Getting the GSEs’ transition to new credit scores right
Release Date: 01/31/2024
The Erie Canal at 200
ABA Banking Journal Podcast
The Erie Canal — one of the biggest milestones of American history — of its completion this week. On the latest episode of the ABA Banking Journal Podcast, acclaimed economic historian and Banking Journal columnist John Steele Gordon and editor-in-chief Evan Sparks discuss the canal’s development and construction, the involvement of the Savings Bank of New York in financing it, how it transformed New York and the Midwest, and how the canal created future demand for mass transport of goods by other means, helping fuel the republic’s development as a commercial powerhouse.
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Intelligent Origination: Reinventing Lending with AI
ABA Banking Journal Podcast
Blend’s Intelligent Origination — an AI-powered orchestration layer embedded in Blend’s platform that reduces the cost of loan origination, improves speed and accuracy, and redefines how lenders and borrowers experience the lending process.
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Why branches are top priority for PNC
ABA Banking Journal Podcast
PNC Bank is the nation’s eighth-largest bank by assets and the sixth-largest by deposits, but it ranks fourth in the number of physical branches. In a time when many banks are streamlining their in-person service locations, why has PNC doubled down on branches? On the latest episode of the ABA Banking Journal Podcast, PNC executive Jeff Martinez explores: The role of branches in marketing and account acquisition, particularly business accounts. PNC’s strategy of combining organic growth and M&A (). Professional opportunities created for bank employees through the in-person delivery...
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From tractors to drones, how farming tech affects ag lending
ABA Banking Journal Podcast
With equipment repair costs up 40% over the past few years, how farmers deploy expensive agricultural machinery is of top concern for ag bankers. With equipment increasingly complex and often software driven, many equipment manufacturers have limited the ability of operators to repair their equipment without voiding warranties — leading to delays and lost harvests as farmers wait for service amid a shortage. While this trend has led to a “right to repair” movement in many states, the issue of equipment costs and lost revenue during breakdowns remains a factor in lending decisions, says...
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Bigger data boosts financial inclusion at Synchrony
ABA Banking Journal Podcast
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AI and the future of BSA risk management
ABA Banking Journal Podcast
Banks have been using natural language processing and machine learning applications for years in managing their anti-money laundering and Bank Secrecy Act obligations. But how does the growing adoption of generative AI tools affect how BSA and fraud professionals protect their banks? On the latest episode of the ABA Banking Journal Podcast — presented by — former FDIC official Lisa Arquette shares a regulator’s-eye view of generative AI in the BSA world and how regulators have been approaching the technology for their own work. Joined by ABA SVP Heather Trew, Arquette also discusses: ...
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The real difference between stablecoins and tokenized deposits
ABA Banking Journal Podcast
In the wake of the summer’s Genius Act, many banks and nonbanks have announced new stablecoin initiatives. Another digital asset — tokenized deposits — may meet needs similar to stablecoins, but the two asset types have significantly different features based on their underlying designs. On this episode of the ABA Banking Journal Podcast, ABA experts Brooke Ybarra and Yikai Wang discuss: The key differences between stablecoins and tokenized deposits. Risks that widespread payment stablecoin adoption poses to community bank lending. Use cases for payment stablecoins (and areas where hype...
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The ‘capacity crisis’ in leadership today
ABA Banking Journal Podcast
Princess Castleberry began her career in risk management in financial services, and the biggest risk she sees today is that “leaders are in a capacity crisis.” Work experience, education and professional networks are undermined by this lack of capacity driven by emotional triggers, she says, which are in turn compounded by a massive wave of societal, economic and technological change. Now an instructional design expert and leadership speaker, Castleberry discusses how leaders can understand and manage triggers to enhance their capacity to lead with empathy. Castleberry will also be...
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AI, third-party risk and the future of partner banking
ABA Banking Journal Podcast
The rapid evolution of the financial services marketplace means the market for banking as a service is also evolving rapidly. From artificial intelligence to other new technologies to regulatory expectations, how is the partner bank sector shifting? On the season premiere of the ABA Banking Journal Podcast, Pathward Bank CEO Brett Pharr talks about the Sioux Falls, South Dakota-based partner bank’s strategy. Among other things, Pharr discusses: The evolution of the business model beyond interchange to include embedded finance, faster payments and other opportunities. The criticality of...
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Demographic trends shaping the U.S. banking outlook
ABA Banking Journal Podcast
The U.S. is experiencing a massive demographic shift driven by the aging Baby Boom generation, and shifts in immigration trends. What effect will aging have on the banking outlook? In the season finale of the ABA Banking Journal Podcast, ABA economist JP Rothenberg discusses how America’s aging population: Shifts balance sheet management strategies with a surplus of stable deposits by weaker localized loan demand. May increasingly push banks into new markets to drive loan growth, which further accelerates consolidation. Magnifies credit risk during downturns in the tail of the risk...
info_outlineThe multiyear effort to change the credit scoring models required by Fannie Mae and Freddie Mac continues to move forward, and mortgage lenders, credit officers and compliance professionals need to know the latest developments. On the latest episode of the ABA Banking Journal Podcast, ABA VP Sharon Whitaker provides an update. Among other topics, Whitaker discusses:
- The operational challenges of moving from today’s tri-merge system to merging just two credit reports.
- How FICO 10T and VantageScore 4.0 differ from credit scores in use today.
- Why rushing the transition might be counterproductive to the initiative’s financial inclusion goals.
- The role of core platforms and other technology vendors in supporting the transition.
- What may happen in the Federal Housing Finance Agency makes the change but the Federal Housing Administration, Veterans Administration and others don’t.
- Why the industry needs to see data on how the new credit scoring models would perform, and how banks can get involved in sharing feedback with FHFA.
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- Learn more about the credit score transition at the American Mortgage Conference, April 15-17 in Savannah, Georgia.
- Contact Sharon Whitaker to join ABA’s working group on the issue.