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Wells Fargo pays $1 billion to settle investigations of auto loans, mortgages

“Wells Fargo has a terrible track record of harming consumers and deserves every punishment they have received and more,” said Rep” writes Matt Rourke Associated for washingtonexaminer.com. Wells Fargo, the lender grappling with fallout over millions of phony accounts and government restrictions on its growth, agreed to pay $1 billion in civil penalties to settle investigations of its automotive- and mortgage-lending practices.While berating Mulvaney for “working to undermine the consumer bureau from the inside,” she argued that fines are insufficient to address Wells Fargo’s improprieties. Source: washingtonexaminer.com Share This:

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Truck craze, tech stretch purse strings, auto loans

“Fiat Chrysler Automobiles NV’s Ram truck brand had the longest average auto loan terms in the auto industry last year, at 73 months, according to Experian” writes Gabrielle Coppola for autonews.com. Photo credit: BLOOMBERG Fiat Chrysler Automobiles NV’s Ram truck brand had the longest average auto loan terms in the auto industry last year, at 73 months, according to Experian.Much of the remainder was handled by banks and credit unions that tend to offer longer loan terms, she said. Source: autonews.com Share This:

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General Electric has set aside $1.5 billion to cover potential fines in a Justice Department probe of high-risk mortgages handled by its lending business before the 2008 financial crisis.

“General Electric has set aside $1.5 billion to cover potential fines in a Justice Department probe of high-risk mortgages handled by its lending business before the 2008 financial crisis” writes John Minchillo Associated for washingtonexaminer.com. GE completed the sale of WMC in December 2007, a transaction it said at the time was prompted by “pressures in the U.S. subprime mortgage industry.”. The Boston-based company learned that investigators were looking into GE Capital and its WMC subsidiary in December 2015, and Justice subsequently served the company with subpoenas.Such securities, which enabled…

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‘The System Is Totally Unjust’ – What People Really Feel About Their Student Debt

“And for those who started university from 2012 onwards, the impact of their student loans this week got a bit greater “ writes unknown author for huffingtonpost.com. She is paying her student loan off now, but her debt is bigger than when finished the course – something that she says is “frustrating”, although she has no regrets.It is frustrating that nothing’s being paid off and I’m just paying interest,” she says. “[The debt] grows every month because of the interest. Source: huffingtonpost.com Share This:

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JPMorgan Chase is bringing its branch network to Washington, hiring as many as 700 new employees under a $20 billion investment program powered by deep Republican tax cuts for U.S. corporations.

“JPMorgan plans to open as many as 70 branches, some before the end of this year, Thasunda Duckett, head of the bank’s consumer business, said in an interview” writes Ap Photo Mark for washingtonexaminer.com. The lender is more than doubling a $10 million philanthropic investment and expanding affordable-housing loans to $500 million over five years to support communities such as D.C.’s Wards 7 and 8.JPMorgan Chase is bringing its branch network to Washington, hiring as many as 700 new employees under a $20 billion investment program powered by deep Republican…

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Credit experts in Canada warn of creeping negative equity

“Rising negative equity will likely keep some buyers out of the market for a new vehicle, instead pushing them into the used market” writes John Irwin for autonews.com. Because the average term now exceeds 72 months, these consumers are breaking their loans before they have eliminated negative equity and begun accumulating positive equity.” Fabian said rising negative equity rates could have an impact in other areas.Dark clouds appear to be gathering over the credit landscape in Canada, and the forecast is beginning to look like pain.He said investigations into reports…

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Surge in risky loans leaves global economy vulnerable to rate hikes, IMF warns

“Low interest rates and surging economic growth have stoked a boom in risky lending which could turn sour as interest rates rise, potentially derailing global growth” writes Tim Wallace for telegraph.co.uk. Even low-quality borrowers are able to issue bonds at very low interest rates, the International Monetary Fund said, leading to a spike in poorly-rated bond issuance.Loans to heavily indebted or even junk-grade borrowers have also shot up – $788bn (£554bn) of so-called leveraged loans were issued last year, smashing through the pre-crisis record of $762bn in 2007. The amount…

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How fintech lenders give mortgage borrowers an edge

“Fintech lenders are far from the only ones who are investing in online platforms and working to digitize the mortgage process” writes Jacob Passy for marketwatch.com. This is especially true for minority mortgage applicants.And for buyers who will rely on a mortgage to finance a home purchase, an online lender could provide them with that advantage.The researchers attributed this in large part to the underwriting standards imposed by Freddie Mac FMCC, -2.07%   and Fannie Mae FNMA, -1.63%   that guide the algorithms used to automate the mortgage process.In short,…

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Goldman Sachs buys personal finance start-up Clarity Money

“NEW YORK (Reuters) – Goldman Sachs Group Inc bought Clarity Money, a personal finance startup, to bolster its Marcus online lending business, it said Sunday” writes Midwest Communications Inc for 95kqds.com. Buying Clarity Money, a free app that helps consumers manage their personal finances, is expected to add over 1 million customers to the financial service firm’s Marcus business. Source: 95kqds.com Share This:

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Banker asked about U.S. Army post before making Manafort loan: lawmakers

“Lawmakers disclosed the inquiry as part of an ongoing probe into loans from Chicago-based Federal Savings Bank to Paul Manafort in the weeks after Donald Trump’s election victory in November 2016” writes Midwest Communications Inc for 95kqds.com. Federal Savings has been under scrutiny by Mueller and the subject of subpoenas from federal prosecutors in New York and the Manhattan District Attorney, according to people familiar with the matter.Federal Savings said in a statement that media reports implying Manafort received the loans in exchange for the promise of a position were…

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