The U.S. Department of Defense issued a final rule expanding the types of credit products that are covered by the 36% rate cap and other military-specific protections under the Military Lending Act. The Act provides servicemembers and their dependents with specific protections for their “consumer credit” transactions.
The number of credit card users using their cards as a transactional tool rather than as a form of debt has been rising this year. Furthermore, for the first time in more than a year credit card delinquencies headed south in 2014 by 16 basis points (bps) and remain well below their 15-year average of 3.82%. Only 2.44% of all credit card accounts were more than 30 days past due in the first three months of this year.
Global processing powerhouse First Data had a busy year with nine contract extensions, a new German contract, and expanded nine partnerships. FDC also introduced three new products: Clover Station, VisionPLUS Flex, and Go Daddy Payment Solutions, plus upgraded a number of existing products. FDC also acquired Perka and took 100% ownership of JV. The Company also had three CEO’s during 2013 and received two major awards. Annual revenues also increased slightly in 2013, after two level years.
Consumer delinquencies declined significantly in last year’s third quarter as the economy improved and consumers better managed their finances, according to results from the American Bankers Association’s Consumer Credit Delinquency Bulletin. The composite ratio, which tracks delinquencies in eight closed-end installment loan categories, fell 13 basis points to 1.63 percent of all accounts in the third quarter, a record low that’s well under the 15-year average of 2.35 percent. The ABA report defines a delinquency as a late payment that is 30 days or more overdue.
Fiserv announced that Cole Taylor Mortgage, a division of Chicago-based Cole Taylor Bank, has deployed its LoanServ platform to support its expanding loan servicing portfolio and further develop its full-service mortgage banking capabilities. Cole Taylor Mortgage is also rolling out LoanLink™, a consumer-facing self-service website for its borrowers provided by Fiserv. LoanServ automates all loan servicing processes, including integrated default management and collections, cashiering, escrow, and investor accounting for both closed-end and revolving loans. With the LoanServ solution, data transactions are available online in real-time to ease compliance risk and eliminate the limitations associated with an end-of-day batch processing cycle.
Fiserv announced that Gateway Mortgage Group, LLC has selected its LoanServ platform for the company’s mortgage servicing technology needs. Gateway will use LoanServ to enhance its customer experience and grow its home loan servicing portfolio through its retail and correspondent channels nationwide. Using LoanServ, Gateway will be able to perform the full range of mortgage servicing functions including escrow, payment processing, investor reporting and default management. Gateway executives anticipate that the selection of the Fiserv solution will help them increase employee productivity, improve operational efficiency, react more effectively to changes in modification programs such as HAMP and HARP, and streamline the default process with workflow automation that reduces errors and frees up resources for use elsewhere within the company.
HP and First Data electronic commerce and payment processing announced that HP Converged Infrastructure will be the foundation for First Data’s VisionPlus Flex solution, which enables financial institutions to cost-effectively process payment portfolios of up to 10 million accounts. VisionPLUS Flex enables financial institutions to issue and process credit, debit, commercial and prepaid cards, as well as to address closed-end loan account processing on a single platform. Through this collaboration, First Data is now delivering VisionPLUS Flex in an appliance delivery model. With VisionPLUS Flex appliances, financial institutions can also lower the total cost of ownership, offer the ability to process payments in country and transform organizations’ existing IT platforms to support growing enterprise demands.
Fiserv financial services technology announced its Common Origination Platform and LoanServ solutions have been integrated to provide real-time, full-circle loan boarding processes for all mortgage, lines of credit and installment loans. The integration improves efficiency for all users by sharing data points and eliminating potential errors caused by manual data entry. With an increasing number of financial institutions supporting both production and servicing operations, the integration of the Fiserv solutions provides a consolidated view of each customer as well as a single view of risk for their loan portfolios. The integration eliminates duplication within processes and the business management of the systems. With the LoanServ solution, data transactions are available online, in real-time so lenders don’t have to contend with the limitations associated with an end-of-day batch processing cycle.
BSI Financial Services (BSI) has selected the Fiserv “LoanServ” platform. BSI is replacing its previous banking system with LoanServ from Fiserv to automate many of its manual processes and provide enhanced default management capabilities and other services to its clients. Deploying “LoanServ” strengthens BSI business model and provides an advanced technology platform to support unprecedented growth. The “LoanServ” platform is available to help automate all loan servicing processes, including integrated default management and collections, cashiering, escrow and investor accounting for both closed-end and revolving loans.
Heartland Financial USA has implemented the Fiserv “LoanServ” online, real-time loan servicing solution. The “LoanServ” allows Heartland to optimize and automate most of its loan servicing operations and processes while pursuing its lending growth strategy. This development will help Heartland facilitate its increased loan service volume and complexity. The highly automated “LoanServ” platform offers default management and loss mitigation that are designed to streamline the management of assets and maximize loan performance.
Credit delinquencies hit in five of eleven loan categories drifted into unfavorable territory throughout 2Q/11. Bank card delinquencies were up 12 basis points to 3.40% of all accounts from 1Q/11 of 3.28%, well below the 15-year average of (3.95%) and the year ago figure of 3.88%. This comes at a time consumer bankruptcies jumped 4%…
Home Loan Investment Bank, a Fiserv client since 2004, is now using “LoanServ” from Fiserv to support its mortgage loan servicing operation thanks to its workflow capabilities, real-time functionality, the ability to fully integrate with account processing solutions from Fiserv. The “LoanServ” platform will ultimately give the bank the ability to manage its investor activities without having to wait for overnight data updates. This functionality will give the bank and its investors the ability to access data about portfolio position any time and immediately see the impact of every borrower transaction.