Originations of commercial and multifamily loans were up in the first quarter on a year-over-year basis, a Mortgage Bankers Association survey finds. Multifamily origination growth helped offset declines in health care and retail loans, which were down 39% and 27%, respectively.
The S&P 500 bank index beat earnings estimates in the first quarter, and the earnings growth consensus from Wall Street for 2018 has risen, but investors looking for another surge might not find one this year. Banks have seen increases in trading revenue and net interest margins, but loan growth has been weak.
Loretta Mester, president of the Federal Reserve Bank of Cleveland, wants to see US banks tested in the next downturn before capital requirements are eased. It would be a mistake to unwind the requirements before seeing how they perform through an entire business cycle, she said.
The Consumer Financial Protection Bureau's updates to small-dollar loan requirements were not upended by Congress, which had 60 days from the rule's publishing date to act. The bureau's updates include limiting the number of loans that can be made back to back and making lenders ensure that borrowers can afford the loans.
Cryptocurrency firms Coinbase and ivyKoin reportedly have met with US regulators to discuss the requirements for bank licenses, among other things. A license could give Coinbase the ability to offer its own custody services without maintaining insured deposits.
Comments made by Consumer Financial Protection Bureau acting Director Mick Mulvaney about a qualified-mortgage rule have prompted speculation the standard for digital lenders will be different from the one for banks and credit unions. Mulvaney has hinted the bureau might not use a one-size-fits-all model.
Senate Majority Leader Mitch McConnell, R-Ky., has filed a motion to end debate on the nomination of Jelena McWilliams as chairwoman of the Federal Deposit Insurance Corp. A full Senate vote is expected next week, and McWilliams, a former lawyer at Fifth Third Bank, is expected to be confirmed.
Watermark Bank has filed an application with the Federal Deposit Insurance Corp. to open in Oklahoma City. The bank would be the first independent one to launch in the city in a decade.
The CEO of Early Warning Services, which created payment network Zelle, plans to step down next year. Paul Finch says he will focus on the Finch Family Foundation, a Phoenix nonprofit.
The increase in credit card reward expenses and a rise in loan losses have put a damper on credit card issuer returns, with competition forcing issuers to offer lower rates.