The new Dodd Frank regulations are causing community banks and credit unions to rethink mortgage banking as they struggle to identify loans that will please both the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC). The CFPB's goal is to eliminate risk that a consumer will not be able to meet the terms a financial agreement. The OCC wants the bank to do everything in their power to eliminate or significantly reduce risk. To that end, the OCC prefers a bank achieves risk reduction by making loans with adjustable interest rates to protect the bank when rates adjust. The CFPB sees these adjustable rate loans as too risky for the consumer and regulates the bank's ability to make these loans. To use the vernacular, community banks and credit unions are "damned if they do and damned if they don't" when it comes to interest income from mortgage loans.
As community banks and credit unions struggle with these two regulating bodies with diametrically opposed objectives, they are turning to the unique opportunity presented by MyLoans™ as a safe harbor in the storm. Since patient financing loans are originated at the medical provider, MyLoans™ provides the bank with interest income with as little compliance oversight and overhead cost as possible. MyLoans™ will likely not replace mortgage interest income for banks who move away from mortgages, but it can help provide a new source of interest income to keep your bank moving forward until this chaotic regulatory environment becomes more predictable.
About MyLoans™
By providing patients with fast access to medical loans at a fair and unchanging interest rate, the MyLoans™ software by Epic River enables financial institutions to ease the financial stress of health care through collaboration with medical providers. Not only can medical providers offer a federally insured and fully regulated patient financing between banks and patients for medical care needs, but doctors and hospitals alike can finally get immediate funding of their patient’s outstanding balances. Additionally, financial institutions gain new customers and interest income with little administrative overhead in exchange for servicing the loan. For more information, visit www.myloans.co.
About Epic River, LLC
Since its inception in 2005, Epic River has been providing high quality software services aimed at solving process-intensive problems. With a focus on high quality and rapid delivery, Epic River’s methodology accelerates the process of innovation while keeping a firm grasp on the business case behind the application, enabling our partners to grow their market leadership. The company’s unique approach to the agile methodology and user experience ensures both parties work closely together every step of the way. Whether you’re looking to expand into new technologies or markets, need a custom internal tool, assistance with architecture, or simply need someone you can trust to make technology decisions, Epic River is at your service. For more information, visit www.epicriver.com.
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