Affluent home buyers or investors who need or want more cash for other ventures are turning to interest-only jumbo mortgages. The advantage: the payments are lower for the initial interest-only period, which frees up cash for other projects.
Approval rates of small business loans at big banks hit a new index high of 17.6 percent in December, compared to 17.4 percent in November, according to the latest update of the Biz2Credit lending index. But alternative (non-bank) lenders continue to be a big player in small business lending.
The FTC said the dealers “falsely leading consumers to believe they could purchase vehicles for low prices, finance vehicles with low monthly payments, and/or make no upfront payment to lease vehicles.”
Congressman Mel Watt, the incoming director of the Federal Housing Finance Agency, the independent regulatory over Fannie and Freddie, has said he plans to delay the fee increases announced on Dec. 9 by the current FHFA director, Edward DeMarco. Such fee increases are typically passed on to borrowers in the form of higher interest rates.
Federal regulators have ordered American Express to refund an estimated $59.5 million to more than 335,000 consumers for “illegal credit card practices” and pay $9.6 million in civil penalties. The alleged practices included unfair billing tactics and deceptive marketing of credit card “add-on products” — such as payment protection and credit monitoring.
Ally Financial will pay $80 million in damages for markup policies on auto loans that have resulted in illegal discrimination against over 235,000 African-American, Hispanic, and Asian and Pacific Islander borrowers, federal officials said Friday.
Consumers who signed up for a credit card to pay for dental, cosmetic, vision, or veterinary care through CareCredit, a division of General Electric, were provided little warning or explanations about “deferred interest” penalties and fees tied to these loans, the Consumer Financial Protection Bureau said Tuesday.
Those so-called HELOCs are hitting their 10-year mark, at which time borrowers must start paying down the principal on interest-only loans taken out during the housing bubble buildup.
Big banks could lose from providing mostly-free deposit services if the Federal Reserve cuts interest rates it pays the banks. As a result, these institutions may charge customers for simply depositing their money with them.
How much of a fee and whether minorities are getting hit with bigger fees than other buyers is very much in debate — and an issue being closely examined by the U.S. Consumer Financial Protection Bureau.