Nacha, the bank industry group that sets the rules for the network that connects every U.S. bank and credit union, has announced a new effort to achieve same-day electronic transactions. Under Nacha's proposal, payments will eventually be processed twice each weekday. But the overhaul would fall short of the near real-time systems that have been built in the United Kingdom, Mexico, Sweden and other countries -- and will also lag behind numerous proprietary real-time payment systems in the United States. The organization plans to phase in same-day capabilities in three stages, which they... Read more

ABC Bank hosted the one year anniversary party for Austin Weekly News' West Side Business Network, a group of 75 local entrepreneurs and community members. The evening included refreshments, networking and a presentation from the Oak Park Regional Housing Center on their Austin Ascending program, in which building owners are given grants to improve the appeal of their rentable units. Community organizers Austin Coming Together (ACT) also gave a guest presentation about their many programs and services that build capacity for collaborative action in four focused areas:... Read more

Boston-based OneUnited Bank has introduced two new programs designed to help people achieve healthy credit. The bank's Waive Home Loan Program aims to make home financing more affordable by waiving many home loan fees. The program, set to run through the rest of this year, is open to everyone, including first-time homebuyers. OneUnited has also launched the Unity Vista Card, a program that focuses on lending in low- to moderate-income communities. The card features a low annual rate and will not have fees for purchases and deposits. Cardholders are automatically enrolled... Read more

Consumer advocates say the payday lending reforms instituted in various states have failed to adequately address the problems of borrowers. For example, under Florida’s payday reform law, borrowers are limited to one outstanding loan at a time, may not roll over a loan and must wait 24 hours after paying off a loan before taking out another. But lenders have found ways around each of these provisions. They have circumvented the rollover bans by allowing consumers to repay their existing loan and take out another the next day. It is also possible for customers to avoid the cooling-off... Read more

As "crowdfunding" financing platforms grow more prevalent on the web, it is easier than ever for merchants to solicit funds from customers — but is it a good idea? After nine years in Brooklyn, the Chocolate Room, a specialty food shop, experienced a crippling rise in rent. The cafe’s owners, Naomi Josepher and Jon Payson, reluctantly decided to abandon their space and begin figuring out how to finance a $200,000 relocation. They settled on launching a crowdfunding campaign on Kickstarter. Word spread quickly and by the third day, the shop had more than $1,000 pledged toward its goal of $... Read more

Senate Banking Committee leaders Tim Johnson (D-S.D.) and Mike Crapo (R-Idaho) have announced an agreement on legislation to wind down government-owned mortgage financiers Fannie Mae and Freddie Mac. Under the plan the financiers would be replaced with a new government reinsurer called the Federal Mortgage Insurance Corp. The senators also plan to replace affordable housing goals that Congress had given Fannie Mae and Freddie Mac with new housing-related funds to ensure the availability of affordable rental properties. To create space for community banks in the system, the senators said... Read more

Chicago-based First American Bank surprised banking analysts with an unusally public debit card fraud announcement released after 18 days of frustration. Their investigation began Feb. 10, when the bank received 11 fraud complaints in one day from checking account cardholders. First American determined that the customers had all experienced fraud right after using their debit cards in Chicago taxis. The bank started shutting down debit cards, issuing new ones and informing customers. At the same time, the bank was trying to get MasterCard and Bank of America to shut down card acceptance in... Read more

Dealstruck is among a new group of alternative lenders offering a middle path between banks and cash advance lenders. The latest upstarts combine digital innovation and efficiency with true term loans akin to bank loans. Their rates are higher than those charged by banks but lower than those charged by short-term alternative lenders. Dealstruck uses a peer-to-peer model in which wealthy investors put up the capital for individual loans, lowering the lender's cost of capital by freeing them from raising money. The lender also offers lower rates by targeting midprime or near-prime borrowers... Read more

President Obama's latest budget contains a few surprises for bankers. First, the budget predicts that the Federal Housing Administration, which announced in September it would need a $1.7 billion bailout, will have a positive year-end capital reserve of $7.8 billion and require no more transfers from Treasury. The proposal also includes new funds for housing, with $1 billion in spending to capitalize the National Housing Trust Fund. The affordable rental and housing program has been in turmoil due to the conservatorship of Fannie Mae and Freddie Mac. This $1 billion allocation would "... Read more