As a support to their clients’ efforts to meet the requirements of the Federal Deposit Insurance Corporation’s (FDIC) Large Bank Pricing Rule, specifically in the subprime loan reporting that will start effective Oct 1, 2011, Experian is creating a complete product to be made available to its banking clients. The company, known for being a leader in global informatio

n services, will allow its clients to use its credit attributes together with its debt-to-income insight model (SM) in order to deliver the complete reporting requirements needed on subprime loans.

The latest reporting requirements for large banks, qualified as having at least $10 billion in assets, describes a subprime loan as a type of installment or revolving loan with one or more of the following properties: First, at least two 30-day delinquencies in the past year or at least one 60 day delinquencies in the last two years. A second requirement is foreclosure, judgment, charge-off or repossession in the previous 24 months. The third is bankruptcy in the last five years. Fourth is a debt service to income ratio of at least 50% which limits the ability to pay for the living expenses of the family once the entire amount of the debt-service monthly requirement is deducted.

With the company’s combined delivery of the needed reporting characteristics, the clients are provided with an option that they can rely on and easily access as they address their requirements in reporting. With this, clients must also check with their regulatory and legal compliance specialists regarding their specific reporting requirements.

Logo of the United States Federal Deposit Insu...

Image via Wikipedia

Michele Pearson, Experian’s Consumer Information Services Vice President, says that once the new regulation takes effect, the FDIC rates of the bank will be directly affected by the composition of its assets. This then becomes a different situation from the present environment, where the charges in the insurance rates of deposits are based on its size. The implication of this is that banks that have subprime loan amounts which are considered of a higher risk may have higher charges in their FDIC insurance rates. Pearson further adds that their company is committed to provide their clients with the complete products that will help them comply and maintain their usual business without experiencing any interruption.

Enhanced by Zemanta
Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay

Related posts on loans for people with bad credit:

  1. Financial Institutions Open Their Doors to Subprime Lending Again Financial Institutions Open Their Doors to Subprime Lending Again Banks are starting to open up to subprime lending once again. Equifax spokesperson, Daryl Toor confirmed that in a statement, he further explained that it will not be easy to get a loan…...
  2. How do Subprime Lenders Deal with Self Employed? How do Subprime Lenders Deal with Self Employed? Important points You are your own boss if you are self-employed. What is the challenge in applying for a car loan when you are self-employed and your credit score is bad? Surely, you will face…...
  3. Business Mortgage Loans : Does a Financial Business Review Make Sense for my Finances and Cash Flow? Business Aspects to Consider in a Financial Review If you are a business owner, your company is as important as your health. Because of this, it is also essential that you conduct a regular review with a reliable banker of your…...
  4. Consumer Financial Protection Bureau Takes the Side of Bankers Consumer Financial Protection Bureau Takes the Side of Bankers The United States’ legal watchtower against loan sharks and predatory loaners has released the best news for these financial intermediaries to date. This announcement is about the amendments in the Federal Reserve prohibition to…...
  5. Banks Review: Mortgage Choice Banks Review: Mortgage Choice The good out-turn continues for the Broker Mortgage Choice as the agency reports increase in their loans for household approvals which increased up to $11.2 billion in their last recording year. This increase is 6.4% of their loan book…...

Tagged with:

Filed under: home loans

Like this post? Subscribe to my RSS feed and get loads more!