Regulation

House Small Business Committee to Hold Hearing on Online Lending

October 22, 2017
Article by:

capitol building

On Thursday, October 26th, a House subcommittee on Economic Growth, Tax and Capital Access will be holding a hearing about online lending’s role in improving small business capital access. The two witnesses scheduled to testify are Kate Fisher, a partner at Hudson Cook, and William Phelan, the president and co-founder of PayNet. deBanked will attempt […]

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CFPB’s Small Business Lending RFI is Now Closed

September 18, 2017
Article by:

Rich Cordray CFPB

The window to share your two cents on the CFPB’s quest to collect data on small business lending has closed. The extended deadline to respond to the RFI was September 14th. The agency received 2,668 comments, 650 of which you can read online. Most responses that deBanked reviewed asked the CFPB to exempt certain businesses […]

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Senate Banking Committee to Hold Hearing on Fintech

September 12, 2017
Article by:

US Senate

The US Senate Committee on Banking, Housing, & Urban Affairs held a hearing entitled “Examining the Fintech Landscape” on Tuesday morning at 10 AM. You can watch it below The witnesses include: Mr. Lawrance Evans Director, Financial Markets U.S. Government Accountability Office Mr. Eric Turner Research Analysis S&P Global Market Intelligence Mr. Frank Pasquale Professor […]

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Was Section 1071 of Dodd-Frank a Massive Mistake?

August 23, 2017
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CFPB Questions

Did Congress make a huge mistake by thinking small business loans were easily commoditized? Pursuant to Section 1071 of Dodd-Frank, the CFPB is planning to collect data from companies engaged in small business finance in order to potentially screen for discrimination against women and minorities. Before deciding how exactly they’re going to do that, they’ve […]

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The Employee Suing SoFi Only Worked There for Three Months

August 15, 2017
Article by:

Courtroom

On Monday, several news outlets reported that a former employee of SoFi was suing for wrongful termination after he not only reported sexual harassment in the workplace, but also exposed an internal loan cancellation scheme designed to pad the bonuses of certain employees. According to the complaint, which you can read for yourself here, plaintiff […]

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The CFPB is Asking The Wrong Questions, Bank President Says

July 13, 2017
Article by:

CFPB Logo

David Ludwig, the Bismarck branch president of Security First Bank of North Dakota, responded to the CFPB’s small business lending RFI earlier this week. In his written comment, he points out the futility of examining race, gender and ethnicity to judge how a lender is approving business loans. These data points are what the CFPB […]

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CFPB’s New Arbitration Rule Does Not Apply to Business Loans

July 10, 2017
Article by:

CFPB Director Richard Cordray at Money2020 in 2016

The CFPB’s new rule to regulate arbitration clauses in consumer finance contracts does not apply to business loans, according to the agency’s fine print. Page 403 of 775 (that’s how long the rule is) includes a footnote that says: As is explained in proposed comment 3(a)(1)(i)-1, Regulation B defines “credit” by reference to persons who […]

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CFPB Pushes Back Small Business Lending Comment Deadline

July 7, 2017
Article by:

Government vs. Business

The CFPB has pushed back its small business lending comment deadline from July 14th to September 14th. The Request for Information is the first step of its initiative to monitor business loans to women and minorities, as directed by Section 1071 of Dodd-Frank. Only 15 comments have been submitted so far, a number likely too […]

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All Companies Can Now Submit Draft IPO Registrations Confidentially

June 29, 2017
Article by:

SEC Building

There’s a reason the public never got to view BFS Capital’s September 2015 IPO registration documents. Thanks to the JOBS Act, “an emerging growth company may confidentially submit to the Commission a draft registration statement for confidential, non-public review by the Commission staff prior to public filing.” They can then choose to abandon the offering […]

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SoFi Bank Puts ILC Charter in Spotlight

June 28, 2017
Article by:

SoFi

is SoFi exploiting a legal loophole? Christopher Cole, EVP & Senior Regulatory Counsel, ICBA Online lender SoFi’s decision to apply for a bank charter has snagged the attention of alternative lenders, big and small banks and regulators alike. Market participants appear split between cheering the move and drawing a line in the sand. One thing […]

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