Lending Intelligence
“Lending Intelligence” is a magazine produced by Royal Media, a leading information company formed in 1995 to deliver deep market knowledge through online information portals, traditional publications, electronic newsletters, conferences and custom media products. The following articles were written by Craig McGuire.
Bankruptcy Filing Volume Hits Record
By Craig McGuire
The number of bankruptcies filed by consumers and businesses by the end of March reached a record for a 12-month period, according to data released today by the Administrative Office of the U.S. Courts … (Click Here to Read More)
Bond Markets Buck, But Lenders Show Little Concern
By Craig McGuire
Prices on the bond market have gyrated wildly over the last two days, but the volatility is not causing concern within the lending industry … (Click Here to Read More)
Lending Issues to Return to House’s Frontburner, Beltway Insiders Say
By Craig McGuire
Capitol Hill insiders expect the House Financial Services Committee next year to address consumer bankruptcy, predatory lending practices and debt collection practices, all issues shelved by Congress in the wake of the Sept. 11 terrorist attacks … (Click Here to Read More)
Citigroup Settles FTC’s Predatory Lending Suit for $215 Million
By Craig McGuire
In the largest consumer protection settlement in the Federal Trade Commission’s history, Citigroup Inc. has agreed to pay $215 million to settle predatory and abusive lending charges against one of its subsidiaries, Associates First Capital Corp. … (Click Here to Read More)
Colorado Considers Two Predatory Lending Bills
By Craig McGuire
Add Colorado to the growing list of states who are dealing with the issue of predatory lending. The Colorado House of Representatives and Senate have each had an anti-predatory lending bill introduced in the past month that community groups hope will eliminate the practice of lenders taking advantage of uneducated borrowers .… (Click Here to Read More)
Conseco Halts Sale of Controversial Mortgage Insurance Product
By Craig McGuire
Conseco Inc. disclosed today that it has stopped selling single-premium credit life insurance, which consumer advocates have long called an inappropriate product … (Click Here to Read More)
Conseco Losses Drop, Even as Credit Reserves Jump; Settles Class Suit for $120M
By Craig McGuire
Losses at Conseco Inc. diminished last quarter, even as the Indianapolis company increased its reserves for failed loans by 30%, according to a company announcement today … (Click Here to Read More)
Conseco Raising Credit Standards for Manufactured Housing Business
By Craig McGuire
Conseco Finance Corp. continues to run its manufactured housing business more conservatively in 2002, even though many of its competitors have exited the market. In doing so, the unit of Conseco Inc. has tightened its credit standards by 6% this year, according to Conseco’s Chairman and Chief Executive Officer, Gary Wendt, who spoke at the company’s annual shareholder meeting today … (Click Here to Read More)
Fitch: AmeriCredit Downgrade Teeters on Ability to Raise Capital
By Craig McGuire
AmeriCredit Corp., once known as the industry darling among nonprime auto lenders, is expected to record a loss next quarter, and may be subject to a ratings downgrade if it fails to raise some additional capital … (Click Here to Read More)
AmeriCredit Slices 350 Jobs as It Slows Originations
AmeriCredit Corp. announced today plans to shear 350 jobs, or 6.5% of its workforce, as it continues to slow originations. The job cuts — which will affect employees in the U.S. and Canada — mark the Forth Worth lender’s first-ever round of companywide layoffs … (Click Here to Read More)
Lenders Bracing for Weaker Home Prices in Certain Regions
By Craig McGuire
Weakening home prices in certain markets could negatively impact mortgage lenders going forward. Many lenders, though, said they have been anticipating the softer pricing … (Click Here to Read More)
Little Headway Made on Predatory Lending Abuses, Advocates Say
By Craig McGuire
It may be National Consumer Protection Week, but advocates say they want more than just lip service when it comes to protecting consumers against predatory mortgage lending … (Click Here to Read More)
CRM Usage Rising – When Financial Institutions Want to Retain Customers, They Turn to Tech
By Craig McGuire
When Champion Mortgage Co. needed to generate a higher return from delinquent accounts from its Parsippany, N.J. loan-servicing call center, it did not hire additional customer service representatives. And when Mapother & Mapother Attorneys needed to increase the yield from its outstanding … (Click Here to Read More)
Mortgage Reform, Terrorism Insurance Top MBA’s Annual Legislative Agenda
By Craig McGuire
Simplifying the mortgage process for consumers and adding more affordable housing and terrorism risk insurance top the Mortgage Bankers Association of America’s legislative wish list … (Click Here to Read More)
MBNA Chief Exec Lerner Dies, Successor to be Named Next Week
By Craig McGuire
Alfred Lerner, the chairman and chief executive of MBNA Corp., the nation’s largest independent credit card issuer, died Wednesday evening. MBNA President Charles Cawley has replaced Lerner on an interim basis … (Click Here to Read More)
Consumer Groups Blast HUD Over Upcoming Senate, Yield-Spread Hearing
By Craig McGuire
Mortgage industry representatives and consumer advocates are primed for battle for next week’s U.S. Senate Banking Committee hearing on yield spread premiums … (Click Here to Read More)
Despite Higher Auto Sales, Economists Expect Incentives to Slow
By Craig McGuire
Though incentives have played a major role in the unexpected surge in light vehicle sales this year — all major automakers, except Ford Motor Co., reported gains today — industry analysts expect manufacturers to soon start slashing some programs … (Click Here to Read More)
Fannie Backs Down and Kills Plan to Call Its Securities
By Craig McGuire
Fannie Mae reversed course late last Friday and backed off its controversial plan to prematurely buy back mortgage-backed securities from investors … (Click Here to Read More)
Rep. Markey Aide Blasts Fannie, Freddie for Heavy-Handed Politicking
By Craig McGuire
The legislative director of a congressman who sponsored a bill that would require Fannie Mae and Freddie Mac to disclose their financial performance like other publicly traded companies lashed out at the government-sponsored enterprises today, implying that they are exerting too much political muscle to defeat the legislation … (Click Here to Read More)
First Alliance Tagged for $60M Fine by FTC for Predatory Lending
By Craig McGuire
In its largest predatory lending settlement to date, the Federal Trade Commission has reached an agreement with now-bankrupt First Alliance Mortgage Co. to return as much as $60 million to victimized borrowers … (Click Here to Read More)
GE Mortgage Could Force GSEs to Hold More Capital
By Craig McGuire
Government-sponsored enterprises Fannie Mae and Freddie Mac could be forced to hold more capital in reserve if one of the nation’s largest mortgage insurers intentionally has its ratings dropped to AA from AAA … (Click Here to Read More)
Little Capitol Hill Interest in GSE Disclosure Bill
By Craig McGuire
Rep. Christopher Shays [R, Conn.] conceded late yesterday that he has generated little support for a bill he and Rep. Edward Markey [D, Mass.] are co-sponsoring which would require government-sponsored enterprises Fannie Mae and Freddie Mac to publicly disclose more information, according to the Wall Street Journal … (Click Here to Read More)
GSEs Pass OFHEO Stress Tests; Opponents Not Impressed
By Craig McGuire
Government-sponsored enterprises Fannie Mae and Freddie Mac have enough capital in reserve to withstand a prolonged downturn in the housing market, or significant interest rate spikes. That’s according to the results of a trial stress test conducted by the GSE’s regulator, the Office of Federal Housing Enterprise Oversight … (Click Here to Read More)
Help Wanted: Lenders Staff Up at World Trade Center Job Expo
By Craig McGuire
Arms outstretched, a mass of people pressed forward to hand their resumes to two towering men staffing the Household Finance Corp. booth at today’s Twin Towers Job Expo at Madison Square Garden here… (Click Here to Read More)
Lenders Bracing as OCC Signs Off on HOEPA Reg Changes
By Craig McGuire
Mortgage lenders across the country are already adapting to a final rule amending Regulation Z of the Home Ownership and Equity Protection Act (HOEPA), though it is not required until October 1 … (Click Here to Read More)
Low Interest Rates to Drive Record Home Sales, Economists Say
By Craig McGuire
Expecting the Federal Reserve Board to continue nurturing economic recovery by keeping a lid on interest rates, many economists are ratcheting up their home sales projections … (Click Here to Read More)
HUD Secretary Preparing Major Announcement on Mortgage Reform, Sources Say
By Craig McGuire
Department of Housing and Urban Development Secretary Mel Martinez is preparing a major announcement on mortgage reform which he will deliver within 90 days, sources said … (Click Here to Read More)
Gulf Coast Lenders Brace for Hurricane Lili
By Craig McGuire
Despite Hurricane Lili and its 130-mile-per-hour winds heading straight for the Gulf Coast, lenders in Texas and Louisiana are coping with the interruptions in service … (Click Here to Read More)
Investors Want Lenders to Make Public More Data, More Often
By Craig McGuire
Investors in publicly traded lending companies are requesting they release more information, more frequently … (Click Here to Read More)
IRS to Use Automated Appraisals to Verify Home Equity Values
By Craig McGuire
The U.S. Internal Revenue Service announced today that it will begin using electronic appraisals to measure taxpayers’ home equity … (Click Here to Read More)
Midwest Lenders Tout Rising Loan Volume, Despite Dips in Housing Starts
By Craig McGuire
Despite the fact that the Midwest posted the largest drop-off in new housing starts for August, according to data released today, mortgage lenders in the region insist the numbers belie the region’s steady growth … (Click Here to Read More)
OFHEO Defends Budget Proposal After Senator’s Attack
By Craig McGuire
The Office of Federal Housing Enterprise Oversight (OFHEO) fired back an official response this morning to a ranking Republican senator who is pushing the Bush administration to shelve plans to remove the agency from the federal appropriations process … (Click Here to Read More)
Interest Building For One-Stop Financial Services, TowerGroup Finds
By Craig McGuire
Despite juggling an ever-increasing number of accounts and assets, consumers are still reluctant to embrace the concept of consolidating their finances under a single entity. Just because they have not signed on, though, does not mean they’re not interested … (Click Here to Read More)
Online Transactions Gaining Acceptance Slowly, Advocate Says
By Craig McGuire
While Wells Fargo & Co., touted its deal today to provide Internet payment-processing services to PayPal Inc., Lauren Weinstein, cofounder of the People For Internet Responsibility said consumers are still wary of many electronic bill payment services … (Click Here to Read More)
OTS Announces Restructuring Plan
By Craig McGuire
The Office of Thrift Supervision announced this morning it has launched a restructuring plan aimed at increasing operating efficiencies and consistency of regulation for the thrift industry … (Click Here to Read More)
FDIC’S List of “Problem” Banks Grows Despite Record Earnings
By Craig McGuire
While announcing record bank earnings today, Donald Powell, chairman of the Federal Deposit Insurance Corp. also said the agency added more banks to the FDIC’s problem list last quarter than during any previous quarter the past 11 years … (Click Here to Read More)
Rep. LaFalce Introduces RESPA Reform Legislation
By Craig McGuire
Rep. John J. LaFalce (D-NY) today introduced legislation into the U.S. House of Representatives aimed at simplifying the mortgage loan application process by amending the Real Estate Settlement Procedures Act (RESPA) … (Click Here to Read More)
Mortgage Insurers Leery of Rising Delinquencies
By Craig McGuire
Even after a banner 2001, private mortgage insurers are wary rising delinquencies may derail growth this year … (Click Here to Read More)
Sectorbase.com Launches Research Analytical Platform
By Craig McGuire
Investment professionals on both the buy-side and sell-side frustrated with the time they spend tracking down detailed specifics on industry sectors, may finally have a tool to significantly whittle down the time … (Click Here to Read More)
Overcoming the Long Shadow of September 11
By Craig McGuire
Rapidly eroding consumer confidence in the aftermath of the tragic Sept. 11 terrorist attacks staggered an already faltering U.S. economy. Bearing its share of the burden, the credit sector is facing potentially record levels of loan defaults and bankruptcy filings … (Click Here to Read More)
Subprime Borrowers To Blame For Delinquency Uptick
By Craig McGuire
Higher delinquency rates are being driven, in part, by lingering risks associated with years of lenders originating loans to too many borrowers with less-than-perfect credit. However, while economists say some lenders did not properly account for that risk in the past … (Click Here to Read More)
MGIC Reports Lower Earnings and Revises 4Q Forecast Downward
By Craig McGuire
Despite posting higher delinquencies and revising its fourth quarter projections downward, MGIC Investment Corp.’s third quarter earnings were not only received warmly on Wall Street, but propelled the company’s stock price upward 13% as of press time … (Click Here to Read More)
Photo Credit: By Olu Eletu (Courtesy of Unsplash)