Subprime lending

The nation's fifth-largest bank on Monday rolled out a three-month consumer loan that is far less expensive than the typical payday loan. The move comes as regulators are encouraging banks to reach out to the subprime market, which they largely abandoned.

Delinquencies have held steady for a year, and observers are optimistic about upcoming third-quarter data. But the long-term question is whether solid underwriting can overcome higher vehicle prices and consumer debt burdens.

New investor appetite for mortgages over $1 million is motivating more nonbank lenders to offer super jumbo loans, often with weaker credit terms than traditional banks.

The investors initially won the right to sue as a group in 2015 before an appeals court reversed the ruling; the $13 billion lawsuit can now proceed as a class action.

The online small-business lender was aided by loan growth, wider margins and stable credit trends. Its shares surged by 25% after second-quarter earnings were announced.

As the company boosts originations to subprime and other borrowers, it remains to be seen if the improvements in asset quality will continue. A similar question mark is hanging over many consumer lenders these days.

The creation of the Consumer Financial Protection Bureau was widely expected to centralize regulation of payday and other high-cost loans in Washington. It hasn’t worked out that way.

The Fort Worth, Texas, company will be competing in a segment of the U.S. card market that has grown more competitive in the last few years.

The bank can pay out 40% more than it is expected to earn; the German bank’s stock slide may lead to its removal from a major European bank index.

Proposal would simplify the rule prohibiting proprietary trading; Fiat Chrysler, which accounts for about a third of the unit’s business, may go solo.

While industry officials welcomed a bulletin from the Office of the Comptroller of the Currency encouraging banks to develop alternatives to payday loans, they are making no commitments to offer such products.

A chunk of alternative loan customers are perfectly creditworthy, a report from the credit bureau shows.

It’s not just weaker underwriting and higher household debt levels that are driving past-due rates to their highest levels in seven years.

While reform legislation for banks is just around the corner, market signals suggest the economy could be headed toward another downturn.

The post-recession boom in auto loans and credit cards for borrowers with marred credit histories has been winding down in recent months.

JPMorgan and Santander show off their uses for the technology; commercial and industrial loans outstanding are rising.

Auto lenders would be well advised to keep up their guard as states — particularly blue ones — take steps of their own to crack down on what they see as abusive practices.

The firm will pay $110 million to settle charges it didn’t control traders; hedge fund executive says he was wrongfully accused of sexual misconduct.

The subprime auto lender failed to disclose that it received fees for referring borrowers to CarMax, the used-car dealer, according to California's financial regulator.

Growing numbers of small subprime auto lenders are shutting down after loan losses and slim margins spur banks and private equity owners to cut off funding.