Nonbank

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.

IMGCAP(1)]

FICO and two data partners are testing a credit score based on alternative data that could help banks take smarter risks on borrowers with limited credit histories, but bankers' cost concerns and adherence to traditional methods present big hurdles.

The Securities and Exchange Commission just gave unregistered banks a way to quickly raise capital at a fortuitous time — and marketplace lending platforms a way to reclaim their peer-to-peer roots.

After releasing successive studies on the payday industry over the past two years, the Consumer Financial Protection Bureau is finally set to unveil Thursday sweeping proposals that could fundamentally change the business of short-term loans and other products

The Justice Department's Clifford White is putting all mortgage servicers on notice that they too will be punished if they flout bankruptcy rules.

If you thought the subprime mortgage-backed security was an artifact of the past, think again. Nomura Holdings and Angel Oak Capital have a deal that may help revive the part of the market that went bust during the crisis. Their success could encourage more banks to dip their toes back into riskier mortgages.

Ocwen Financial is fighting back against a group of large bondholders that have accused the Atlanta mortgage servicer of improper servicing practices and an alleged breach of trust.

Bank of New York Mellon is building out a new investment firm with the mortgage specialist Amherst Holdings. The move is its second major commitment to a fixed income-related fund this year.

Ocwen Financial has delayed filing its 2014 results and announced the sale of more servicing rights.

An expected rush of refinancings of Federal Housing Administration loans could force some mortgage servicers to take writedowns in the first and second quarters, but they have more incentive than ever to keep borrowers in the FHA program instead of letting rivals lure away their customers.

Industry groups are urging the Pentagon to soften its proposed expansion of a rate cap on loans sold to service members, but banks face opposition from dozens of advocacy groups that favor tougher restrictions.

Some newcomers to mortgage servicing did not hedge because hedging would have increased costs. Had rates moved up, the strategy would have paid off handsomely. Instead, it worked against them.

International remittances grew at a number of banks last year, according to new data, but anti-money-laundering rules may make the fee-based business too expensive to keep.