Sentences with phrase «nonbank credit»

Meanwhile, newer alternative data credit bureaus that focus more heavily on nonbank credit histories can provide a broader view for lenders and creditors — and help greatly expand financial inclusion.

Not exact matches

That's because many of the so - called nonbank banks — some of the big credit - card companies and brokerage houses, for instance — have based their own business plans on growth within the entrepreneurial marketplace, in large part because that segment of the economy has been ignored by much of the banking community for years.

In recent years, about two - thirds of nonfinancial credit market debt has been held by nonbanks, which includes market - based funding by securitization vehicles and mutual funds as well as by institutions such as insurance companies and finance companies.

In one way, this shift from banks to nonbanks is beneficial: It supplies mortgage credit that might otherwise have disappeared.

Instead, they provide short - term credit to nonbanks such as Quicken Loans and PennyMac, which do the actual lending.

Nonbanks have much lower capital, are more lightly regulated and have been willing to lend to borrowers with lower credit scores, a major factor in higher defaults, the study found.

Check with a number of different types: large mega-banks, regional banks, credit unions, mortgage brokers, nonbank lenders, etc..

Nonbanks have stepped into the void, and that shift is not expected to reverse until bank executives feel more comfortable with the credit profiles of many FHA borrowers and determine the odds of further federal prosecutions have fallen.

Since nonbanks don't face the same regulatory scrutiny as commercial bank, they are often able to make loans to borrowers with lower credit scores.

But until more data sources providing nonbank payment information become part of traditional credit score calculations, consumers will continue to pay their debts on time without an opportunity to increase their scores.

Some banks are actively pursuing the consumer credit opportunity, whereas many still feel stung by the housing crisis, unimpressed by home equity's comeback so far or fearful of nonbank competition and fraud.

Cordray takes the helm of the CFPB with an aggressive agenda, seeking to target «nonbank» financial companies like money transfer agencies, credit bureaus and private mortgage lenders.

«The major proponents of the alternative credit scoring model are large nonbank originators and credit reporting firms — companies that make their living from the quantity of loans they originate, not the quality.

And they point out that many nonbanks have limited capital reserves to draw on in an emergency, relying instead on warehouse lines of credit from larger commercial and investment banks.