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Bank Notes: Block, CFPB, Shutdown, Bank Freedom

Adam R.'s picture

Posted September 30, 2013

September 30th goes quietly for Block and Republic: Today was the deadline set for Republic Bank of Kentucky to complete its acquisition of H&R Block Bank. The application was put off by the OCC. Thus Block Bank will

continue to provide the financial products used in its offices.

CFPB Hosting a Field Hearing on Credit Cards on Wednesday: The event takes place at 11 am CDT on Wednesday at the Harold Washington library in Chicago's Loop. Richard Cordray will speak.

FHA Mortgage Lending Could Be Impacted by Government Shut Down:  The FHA could continue to process loans, but since only a few hundred of their employees will remain at work, the likelihood is that no new applications will be processed. However, FHA will continue to collect premiums (and pay claims) on loans it already insures. Fannie and Freddie can continue to purchase loans and the FHA can continue to insure new originations. As VA loans are cash flowed on fees, they will also be fine. Business lending will suffer, as new SBA loans will be suspended.

Remember the Bank Freedom Card? Quietly, the Bank Freedom Card closed its doors at the end of April.  Its corporate parent, PrePayD, lost almost $4 million in the last three years.  Its SGA exceed revenues over the last three years.