Clayton Holdings Inc., a provider of information and analytics to the banking and fixed-income securities markets, has introduced an analytic tool to help large lenders and Wall Street conduits determine whether closed loans they are buying meet prevalent "suitability" standards.The first release of the product focuses on payment shock and recalculates ability-to-pay using a fully indexed, fully amortized schedule, the company said. The suitability issue -- the contention that lenders are responsible for ensuring that a loan is suitable for a specific borrower -- has gained momentum as subprime loan defaults and foreclosures have mounted, Clayton noted. "There are layers to the debate -- and the definitions -- around suitability and nontraditional mortgages," said Keith Johnson, Clayton's chief operating officer. "Rather than wait for it to be fully defined and legislated, we assessed the issues currently being debated, spoke with our clients, and determined what is immediately needed to address this issue." Clayton, based in Shelton, Conn., can be found online at http://www.clayton.com.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
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Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
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The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
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Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
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The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
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