Crowdfund Insider provides details on how to launch a real estate crowdfunding platform in the US; discusses different types of offerings and securities; also outlines business planning, capital funding and licensing. Source
The suicide of a 20 year old who was using the popular trading app Robinhood has set off alarm bells...
American Banker reports on the increasing number of financial services companies and groups using the federal court system to oppose regulatory enforcement orders and new initiatives; the Conference of State Bank Supervisors is the most recent case as the group seeks to debate the OCC's fintech charter; the CFPB has also been a notable defendant with opposition from Ocwen Financial and PHH Corp.; other cases have included MetLife and the American Bankers Association; according to H. Rodgin Cohen, chairman of Sullivan & Cromwell, "There's an increased willingness to litigate," and it seems the trend is likely to continue with industry changes resulting in new challenges and consequences. Source
Speaking on a panel at SoFi’s San Francisco offices designers from leading fintech companies talked about how they increase engagement...
Nbkc is based in Kansas City and is one of the first community banks to create their own fintech accelerator;...
The insurer launched a product based on taking a photo of yourself and their technology will then estimate a number of items based on the photo; the product is launched at SelfieQuote.com and according to Coverager this is the first products of its kind; this is currently being used in beta mode and the technology comes from Lapetus Solutions, Inc.; after the initial beta period Legal and General America will decide if this solution will become a mainstay of their offerings; Jim Galli, executive vice president of business strategy and innovation for Legal & General America, tells Coverager, "This could revolutionize the life insurance application process for millions of consumers, as it allows for a much more engaging user experience while also showing in a matter of seconds how affordable a life insurance policy can be." Source
Legion Capital, a venture capital and advisory firm, has launched a subsidiary called Stage 1 Funding, LLC; the new firm will look to address the demand for small business finance; Joseph B. Hilton of the Hilton Hotel Family will serve as President and they will focus on accounts receivable finance, equipment finance and venture debt or equity. Source
US legislators have proposed that student loan debt be discharged in the case of bankruptcy; the current law gives added protection to student loan lenders by requiring the debt to be repaid in bankruptcy; lawmakers and lobbyists are also considering other provisions that would provide debt relief to student loan borrowers who have filed for bankruptcy; while the debt relief initiatives will benefit borrowers, the effects will add increased default risk for investors in private student loans and private student loan securitizations. Source
Legislators have reintroduced a bill that would enable alternative credit scoring to be used by Fannie and Freddie for evaluation of mortgage loans; these government sponsored enterprises currently use a FICO credit scoring model which legislators believe is outdated; legislators have now proposed the Credit Score Competition Act which would allow for use of alternative credit scoring models that also take into consideration a broader range of factors. Source
Insurtech firm Lemonade is expanding to 46 new states and the District of Columbia; launch in Washington, Wyoming and Mississippi will be delayed because of statutory wait times; firm will continue to focus on its main product which includes insurance for homeowners and renters. Source