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News Scan Jun 2012

Credit Card News, Economy News, Banking Industry News - Jun 2012
Jun 2012
  • The number of adult children living with parents increased 1.2 million to 15.8 million between 2007 and 2010.
  • Those ages 25 to 34 accounted for two thirds of the 823,000 increase in adult children living with parents during that period.
  • The report found that 30.1 percent of Americans age 18 and above lived in 2010 in a shared household with family members or with unrelated roommates. That was up from 27.7 percent just before the recession started in 2007.
  • Although reasons for household sharing are not discernible from the survey, our analysis suggests that adults and families coped with challenging economic circumstances over the course of the recession by joining households or combining households with other individuals or families.
  • The Census survey found that shared households increased 11.4 percent to 22 million in 2010 from 2007. Shared households accounted for 18.7 percent of all U.S. households in 2010, up from 17 percent in 2007.
Jun 2012

Small Banks Are Gaining Ground in Mortgages

Source: AmericanBanker Category:Banking Industry News
  • For community bankers, it was always a romantic notion, the idea that they could give mortgage lending short shrift and beat the big guys on commercial loans.
  • In some instances, banks have even accelerated lending outside of their core markets; sometimes well beyond, despite the inherent risks.
  • Mortgage trends have shifted significantly in the past year. In the first quarter, the 25 biggest banks grew mortgage volume by a narrow 2% from a quarter earlier, according to data from the Federal Reserve Board.
  • Mortgages grew 17% at all other banks over the same period. Still, the biggest banks, on average, originate roughly double the volume of all other banks each month.
  • A handful of other community bankers have said they will expand into new markets or start up new mortgage operations.
Jun 2012
  • The Consumer Financial Protection Bureau will begin publishing credit card complaints in a searchable database, allowing the public for the first time to scrutinize the way individual banks handle complaints.
  • Industry groups have warned that consumer complaints are subjective, unverified and irrelevant, and said identifying the banks involved serves no public policy, but could significantly harm their reputation.
  • CFPB began taking credit card complaints as soon as it became an independent agency, and added mortgage complaints in December.
  • Almost people started requesting information about those complaints, and the bureau sought feedback in December on how that data should be released.
  • Agency staff wills also screen complaints to ensure the bank is within the CFPB's jurisdiction complaints for banks with less than $10 billion of assets will be forwarded to the Office of the Comptroller of the Currency, for example and that the complaint has not been submitted more than once.
  • The public can search the complaints using specific search fields, including complaint type, issuer, location, date or any combination thereof. They can filter or aggregate the data, and can also download it from the site.
Jun 2012
  • Researchers at the Pew Charitable Trusts carefully read checking account disclosures from 12 of the nation’s largest banks and 12 of the largest credit unions to see what a new customer would face.
  • Pew says the disclosure documents are long and confusing which can result in costly and unexpected penalty fees for overdrawing that account. By one estimate, Americans paid $29.5 billion in overdraft fees last year.
  • The Pew report also calls for regulatory changes to increase transparency and protect bank customers from predatory practices.
  • There are no federal rules that spell out how financial institutions should process checking account transactions. It’s up to the bank or credit union.
  • This makes it possible to maximize overdraft fees by processing deposits and withdrawals in a way that reduces the account balance as quickly as possible.
Jun 2012
  • Wholesale inventories rose more than expected in April, as durable goods stocks grew the most in nearly a year.
  • Total wholesale inventories increased 0.6 percent to a record $483.5 billion, after an unrevised 0.3 percent gain in March.
  • Inventories are a key component of the government's calculation of gross domestic product.
  • Stocks of durable goods, such as autos, computer equipment and machinery, rose 1.1 percent, the most since May 2011.
  • Sales at wholesalers in April rose 1.1 percent, much more than the pre-report estimate of 0.3 percent.
  • Petroleum sales increased 4.8 percent, the most in a year. Car sales rose 3.8 percent, the highest since December.
Jun 2012

Consumer credit card debt dipped in April

Source: Credit Cards Category:Credit Card News
  • Consumer credit card balances resumed their downward fall in April after rising sharply the previous month.
  • The Federal Reserve's latest G.19 consumer credit report showed a 4.8 percent drop in revolving debt as more consumers kept a tight rein on their credit card balances.
  • Revolving debt, which is made up almost entirely of credit card debt, declined by $3.4 billion in April to $862.3 billion.
  • April's drop in credit card debt occurred amid a string of disappointing news headlines about slowing job growth, leading experts to speculate consumers were spooked by the bad news.