CFBP Issues Advice on Special Purpose Credit Programs

first_img The Consumer Financial Protection Bureau (CPFB) issued an advisory opinion related to perceived regulatory uncertainties tied to Regulation B, which implements the Equal Credit Opportunity Act (ECOA) as it applies to certain aspects of special-purpose credit programs (SPCPs).The ECOA and Regulation B are designed to prevent discrimination on certain prohibited bases in any aspect of a credit transaction. However, both policies it is not discriminatory when for-profit organizations provide SPCPs designed to meet special social needs.As the current law stands, the CFPB does not determine if specific programs qualify for special purpose credit status, giving the onus to the creditor offering the SPCP to determine the status of its program. Under Regulation B, creditors are offered general guidance for developing SPCPs that are compliant with ECOA.The new advisory opinion, which was issued after stakeholder feedback from a recent CFPB Request for Information on the ECOA and Regulation B, seeks input on clarifying the content on when a for-profit organization must include in a written plan that establishes and administers a SPCP under Regulation B. The advisory opinion also clarifies the type of research and data that can be used to support a for-profit organization’s argument that a SPCP would benefit a certain class of people.“The Bureau is issuing this AO to address this regulatory uncertainty in the hope that broader creation of special purpose credit programs by creditors will help expand access to credit among disadvantaged groups and will better address special social needs that exist today,” said the advisory opinion. “Bureau stakeholders have called attention to the problem of unmet credit needs among minority communities and the role that discrimination may have played in creating and exacerbating those deficits. Research from the Federal Reserve Bank of New York has shown that inequities in credit availability and in the terms and conditions of credit appear to have led to income inequality.“For consumers who own a home, moreover, home equity represents a significant share of household net worth, 15 but Home Mortgage Disclosure Act (HMDA) data show that in 2019, Black, Hispanic White, and Asian borrowers had notably higher mortgage loan denial rates than non-Hispanic White borrowers, continuing a trend from years prior,” the advisory opinion added. “For example, the denial rates for conventional home-purchase loans were 16% for Black borrowers, 10.8% for Hispanic White borrowers, and 8.6% for Asian borrowers; in contrast, denial rates for such loans were 6.1% for non-Hispanic White borrowers …White borrowers were also more likely to have higher-priced conventional and non-conventional loans in 2019.”“The CFPB is committed to creating real and sustainable changes in our financial system so that all consumers have equal opportunities to build wealth and close the economic divide,” said CFPB Director Kathleen L. Kraninger. “Today’s advisory opinion is our first action since we issued a Request for Information on the Equal Credit Opportunity Act and sought public views on the topic. This action is an important step toward clarifying the regulations and ensuring that traditionally economically disadvantaged groups and communities have equitable access to credit.” Demand Propels Home Prices Upward 1 day ago CFPB 2020-12-22 Christina Hughes Babb in Daily Dose, Featured, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Share Save Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / CFBP Issues Advice on Special Purpose Credit Programs Data Provider Black Knight to Acquire Top of Mind 1 day ago Sign up for DS News Daily  Print This Post CFBP Issues Advice on Special Purpose Credit Programs Demand Propels Home Prices Upward 1 day ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago December 22, 2020 1,613 Views About Author: Phil Hall Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 1 day ago The Best Markets For Residential Property Investors 2 days ago Tagged with: CFPB Phil Hall is a former United Nations-based reporter for Fairchild Broadcast News, the author of nine books, the host of the award-winning SoundCloud podcast “The Online Movie Show,” co-host of the award-winning WAPJ-FM talk show “Nutmeg Chatter” and a writer with credits in The New York Times, New York Daily News, Hartford Courant, Wired, The Hill’s Congress Blog and Profit Confidential. His real estate finance writing has been published in the ABA Banking Journal, Secondary Marketing Executive, Servicing Management, MortgageOrb, Progress in Lending, National Mortgage Professional, Mortgage Professional America, Canadian Mortgage Professional, Mortgage Professional News, Mortgage Broker News and HousingWire. Previous: ‘Troubling Trends’ Could Result in Increased Forbearance Activity Next: The Trends Homeowners and Buyers Can Expect Next Year The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribelast_img read more

The Disney approach

first_img Having a great product is no longer enough. Today’s consumers want to have an emotional connection with the companies they patronize, says Jeff James, vice president/general manager of Disney Institute.“Disney has been doing that for decades,” says James, who addressed the America’s Credit Union Conference Wednesday at the Walt Disney World Resort® in Florida. “It’s where you can differentiate. Customers are placing a higher value on the experience of using a product than the product itself.“In your world, the auto loan is just a widget,” he continues. “Your members will focus more on how you make the loan than they loan itself.”The challenge is that companies are competing with the best experience a consumer has had with any company, regardless of product or service, James says. continue reading » ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrcenter_img Jeff James at ACUC 2019last_img read more


first_imgDONEGAL ASSOCIATION DUBLIN – NOTICE OF UPCOMING EVENTSAnnouncement of 2012 Donegal Person of the Year:The Donegal Association’s first event of 2013 will take place on Monday 21st January, when the 2012 Donegal Person of the Year will be announced. This exciting event will take place in the prestigious Mansion House, Dawson Street, Dublin at 7.30pm. The excitement is now starting to build as we approach this date and we hope that you will be able to join us for this very special event. Everyone is welcome! Annual Gala Ball:The Donegal Association Dublin will hold their Annual Gala Ball on Saturday 23rd February in the Regency Hotel, Drumcondra, Dublin 9. This promises to be a very special event when the Donegal Person of the Year for 2012 will be honoured and presented with their award. Tickets are limited so please contact the Secretary at 0868077965 or Public Relations Officer at 0872439317 to reserve your tickets now. NEWS FROM DUBLIN – DONEGAL ASSOCIATION NOTES was last modified: January 10th, 2013 by StephenShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window) Tags:Donegal Association Dublinlast_img read more

Aid agency to launch in South Africa

first_imgMore than a quarter of the neighboringcountry of Swaziland’s population relieson food aid.(Image: IRIN)MEDIA CONTACTS • Ben ParkerDirector, Irin News+254 733 860082Source: Irin NewsSouth Africa will launch its own development aid agency in 2011 in a move likely to boost the country’s status as an emerging economic power and champion of the African continent.The South African Development Partnership Agency is expected to become operational before mid-2011 and will work with other donor agencies to coordinate development programmes, mainly on the continent.Although the government is hoping for contributions from the private sector, most of the funding will come from public money, said Dr Ayanda Ntsaluba, director-general of the Department of International Relations and Cooperation.“South Africa is in a unique position – we’re recipients of development assistance, and we’re anxious that that status be preserved. At the same time … we’re in the African continent and in that context we occupy a relatively privileged position,” he told Irin.Post-conflict reconstructionSince 2001 the South African government has channelled its aid contributions through the African Renaissance Fund (ARF), which is administered by the department. Much of the assistance provided by the ARF has focused on conflict resolution and peacekeeping in various countries including Mali, Zimbabwe, Burundi and the Democratic Republic of Congo.“What became clear as we moved on is that we need to look beyond conflict resolution into largely post-conflict reconstruction, and that begins to involve many other departments and arms of state,” Ntsaluba said.Although the mandate for the new agency was still in draft form, he said South Africa would continue providing assistance to countries recovering from conflict.The Democratic Alliance, South Africa’s opposition party, has criticised the ARF for supporting “rogue” states and failing to monitor how its funding was being spent.Ntsaluba responded that countries emerging from conflict often required the most assistance. “There will still be residual elements in those countries that triggered the conflict in the first place, but if we waited until it was all perfect then we’d be of no use to those countries.”He conceded that the tracking of ARF funds had not been optimal, partly because the responsibility for administering projects had been spread across several departments. The new agency would be set up as a separate institution, with the administrative capacity to track and oversee all the programmes it funded.Not just altruismIvor Jenkins, co-director of the non-profit South African-based Institute for Democracy in Africa, said his organisation had been lobbying for the creation of an aid agency, so as to provide a more appropriate framework for South Africa’s current ad hoc interventions on the continent.“We think it is long needed and required for South Africa because we are the biggest economic bloc on the continent and we have started to do quite a bit of aid support to different countries,” he said.Jenkins added that it was important for South Africa to start to have a sense of responsibility, and to give as well as receive. Besides its humanitarian agenda, the agency would likely also serve as an expression of South Africa’s foreign policy agenda.Ntsaluba confirmed that the decision to set up an aid agency was “not only a reflection of altruistic motives, but of how to advance South Africa’s own interests”.South Africa was recently invited to join the BRIC (Brazil, Russia, India, China) group of major emerging markets. Jonathan Glennie, a research fellow of the Centre for Aid and Public Expenditure at the UK-based Overseas Development Institute, commented that other developing countries, such as India, China and Brazil, seeking to raise their international profile and strengthen political and trade ties, had also set up aid agencies in recent years.“Aid is not just about reducing poverty, it’s a very strategic investment,” he said. “To become a big player, you need your own aid programme.”Ntsaluba said the government had consulted a number of Western development agencies on the best approach to managing aid programmes.Glennie noted that the South African government could pre-empt concerns about corruption and mismanagement of funding on the African continent by creating “the most transparent aid agency in history”. read more

Bullish reaction on corn and soybeans

first_imgShare Facebook Twitter Google + LinkedIn Pinterest USDA put the corn yield at 171.8 bushels per acre, up from last month’s 169.9. Yet, corn is not falling apart. It is 2 cents higher shortly after the report. Before the report corn was down 3 cents. USDA lowered the soybean yield to 49.5, last month it was 49.9. The corn and wheat ending stocks were higher than expected. Soybean ending stocks were lowered to 430 million bushels, last month it was 475 million bushels. Soybean ending stocks less than expected looks to be the driving force for higher soybean and corn prices shortly after the report.It is also most surprising to see corn rally with the 171.8 bushel yield. We could see the funds short position in jeopardy with the price action in the first 15 minutes.Headed into this report this is much fear of seeing a bearish yield report with yields climbing even more than what USDA has estimated for corn and soybeans. At the same time there is much hope that USDA finally realizes they have yields too high. October is typically the month when actual harvested yields begin to flow into USDA calculations. That could be somewhat difficult as harvest for both corn and soybean is behind normal. Earlier this week USDA put the US corn harvest at 22% while the 5-year average is 37%. The trade was looking for 25-30% completed. The US soybean harvest was at 36% while the 5-year average was 43%. The trade was looking for 35-40% completed.Traders will be watching three numbers in the US corn and soybean supply and demand tables: yields, exports, and ending stocks. There continues to be much talk that the US corn exports will drop below those of last year. That is no surprise with all of the corn flowing out of Brazil and Argentina. Last year the US exported 2.295 billion bushels of corn. USDA currently has new crop 2018-2018 corn exports at 1.85 billion bushels. Some think they corn exports could eventually drop to just 1.65 billion bushels. US soybean exports are currently projected at 2.250 billion bushels. Last year the US exported 2.17 billion bushels of soybeans. Others look for harvested acres of soybeans to increase while seeing harvested acres of corn decline.Last month USDA put the US corn yield at 169.9 bpa and the US soybean yield at 49.9 bpa. Trade estimates for this month’s report are a touch higher. The average trade estimate for the corn yield is 170.1 bushels per acres with the average estimate for soybeans at 50 bushels per acre.Producers across Ohio and the Midwest are hoping this USDA monthly report will turn the tide of the past several months of seeing bearish reports for corn and soybeans. Many have been concentrating this harvest to date to get soybeans off. Corn moisture did decline earlier this month, helped significantly with those 3-5 days of 90 degree temperatures. It is no surprise that recent rains this week have pushed moisture levels higher. There has been much frustration in harvesting soybeans with moisture levels often between 9-12%. Yet, those same soybeans have often seen lots of green stems which means slow travel for harvesting, difficulty in seeing soybeans feed into the header, and in even some rare cases of having to cut soybeans in one direction. That combination makes for lots of frustration and angst.Daily ranges for corn and soybeans have been extremely narrow this past week. We have seen several days for the corn daily range to be 3 cents or less. Soybeans even had one day where the daily range was a minuscule 4 cents. Ranges like this for soybeans are extremely rare. Others have commented that the range from for corn and soybeans so far the entire calendar year of 2017 are the narrowest of the past ten years. Many producers across Ohio have seen 3-4 inches of rain since last Friday. It has given them time to catch up on paperwork and do any maintenance needed on combines and grain trucks.The weather break has been significant this past week. It has certainly slowed basis declines seen during harvest. The low point of corn and soybean basis levels should take place in the next ten days.The break also allows producers time to sock away bushels without the next grain truck to unload staring them in the face. This gives elevators fits as one day you think there is a huge amount of inbound bushels yet to arrive, but two days later the truck line is zero.Bottom line, don’t be discouraged. Prices will indeed rally when all the news says the bottom has yet to fall out.last_img read more

North Peace Secondary School open for Thursday

first_imgNPSS was closed on Tuesday and Wednesday due to a burst pipe that had caused damage to an electrical unit in the building.For more updates and information, you can visit the School District’s website at FORT ST. JOHN, B.C. – School District 60 has announced that North Peace Secondary School will be open again on Thursday, February 14.Dave Sloan, School District 60 Superintendent, says they have a contingency plan to resume instruction at the School, which includes running a generator.“We have a contingency plan to resume instruction. The building is being powered by a diesel generator. We still have on-going repairs to the building’s main transformer to be completed.”last_img read more

Man held with pistol, 4 live rounds at Saket metro

first_imgNew Delhi: A 45-year-old man was apprehended at a Delhi Metro station for allegedly carrying a country-made pistol in his bag along with four live rounds, officials said on Tuesday.CISF personnel apprehended Munim Alisa Azad, a resident of Nangla, Distt- Mathura, Uttar Pradesh, at the Saket Metro station at 8:50 pm , “who observed a suspicious person lying along-with a bag in front of lift near gate no 2 (unpaid area) of Saket metro station,” official said. Also Read – After eight years, businessman arrested for kidnap & murderOver suspicion, a search was carried out of the said person and his belonging. On checking, a country-made pistol and four live rounds were recovered from his bag. The man was handed over to the local police by the CISF personnel for further investigation, official added. “He was trying to hide his bag. Over suspicion, a search was carried out of the said person and his belongings. On checking, a country made pistol (Desi Katta) and four (04) live rounds were recovered from his bag. The matter was informed to the Senior Officers of CISF and Station Controller. Delhi Metro Rail Police (DMRP) was also informed. Carrying arms and ammunition in the Delhi Metro is banned by law.last_img read more

ED files supplementary chargesheet against former Haryana CM, names immovable assets

first_imgNew Delhi: The Enforcement Directorate (ED) filed a supplementary chargesheet against former Haryana chief minister O P Chautala in connection with a money-laundering case on Thursday.The agency mentioned in the chargesheet that immovable assets worth Rs 3.68 crore were attached by it on April 13 in relation to four properties in Delhi, Panchkula and Sirsa. It said the investigation conducted so far under the Prevention of Money Laundering Act (PMLA) had revealed that Chautala laundered the disproportionate assets by depositing illegal cash in the bank accounts of his and his family members. The ED said this was done to avoid the back trail of money, merge the illegal cash with genuine income and show it as untainted. This laundered money was further used to purchase new properties or carry out construction on the already acquired properties. The chargesheet was filed before special judge Kamini Lau, who posted the matter for consideration on May 16. Referring to Chautala’s affidavits filed before the 2005 and 2009 Haryana Assembly polls, the agency said he had disclosed his assets to publicly project the tainted properties as untainted. “During the period between May 24, 1993 and May 5, 2006, O P Chautala, while functioning as a public servant (the CM of Haryana), allegedly acquired assets disproportionate to his income to the tune of Rs 6,09,79,026. The value of the disproportionate assets acquired by O P Chautala is in the form of various movable and immovable properties which constitutes ‘proceeds of crime’ in this case. “The calculation of these accumulated disproportionate assets of Chautala was based on oral and documentary evidence collected by the CBI during investigation and included all sources of income and expenses. Chautala had invested these disproportionately acquired assets mainly in the following properties…,” the chargesheet said.last_img read more

2 Russian spies sentenced in Montenegro in Coup attempt

first_imgPodgorica (Montenegro): A Montenegro court on Thursday sentenced 13 people, including two Russian secret service operatives, to up to 15 years in prison after they were convicted of plotting to overthrow the Balkan country’s government and prevent it from joining NATO. Chief judge Suzana Mugosa said the two Russians, identified as Eduard Shishmakov and Vladimir Popov, were convicted of “attempted terrorism” and “creating a criminal organisation.” The two were tried in absentia. Shishmakov received a 15-year prison term while Popov got 12 years. Two leading ethnic Serb opposition politicians, Andrija Mandic and Milan Knezevic, were sentenced to five years each. The verdict said the group planned to take over parliament on election day on October 16, 2016, assassinate then-Prime Minister Milo Djukanovic and install a pro-Russia, anti-NATO leadership. Montenegro joined NATO in June 2017 as the Western military alliance’s 29th member despite strong opposition from Moscow, which considers the small Adriatic country a historic Slavic ally and is opposed to NATO’s enlargement. The Kremlin has repeatedly denied involvement in the coup attempt. Montenegro’s police thwarted the action after receiving tips from Western spy organizations, authorities said. The Russian pair, said to be members of the Russian military secret service agency GRU, coordinated the attempted coup from neighbouring Serbia, the verdict said. They were allowed by Serbia’s pro-Russia authorities to leave for Moscow despite reports that they operated with sophisticated spy equipment. The judge said that the Russians provided at least 200,000 euros for the purchase of rifles and guns. She said two tried to recruit “as many people as possible to come to the protest” and try to “change the electoral will” and “prevent Montenegro from joining NATO.”last_img read more

‘Economic growth, high disposable income to aid banks’ deposit mobilisation’

first_imgMumbai: Accelerating the rate of growth of the economy and disposable incomes holds the key to higher deposit mobilisation by the banking system, says an RBI paper. The slowdown in bank deposit growth in the recent period alongside a revival of credit demand raised concerns about a structural liquidity gap in the system, possibly amplified by substitution effects of small savings and mutual funds on bank deposits in the aftermath of demonetisation, as per an article published in the latest monthly bulletin of the RBI. Also Read – Commercial vehicle sales to remain subdued in current fiscal: IcraTo address the issue of structural liquidity gap, the Reserve Bank of India (RBI) in recent months took several initiatives including Open Market Operations and dollar rupee swap auction. The article highlighted that the widening wedge between credit and deposit growth is triggering concerns about a structural liquidity gap in the system, which can throw sand in the wheels of the financial intermediation process through which deposits are converted into productive investments by way of lending, thereby greasing the wheels of the economy. Also Read – Ashok Leyland stock tanks over 5 pc as co plans to suspend production for up to 15 days”Outstanding deposits of scheduled commercial banks (SCBs) at Rs 1,25,726 billion as on March 31, 2019 accounted for 128.7 per cent of outstanding bank credit (lower than 132.5 per cent a year ago), reflecting the tightening of financial conditions on account of low deposit growth,” it said. Noting that the bank deposits remain an important part of the financial savings of households and key to the financing of bank lending, it said deposit growth is picking up in recent months in a cyclical upturn since December 2018, which is overwhelming a trend slowdown that has been underway since October 2009. “The latter warrants policy consideration since deposit mobilisation is fundamental to India’s bankbased system of financial intermediation. Empirical evidence puts forward several interesting facts about the behaviour of bank deposits,” it said. First, it underscores the income as its most important determinant, both in the short-and in the long-run, it said. It further noted that interest rate matters for deposit mobilisation but only at the margin and financial inclusion has a boosting effect on deposit mobilisation over the long-run suggesting expansion of bank branches in unbanked areas. Besides, substitution effects associated with Sensex returns for deposit growth are limited to the short-run, warranting a careful appraisal of regulatory reforms and tax arbitrage, even as efforts need to be intensified to make both more market determined. “In the final analysis, therefore, accelerating the rate of growth of the economy and disposable incomes holds the key to higher deposit mobilisation by the banking system,” it said. The RBI in a disclaimer said that views are of authors and do not represents the views of the central bank.last_img read more