Closing Complex Loans Faster With a Digitized Client Workflow

Join us for a discussion on changes in market demographics, suppliers and how focusing on customer experience and a few simple steps during the mortgage loan process can close deals 3x faster.

engage.marketing event: All eyes on purchase

To help power your business forward, we’re bringing together the smartest minds in purchase mortgage marketing to share the insights, tactics and strategies that set leaders apart.

Home appraisal’s ugly history and uncertain future

This is Part I of a deep dive into the home appraisal industry. Today we explore the origins of the appraisal industry and its current lack of diversity.

The digital journey starts at acquisition

Download this white paper to learn how to build a tech-enabled acquisition strategy that will directly contribute to a lender’s ability to maximize profitability and remain competitive.

Politics & MoneyMortgage

Fed rejects capital plans of Ally Financial, BB&T Corp.

The Federal Reserve rejected capital plans submitted for review by Ally Financial Inc. and BB&T Corp. on Thursday.

The banks plans were shot down after the Fed finalized its review of the firms’ capital planning processes and reserves.

At the same time, the Fed accepted the capital plans of 14 banks and provisionally accepted plans from Goldman Sachs (GS) and JPMorgan Chase (JPM), while requiring the two banks to revise their existing plans and re-submit them by the end of the third quarter to address underlying weaknesses.

Ally Financial, a bank that focuses primarily on auto lending after distancing itself from mortgages, objected to the Fed’s decision and asked for more transparency in the capital review and analysis process. 

“Ally Financial continues to disagree with the Federal Reserve’s analysis of Ally’s capital adequacy in a stressed scenario,” the bank said in a statement. “Ally seeks additional transparency into the Federal Reserve’s assumptions and modeled results.”

The bank objected to the results, saying the Fed assumes loss rates for Ally’s commercial and industrial loans in a manner that is “more than seven times the losses experienced during the peak of the last recession.”

It’s also three times the loss rate assumptions used in the Fed’s capital plan analysis a year earlier, Ally claims.

“Regardless of the CCAR results, Ally continues to have strong capital levels and ample liquidity to support its automotive finance operations,” the bank concluded in a statement. 

BB&T also defended its capital strength saying, “based on the quantitative results of the stress test, BB&T does not believe these objections are related to the company’s capital strength, earnings power or financial condition.”

The Federal Reserve evaluated all of the banks capital plans to ensure the institutions can lend to households and businesses while simultaneously meeting other financial obligations.

The Fed accepted capital plans submitted by the following firms: American Express Co. (AXP); Bank of America (BAC); The Bank of New York Mellon Corporation (BK); Capital One Financial Corporation (COF); Citigroup, Inc. (C); Fifth Third Bancorp (FITB); KeyCorp (KEY); Morgan Stanley; The PNC Financial Services Group, Inc. (PNC); Regions Financial Corporation ; SunTrust Banks, Inc. (STI); U.S. Bancorp (USB); and Wells Fargo & Company (WFC).

Click here to read more.

Most Popular Articles

Fannie Mae, and the housing market’s inflation problem

Another month of steadily increasing home prices and insatiable demand led Fannie Mae’s Economic and Strategic Research Group to alter many of its 2021 predictions – in particular, its outlook on the symbiotic relationship between the housing market and inflation measures.

Jun 16, 2021 By

Latest Articles

Doug Duncan and the housing market’s supply conundrum

The housing market has suffered due to high material prices, spend-anything buyers & a lack of supply. A return to normalcy will require big changes. HW+ Premium Content

Jun 18, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please