Nonbank

Embattled mortgage servicer Ocwen Financial faces up to $26 billion in damage claims by bondholders and a greater risk of being fired as a mortgage servicer on thousands of small, private-label trusts.

Prosper Marketplace, an online lender for consumer loans, has found a new source of referrals: community banks.

One in three struggling homeowners who received a loan modification through the Home Affordable Modification Program ultimately redefaulted on those loan.Meanwhile, the program that was supposed to help some 4 million families avoid foreclosure has helped only a fraction of that amount, according to a report presented to Congress.

Marketplace lending platforms like Lending Club still need banks to make the loans. Cross River Bank CEO Gilles Gade, who has deals with 14 platforms and has talked with dozens of others, explains the mechanics of these agreements in a Q&A.

Daunted by the challenge of how your bank can help underserved members of the community? Here are some simple tips and bits of wisdom from bankers, nonprofit leaders and local government officials.

OnDeck Capital, the online lender whose initial public offering raised eyebrows in December, posted a net loss of $4.3 million for the fourth quarter in its first report as a public company.

It's not quite too big to fail, but Ocwen is the country's largest servicer of subprime mortgages. So if it were forced to sell itself, or even failed, the transfer of some $410 billion in servicing rights could create havoc in the mortgage market, industry experts said.

Ocwen Financial has tentatively agreed to sell a mortgage-servicing portfolio on $9.8 billion of loans to Nationstar Mortgage Holdings, and Ocwen hinted that more deals may be in the offing.

Banks' business models are even more vulnerable to a massive shake-up than industry behemoths like McDonald’s and Coca-Cola. The industry will be redefined by technological change and shifting consumer preferences, as well as by regulations that limit the sector's adaptability.

Wealthy investors from China and the Middle East are using Citi's private bank to acquire land and fracking rights as vulnerable owners consider emergency liquidations.

Foreclosures and delinquencies may seem like problems from the past, but servicers are still struggling with a massive backlog of distressed loans and a return to normalcy is at least two years away, if not longer.

Fidelity Investments and Federated Investors are walking clients through major changes in the $2.7 trillion money fund business as banks fear another blow to funding.

Apple's mobile wallet has been out for just four months, and already it has shaken up the way mobile payments operate at the point of sale. It has faced pushback from some merchants and banks, but it has also popularized new forms of security and other payment technology.

The online loan marketplace Lending Club has formed a partnership with a nationwide network of community bankers.

CashCall, an online loan servicer, reached a $1 million settlement with California's Department of Business Oversight on Thursday.

By linking mobile payments with money transfers, Western Union created a new use for Apple's mobile wallet. But it must still rigidly conform to the basic requirements of an Apple Pay transaction — without a bank account, there is no payment.

Small business alternative lender Biz2Credit has added Fortis Payments to its roster of payment partners.

The Federal Housing Finance Agency will require nonbank mortgage firms to meet minimum liquidity and net worth standards to curb risks to taxpayers from the rapidly expanding industry.

Marketplace lenders are seizing on current investor enthusiasm after the December public listing of LendingClub. SoFi and Funding Circle have set new origination targets, and new capital markets deals may help replace bank credit lines for Blue Elephant Capital Management and perhaps others.

Banks partnering with prepaid card providers face the potential of higher deposit insurance fees and other ramifications from the Federal Deposit Insurance Corp. classifying accounts as "brokered."