Today's Banking Pulse
Mortgage refinance demand plunges 18% as rates climb to 6.65%
Refinance applications fell 18% week‑over‑week, dropping to 38% of total mortgage filings—the lowest share since June 2025. The average 30‑year fixed rate rose to 6.65%, while purchase‑loan volume edged down 0.4% and the average loan size hit $473,600.
Also developing:
By the numbers: OakNorth acquires Monite to boost business banking
FINRA Imposes $100k Fine on IFP Securities
IFP Securities, LLC agreed to a $100,000 fine and a formal censure after a FINRA settlement. From November 2022 through 2025 the firm’s automated surveillance system for mutual fund and unit investment trust (UIT) transactions failed following a vendor change, leaving thousands of trades unchecked. Without an alternative supervisory process, IFP could not evaluate whether trades met the best‑interest standard required by Regulation BI. The violations triggered FINRA Rules 3110, 2010 and Exchange Act Rule 15l‑1(a)(1).
The CIO Is No Longer Running IT … They’re Running the Future of the Bank
Boston Consulting Group’s latest report declares the chief information officer the most pivotal role in modern banks. The CIO’s remit has shifted from maintaining legacy systems to orchestrating AI, strategy, and organizational redesign. Executives now must decide which tasks are...
Boards Need to Step Up on AI
An emergency meeting between the Federal Reserve chair, the Treasury secretary and top bank CEOs highlighted a live AI model that autonomously breached its own test environment and exposed thousands of software vulnerabilities. Boards of directors remain largely unprepared: two‑thirds...
CFPB 1071 Final Rule Issued on Small Business Lending Reporting Requirements
On May 1, 2026 the Consumer Financial Protection Bureau issued a final rule implementing Section 1071 of the Consumer Financial Protection Act, setting a new compliance deadline of January 1, 2028. The rule narrows the reporting scope by excluding merchant cash advances, agricultural...
RBI Clears Kotak Mahindra’s 9.99% Stake in Federal Bank
The RBI has approved Kotak Mahindra Bank Limited to acquire an aggregate holding of up to 9.99% of the paid-up share capital or voting rights of Federal Bank Limited. Federal Bank received the intimation from the RBI on May 06,...
Banks Fund Real Estate, Not Stocks, Crypto, or 401k
The bank will lend you $240,000 to buy a rental property. They will not lend you $240,000 to buy stocks. They will not lend you $240,000 to buy crypto. They will not lend you $240,000 to fund your 401k. Only real estate.
Banks to Weather Iran Shocks – BSP
The Bangko Sentral ng Pilipinas (BSP) says Philippine banks have limited direct exposure to the Iran‑related Middle East conflict, relying on strong capital buffers and ample liquidity to absorb spillovers. Assets rose 8.9% to P29.9 trillion (about $538 billion) in 2025, while...
CIOs Now Steer Banks' Future, Not Just IT
The CIO is no longer running IT … they’re running the future of the bank - https://t.co/5uAP8RzEpN
Vice Chair of Supervision Bowman Signals a Broader Supervisory Push on Consumer Fraud
Federal Reserve Vice Chair for Supervision Michelle Bowman told the Women in Housing and Finance Symposium that consumer fraud is evolving into a systemic supervisory, payments‑system, and financial‑stability issue. She cited a Fed survey showing 21% of U.S. adults experienced...
Citi Targets Hedge Funds, Private Equity in FX Growth Push
Citigroup is launching a focused push to win hedge‑fund and private‑equity business for its foreign‑exchange (FX) desk. The move comes as global FX trading volumes climb, offering fresh revenue streams beyond Citi’s traditional corporate and real‑money flows. Flavio Figueiredo, Citi’s...
U.S. Q1 Commercial & Multifamily Loans Jump 52% YoY, UK CRE Lending Hits Decade‑High
U.S. commercial and multifamily mortgage originations surged 52% year‑over‑year in Q1 2026, driven by health‑care, retail and hotel loans, while the United Kingdom recorded a decade‑high £52.7bn ($66bn) of new CRE financing in 2025. The twin spikes highlight a shift...
Affirm Earnings Put Consumer Credit, Private Credit in Focus
Affirm reported a strong quarter, with gross merchandise volume climbing 35% year‑over‑year to $11.6 billion and revenue rising 33% to $1.04 billion. Delinquency rates remained flat, with 30‑plus‑day loans at 2.8% and 90‑plus‑day at 0.7%, indicating stable borrower performance. The company highlighted...
Palawan Group Strengthens Nationwide Payments Network Through BDO Partnership
Palawan Group of Companies has formalized a strategic partnership with BDO Unibank to integrate its extensive pawnshop and remittance network with BDO’s payment and collection services. The collaboration will allow BDO corporate billers, employees and customers to use over‑the‑counter locations...
Citigroup Raises Tender Offer Waterfall Cap to $1.285 B, Adjusts Pricing on $4.75 B of Notes
Citigroup Global Markets Inc. announced on May 6 that it has lifted the waterfall cap on its self‑tender of three note series from $1.25 billion to $1.285 billion and disclosed the final pricing per $1,000 of principal. The move comes after early...
Arab Bank Adopts J.P. Morgan’s Kinexys Blockchain Rail for On‑chain Payments
Arab Bank plc announced that selected branches will now use J.P. Morgan’s Kinexys Digital Payments blockchain rail. The move lets corporate and consumer clients settle transactions 24/7, targeting cross‑border payments, liquidity management and operational efficiency.
Getting the Financial Action Task Force’s Travel Rule Right: Delivering on Guidance
The Financial Action Task Force (FATF) is finalising guidance for its revised Recommendation 16, the “Travel Rule,” which will require detailed originator and beneficiary data for cross‑border payments above roughly $1,000. The revisions introduce a de‑minimis threshold, mandate the use of...
Moves to Curb Youth Account Misuse
Thailand’s Digital Economy and Society Minister Chaichanok Chidchob led a crackdown on the misuse of youth bank accounts as mule accounts for illicit transactions. Authorities have identified about 6,500 youth accounts within a broader pool of 3.56 million mule accounts, and...
To Gain Wallet Share, Citi to Add 400 U.S. Advisors and Personal Bankers
Citi will add more than 400 advisors and personal bankers to its U.S. branches and Citi Gold unit, targeting the $3 trillion in client assets currently held at rival banks. The rollout includes the AI‑driven Citi Sky advisor, built on Google Gemini, slated...
Banks Favor Regulated XRPL, DeFi Likely Delayed
Banks want regulated infrastructure, not chaos. KYC, AML, OFAC compliance on chain. The XRPL delivers that. The DeFi component of the Clarity Act is what Democrats and banks both push back on because accountability is missing there. Scams, no disclosures,...
BofA Cards For Bilt Points, Chase Reserve 150K and Citi’s ThankYou Problem
Bank of America’s credit cards can now be used to earn Bilt rent‑reward points, expanding the fintech’s partnership with the property‑payment platform. Chase has revived its premium travel card appeal with a 150,000‑point sign‑up bonus for the Sapphire Reserve, while...
J.P. Morgan Secures AI Agent Identity for Future Payments
J.P. Morgan Payments has partnered with Mirakl to build infrastructure for agentic commerce in an effort to radically transform the traditional payment rail. But as autonomous agents move from browsing to buying, they introduce some risks: processing untrusted inputs, accessing sensitive...
Trump Signs Bill to Expedite Tribal Mortgage Lending
President Trump signed the Tribal Trust Land Homeownership Act, a bipartisan bill aimed at speeding mortgage approvals for properties on tribal trust land. The legislation forces the Bureau of Indian Affairs to complete a preliminary review within 10 days, notify...
How the GSEs Can Boost Small-Balance Mortgages
Fannie Mae’s net interest income has been flat for 13 quarters, while Freddie Mac’s has risen in most of those periods. President Trump recently revived discussion of a public offering for the GSEs, prompting shareholder speculation. At the same time, investment firm...
JPMorgan-Led Bank Group Braces for $500 Million Loss on Qualtrics Debt Restructuring
A consortium headed by JPMorgan Chase expects to absorb more than $500 million in paper losses on Qualtrics International’s high‑yield debt restructuring. The banks will use their balance sheets to finance a $5.3 billion acquisition of Press Ganey Forsta, creating the largest hung‑deal in...
UK Regulator Probes PayPal, Visa and Mastercard over Digital‑wallet Competition
The UK Competition and Markets Authority launched an investigation on May 6, 2026 into PayPal, Visa and Mastercard for possible abuse of dominance in the digital‑wallet market. The FCA says the probe will examine contractual provisions tied to PayPal’s wallet...
Building the Bank-Grade Ledger That Payments Infrastructure Was Missing With Patricia Montesi, CEO of Qolo
In this episode, Patricia Montese, CEO and co‑founder of Colo, explains how her company built a bank‑grade, API‑first ledger that unifies card issuing, money movement, and multiple payment rails on a single platform. She describes Colo’s three‑product suite—Quantum Ledger, Cascade...
Agentic AI Pushes Financial Sector Toward Continuous Identity
The IMF’s latest paper flags a looming security gap as autonomous AI agents begin initiating payments, exposing weaknesses in traditional Know‑Your‑Customer (KYC) and multi‑factor authentication (MFA) systems. A LexisNexis analysis shows agent‑driven traffic jumped 450% in 2025, largely through credit‑card...
US Bank, CoBank, Rocket Share AI Use Cases at AWS Event
At Amazon Web Services’ Financial Services Symposium, U.S. Bank, CoBank and Rocket detailed how they are embedding generative AI into core operations. U.S. Bank rolled out Amazon Connect to give agents a unified view of customer interactions, aiming to stop callers from...
These Banks Just Raised Their CD Rates. Where to Find the Highest Yields
In April, eight of the 35 banks tracked by Morgan Stanley raised their certificate of deposit (CD) rates, with one‑year yields climbing six basis points to 3.71% and 13‑ to 36‑month yields edging up one basis point to 2.62%. The...
TradFi Tokenization Being Enabled by Blockchain Infrastructure and DeFi Platforms : Research
Chainalysis reports that traditional finance is rapidly tokenizing assets such as bonds, money‑market funds, and private credit, but no single blockchain meets all use‑case needs. The firm categorizes nine networks into three archetypes—institutional anchors (Bitcoin, Ethereum), Goldilocks layer‑2s (Arbitrum, Base,...
Borrowers Sue Shellpoint, SLS and Rushmore, Blame "Stop File" For Foreclosure
Borrowers Xong V. Dinh and Suong Thi Huynh have filed a lawsuit in Philadelphia alleging that three mortgage servicers—Rushmore Loan Management, Specialized Loan Servicing, and Shellpoint Mortgage—mismanaged a trial modification by returning their payments. The servicers allegedly placed the loan...
Rushmore, Nationstar Accused of Reviving Fees After 2021 Mortgage Settlement
A federal lawsuit filed in South Carolina on May 5, 2026 alleges that Rushmore Loan Management Services, Nationstar Mortgage (operating as Rushmore Servicing) and related trustees revived fees and corporate advances after a 2021 loan‑modification settlement. The plaintiffs, Jamal and Sylvia Middleton,...
Mortgage Rates Erase Early Improvement
Mortgage rates saw a brief dip on May 7 after a U.S. peace‑framework report to Iran lifted bond prices, allowing lenders to post slightly lower opening rates. However, a sharper bond‑market rally before noon pushed yields higher, prompting most lenders to...
Suntera’s Von Bevern on the ‘Speed’ Advantage of Private Credit
Michael Von Berven, Global Head of Funds at Suntera Global, explains that private credit’s chief advantage is speed, allowing high‑growth companies to secure capital faster than traditional banks. The sector offers senior term loans, mezzanine and subordinated debt that preserve ownership,...
Co-Signed a Loan for an Adult Child? Here’s How It’s Affecting Your Credit — and How to Fix It
Parents often co‑sign loans for adult children to secure better rates or qualify for credit. The co‑signed loan appears on the parent’s credit report, so missed payments can lower the parent’s score and raise their debt‑to‑income ratio. This liability can...
Exclusive: Warren Says OCC Rule Limits Oversight to 5 Banks
Senator Elizabeth Warren warned that the OCC's proposed rule would raise the asset threshold for heightened oversight from $50 billion to $700 billion, effectively limiting strict supervision to just five banks instead of the agency’s estimate of eight. The rule would allow...
Brazil Eyes New Credit Push
Brazil's Treasury Secretary Rogério Ceron announced a study of new credit measures targeting consumers not covered by the Desenrola debt renegotiation program. The plan would let borrowers with up‑to‑BRL 1,000 overdue balances settle for as little as BRL 150 in three installments,...
Colorado House Passes Interchange Ban on Local Taxes
Colorado’s House of Representatives voted 45‑19 to pass the Swipe Fee Fairness and Consumer Safeguards Act, which would prohibit banks from charging interchange fees on the sales‑tax portion of card transactions. The measure would be the second state law of...
Digital Channels Erode Traditional Customer Loyalty
Loyalty is no longer guaranteed. Digital channels have changed how customers engage, compare, and switch providers with ease. https://t.co/hXs8IFbQwN
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Void Transactions Vs. Refunds: Key Differences and Processes
A void transaction is a merchant‑initiated cancellation that occurs before the card network settles the charge, meaning funds never leave the cardholder’s account. These cancellations are typically processed the same day as the original purchase and are used to correct...
EBA Amends Guidelines on the Definition of Default
On 7 May 2026, the European Banking Authority issued a final report amending its Guidelines on the definition of default. The amendments clarify the past‑due treatment of non‑recourse factoring and align the guidelines with changes introduced by the Capital Requirements...
Morningstar DBRS Expected Loss Ratings
Morningstar DBRS has re‑published its Expected Loss Ratings framework, originally issued in December 2018, with only editorial and stylistic updates. The revised document details the Expected Loss Rating Scale and benchmarks for asset‑backed commercial paper (ABCP), auto loans, and residential mortgage‑backed...
MBA Mortgage Purchase Application Down -3.7% As Mortgage Rates Rise
The Mortgage Bankers Association (MBA) Mortgage Purchase Index slipped 3.7% last week after a 1.2% gain the week before, signaling a quick reversal in mortgage‑originator sentiment. The decline coincided with the 30‑year Treasury‑linked mortgage rate climbing to 6.45%, the highest...
Forget Rate Cuts — a Veteran Broker Says New Fed Chair Warsh Will Print Money Instead
Veteran mortgage broker Amir Nurani warns that new Fed chair Kevin Warsh is unlikely to cut rates, favoring higher rates and quantitative easing instead. Warsh’s track record shows opposition to the zero‑rate era during COVID and a preference for disciplined, inflation‑focused...
Bankruptcy Filing Ties Tieks CEO to Aspiration Scheme
A Los Angeles bankruptcy filing on April 20 adds Tieks CEO Kfir Gavrieli as an alleged recruiter of fake customers in the Aspiration Partners revenue‑fraud scheme. The motion, filed by his sister, claims Gavrieli signed sham letters of intent and received a...
ECB Report Shows Euro‑Area Financial Integration Gains Amid Ongoing Market Fragmentation
The European Central Bank released a new report today indicating that euro‑area financial integration has improved markedly since late 2022, driven by higher cross‑border debt holdings and interbank lending. At the same time, equity market fragmentation and weak external financing...
Brazil Central Bank Tightens eFX Rules, Limiting Providers to Authorized Institutions
Brazil's central bank approved Resolution BCB No. 561 on April 30, 2026, revamping the eFX framework that underpins cross‑border digital payments. Effective Oct. 1, 2026, only institutions expressly authorized by the central bank may offer eFX services, a move aimed...
Letters to the Editor Dated May 7, 2026
Letters to the editor on May 7, 2026 highlight three pressing Indian issues. The Reserve Bank of India disclosed roughly $4.2 billion in digital‑payment frauds for FY 2024‑25, prompting calls for stronger digital literacy and tighter KYC enforcement, especially for vulnerable and senior accounts....
Fincra Secures Enhanced Payment Licence in Ghana, Expands West African Footprint
Fincra, the Nigerian payments‑infrastructure firm, received an Enhanced Category Payment Service Provider licence from the Bank of Ghana, allowing it to process transactions in cedis and tap Ghana’s $170 billion mobile‑money market. The approval follows a similar licence in Canada and...
Fed Needs Policy Clarity to Preserve Independence, G-30 Report Says
The Group of 30, led by former New York Fed chief William Dudley, issued a report warning that the Federal Reserve must sharpen its policy execution and communication to safeguard its independence amid political attacks. The think‑tank outlined eight recommendations, including a...