Economy

JPMorgan Chase CEO Jamie Dimon defended his institution by arguing that size isn't necessarily an indicator of risk. But the truth is that the larger an organization gets, the more complex it becomes-and the more difficult it is for leaders to keep everything from customer service to fraud prevention working the way it should.

So far, Washington has generally smiled on tech-driven lenders such as Lending Club and OnDeck. But many in the fast-growing industry are now bracing for closer scrutiny.

The Federal Housing Finance Agency provided more details Friday about key features for the new single security that will be issued by Fannie Mae and Freddie Mac.

Sen. Richard Shelby's attempt to reform Dodd-Frank could ease key bank regulations that improve the safety and soundness of big banks. That would be an immense disservice to the American taxpayers who might bear the cost of the changes with future bailouts.

JPMorgan Chase has purchased $45 billion in servicing rights from embattled mortgage firm Ocwen Financial.

Other regional Federal Home Loan Banks are lining up so their members can securitize FHA and VA loans through Chicago FHLB conduit.

With support from Bank of America, a nonprofit lender is trying to revitalize Detroit by offering no-down-payment mortgages at up to 150% of a home’s assessed value. The idea is to provide borrowers with enough cash to buy run-down homes and fix them up, and if the program works as promised it could prove to be a template for lending in other cities — like Baltimore — that have large swaths of boarded-up homes.

With the release of Sen. Shelby's regulatory reform bill, the debate over the legislation is just beginning to take shape. We sort through the possibilities for how it will unfold.

Many lenders shy away from adjusting monthly payments based on struggling borrowers' income for fear of losing too much money, but the Education Department's expansion of such plans for student loans and new data-crunching products have reframed the longtime discussion.

Federal Deposit Insurance Corp. Chairman Martin Gruenberg, discussing progress in establishing big-bank resolution regimes, said the Federal Reserve is developing a rule "to codify" the swaps protocol involving termination rights.

WASHINGTON — A new mortgage disclosure regime due to take effect on Aug. 1 is unlikely to cause closing delays, according to Consumer Financial Protection Bureau Director Richard Cordray.

BankUnited in Miami Lakes, Fla., has hired Hakim Kassam, a former Wells Fargo banker, to run its small business finance department.

House Financial Services Committee Chairman Jeb Hensarling, R-Texas, issued subpoenas Monday for several federal agencies, asking for a trove of documents concerning ongoing investigations that he said they are obstructing.

Most banks appear to be coping well with the CFPB's ability-to-repay rule for mortgages, but the burden is falling harder on community banks. A new proposal that would allow more small lenders to grant home loans to borrowers with high levels of debt could help.

Senate Banking Committee Chairman Richard Shelby announced Friday he was pushing back a planned vote on regulatory relief until May 21. The move came just after panel Democrats said they would oppose the bill because they had not yet seen it.

The administration's signature loan modification and refinancing programs will be extended for one year to help borrowers "who continue to face challenges," the director of the Federal Housing Finance Agency said.

The Consumer Financial Protection Bureau and the Department of Justice are taking a renewed interest in redlining, the practice of lenders charging more for products or excluding altogether minorities within certain geographic areas — and their findings may be surprising.

A recap of the informed opinions (and the discussions they generated) on BankThink this week, including how convenience may help banks beat out Silicon Valley and whether community banks can reduce their regulatory burden on their own.

Fannie and Freddie will have more room to finance affordable rental housing, but it is unclear if it's enough to prevent possible disruptions later this year.

A community development venture in the District of Columbia supported by Citigroup, government officials and local financial institutions has partnered with loan marketplace Biz2Credit to facilitate loans to small businesses.