Nonbank

Silicon Valley firms like Apple and Lending Club are happy to partner with banks — so long as they get to be the face of customer interactions. But banks may not easily give up that ground.

Payday lending activity increased in California last year, but the size of loans and fees charged both declined, according to a new report from California's banking regulator.

Some argue that nonbank mortgage lenders' rising market share poses a risk to the financial system. But this belief arises from an inaccurate understanding of what is in fact a well-regulated sector.

RealtyMogul.com in Los Angeles said it reached agreements for a total of $250 million in capital, which it will use to offer new products.

The mortgage lender Nationstar Mortgage Holdings is pouring a lot of energy into a digital and mobile homebuying platform called Xome. The strategy could attract tech-savvy millennials but carries plenty of risks including whether consumers would be improperly steered to its products.

The Consumer Financial Protection Bureau issued a final rule Wednesday that allows it to monitor the biggest nonbank auto finance companies.

Orchard Platform in New York has added two nonbank lenders to its marketplace lending service that matches institutional investors with loan originators.

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.

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

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.

Banks want all loans held in portfolio to be classified as ultrasafe regardless of the underwriting characteristics or of a bank's asset size. But consumer activists and independent mortgage lenders are raising red flags ahead of possible Senate Banking action.

The SAFE Transitional License Act would allow registered lending officers to work at independent mortgage banks for 120 days while they complete state testing and licensing requirements.

The compliance costs associated with the CFPB's proposed reforms to the payday lending would force many small businesses to close shop, reducing access to short-term credit for many Americans.

The ubiquitous coffee chain is making new inroads with its mobile payments app, and its success underscores how nonbanks can outdo banks at their own game and should be watched closely by banking industry participants.

In light of a recent op-ed about pawnbrokers denied banking services, it's worth reiterating that the FDIC encourages banks to assess individual businesses for risk rather than declining to provide services to entire categories of customers.

WASHINGTON — The Federal Housing Finance Agency is sticking to its schedule and moving quickly to finalize proposed financial requirements for nonbank firms that service Fannie Mae and Freddie Mac loans.

As banks have largely ceded the market for government-backed loans to nonbank lenders and servicers, it's fallen on Ginnie Mae to be sure that these nonbanks can meet their obligations to bondholders. It's a huge concern for President Ted Tozer, who says the company does not have the resources or manpower to examine these firms' finances.

The National Pawnbrokers Association argues that its members have been unfairly swept up in the Justice Department initiative known as Operation Choke Point. But banks say Choke Point's not to blame: they're closing the accounts of cash-intensive businesses in order to ensure compliance with anti-money-laundering rules.

Golden State regulators want to bar Internet lenders from linking electronically to borrowers' bank accounts and instead require them to accept paper checks as repayment. The proposal is a technological step backward, and it could ultimately force many online lenders to pull out of the nation's largest state.

The high-flying sector is primed for a correction, industry leaders said this week. Declining credit standards are one of the top concerns.