LAS VEGAS - (10/12/05) -- NCUA Chairman JoAnn Johnsonacknowledged credit union mortgage portfolios carry less risk thanother lenders, but said she and the agency are wary of a trendtoward allowing borrowers to use interest-only loans simply toqualify for higher-priced homes in some of the country's hotterreal estate markets. "(Across the financial services industryinstitutions) are relaxing standards just to qualify people for aloans," Johnson told the American Credit Union Mortgage Association(ACUMA) meeting here. " In California, in the first six months of2005, adjustable-rate loans accounted for 61% of mortgage loans. In2002, only 2% of mortgage loans were adjustable rate. That is acause for alarm." Johnson noted credit unions originate just 1.95%of all U.S. mortgage loans, but that growth cannot come at theexpense of safety and soundness.
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The Jackson, Mississippi, company will use proceeds from the sale of its Fisher Brown Bottrell Insurance unit to restructure its investment portfolio, moving $1.6 billion of low-yield securities off the balance sheet.
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The store-branded card issuer is raising annual percentage rates and adding fees for paper statements to compensate for lost revenue. The Consumer Financial Protection Bureau's new regulation is scheduled to take effect on May 14.
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At the banks' annual meetings, shareholders at both companies struck down proposals that would have split the board chair and CEO roles. Two other proposals also failed to win shareholder support, one concerning energy financing and another on pay gap analysis.
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Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
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The ABA is testing an information-exchange network to allow banks to share their fraud data with each other. Companies including Baselayer are also building solutions.
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Republicans on the House and Senate Small Business committees are accusing the SBA of being irresponsible in granting Funding Circle permission to participate in its flagship loan-guarantee program.
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