Articles

Quarterly Consumer Credit Trends: Mortgages to First-time Homebuying Servicemembers

This is part of a series of quarterly reports on consumer credit trends produced by the Consumer Financial Protection Bureau using a longitudinal, nationally-representative sample of approximately five million de-identified credit records from one of the three nationwide consumer reporting agencies. This sixth report explores how first-time homebuying servicemembers’ home loan choices have evolved from 2006 to 2016. This report also describes early delinquency rates for these home loans.

Consumer bureau chief to face lawmakers for first time since confirmation

The director of the Consumer Financial Protection Bureau (CFPB) will appear before a House panel next week as Democrats ramp up their oversight of the controversial regulator, the committee’s chairwoman said Thursday. Rep. Maxine Waters (D-Calif.), chairwoman of the House Financial Services Committee, said Thursday that CFPB Director Kathy Kraninger will testify next week before the panel. The Financial Services Committee is scheduled to hold a March 7 hearing on the impact of the Trump administration’s takeover of the CFPB. It was unclear if Kraninger would attend the hearing until Waters confirmed the director would appear before the panel. “She will be there. She is a witness,” Waters said. “It’s confirmed.”

Former Arizona official pleads guilty to taking bribes from debt company

PHOENIX — A former Arizona public official pleaded guilty Monday to one count of bribery after he accepted at least $26,000 in exchange for giving a debt collection company confidential government information. Leslie Gene Nelson, 59, accepted the cash bribes from 2010 to 2013 and helped Culver City, California-based Professional Collection Consultants collect about $1 million in debts, according to a press release. Nelson worked for the Arizona Department of Economic Security and gave PCC government database information about thousands of people’s income, using Social Security numbers the company provided.

BankThink Square’s ILC bid is a regulatory end run

Like the now famous Bill Clinton political slogan “It’s the economy, stupid” from the 1992 presidential campaign, most in our industry are missing the core issue with Square’s application to form an industrial loan company. “It’s the ILC loophole, stupid” is an apt expression for refocusing the spotlight on ILCs. Square itself is not so much the problem as the ILC deposit insurance loophole. It is the same underlying issue that sparked the Independent Community Bankers of America’s opposition to the Walmart application over a decade ago. The ILC loophole allows for an unintended and potentially dangerous expansion of the deposit insurance safety net.

Cisco: Patch routers now against massive 9.8/10-severity security hole

Cisco is warning businesses that use its wireless VPN and firewall routers to install updates immediately due to a critical flaw that remote attackers can exploit to break into a network. The vulnerability allows any attacker with any browser to execute code of their choice via the web interface used for managing Cisco RV110W Wireless-N VPN Firewall, Cisco RV130W Wireless-N Multifunction VPN Router, and Cisco RV215W Wireless-N VPN Router. The networking giant has assigned the bug, tagged as CVE-2019-1663, with a severity score of 9.8 out of a possible 10 under the Common Vulnerability Scoring System (CVSS).

Square’s Miss May Not Be So Bad as Analysts See an Opening

Square Inc. slid in pre-market trading after its first-quarter forecast missed estimates, but several analysts said the drop offers a fresh chance to buy more stock in the payments company. Look “underneath the hood” for volume growth in sales of new products such as Square Register and Square Terminal, Guggenheim said. Moffettnathanson echoed the sentiment, saying the Cash App is just a small piece of the company and hardware sales will drive the future. Shares of Square slumped 5 percent before markets opened amid a batch of ugly tech earnings. The stock had gained 41 percent so far this year through Wednesday’s close, almost four times the return of the S&P 500 Index.

PayThink – Blockchain payments are making the grade at universities

Leaders at higher educational institutions are actively exploring blockchain applications, and with good reason. Blockchain can enhance areas as diverse as course offerings, recordkeeping and credentialing, institutional collaboration, decentralized learning and nontraditional education. Leaders in blockchain and education argue that blockchain might be the technology that revolutionizes higher education. It creates an auditable, distributed ledger of transactions that cannot be altered or removed, enabling transactions that are valid, authentic, trustworthy and immutable.

Walmart teams with Affirm to offer point-of-sale loans

Walmart will offer its customers point-of-sale loans for the first time — both on its website and in nearly 4,000 U.S. stores — under a partnership with the Silicon Valley lender Affirm. The deal is a watershed moment for the consumer finance industry, as the nation’s largest retailer embraces a financing option that is being popularized by consumers who prefer not to put their big-ticket purchases on a credit card. “Affirm is a great financing option for those customers who may prefer a fixed-term loan versus an open-ended revolving credit line to pay for larger baskets,” Walmart spokeswoman Marilee McInnis said in an email. “We want our customers to have choices that best meet their lifestyles.”

JPMorgan’s Dimon: Square innovated where we should have

Jamie Dimon confessed on Tuesday to having a little bit of Square envy. During JPMorgan Chase’s annual investor day in New York, the bank’s chairman and CEO was asked what companies could get steamrolled by his bank, which has emerged as a financial-services disruptor. JPMorgan is investing billions of dollars per year in technology and recently rolled out its own online-only bank, dubbed Finn, and is set to become the first U.S. bank to launch a cryptocurrency. But rather than answer that question directly, Dimon responded by praising a company, Square, that has done things he wishes JPMorgan Chase had done.

LENDIT FINTECH USA 2019 APRIL 8-9 IN SAN FRANCISCO, CA

LendIt Fintech is excited to be back in San Francisco, a concentrated fintech hub for some of the most innovative and fastest growing fintech companies in the world.  They are expecting about 5,000+ attendees and will have some exciting names to announce as speakers in the coming weeks. There will also be 2,000+ fintech-focused companies looking to network and do business with you.  LendIt Fintech attracts thousands of fintech decision makers from the world’s most influential companies.  LendIt Fintech USA 2019 will be held at the Moscone West, San Francisco, April 8-9.   DebtConnection.com is a media sponsor for LendIt Fintech USA2019.  Register for LendIt Fintech 2019 using DC15% at https://www.lendit.com/usa/2019.