“The biggest U.S. banks reduced the portion of their collective balance sheets they’re dedicating to loans to a new low, extending a trend that’s seen the largest lenders put less and less of their firepower behind everyday borrowers.    Total loans at the 25 biggest U.S. banks comprise less than 46% of their combined assets, down from 54% this time last year, according to weekly Federal Reserve data made public on Friday.”

“Minority-owned U.S. small businesses reported much weaker financial conditions than the average in a survey from the Federal Reserve, which highlighted “stark differences by race and ethnicity” in the face of the pandemic crisis. Overall, 88% of firms with fewer than 500 employees said that sales were still below pre-pandemic levels, according to the Small Business Credit Survey released by the Fed on Wednesday. Firms owned by Asian, Black or Latino Americans were more likely to report “fair” or “poor” financial conditions and least likely to receive the amount of funding they sought, according to the report.”

“Jim Curran in Malvern, Pa., lost his job in March and got permission to pause his mortgage payments, freeing up thousands of dollars a month, with no damage to his credit score. Patricia Orndorf in St. Louis Park, Minn., also lost her job in March. Her bank let her temporarily skip her credit-card bill, which had a minimum monthly payment of roughly $100, through July. But interest still piled up, and late fees for August, September and October added to her balance.”

“General Motors Co. is looking to get back in the banking business. The auto maker’s lending arm is drawing up plans to apply for a banking charter, a move that would allow it to accept deposits and expand its auto-finance business, according to people familiar with the matter.”

“Americans continue to shy away from adding onto their credit cards even as they borrow more to buy houses and cars, according to a new report from the Federal Reserve Bank of New York. Household debt overall rose by $87 billion, or 0.6%, to $14.35 trillion in the third quarter compared with the second quarter, the New York Fed said. But credit-card balances declined by $10 billion to $810 billion. That followed a $76 billion decline in the second quarter, the steepest drop in data going back to 1999.”

“Millions of Americans lost their jobs and skipped debt payments this year. You wouldn’t know it looking at consumer credit scores. While the coronavirus was pummeling the U.S. economy, Americans’ credit scores—a metric used in nearly every consumer-lending decision—were rising. The average FICO credit score stood at 711 in July, up from 708 in April and 706 a year earlier, according to Fair Isaac Corp. , the score’s creator. Early estimates suggest the average score has held steady through mid-October at the July level, which is the highest since FICO began keeping track in 2005.”

“U.S. consumer borrowing unexpectedly fell in August as credit-card balances declined for a sixth consecutive month with the coronavirus pandemic continuing to limit some purchases amid elevated unemployment. Total credit decreased $7.2 billion from the prior month after an upwardly revised $14.7 billion July gain, Federal Reserve figures showed Wednesday. The median estimate in a Bloomberg survey of economists called for a $14 billion increase in August.”

“The coronavirus brought an end to the longest economic expansion in U.S. history. That wasn’t the only problem. When the U.S. barreled into the deep downturn that followed, it was laden with debt. Why does this matter? Economies carrying a lot of debt generally have weaker recoveries. Businesses and consumers focus on cutting their liabilities during downturns rather than spending cash—and spending is what an economy needs to rebound.”

“The Treasury Department said Tuesday it would begin forgiving loans granted to small-business owners under the Paycheck Protection Program, following banks’ and borrowers’ complaints that the process had been bogged down. The government expects to approve and pay forgiveness requests by late this week or early next, a Treasury spokesperson said. The applications are generally expected to be approved quickly, with the exception of loans above $2 million that will get added scrutiny.”

“The U.S. economy could face more foreclosures and business bankruptcies in the fall and winter if there is a rise in infections and no additional fiscal aid, conditions that could make it harder for consumers and businesses to access credit, Boston Federal Reserve President Eric Rosengren said on Wednesday. Community and regional banks could especially come under stress if there is a rise in delinquencies in commercial real estate loans as businesses struggle to stay in operation, Rosengren said.”

“The Federal Reserve, following an earlier split between banking regulators, took an initial step to rewrite rules for hundreds of billions of dollars in lending and investment in lower-income neighborhoods. Fed governors voted 5-0 to seek public comment on a broad overhaul to its rules for the Community Reinvestment Act , a 1977 law aimed at ending “redlining”—banks’ practice of avoiding lending in certain areas, often minority neighborhoods.”

“Walmart.com is increasingly becoming customers’ primary shopping destination, and our expanded Marketplace assortment is a big reason why. Last quarter, our Marketplace delivered triple-digit growth, and today we’re announcing a new partnership to help our Marketplace sellers grow their businesses. Starting today, eligible Marketplace sellers will be invited to apply for lines of credit offered by Marcus by Goldman Sachs. Access to affordable capital is more important than ever as businesses large and small work to adapt and evolve to serve customers and grow their businesses.”

“While uncertainty continues to loom over the economy , JPMorgan has seen some encouraging data when it comes to credit. Consumers who asked for deferrals on their credit cards continued to pay overall, writes Brian Kleinhanzl, managing director at KBW. On the mortgage side, many borrowers continue to make payments despite being granted a deferral.”

“Some mortgage lenders are asking customers taking out a mortgage to confirm they don’t intend to seek forbearance, a move meant to keep losses low during a pandemic that has put millions of Americans on shaky financial footing. The unusual requirement comes in the form of a new document included in many borrowers’ closing paperwork. While the language varies, the forms generally tell borrowers that they won’t be allowed to skip payments until their loans are backed by the government, according to forms reviewed by The Wall Street Journal.”

“As the retail industry continues to adopt innovative solutions amidst the global pandemic, Lightspeed announces the initial availability of Lightspeed Capital , powered by Stripe . Through financing offers, this new product will help U.S.-based merchants with overall business growth, more specifically to buy inventory, invest in marketing, or manage cash flows. It is available for retailers using Lightspeed Payments in the U.S. and provides financing of up to $50,000 USD per retail location.”

“Enova International and OnDeck® announced that they have entered into a definitive agreement under which Enova will acquire all outstanding shares of OnDeck in a cash and stock transaction valued at approximately $90 million.”