Nonbank

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.

The banking industry as a whole will survive startups. But many individual banks will fail to make the changes necessary to stay relevant in a rapidly changing market.

The Consumer Financial Protection Bureau filed a lawsuit Tuesday against the owner of several tax-preparation outlets that allegedly steered low-income clients into expensive loans against their anticipated refunds.

Marketplace lenders are aggressively marketing their loans as a way to refinance expensive credit card debt. And with more affordable interest rates and faster loan application processes, there's reason to believe that firms like Lending Club and SoFi will beat out banks.

General Electric's plan to sell most of its financing arm has been hailed as a sign that financial reform is successfully persuading "too big to fail" firms to break up. But the end of GE Capital just means that the conglomerates left standing are even more homogeneous and risk-prone.

General Electric's decision to sell most of its financial assets marks the most prominent victory in regulators' quest to incentivize breakups of large conglomerates. But it may turn out to be a one-off event.

Independent lenders rebut suggestions that they pose a greater risk to FHA (and hence taxpayers) than the large banks.

The shift in market composition is fueling concerns that if defaults rise, the Federal Housing Administration would have a harder time making lenders eat the losses on poorly underwritten loans.

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