OCC offers banking institutions light that is green contend with payday loan providers

OCC offers banking institutions light that is green contend with payday loan providers

Work for the Comptroller regarding the Currency is shaking up the realm of short-term financing by motivating banks to provide rate that is high-interest to subprime borrowers as an option to payday loan providers.

In a significant break from past regulators, Comptroller Joseph Otting stated Wednesday which he desires banking institutions to article originate loans of $300 to $5,000 to borrowers with FICO ratings of 680 or below, with few other parameters beyond “sound underwriting.” The latest OCC tips could start a $90 billion market to institutions that are financial. Read more of this post