JPMorgan Chase & Co has given out more than $30 billion in loans to over 250,000 businesses as part of the United States' coronavirus aid program for small businesses, Chief Executive Officer Jamie Dimon said in a memo on Tuesday.
JPMorgan, the largest U.S. bank, approved more than $45 billion in new credit for its clients impacted by the COVID-19 pandemic in March and April, Dimon said in a memo to stakeholders.
Dimon said the size of the average loan under the Paycheck Protection Program (PPP) was $122,000 and half of the loans went to companies with fewer than fiv...
On May 15, the Small Business Administration (SBA) released the long-awaited Payroll Protection Program Forgiveness Application. Under the Payroll Protection Program (PPP) entrepreneurs may apply to have up to 100 percent of their loan forgiven. However, the SBA has failed to give clear guidance on the details of loan forgiveness, and this has caused entrepreneurs to question what they need to do to prepare for PPP loan forgiveness.
The new application provides clarity on a few points.
Time Period for Forgiveness
You must spend the money on authorized expenses i...
Some big banks have received grand jury subpoenas as part of a federal investigation into possible fraud involving the $660 billion coronavirus emergency loan program for small businesses, according to a new report Saturday.
Two sources told Reuters that the Justice Department had sent subpoenas to major banks, but did not name the institutions. JPMorgan Chase & Co., Citigroup Inc, Bank of America Corp. and Wells Fargo & Co. are four of the mega-banks participating in the program.
Under the program, small businesses hit by the pandemic can apply for a government-...
A court ordered Blue Cross Blue Shield of Texas to pay more than $108 million in damages and attorney fees to two closed rural Texas hospitals.
Court filings in the U.S. Bankruptcy Court for the Western District of Texas showed that BCBSTX was ordered to make the payments to Little River Healthcare, which had hospitals in Rockdale and Cameron, Texas. The hospitals went into bankruptcy in 2018.
Former Texas Supreme Court Justice Harriet O'Neill, an independent arbitrator, awarded the amount to the hospitals during arbitration proceedings. Little River had argued BCBST...
Megacatastrophes, or megacats, as they're known in the insurance industry, are events that hit millions of people at once and cause hundreds of billions of dollars in damage.
Why it matters: The COVID-19 pandemic is much worse than a megacat — it has hit billions of people and is causing tens of trillions of dollars in damage. But don't worry about the insurers. They're doing just fine.
As far as insurers are concerned, this is not some kind of unprecedented giga-catastrophe. In fact, it's not even a megacat. We still don't know what kind of non-pandemic dis...
Predatory lending is any unfair practice that diminishes a borrower’s ability to repay debt and serves to benefit the lender. Predatory lending tactics may involve loans with high interest rates, hidden and excessive fees, undisclosed terms and more. Predatory lenders typically target vulnerable borrowers and trap them in cycles of debt that can lead to foreclosure and even bankruptcy.
11 WARNING SIGNS OF PREDATORY LENDING
There are plenty of steps you can take to detect and avoid predatory lending. The first step is identifying red flags that may arise during the ho...
Back in March, Fannie Mae, Freddie Mac and the Department of Housing and Urban Development suspended all foreclosures and evictions for 60 days to ensure that people didn’t lose their homes as the coronavirus was shutting down the U.S. economy.
The agencies’ foreclosure and eviction freeze was set to end on May 17, 2020, but Thursday, each of those agencies announced that they are extending their suspensions of foreclosures and evictions through the end of June, at least.
According to HUD, the freeze applies to single-family mortgages and rev...
The Consumer Financial Protection Bureau has come to a settlement with Specialized Loan Servicing LLC (SLS), a mortgage-loan servicer based in Colorado. The consent order requires SLS to pay $1.275 million in monetary relief to consumers in the form of redress and waiver of borrower deficiencies, pay a $250,000 civil money penalty, which will be paid to the Bureau and deposited into the Bureau’s Civil Penalty Fund, and implement procedures to ensure compliance with the Real Estate Settlement Procedures Act (RESPA) and its implementing regulation, Regulation X.
Distressed consumers are bombarding the Consumer Financial Protection Bureau with complaints that mortgage servicers are refusing to provide deferrals for skipped payments, or are forcing homeowners into forbearance plans they didn’t ask for.
Complaints to the CFPB hit a record 42,774 in April, up 15% from March — the highest monthly tally since the complaint database was launched in 2011. Though most of them related to credit reporting and repair services, as is typically the case, more than one in five complaints mentioning the coronavirus were about mortgages.
Four of the leaders of the House Financial Services Committee want much more information from the nation’s biggest mortgage servicers on how many borrowers are asking for forbearance and how that process is going for those borrowers.
Reps. Maxine Waters (D-CA), chair of the House Financial Services Committee; Gregory Meeks (D-NY), chair of the Subcommittee on Consumer Protection and Financial Institutions; Wm. Lacy Clay (D-MO), chair of the Subcommittee on Housing, Community Development, and Insurance; and Al Green (D-TX), chair of the Subcommittee on Oversight and...