The Office of the Comptroller of the Currency (OCC) today reported the key issues facing the federal banking system in its Semiannual Risk Perspective for Spring 2024. The OCC reported that the overall condition of the federal banking system remains sound. However, the maturing economic cycle may cause consumer headwinds. It is important for banks to continue identifying material risks and their interconnected impacts.
“Buy now, pay later” services are popular among consumers and can help small businesses make more sales. Now, a recent rule issued by the Consumer Financial Protection Bureau offers more protections for consumers who use these services and, thus, more clarity for small businesses.
Traditional channels, chiefly through banks, have been tightening their lending activities, particularly to smaller firms, and that activity had been down double-digit percentages through the past several quarters. The areas impacted included term loans and new lines of credit.
The Consumer Financial Protection Bureau (CFPB) today ordered a reverse mortgage servicing operation to stop illegal activities that harmed older homeowners and caused them to fear losing their homes. The CFPB found that the customer service operation of Sutherland Global, its subsidiaries Sutherland Government Solutions and Sutherland Mortgage Services, and NOVAD Management Consulting had inadequate resources and staffing to handle as many as 150,000 borrowers.
For federally insured credit unions, assets and shares and deposits declined at the median over the year ending in the first quarter of 2024. At the same time, loans outstanding increased and delinquencies grew at the median, according to the latest Quarterly U.S. Map Review released today by the National Credit Union Administration.
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