Did Durbin Amendment Lead to Unintended Credit Card Splurge?

By Kevin Wack

Lost in the battle between banks and retailers — which is being fought with renewed vigor in the early days of the Trump administration — is any consideration of how caps on interchange fees have affected consumer spending patterns.

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Latest News

New Residential Readies Reperforming Mortgage Bonds

– Like the real estate investment trust’s previous transactions, the collateral was acquired by exercising cleanup calls on older, private-label securitizations that it services.

SFIG Vegas: Look for More Triple-A Rated PACE

– So far, a single deal, from Ygrene Energy Fund, has earned a triple-A rating, and only from a single rating agency, Morningstar. But providers of Property Assessed Clean Energy Loans are optimistic that there will be more.

SFIG 2017: CMBS Investors Invite Even More Risk Retention

– Rules requiring “skin in the game” of securitizations caused a lot of hand wringing in the commercial mortgage bond market last year; turns out investors are big fans.

SFIG Vegas: Why Subprime Auto is Suffering, Even in Good Times

– Cumulative net losses are rising, even U.S. consumers appear to be in good health; Peter Kaplan of Merganser Capital blames longer-term loans, which indicate subprime borrowers are stretched.


Featured Articles

Flawed Reliance on Credit Scores Leads to Confusion

– Credit scoring models—whether from VantageScore, FICO, or any other developer— are designed to rank order consumers. Credits scores—the outputs of those models— are not designed to predict a fixed level of risk.

Aircraft Lessors Taking New Routes to Securitization

– Increasingly, these transactions are being structured to give lessors more flexibility in terms of both the types of collateral and the ability to actively trade aircraft. As a result, transactions more accurately reflect lesssors’ fleets

Canadian Banks Picking Up the Slack in US Credit Card ABS

– U.S. dollar denominated issuance by Canadian card companies has been rising for three years, and shows no signs of stopping, thanks to cheaper funding costs and increasing comfort levels of buyers south of the border.

Different Kind of Regulatory Relief for CMBS Market

– Even as the Trump Administration moves to loosen regulation, commercial mortgage bonds are enjoying a different kind of relief: Investors like risk retention so much they're willing to pay up for it.

Investors’ Victory in GSE Case May Be Turning Point Against Treasury

– A federal appeals court ruling has opened the door for litigants to challenge a 2012 decision by the U.S. government to sweep all of Fannie Mae and Freddie Mac's profits into the coffers of the Treasury Department

Citi's Servicing Exit Tips the Scale Toward Nonbanks

– The deal is the latest in a series of large servicing acquisitions by the publicly traded New Residential Investment Corp; the New York-based nonbank will pay approximately $950 million and $32 million for Citi's mortgage servicing rights and related advances, respectively.

Shift from Leases to Loans Is Powering Solar Securitization

– Owning may offer consumers more savings than leasing, but loans pose a different set of risks to investors when pooled into collateral for bonds.

Another Refi Wave Overtakes U.S. CLO Market

– Like the refinancing that managers raced to complete before Dec. 24, 2016, this activity is driven by a desire to avoid retaining skin in the game. But this time, managers are taking advantage of a narrow exemption spelled out 18 months ago in a "no-action" letter from the SEC.


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Shift from Leases to Loans Is Powering Solar Securitization

Owning may offer consumers more savings than leasing, but loans pose a different set of risks to investors when pooled into collateral for bonds.

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