One Year After Sandy, Businesses Still Searching for Normal
Fox Business
(10-28-13)

Community development lenders have provided capital to communities attempting to rebuild after being devastated by last year's Superstorm Sandy. The U.S. government has provided direct assistance to more than 230,000 people and small businesses in the form of FEMA and SBA grants and loans alongside employment efforts by the Department of Labor. The administration has announced more than $39.7 billion in funding for those affected by the storm; approximately a third of that money has already been paid out. “The recession continues to create tight credit situations for small businesses,” says Mark Pinsky, president and CEO of the Opportunity Finance Network, a nationwide network of community development lenders. Combined with difficulty in accessing government grants and loans, many in the region have reached out to community lenders. “It’s critical when dealing with distressed or stressed markets,” says Pinsky

Microcredit for Americans
New York Times
(10-28-13)

Since the financial crisis, microcredit has taken off in the United States, attracting thousands of clients who do not qualify for credit cards or traditional bank loans. “Families in rural Africa are more like U.S. families than everyone wants to believe,” said Jonathan J. Morduch, the executive director of the Financial Access Initiative at New York University. Microlending in general has boomed, more than tripling the number of borrowers from 2008 to 2011, according to data collected by the Aspen Institute and Grameen America. Grameen, a leader in the microfinance field, has 18,000 borrowers and has lent more than $100 million. Grameen says that its loan recipients have increased their incomes by an average of $2,500 during each six-month loan cycle and that one in five hires an additional worker. Successful microlending also establishes good credit scores. People with poor or no credit must leave large deposits for basic needs like utilities, have trouble renting decent housing, pay much higher interest rates and have a harder time finding jobs.

The Future Of Home Finance: Who Will Qualify?
Ranieri Partners Management
(10-25-13)

A policy brief from Ranieri Partners Management argues that new mortgage regulations from the Consumer Financial Protection Bureau will stifle minority lending and fail to address the core causes of the financial crisis: "If the vast majority of lenders, as we expect, choose to originate only Qualified Mortgage loans that fall clearly inside the prescribed safe harbor and avoid making the QM loans that carry a rebuttable presumption, the QM rule will prove to have the unintended consequence of denying lower and moderate income potential borrowers access... Despite thousands upon thousands of pages of legislation and regulations already written, access to second mortgages remains largely unaddressed. Currently, there is no regulatory restriction on the simultaneous or subsequent creation of a second lien on the same property." Among their recommendations are more robust homebuyer education, personalized financial advising for mortgage borrowers, giving the owner of the original mortgage power of approval over a second mortgage and higher standards for the rationale of second mortgage borrowing.

High-Class Pawnshops Fill a Lending Void
Wall Street Journal
(10-23-13)

Collateral lenders—essentially high-end pawnshops—are a small but fast-expanding industry. Since 2008, as commercial banks have cut lending to small businesses, such alternative lenders have helped fill the void. Unlike traditional storefront pawnshops, which typically lend $100 to $150 to people hawking gold and other goods to fill their gasoline tanks or pay rent, these new high-end pawnshops typically operate with an online presence and a corporate office. Borrowers mail their objects or stop in by appointment with big items such as classic cars. In some states, collateral lenders can charge interest rates exceeding 200% annually. In New York, collateral lenders can charge as much as 4% a month, for a total of 48% a year. Texas allows collateral lenders to charge 240% annually. By comparison, Texas has an 18% annual cap on commercial loans below $250,000. On the upside for borrowers, there isn't a credit check and little paperwork. Borro is the largest of this new breed of collateral lenders, having lent nearly $100 million since opening in 2009.

Black and Hispanic Borrowers Likely to Be Hurt By Qualified Mortgage Rule
American Banker
(10-22-13)

Black and Hispanic borrowers may find it more difficult to obtain credit or end up paying higher prices when the qualified mortgage rule goes fully into effect. The Consumer Financial Protection Bureau, whose new QM rule takes effect in January, has temporarily ensured that it will not impact minority borrowers by allowing any government-sponsored loan to be considered a qualified mortgage. Once that provision -- which could be extended for up to seven years -- expires, many minority borrowers will no longer qualify for QM status. A recent Federal Reserve Board report found that 22% of home-purchase borrowers in 2010, including 33% of blacks and 31% of Hispanics, would not meet the new QM standard. In its report, the Fed did not criticize the QM rule, noting other factors should help keep credit available to low-income and minority borrowers. Responding to concerns that following the QM rule would lead to fair lending violations, a joint statement of five financial regulators, including the Fed and CPFB, stated that banks would not face fair lending claims as long as they comply with the laws and are "acting on the basis of their legitimate business needs."

The Debt Collections Program Manager will research the Consumer Financial Protection Bureau’s strategy regarding the promotion and enforcement of fair debt collections practices in the consumer lending industry. The Manager will monitor current and emerging issues related to all aspects of the debt collections and debt buying industry, including its business models, infrastructure, relationships with credit originators and compliance with the Fair Debt Collections Practices Act. In addition, this position will collaborate with the supervision and enforcement teams to design and establish registration, data collection and examination procedures and protocols and to identify key initial areas for rules development.

 

Homewise - Multiple Positions (Santa Fe, N.M.)
Strategic Chief Financial Officer: Homewise, a non-profit housing organization whose mission is to help working New Mexican families become successful homeowners, seeks a Strategic Chief Financial Officer. A well suited candidate possesses a breadth of knowledge and ability to lead a progressive, innovative company specializing in real estate development, real estate lending, and real estate sales. Successful candidates will have a demonstrated proficiency in strategic, organizational and operational leadership and be able to identify issues and lead change in all three areas. The applicant must be able to expand and deepen our partnerships with third party investors and ensure organizational self-sufficiency.

Mortgage Loan Processor: Homewise seeks a Mortgage Loan Processor. This position requires gathering and analyzing a variety of loan documents in support of the loan approval decision. The Mortgage Loan Processor verifies the loan application is complete and meets established standards. Duties include ordering verification and follow-up related to those findings. The position requires the ability to manage a lending pipeline working toward a clear-to-close status of each loan in a timely manner. Successful applicants will be able to work independently, be highly organized, maintain strict attention to detail and be able to communicate effectively with team members.