Mortgage loan delinquency (ratio of borrowers 60 or more days past due) increased for the fifth straight quarter, hitting a national average high of 3.23% for the first three months of 2008. This statistic is up almost 8% over the previous quarter’s 2.99% average, and is a staggering 61.5% higher than 1Q/07. TransUnion says the national 60-day mortgage delinquency rate among mortgage borrowers is expected to continue to rise throughout 2008 to just over 4% by year end. Mortgage borrower delinquency rates in the first quarter were highest in Nevada, followed closely by Florida, while the lowest mortgage delinquency rates were found in North Dakota, Wyoming and South Dakota. The source of the underlying data used for this analysis is TransUnion’s “Trend Data,” a one-of-a-kind database consisting of 27 million anonymous consumer records randomly sampled every quarter from TransUnion’s national consumer credit database.
ClearCommerce has selected VA-based Certicom’s “Security Builder Secure Sockets” layer solution for card-not present payment processing. Security Builder SSL offers a single application program interface (API) for 30 platforms and is optimized for a variety of environments including mobile devices and applications. It is also part of the Certicom Security Architecture, a comprehensive, cross-platform solution designed to allow developers to quickly and cost-effectively embed security into applications and across multiple families and generations of devices. Security Builder SSL is optimized to provide secure communications between popular browsers on handhelds and mission-critical applications such as e-mail, e-commerce, instant messaging and virtual private network (VPN) connectivity. Certicom manages and protects the value of content, applications and devices with government-approved security.
Identity protector LifeLock has had a third class action lawsuit filed in West Virginia alleging false and misleading information. The lawsuits contend that LifeLock and its multi-million-dollar advertising campaign provided false and misleading information about the limited level of identity protection the company provides, and failed to warn them about the potential adverse impact the company’s services could have on their credit profiles. The complaints also allege that the CEO has himself been a victim of identity theft by multiple offenders while a customer of LifeLock’s services. The West Virginia action seeks to recover the money subscribers have paid to LifeLock and to prohibit the company from continuing to promote its services through a deceptive marketing campaign. Marks & Klein plans to file similar actions on behalf of consumers in other states. Founded in 2005, LifeLock presently has approximately 1 million subscribers across the United States. LifeLock has also selected George Reyes,currently with Google, to serve on its board of directors. In his role with Google, Reyes helped negotiate the organization’s innovative IPO. An experienced leader, Reyes’ business acumen has come from financial posts with ONI Systems and Sun Microsystems. Reyes is also currently a director of Symantec Corporation. Reyes earned his MBA from Santa Clara University and his bachelor’s degree in accounting from the University of South Florida.
PA-based Fulton Financial has signed agreements to sell its credit card portfolio to U. S. Bank , d/b/a Elan Financial Services for the enhancement of the card offering. In doing so, Fulton will continue selling and providing support for the credit card products and services through its bank branches while the sales transaction is expected to result in a 2008 pre-tax gain of approximately $10 million. Fulton Financial Corporation employs over 3,900 associates and has more than 265 banking offices across the Mid-Atlantic States.
To celebrate NJ-based Commerce Bank and ME-based TD Banknorth joining forces as TD Commerce Bank, customers of both banks can access their accounts without incurring ATM fees. Customers can now make withdrawals without incurring ATM fees at any Commerce or TD Banknorth ATM at any of the companies’ combined 2,700 ATMs as well as more than 2,500 TD Canada Trust ATMs throughout Canada.
Fifth Third Processing Solutions has signed contract extensions with BJ’s Wholesale Club, The Bon-Ton Stores, Cedar Fair, Dean & DeLuca, Shoe Carnival and U-Haul for merchant processing services. Fifth Third Processing Solutions processes over 26.7 billion ATM and POS transactions per year for more than 2,700 financial institutions and over 157,865 retail locations worldwide. Annually, Fifth Third processes $179.1 billion in credit card sales.
Capital One Canada has teamed with Fraud Squad TV to launch multimedia
fraud-prevention solutions. In response to research by the Competition
Bureau of Canada showing 41% Canadians aged 18-34 said that they or
someone in their household has been a victim of fraud, while 20% of those
in the same age group are unlikely to report incidents of fraud, the
organizations have launched the initiative to distribute fraud education
materials to over 1,300 public libraries across the country. Moreover, the
initiative is targeted at this younger group of consumers through an
online “Fraud Awareness Quiz”, advertised through the Much Music Channel,
will be providing a quarterly newsletter and will be launching a Fraud
Squad TV 13-episode TV Season 1 DVD Box Set. Capital One Canada was
established in 1996, is based out of Toronto, ON and provides credit
products and services to consumers across Canada.
Harris has introduced its “Corporate MasterCard” targeting $10 million-$250 million annual revenue businesses. The new card product has been designed to grow with its business client’s revenues and provides cost-saving advantages over a technology platform to facilitate administrative functions. Additionally, the new services will be available 24/7 through Harris’ Online services, which includes account information reporting and card program management. Harris integrated financial services provides over 1 million customers financial products and service through more than 230 branches and its nearly 600 ATMs throughout the USA.
Official Payments has introduced “My Account” and “AutoPay” for taxpayers who need to make recurring tax payments. My Account allows users to schedule and manage automatic payments, set payment reminders, make payments using pre-filled contact information, view transaction history, and offer feedback regarding services. Official Payments charges a convenience fee for some services. Citizens and businesses using credit or debit cards with bonus rewards programs may, depending on their card’s program, earn reward points, airline frequent flyer miles or cash back for paying their taxes and fees.
Regarding a recent AP story, The Smart Card Alliance has provided
claims of the security, or lack there of, of the RF-enabled chip.
by a University of Virginia graduate student concluded that the chip
used on financial
payment cards lacked in security, when, in fact, the student studied the
effects of the
wrong chip. The RF-enabled chip studied is used primarily in transit
is not the same product used in contactless credit/debit cards or
The Smart Card Alliance not-for-profit, multi-industry association provides
understanding, adoption and use of smart card technology for the
industry in the U.S.
and Latin America.
A new report suggests that mobile banking is already a strategic business and technology priority for the top U.S. banks. New research from TowerGroup finds that core banking technology vendors have a big role to play in helping mid-tier and small institutions take advantage of this emerging channel that will soon be a cost of doing business. TowerGroup says that within a few years the mobile device will be the primary access point for consumer banking, with 40 million U.S. consumers using mobile banking by 2012. Core banking vendors will be important contributors to the widespread proliferation of integrated mobile banking services and will fundamentally reshape the vendor ecosystem for mobile banking solutions. As the focus shifts from ‘technovation’ to return on investments, the core banking vendors are ideally positioned to enable proper business economics in support of mobile banking.
CA-based OpSource has announced “Level One” compliance with the “PCI DSS.” In order to successfully comply with the Level One PCI DSS, merchants and service providers must demonstrate compliance with 12 requirements in categories such as building and maintaining a secure network, protecting cardholder data, maintaining a vulnerability management program and maintaining an information security policy. As a Level One service provider, OpSource demonstrated its compliance by successfully undergoing a stringent, annual, on-site PCI data security review covering over 250 compliance points. OpSource delivers Web applications and software-as-a-service for on-demand companies.