TD Bank Group announced it will open a new Layer 6 office in New York City. As TD’s AI research and development center, Layer 6 has driven TD’s ability to deploy advanced Machine Learning solutions since it was acquired by TD in 2018. Currently operating from its head office in Toronto’s MARS Innovation District, the new Layer 6 office will now grow to more closely support TD Bank, America’s Most Convenient Bank®, as well as TD’s other U.S. based operations. It will also allow TD to take advantage of an expanded pool of world-class talent and further cement its leadership and competitive advantage driving innovation in banking through AI. The Layer 6 office will formally open later in 2025 with a mixture of an initial 20 data scientists, applied machine learning scientists, GenAI implementation specialists, and others, who will sit at TD’s New York office, One Vanderbilt. “Our U.S. expansion of Layer 6 underscores our commitment to deepening our presence in New York City and investing in the future of innovation,” said Leo Salom, President and CEO of TD Bank. “The new Layer 6 office establishes a strong foundation for advancing our GenAI capabilities and bringing critical expertise and delivery in-house.”
Q1 2025 Homeownership Program Index (HPI) reports the number of entities offering homebuyer assistance programs increase by 55, offering more ways to qualify buyers and close loans in a tough market
Down Payment Resource (DPR) released its Q1 2025 Homeownership Program Index (HPI) report, which saw the number of entities offering homebuyer assistance programs increase by 55 year-over-year. The number of programs increased by 43 during the first quarter, bringing the total number of available programs to 2,509 — the highest recorded by DPR. That marks a 2% increase from Q4 2024. Of the programs, 952 programs (38%) are available to repeat buyers, 240 programs (10%) do not have income restrictions and 19 programs support first-generation homebuyers, an increase of 16% over the last quarter. Lenders can use down payment assistance (DPA) to lower a homebuyer’s loan-to-value (LTV) ratio by an average of 6%. The average benefit is $18,000. “Rates are still high and prices keep climbing, but we’re seeing expanded program offerings, new providers and greater flexibility in how funds are used — not just for down payments but also to cover closing costs, lower the rate or meet other buyer needs,” said Rob Chrane, founder and CEO of DPR. “More programs now include manufactured and multi-family homes, opening new paths to affordability and steady income. For lenders, that means more ways to qualify buyers and close loans in a tough market.” ”Other homebuyer assistance” programs increased 35% from the previous quarter, below-market-rate (BMR)/resale-restricted programs, which offer housing at prices lower than the open market, with restrictions on resale to ensure affordability for future buyers, typically low-to moderate-income households, increased 18% and grant programs grew 7%. Other stats:
- 80% of DPAs in Q1 were deferred payment programs, a 3% increase from the previous quarter. Deferred payment loans, which are often forgivable, mean that borrowers don’t make monthly payments, and the balance is typically due when they sell or refinance or the loan matures.
- Over half (53%) of DPAs in Q1 offered partial or full forgiveness over time, as long as the homeowner meets certain requirements, such as maintaining primary residency.
- Of the programs, 990 (39%) were offered through local housing finance agencies (HFAs), a number that was virtually unchanged from the previous quarter. Nonprofits accounted for 21%, a 2% increase over Q4 2024. State FHAs represented 18%.
- Manufactured housing programs saw growth, increasing from 914 in Q4 2024 to 971 in Q1 2025. For multifamily housing, a total of 833 programs were available, marking a 3% increase from Q4 2024. Of these, a growing number of programs support purchasing three-unit homes (562) and four-unit homes (536).
- A total of 20 programs offered special funding to surviving military spouses, an 18% increase from the previous quarter, while energy efficiency programs grew by 17%. Other incentive programs included 69 for educators, 56 for protectors (jobs focused on safeguarding people, property or information), 50 to assist military veterans and 50 for Native Americans.
- Of the 2,509 homebuyer assistance programs, 81% of programs are funded, 10% of programs are inactive, 4% of programs have a waitlist for funding and 5% of programs are temporarily suspended.
- Of the programs, 74% in the database are for down payment or closing cost assistance, 10% of programs are first mortgages, 3% of programs are Mortgage Credit Certificates (MCCs) and 13% are other program types.
Nacha: Same Day ACH Value Leaps 25% YoY in First Quarter as the payment method continued to gain acceptance
Same Day ACH saw double-digit increases in both volume and value during the first quarter as the payment method continued to gain acceptance.
The volume of Same Day ACH payments rose 19.1% year over year to reach 326 million, while the value increased 24.8% to reach $897 million, Nacha, which governs the ACH Network, said in a Wednesday (April 23) press release emailed to PYMNTS.
“As Same Day ACH nears moving $1 trillion in a quarter, it is clear that this faster payment method is gaining acceptance across a range of use cases,” Nacha President and CEO Jane Larimer said in the release.
According to the Nacha website, Same Day ACH is commonly used by businesses, government entities and consumers for purposes like urgent bill pay, payroll, insurance claims and disaster relief, refunds and reimbursements, and tax payments.
Standard ACH also continued to grow, according to the press release.
During the first quarter, compared to the same quarter a year ago, ACH payment volume rose 4.2% to 8.5 billion, while the value increased 6.6% to $22.1 trillion, the release said.
Among the major transaction types, the volume of person-to-person (P2P) leapt 20.4% to 109 million, B2B jumped 9% to 1.9 billion, healthcare rose 8.1% to 125 million and internet climbed 6.9% to 2.8 billion, according to an infographic released Wednesday.
Goldman Sachs extends $100M program for rural small businesses to Utah, including $75 million for small business loans
Goldman Sachs announced applications are open in Utah for its $100-million investment initiative to provide education and loans to small businesses in rural communities.
The initiative is an extension of the global investment firm’s 10,000 Small Businesses program, which aims to provide education, capital and support services to small-business owners through a 12-week curriculum. After seeing the success the program had in urban areas, Goldman Sachs committed $100 million in 2023 to expand the program to rural communities in 20 states in the next five years. Applications for the program are open through July 16 and can be found online. Utah’s first program cohort will begin in October. “Businesses outside of the metro Salt Lake area … can now all access this best-in-class educational program, access to capital and an all-important peer network,” said Asahi Pompey, global head of Corporate Engagement at Goldman Sachs. According to Goldman Sachs, 86% of small businesses in rural communities plan to grow, but less than 10% believe they have the needed resources. The $100 million investment includes $75 million for small business loans. Goldman Sachs’ 10,000 Small Businesses program has produced 16,600 graduates nationwide in its 15-year career, far surpassing its original goal. Salt Lake City’s small businesses program celebrated the graduation of its 1,000th small business on Thursday at a graduation ceremony for its 35th cohort, made up of nearly 30 business owners. According to Pompey, the cohort has provided 24,000 jobs to Utahns and made $2 billion in revenue. The success of the 10,000 Small Businesses program in Salt Lake City has reflected the state’s overall success in business, according to Pompey. “What we’ve seen in Utah has been really incredible with our 1,000 graduates. They are growing their business faster than other demographics. They’re creating more jobs for families and communities in the state,” she said. Looking forward, Goldman Sachs’ 10,000 Small Businesses is working toward graduating 20,000 entrepreneurs from the program.
Ending the separation of banking and commerce is a myth as bank holding company model and ring-fenced banking organization structure allows both banks and companies to operate as ‘data processing’ entities
U.S. banking organizations spend billions each year on technology as their data, machine learning and artificial intelligence, and cybersecurity needs become larger and more complex. Today’s banks and their nonbanking affiliates are tech companies: They squeeze everything they can into the permissible activity of “data processing.” And to stay competitive, they should Bank holding companies can also make noncontrolling investments in many commercial entities, subject to strict conditions. Under merchant banking powers, financial holding companies can own 100% of any commercial entity generally for 10 years, so long as they don’t manage it Whether the target demographic prefers to shop at big box stores, online retail platforms or both, chances are many customers will be interested in banking with them. Tech companies that develop devices, apps and other solutions are no different. And as the user experience becomes fundamentally more digital, the separation of banking and commerce washes out. It all starts to look like data processing. Digital assets like cryptocurrencies, stablecoins, digital currencies and the metaverse only continue to blur banking and commerce distinctions. One solution would be relatively simple and doesn’t involve abandoning the prudential tools that are the bedrock of banking law. And importantly, the same activities would be regulated and supervised in the same way. Any company, generally, should be able to own a ring-fenced depository institution. A ring-fenced banking organization more broadly would allow any company to own a bank holding company and its subsidiaries. Imagine a commercial org chart with an intermediate holding company — the true bank holding company — with a bank subsidiary: All the banking and financial activities would be within the ring-fenced structure. The Fed would keep its privileged purview. It could even impose commitments, source-of-strength, disclosure and other requirements on commercial parent companies. Antitrust law would serve as a backstop for other competitive concerns. The federal or state banking regulators could focus on the banks. There would be the same strong capital and liquidity requirements, limitations on transactions with affiliates and loans to insiders — all of it.
Crypto firms are seeking bank charters and trust licenses with an eye to get direct access to Federal Reserve payment systems, hold customer deposits, custody reserves for stablecoins and to offer loans or other banking services
In a sign of the evolving times, Circle, the FinTech firm best known for the USDC stablecoin, unveiled Monday an initiative called the Circle Payments Network (CPN), which aims to modernize how value flows worldwide. While Circle is building out the CPN platform, it’s also part of a broader movement of crypto companies pushing into the regulated banking sector. If successful, a company like Circle could hold customer deposits, custody reserves for stablecoins, and make loans or offer other banking services, all under the supervision of bank regulators. By obtaining bank charters or trust licenses now, crypto companies could get ahead of impending regulations and shape them. Chartered institutions also have certain advantages. They can potentially get direct access to Federal Reserve payment systems, hold customer dollar balances in central bank accounts, and operate across all 50 states without needing a patchwork of state licenses. Separately, crypto companies like Paxos and Coinbase, as well as Circle, are pursuing bank charters, essentially seeking to become part of the very banking system that has historically kept them at arm’s length. It’s worth noting that not all these firms are pursuing the same type of charter. Circle and BitGo are reportedly aiming for full-service national bank charters. Others have considered national trust bank charters or even industrial loan company (ILC) charters.
Navy Federal to roll out Bloom Credit’s checking account feature offering the ability to report existing payments such as rent, telco, and utility payments as tradelines to the major credit bureaus
Navy Federal, the largest credit union in the U.S., has selected cash flow reporting and credit data infrastructure platform Bloom Credit’s consumer permissioned data solution, Bloom+, as a new checking account feature for its 14 million members. Bloom+ allows a financial institution to provide customers the ability to leverage existing payments from their checking accounts, such as rent, telco, and utility payments, to be reported as tradelines to the major credit bureaus. By using Bloom+ consumer bill repayment history becomes a powerful tool in building and demonstrating creditworthiness. The Bloom+ white label, no code API allows banks and credit unions to offer checking account customers the ability to report bill payments as tradelines. The proprietary software, which can be launched with clients in as little as two weeks, helps financial institutions to attract and retain deposits, create revenue opportunities, and secure actionable cashflow insights on customers. Bloom Credit also announced a $10.5 million growth investment led by Crosslink Capital, including participation from existing investors Allegis Capital and Commerce Ventures.
Mr. Cooper’s customers have an average FICO score of 736, and loan-to-value ratios averaged 52%; 6.5 million servicing customers open the opportunity to offer clients more products
Mr. Cooper executives provided a glimpse of the opportunities the deal represents for companies in the mortgage space — or how it intends to power the “Apple of homeownership” flywheel. “This transaction is about creating a scaled homeownership experience,” Mr. Cooper Group CEO Jay Bray said. Overall, Mr. Cooper delivered $88 million in net income in the first quarter, which include a negative hit of $82 million on its mortgage servicing rights (MSR) portfolio. “The integration teams are already synched and planning for how to bring our business together once the transaction closes,” Bray told analysts. It all starts with a $1.514 billion servicing portfolio in the first quarter, down from $1.556 billion in the fourth quarter of 2024. That was tied to the shift of $60 million in sub-serviced loans to other firms amid the closure of its Flagstar deal at the end of the year — the biggest acquisition in Mr. Cooper’s history. Still, that’s the largest portfolio in the industry, and it offers ample opportunity to originate refinances when interest rates drop, along with other products while they are still at higher levels. In total, Mr. Cooper had 6.5 million servicing customers in the first quarter. Servicing loans opens the opportunity to offer clients more products. Executives said Mr. Cooper sees momentum in home equity loans and cash-out refinances, which have massive long-term growth potential regardless of the interest rate environment, they say. Mike Weinbach, president of Mr. Cooper Group, said these products are “turning out to be a very popular method for customers to tap the equity in their homes.” In total, 94% of Mr. Cooper’s customers have at least 20% equity in their homes. “They typically use this liquidity for debt consolidation, home improvements and other major expenses,” Weinbach added. “Regardless of the use, these products cost much less than most credit cards, and that’s even before considering the tax deductibility of mortgage interest.” While the current environment offers limited opportunity for rate-and-term refis, the firm’s refinance recapture rate was a little over 50% in the first quarter. Second liens were not included in the ratio. “As of quarter end, 21% of our portfolio had note rates of 6% or higher, which is indicative of a sizable opportunity when rates next rally,” Weinbach said. Mr. Cooper’s origination segment earned $45 million in pretax income, in line with the previous quarter. It funded $8.3 billion in loans across 32,296 loans in the first quarter, with $1.9 tied to its direct-to-consumer channel and $6.4 billion from correspondent business. Total volume shrank from $9.2 billion in the fourth quarter of 2024. Regarding the company’s portfolio, delinquencies were at 1.1%. Customers have an average FICO score of 736, and loan-to-value ratios averaged 52%. Johnson said the company “doesn’t try to forecast overall consumer credit cycles.” Bray added that “balance-sheet strength is non-negotiable for industry leaders, and it’s especially important during periods of elevated uncertainty such as the markets are currently experiencing.”
Goldman Sachs pitches itself to shareholders as a leading alternative asset manager and more than a bank, to be able to be compete for talent
Goldman Sachs has a pitch for investors: It’s more than just a bank. It’s a leading alternative asset manager, and thus, its chiefs need to be paid like they’re at one. Shareholders are set to vote on Wednesday on whether to approve $160 million in special bonuses for Goldman Sachs CEO David Solomon and President John Waldron. Those bonus packages are Goldman’s way of keeping talent and warding off competition. “The board considered the unique competitive threats for talent that Goldman Sachs faces, including from alternative management firms and others beyond the traditional banking sector,” the bank said when it announced the bonus proposals in January. Goldman’s annual executive pay has lagged behind that of large alternatives firms, such as Apollo Global Management and Blackstone. And its annual pay for senior leaders lags behind them, too. Investors aren’t yet valuing Goldman Sachs as a private-markets, alternatives behemoth. Its shares are worth about 12 times earnings, which is roughly line with JPMorgan Chase and Morgan Stanley. But KKR, for example, trades at about 30 times earnings, with Blackstone’s shares at around 37. The strong stock performance is a boon for alts CEOs like Blackstone’s Steve Schwarzman, who took in $1 billion in pay and dividends last year, my colleague Dawn Lim reported in February. He raked in about 11.5% more than he did the prior year because of his $916 million in dividends. Yale’s $41 billion endowment was among the first to pivot from investing in plain-vanilla stocks to more illiquid assets, such as private equity. In 2000, about 25% of its endowment was allocated to private equity, compared with the average university’s 2.2% allocation at the time. Now, the fund is exploring selling private equity fund stakes, as my colleagues Marion Halftermeyer and Janet Lorin reported this week. Evercore is advising the endowment on a process that has been in the works for months.
Goldman Sachs taps former Honeywell CEO to co-head new global portfolio operations group, to build upon the success of the Value Accelerator platform that has supported the firm’s private and growth equity investing
Goldman Sachs Group announced that Darius Adamczyk will join the firm as a Partner in the Asset and Wealth Management division and Co-Head of the Global Portfolio Operations Group, alongside Lou D’Ambrosio. The Global Portfolio Operations Group builds upon the success of the Value Accelerator platform that has supported the firm’s private and growth equity investing businesses. The Value Accelerator embeds operating expertise into investing processes and decision-making through a network of more than 100 executives who advise portfolio companies. The Global Portfolio Operations Group will partner with the firm’s Alternatives Chief Investment Officers to expand this capability to the entire Goldman Sachs Alternatives platform. Darius will join Lou to serve alongside key investing leaders on the firm’s Investment Committees and both will chair Portfolio Operating Committee reviews, partnering with investors in driving a disciplined, results-oriented approach to deliver exceptional outcomes.