Solar financing sales reminiscent of worst subprime days

A consumer organization is accusing the solar energy business, and in particular those who finance the installations, of using predatory lending practices made infamous by subprime mortgage companies. These practices could lead consumers to losing their homes to bankruptcy or foreclosure, the Center for Responsible Lending claimed. The group issued a paper, The Shady Side of Solar Financing. It accused lenders of employing door-to-door sales teams that use high-pressure tactics, misleading information about potential energy savings or eligibility for energy tax credits. They use confusing contracts that supposedly leave the consumer in a worse-off position. Many of the loans are then securitized.

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Some home buyers holding off on purchases until after election

More than one-third of prospective home buyers said they will wait for election season to pass before moving on with a purchase, a recent survey found. The survey of likely buyers over the next three years found the 2024 election influencing the decision making timeline of 60% of respondents. Among the entire cohort, 38% said they were opting to wait for more political certainty expected after this year's election season, according to the latest quarterly research from Veterans United Home Loans.?

Freedom Mortgage challenges final ruling in LoanCare case

Freedom Mortgage wants an appeals court to take another look at its suit against LoanCare. A spat between Freedom Mortgage and Loancare over alleged negligent servicing practices spanning from 2010 to 2016 came to a head last July when a New Jersey federal jury ruled in favor of Loancare awarding it over $22 million in compensatory damages. The jury sided with LoanCare's countersuit, which claimed Freedom withdrew $22.6 million from certain custodial accounts for loans that LoanCare serviced without the subservicer's knowledge. Meanwhile, Freedom, whose original complaint was seeking $39 million, was awarded $247,000 in damages based on accusations that LoanCare billed it for loans that were no longer being serviced. But both Freedom and LoanCare had outstanding questions regarding the final ruling.

How banks' 'hidden' AI could cause problems

Artificial intelligence seems to be everywhere. Sometimes it is even hidden in plain sight. Technologies and processes that banks rely on, including customer service call transcription, marketing tools, credit decisioning, cybersecurity tools and fraud prevention, may incorporate AI in ways not every user or employee at the bank understands. Other products are in a gray or "it depends" area, such as chatbots, which can be static with pre-programmed questions or more conversational. These "hidden" aspects of AI matters because banks must be aware of where AI is embedded in their operations and where it is not.?

Rocket touts home equity lending in profitable Q2

Rocket Cos. says its home equity origination volume hit a record-high this spring, one of several achievements the lender promoted in its latest earnings. The industry giant posted $178 million in net income for the second quarter, a positive financial metric despite some other wavering figures. Rocket's gain-on-sale margin was 299 basis points, up year-over-year but down slightly on a quarterly basis.? "We've said a lot that we expected gain-on-sale margin expansion from 2022 levels, and the 299 basis points in Q2 was really healthy," said Brian Brown, chief financial officer and treasurer at Rocket Cos. "A month into the third quarter, I feel good about those levels being relatively consistent."

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