Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Inside Washington (06/12/2012)
  • WASHINGTON (6/13/12)--The Consumer Financial Protection Bureau is reviewing the role of big banks in making discriminatory indirect auto loans, according to the American Banker (June 12). The investigation is based on a report released by the Center For Responsible Lending, which said auto dealers tend to mark up interest rates more for borrowers with weaker credit and rate markups are a strong driver of default and repossession among subprime borrowers. Loan-level data showed that African-Americans and Latinos disproportionately received interest rate markups more frequently and to a greater degree than similarly situated white counterparts.  Since the loans are originated by auto dealers, banks are not directly involved in the misconduct, according to both consumer advocates and attorneys representing banks. Auto dealers underwrite loans and sell them at a wholesale rate to banks. If borrowers pay more than the wholesale rate of interest, the dealer and the bank split the extra profit known as "dealer participation" or "dealer markups" …
  • WASHINGTON (6/13/12)--Two community banks are making bids on their own shares as part of the latest auction by the Treasury Department to sell off its stakes in seven banks that received funds during the financial crisis (American Banker June 12). First Defiance Financial in Defiance, Ohio, and First Capital Bancorp in Glen Allen, Va., announced Monday they would attempt to purchase their own shares. Industry observers said the banks are likely to submit discounted bids for their shares. In a similar auction conducted by the Treasury in March, MainSource retired $21 million of its $57 million of Troubled Asset Relief Program (TARP) funds for about $20 million. Also at that time, Wilshire Bancorp in Los Angeles retired $60 million of its $62 million of TARP funds for roughly $57 million. First Defiance said in its regulatory filing that it plans to redeem any stock it doesn't buy in the auction within the next 12 months. First Capital has no plans to redeem its stock, the Banker said …


RSS print
News Now LiveWire
.@CFPB today finalized changes 2 remittance rule, proposed in April. See rule here: http://t.co/tPs6Mlimni
1 hours ago
State OKs Floridacentral #creditunion's bank branch purchase #NewsNow http://t.co/37uXorWsmV
3 hours ago
Today is deadline to order your T-shirt for #MiracleJeansDay @CU4Kids @CMNHospitals http://t.co/UXIqW3cFN6
3 hours ago
#Creditunion #100MM on display with @NWCUA's Minickiello, Wash. Rep. Sharon Tomiko Santos at @NCSLorg @CUNAadvocacy http://t.co/xVwnS39uEM
4 hours ago
Fraudsters hit @jpmorgan with smash and grab #phishing campaign http://t.co/VEkAvctYLJ
4 hours ago