U.S. Market Close 10/20/2025

DOW 30  +1.12% +515.97 46,706.58

S&P 500  +1.07% +71.12 6,735.13

NASDAQ 100  +1.30% +323.06 25,141.02

Are Your Loans Really Making Money? And Will They Tomorrow?

Executive Summary

• Interest rate volatility is back — and banks that don’t factor it into their loan pricing will suffer.
• "Funds transfer pricing" enables lenders to realistically assess what they should charge for loans, building in the possibility that funding prices will change.
• When the next downturn comes, banks using this strategy will still be able to lend profitably. Those who don’t will have to shrink.

After more than a decade of relative stability, interest rate volatility has returned. As a result, many banks are feeling the impact where it hurts most: loan pricing.

As the Federal Reserve continues to adjust rates, institutions are quietly losing revenue because they’re lending at the wrong price. Loans are too often underpriced in ways that overlook liquidity risk, interest rate risk, and the true operational cost of funds.

Read more at The Financial Brand

Americans Trading In Cars Owe More Than Ever And It’s Only Getting Worse

A new study uncovers record debt levels in America’s car market as buyers face an upside-down reality of falling values and rising loans

Over 28 percent of trade-ins are underwater on their loans, Edmunds says.

The number has increased dramatically from 24.1 percent in Jan-Mar 2025.

Almost one quarter of underwater loans carries more than $10,000 of debt.

Forget Demogorgons and creepy parallel worlds – there’s an Upside Down far scarier than the one in Stranger Things, and it’s pulling American car buyers under. The world of auto finance has flipped on itself, and the numbers are enough to make even seasoned lenders uneasy.

According to a new report, the average amount owed on upside-down auto loans, where drivers owe more than their car is worth, has climbed to an all-time record high of $6,905.

Read more at CARSCOOPS.COM

Is Your Consumer Credit Risk Strategy Creating Friction and Abandonment?

by Laurie Anderson at ValidiFI

• Are you seeing high consumer drop-off when you ask for bank account information during onboarding?
• Are you missing out on qualified leads because consumers hesitate to share sensitive financial data?
• Are you finding that innovation stalls early in your waterfall—especially when bank account and routing number products come later?

If you answered “yes” to any of these, you’re not alone. And now, there’s a better way forward.

AVOID THESE HEADACHES WITH vCredit

vCredit is a flexible, FCRA-compliant credit risk solution that lets you evaluate and score consumers using either their SSN or bank account and routing number (BARN)—no bank login credentials required.

Its versatility means vCredit can be deployed at different points in your waterfall, depending on your workflow, consumer experience goals, or data availability. Whether you’re looking to decision earlier or supplement later-stage risk models, vCredit adapts to your needs.

vCredit DELIVERS:

• Earlier Decisioning—Identity-based scoring enables fast approvals using SSN or BARN data
• Stronger Trust—Builds user confidence by eliminating the need for bank login credentials
• Expanded Reach—Unlocks access to consumers often overlooked by traditional credit models
• Smarter Risk Assessment—Predictive accuracy powered by proprietary inquiry, credit, and payment performance data

Read the entire BLOG at ValiiFI. 

The best and worst months to buy a house — the difference could save you $23,000

Americans prefer to buy homes in the summer, but they pay a steep premium for them.

If you’re looking for a new home, consider waiting until there’s snow on the ground and a nip in the air. Buying in winter can save you tens of thousands of dollars, according to a new LendingTree study. 

A review of 2024 real estate data found that January was the cheapest month for home sales, with properties going for a median of $178.60 per square foot. By May, the priciest month, comparable homes were selling for $194.20 per square foot, an 8% increase. On a typical 1,500-square-foot house, that’s an extra $23,400.

In February, the second-cheapest month, houses sold for a median of $183.70 per square foot, or $15,750 less than in May.

Read more at CNBC

Robert Kiyosaki Predicts Hard Times for the Middle Class, Doubles Down on Bitcoin

Robert Kiyosaki is doubling down on his warning about fiat currency, inflation, and economic collapse—while aligning with a bitcoin-first, AI-driven education platform that’s shaking up global finance and redefining real asset value through tokenization.

Robert Kiyosaki Warns Inflation Storm Will Erase Savings and Deepen Global Inequality

Robert Kiyosaki, author of the best-selling book Rich Dad Poor Dad, has weighed in on the state of the global economy while announcing his new role as a Board Advisor to Genius Group Limited. His book has been one of the most influential financial education works of all time—translated into 45 languages, sold in 90 countries, and exceeding 25 million copies worldwide.

Kiyosaki sounded another warning about inflation and the broken monetary system on social media platform X on Oct. 17, writing:

Read more at NEWS.BITCOIN.COM

Have a tax law question?

Our #IRS Interactive Tax Assistant has answers.

Watch this short video to learn more:

https://youtu.be/y6HkaBkdKdU

Jose L. Santiago

Public Affairs Specialist

Tax Outreach, Partnership and Education

Email: jose.l.santiago@irs.gov

Moody’s says the banking system, private credit markets are sound despite worries over bad loans

Key Points

• Despite worries over bad loans at midsize U.S. banks, there’s little evidence of a systemic problem, according to Marc Pinto, Moody’s head of global private credit.
• “One cockroach does not a trend make,” Pinto said.
• Market sentiment appeared to improve Friday after a sell-off Thursday.

Despite worries over bad loans at midsize U.S. banks, there’s little evidence of a systemic problem, according to a senior analyst at Moody’s Ratings.

Marc Pinto, the agency’s head of global private credit, acknowledged in a interview on CNBC’s “Squawk Box” that there are concerns over loose lending standards and some slack in the conditions that institutions attach to loans.

However, he said when looking at the system as a whole, contagion the likes that could trigger a broader financial crisis is not evident.

Read more at CNBC

TEXAS company offers payroll advances for federal workers, military during government shutdown

Fort Worth-based First Command Financial Services Inc. is aiding federal workers and military service members during the ongoing U.S. government shutdown.

The veteran-focused company, founded in 1958 by retired Lt. Col. Carroll Payne, is providing zero-interest direct deposit payroll advances and loan assistance to clients to ease their financial burdens from the shutdown. The company has more than 300,000 clients, 69% of which are veterans or active duty military members.

Mark Steffe, First Command president and CEO, said the company offered similar services to clients during previous government shutdowns in October 2013 and December 2018 to January 2019.

“First Command is committed to doing all we can to ensure that our nation’s military families and other federal employees are not financially harmed by government actions or inactions that are beyond their control,” Steffe said in a statement. 

Read more at FORT WORTH REPORT

INFiN's 2025 MoneyTrends Conference

October 26-October 29

Contact: LeeAnn Thompson, Director of Member Services

lthompson@infinalliance.org

Consumer Financial Services Bites of the Month - October 2025 - "October Road with the CFPB": by Hudson Cook, LLP

In this month's article, we share some of our top "bites" covered during the October 2025 webinar.

Bite 13: CFPB Hires Attorney-Advisors

On October 10, 2025, media outlets reported that the CFPB is hiring attorneys to defend the CFPB in appellate litigation. The CFPB reportedly sent an internal email on October 1st that it had two job openings for attorney-advisors in the legal division of the CFPB's Office of Litigation. The timing of the hiring is interesting, given that the CFPB's union is currently litigating the CFPB's reduction in force. The jobs reportedly involve providing legal advice and guidance CFPB "clients on all relevant legal matters." It is estimated that roughly 90 attorneys have left the enforcement division, which has roughly 160 staffers, a 35% drop.

Bite 12: California Limits Scope of Consumer Arbitration Agreements

On October 6, 2025, California Governor Gavin Newsom signed a new law that limits the scope of so-called "infinite arbitration clauses." 

Read more at Hudson Cook, LLP

For Banks and Credit Unions, AI Can Be Risky. But What’s Riskier? Falling Behind.

Executive Summary

• Banks don’t need to wait for flawless data infrastructure. Low-risk contact center applications like voice biometrics and automated agents offer immediate wins without enterprise-wide overhaul.
• Testing AI in controlled environments that mirror real conditions allows institutions to experiment safely, prove ROI, and identify data gaps before full deployment.
• Early adopters are seeing measurable improvements: one credit union reduced member escalations by 20% and cut average call times by 21 seconds, proving smaller institutions can compete with larger rivals

For many bank and credit union leaders, Generative AI is mostly generating… anxiety. On one side is the fear of getting it wrong: exposing sensitive data, triggering a compliance breakdown, or wasting money on experiments that never scale. On the other looms something even more stress-inducing: watching competitors that have mastered AI serve their customers faster, cheaper, and with more personalization, while gaining market share in the process.

Read more at The Financial Brand

Contact Chuck.Sockol@mcrc.biz to discuss your recovery needs

Poor seniors die up to 9 years sooner than the wealthiest ones. How not to be one of them.

Billy Joel famously sings that only the good die young, but a recent study shows it’s really the poor who are dying young.

Older people who earn less than $20,000 a year die nine years sooner on average than those who earn $120,000 or more, according to a study by the National Council on Aging (NCOA) and University of Massachusetts Boston's LeadingAge LTSS Center. Middle-income seniors who earn around $60,000 die three years earlier, it said.

With income inequality growing and more seniors falling into poverty each year, this is an ominous sign for the largest surge of Americans turning 65 daily in history, experts said. But with proper planning, it doesn’t have to be, financial advisers said.

“There’s no 'too young' of an age to plan,” said Brian Davis, San Diego-based financial adviser with Northwestern Mutual. “I have clients in their 20s talking about long-term planning.”

Read more at USA TODAY

As the Wealth Gap Widens, Banks Have to Pick Between Two Distinct Customer Sets

Executive Summary

• According to Bank of America, decent 2% YoY growth in total household spending in September masked a widening chasm between lower-income households and higher-income consumers.
• Higher-income households benefit from a wealth effect driven by equity markets, while lower-income households, particularly Millennials and Gen X, face cooling wage growth and lack the assets to maintain spending momentum.
• For retail banks, products and marketing must address fundamentally different financial realities: expanded credit access and financial education for struggling households versus wealth management and premium services for the affluent.

September’s consumer spending data looks reassuring at first glance — 2.0% year-over-year growth, four consecutive months of positive momentum, the strongest performance since December 2024.

Read more at The Financial Brand

Cost of living summit focuses on keeping Hawaii’s young professionals home

HONOLULU (HawaiiNewsNow) - How to work and live in Hawaii was front and center at the third annual Cost of Living Summit.

Gov. Josh Green says his administration is pushing several affordability measures, from expanding affordable housing and rental assistance programs to helping the next generation build wealth in Hawaii.

“Housing and affordability, that’s by far the number one and two issues,” Green said. “To do that successfully, we have to have good economic growth and opportunity. That extra $3,500 or $4,000 a year makes the difference for a lot of people on affordability, and it’s also meant to help small businesses get started.”

More than 130 young professionals, business leaders, and policymakers attended the summit, focused on finding ways to make living and working in Hawaii more affordable.

Read more at HAWAII NEWS NOW

The Classic Checking Account Doesn’t Meet the Needs of Today’s Consumers. Here’s How to Fix It

Executive Summary

• Many Americans need assistance managing their finances, but often their primary financial providers’ checking products don’t do enough to help, according to a new study.
• What’s missing? Many accounts lack a robust set of budgeting and spending control tools. But the Financial Health Network finds other deficiencies as well.
• The group’s report and a related toolkit point the way to improvements that could help institutions achieve primacy.

How well does your institution’s checking account meet the needs of the majority of modern consumers? If your offerings resemble the cross-section of checking accounts recently studied in depth by the Financial Health Network, likely not well at all.

The good news is that this is a problem that can be fixed.

The organization has developed a set of FinHealth Standards for evaluating financial products that is premised in part on a finding, in its 2025 Financial Health Pulse, that just over half of Americans spent as much or more than they earned in 2024. In addition, the pulse study found that almost a third of households surveyed had missed at least one bill payment in 2024.

Read more at The Financial Brand

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FTC, State of Nevada Sue to Stop Tax Debt Relief Scammers from Falsely Impersonating the Government, Making False Claims and Threats to Consumers

American Tax Service allegedly promised fake tax debt relief and pocketed tens of millions of consumers’ dollars

At the Federal Trade Commission’s request, a federal court has temporarily halted alleged tax debt relief scammers from falsely impersonating government agencies, including the Internal Revenue Service, deceptively promising tax debt relief, sending threats to consumers about their debts and pocketing tens of millions of consumers’ dollars.

The FTC filed a complaint against American Tax Service (ATS) and its operators, Terrance Selb and Tyler Bennett, as well as seven affiliated entities. The Commission alleges the company’s operators falsely claimed they could settle taxpayers’ back taxes for “pennies on the dollar” or for only a “fraction” of what taxpayers’ owed, often making these claims before evaluating the taxpayer’s circumstances.

Read more at Federal Trade Commission 

Insiders Bet Big on These 3 Fintech and Biotech Stocks

The big banks have started off the new earnings-reporting season, which means that insider buying of stocks could be muted for a while. However, it never goes entirely silent, as a few notable purchases in the past week or so attest.

A couple of biotech firms saw some big insider buying, but most prominent of all was a huge block of shares of a fintech company acquired by a beneficial owner and sold by a Washington insider.

24/7 Wall St. Key Points:

In the past week or so, a fintech firm and two biotechs saw some huge insider buying.

However, these were not the only notable insider purchases recently.

Some investors get rich while others struggle because they never learned there are two completely different strategies to building wealth. Don’t make the same mistake, learn about both here.

Read more at YAHOO FINANCE

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Merchant Service Provider for Your Business EC

PayPal Claims Third in FinTech Magazine’s Top 100 Companies

• PayPal ranks third in FinTech Magazine's annual ranking while processing US$1.68tn in payment volume
• PayPal has secured third position in the Top 100 FinTech Companies list, recognition that comes as the digital payments platform executes a transformation strategy designed to extend its reach beyond transactions into commerce.

The San Jose-based firm operates across 200 markets with 434 million active accounts comprising both consumers and the 36 million merchants who use its services. 

In 2024, the platform processed US$1.68t in total payment volume and generated US$31.8bn in revenue, representing growth of 10% and 6.7% respectively.

Under CEO Alex Chriss, who joined in September 2023 from Intuit, PayPal has shifted from what Chriss describes as a company people “know and love, just online” to one that aims to be “available everywhere a consumer or a merchant wants to transact.” 

Read more at FINTECHMAGAZINE.COM

Report fake IRS, Treasury or tax-related emails and messages: IRS

Report suspicious IRS, Treasury and tax-related emails, texts, social media accounts, phone calls and letters. You can help shut down scams and phishing attacks that trick people into sharing personal information online.

How you report depends on the contact:

• Email
• Social media
• Text message
• Website
• Phone
• Mail 
• Fax

If your money or identity was stolen: Report the fake message and follow the steps if you were scammed.

Read more at INTERNAL REVENUE SERVICE

New tax laws under Trump could let millions of Americans pay $0 in federal income tax — here’s who can eliminate their 2025 bill completely

Altogether, roughly 40% of U.S. households could pay $0 in federal income tax in 2025, according to the Tax Policy Center (1). That’s in line with the 40% of households that had a $0 federal tax bill in 2022, under the Biden administration. However, Trump’s tax cuts favor specific groups, which means you could see a $0 tax bill for the first time if you meet certain conditions (2).

Here’s a closer look at who will come out ahead.

Who can eliminate their tax bill?

Trump’s One Big Beautiful Bill Act (OBBBA) specifically favors seniors, employees who earn tips and overtime and those with children.

Here’s an example: Casey and Riley earn a combined income of $100,000 and have two children both under the age of 13. Their usual deductions allow them to lower their taxable income considerably, with $31,500 in standard deductions, $6,800 in 401(k) contributions, $6,800 for health insurance premiums, $1,260 for a Health Flexible Spending Account (FSA) and $3,000 for dependent care FSA.

Read more at MONEYWISE.COM

What Texas law says about businesses refusing cash as payment

Over the past decade, and especially post-pandemic, many Americans are going cashless.

Around 41 percent of Americans said none of their purchases in a typical week are paid for with cash, according to a 2022 study from the Pew Research Center. The study also noted that Americans with lower incomes are more reliant on cash than those who are more wealthy.

While cash-only businesses are common, there are also those who operate as cashless and only accept debit or credit cards.

If cash is considered "legal tender," does that mean it's illegal for Texas businesses to operate as cashless? Here's what to know.

Can Texas businesses go cashless?

Yes, Texas business are allowed to operate as cashless.

Read more at MSN

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SoFi to launch international money transfer service

SoFi (NASDAQ:SOFI) said it will launch an international money transfer service later this year, allowing members to send funds abroad directly through the SoFi app with lower fees and faster delivery than traditional providers.

The service, powered by Lightspark’s Universal Money Address (UMA) and the Bitcoin Lightning Network, will make SoFi one of the first U.S. banks to offer blockchain-based remittances.

The service converts U.S. dollars to bitcoin in real-time and routes funds across borders using the Bitcoin Lightning Network. The funds are then instantly converted back into local currency and delivered directly to the recipient’s bank account in the destination country's local currency.

SoFi said transfers will be available 24/7 within its app, with upfront disclosure of exchange rates and fees, and total costs below the current national average.

Read more at SEEKING ALPHA

What is private credit, and should we be worried by the collapse of US firms?

First Brands and Tricolor failures raise concerns for wider financial sector, including traditional banks

The collapse of two US firms, First Brands and Tricolor, has shone a light on private credit and its growing influence in the global economy.

The failures have led to ballooning losses at traditional banks, and, coupled with worries about the health of US regional banks, have raised concerns about weak lending standards and potential threats from an opaque corner of the so-called shadow banking sector.

But what is private credit and should we be worried?

What is private credit?

Private credit emerged in the 1980s as a relatively niche industry offering private loans to businesses.

Read more at The Guardian

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start-up, product development, and product evolution stages. PS

US-China trade war clouds global economic outlook as 'new normal' emerges

WASHINGTON, Oct 19 (Reuters) - International finance chiefs are returning home with a measure of relief over the surprising resilience of the global economy to the cascade of policy shocks through the first nine months of Donald Trump's second U.S. presidency but also drained by seemingly never-ending uncertainty over what lies ahead.

When finance ministers and central bankers gathered in Washington in April for the first of the twice-yearly meetings of the International Monetary Fund and World Bank, the anxiety over Trump's just-unveiled "Liberation Day" tariffs was palpable. Six months on at the just-concluded October meetings, that had been replaced by fatigue and wariness that the policy landscape is never fully settled.

"It's been just absolutely exhausting since Liberation Day as a policymaker, trying to make sense and then actually make policy and communicate to the public about this," Bank of Thailand Deputy Governor Piti Disyatat said. "So the uncertainty has been very difficult."

Read more at REUTERS

Global Consumer Finance Market to Reach USD 2,168.53 Billion by 2031, Driven by Digital Lending and Credit Expansion, States Kings Research

Kings Research today announced the release of its latest market intelligence study, “Global Consumer Finance Market: Size, Share, Trends & Forecast 2024–2031.” The report offers a detailed analysis of the consumer finance landscape, including market size, growth trends, segment insights, regional dynamics, and competitive positioning, providing strategic guidance for industry stakeholders.

According to Kings Research, the global Consumer Finance Market was valued at USD 1,342.34 billion in 2023 and is projected to grow from USD 1,415.90 billion in 2024 to USD 2,168.53 billion by 2031, at a CAGR of 6.28% during the forecast period.

Rising demand for personal loans, credit cards, and digital lending solutions is driving this growth, as consumers increasingly seek convenient, technology-enabled financial services. The expansion of middle-class populations, growing urbanization, and financial inclusion initiatives are also key contributors to market acceleration.

Read more at KINGS RESEARCH

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Concerns About Bad Loans Rocked Bank Stocks on Thursday—How Many More 'Cockroaches' Are Out There?

Key Takeaways

• Regional bank stocks slumped on Thursday after Zions Bancorp said it would write off loans to two borrowers it accused of fraud.
• Zions' write-off added to mounting concerns about lax lending standards and undisclosed entanglements among non-bank financial institutions, with which banks have dramatically increased their business in recent years.
• The recent bankruptcies of auto parts maker First Brands and subprime auto lender Tricolor have Wall Street worried that more credit-related losses are on the horizon.

Regional bank stocks tumbled on Thursday after Zions Bancorp said it would write off fraudulent loans made to two borrowers, adding to investors’ fears about lending standards and stress in credit markets.

Zions Bancorp (ZION) on Thursday said it had recently identified “what it believes to be apparent misrepresentations and contractual defaults” by two borrowers. As a result, it plans to write off $50 million of the $60 million outstanding on the affected loans.

Shares of Zions dropped 13% on Thursday, leading regional banks lower. The KBW Regional Banking Index fell 6%. 

Read more at INVESTOPEDIA

The big money takeover is wrecking college sports. It doesn't have to be that way

PROTECT Act would bar outside financiers from controlling athletics revenues and media rights

College sports are being re-engineered in real time — not by coaches, campus leaders or even Congress, but by hedge funds. The Big Ten is advancing a multibillion-dollar private-capital deal that would spin up a new commercial arm, extend control of media rights through 2046, give investors a say in a new entity, and tier distributions toward the biggest brands. That’s not a tweak; it’s a restructuring of who controls college sports’ core assets.

Public officials are flashing warning lights. My colleague and fellow Washington state lawmaker Democratic Sen. Maria Cantwell warned in a letter to Big Ten presidents that selling stakes in university athletics to private equity may conflict with academic missions, jeopardize tax-exempt purposes and is advancing without full trustee briefings at some schools. Families and taxpayers deserve transparency before public assets are auctioned off to the highest bidder.

Meanwhile, campus leaders say the financial framework governing college sports is harmful. Their top concern is House v. NCAA, a settlement to an antitrust lawsuit brought by college athletes against the NCAA for the power conferences' anti-competitive behavior.

Read more at FOX NEWS