven playing field. “CUNA highly recommends the Bureau refrain from taking an overzealous approach to innovation that places traditional depository institutions at an unjustified disadvantage,” the letter reads. “Innovation, through technology and other creative solutions, has the potential to enhance the delivery and quality of financial products and services to consumers…CUNA supports the CFPB’s effort to use its authority to encourage innovation through mechanisms like the NAL Policy and Product Sandbox so long as credit unions are given equal access to such programs and any approved programs are limited in number and narrow in scope.”

Attorney General Frosh Signs Multistate Letter Supporting Continuation and Strengthening of FTC Identity Theft Rules

BALTIMORE, MD (February 11, 2019) – Maryland Attorney General Brian E. Frosh joined 30 other state attorneys general in a letter sent to the Federal Trade Commission (FTC) today urging the FTC to continue its Identity Theft Rules, originally adopted in November 2007. The letter cites the proliferation of identity theft in many states, and the growth in technology since
the rules were adopted.

How technology drove the ‘disrupt or be disrupted’ choice of Suntrust-BB&T deal, and why there’s more on the way

Banks are spending billions to keep up with the break-neck speed in technology and upgrade older, legacy systems. But firms without billions of dollars to pour into that effort are forced to get creative.   One option is teaming up. BB&T and SunTrust announced they were taking that route on Thursday, in part to stay competitive in today’s digital landscape. The two plan to merge in a $66 billion deal to make them the sixth biggest U.S. bank based on customer assets

Student Loan Providers Not Regulated By State, Proposed Bill Would Change That

DENVER (CBS4)– The average student loan debt in Colorado is now more than $26,000. Student loan debt has surpassed credit card debt and yet student loan service providers are the only kind of lenders not regulated by the state.    “It’s a big problem for individuals and how they’re going to navigate the rest of their life if they’re saddled with this much debt but it’s also a big problem for this state and this state’s economy,” said Fenberg.

FinTech Credit: Not So Clear And Present Danger?

As the payments landscape evolves and becomes ever more digital in scope, and as FinTech firms make inroads into traditional financial services, regulators are looking at FinTech credit — and how it might be defined and shaped. There seem to be no easy answers on just how to regulate the space. The Financial Stability Board (FSB) has released a report, stating that “descriptions of FinTech credit business models vary significantly across jurisdictions.” As noted by Forbes, the study found that a minority — make that 26 percent — of regulatory agencies surveyed by the FSB actually have definitions of FinTech lending in place. Those definitions stretch across peer-to-peer (P2P) lending or marketplace lending, for example. However, the fact remains that, without specific definitions in place, it becomes difficult to collect data. 

Consumers Can Now Apply for Credit Entirely via Text Message

Consumers seeking even more convenient and relevant credit offers will benefit from TransUnion’s latest enhancements to its Mobile Offers NowSMsolution. The solution removes barriers and friction by helping consumers secure instant access to prequalified credit offers through a completely SMS-enabled mobile experience that includes prefill capabilities to simplify and expedite the application.

A Cybersecurity Researcher Tells Us Why Companies & Users Need To Do More To Safeguard Data

Today’s world experiences massively interconnected devices to share information across variety of platforms between traditional computers (machines), Smart IoT devices used across smart homes, smart interconnected vehicles etc. and of course the social networks apps such as Facebook, LinkedIn, twitter etc. We have experienced this trend with a skyrocketing growth and foresee it to continue exponentially in the future. At one end, we find life becoming easier with such developments and at the other end, we experience more and more cyber threats on our privacy, security and trustworthiness with organizations holding our data.

VA loans interim rule set to take effect Feb. 15

An interim final rule published by the Department of Veterans Affairs (VA) amending its regulations regarding VA-guaranteed or insured cash-out refinance loans is set to go into effect Friday, Feb. 15. The rule is only applicable to credit unions that refinance VA loans.