Banks will have to hit a higher mark during their 2014 stress tests now that the Fed is increasing passage requirements. Under the new guidelines, the Fed will use its own numbers to determine if a bank is well capitalized.
The Federal Reserve Board revealed its final policy statement describing the processes it will use to develop scenarios for future capital planning and stress testing exercises, helping provide guidance for banks.
The mega banks have spent the past few years working on their living wills and capital requirements to ensure a smooth transition in the wake of a future financial crisis, but not every bank is receiving passing scores from the Fed.
Melvin Luther Watt quietly slid into his office as the first appointed director of the Federal Housing Finance Agency. It was the end of last year, in mid-December. Christmas was coming and the markets were in the middle of the harshest winter in years. As he took over the office of Acting Director Ed DeMarco — himself the unassuming lightning rod for the nation’s housing policy — Watt gave no indication of what he intended to do with his new position; arguably the most powerful job in mortgage finance..
Crowdfunding has swept through large verticals of consumer finance, including student loans and credit card debt. And so, naturally, in a market of rising property values, the real estate market is the latest frontier for crowd-based financing. Read More
Like oxygen, warehouse lending is one of the mortgage industry’s essential life-supporting elements. And fortunately, the warehouse segment is in much better health today than it was six years ago, as we are back up to around 70 warehouse lenders at my last count. Read More