Inside Sources: Restricting Access to Small Loans Amounts to Legalized Redlining

Will U.S. regulators put the breaks on small-dollar loans to American Consumers? A rule finalized by the Consumer Financial Protection Bureau in 2017 to impose onerous regulations on small-dollar loans would dramatically reduce access to credit for many struggling Americans who are locked out of the traditional banking system because of poor credit or low […]

ACI in Real Clear Policy: Student Loan Defaults

For most graduating from high school, the best prospects for long-term self-sufficiency lie on the other side of college graduation. The odds are even better if the field of study lies in science, technology, engineering, and math (STEM), and better yet if the student earns a post-graduate shingle. But financing a college graduation is difficult […]

Expecting a Crush of Lenders for Low Down Payment Mortgages?

The most prominent obligation for federal bank regulators – the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, and the Controller of the Currency – is to avoid another taxpayer bailout as happened in 2008. The Troubled Asset Relief Program (TARP) infused $250 billion into banks to stabilize them.  The program was embarrassing to banks […]

ACI Blog in Huffington Post: Deficit-Free Economic Stimulation

Congress has it hands full again. With the potential of cutting government spending and raising taxes, most Democrats and Republicans have one thing they can agree on – either option could jeopardize an already weak economic recovery. But there is one win-win solution that can encourage economic investment, help small businesses grow, create jobs, and […]

The Real World Quest for Mortgages

Before Dodd-Frank, banks faced strong pressure to lend so that more people could own a home regardless of their ability to repay.   Dodd-Frank will spawn byzantine regulation enacting bank capital requirements, retention of 5% interest in securitized mortgages  and other mortgage reforms.  Most regulations required under Dodd-Frank have yet to be proclaimed, so banks are […]

Lending on the Level-Playing-Field

Warren Stephens’ commentary on “How Big Banks Threaten Our Economy” (WSJ, Opinion, April 30) discusses systemic banking risks and states correctly that “we should promote competition and innovation in the financial industry, not protect an oligopoly.”  However, he misses an important and timely example of how rules are set in favor of banks over potential […]

The Credit Union Experience – Only for Some?

The Credit Union National Association found that 90 million American individuals enjoyed $7 billion in direct financial benefits from credit unions during the year ending June 2010.  These benefits came as lower loan rates, higher deposit interest, and lower fees than in offered by bank institutions.  Equally valuable, credit unions members experienced the sense of […]

Save Us from Congress’ “Savings” Scam

The Federal Credit Reform Act of 1990 (FCRA) may sound righteous, but it contains a scam costing consumers a pile of money.  The FCRA forces the Congressional Budget Office (CBO) to assume that loans made directly by the government earn huge profits (called “savings”) without provision that such estimates could be wrong.  Congress likes this […]