THURSDAY JULY 8, 2021 VOL. 186 No. 129 AMERICANBANKER.COM Follow us on Twitter @AmerBanker Wyndham Hotels experiments 5 with new guest reward: Bitcoin The hospitality chain and its fintech partner Mortgage machine Bakkt are trying to tap into the crypto craze by asking guests if they would prefer the Revenue for CF Bankshares' direct-to-consumer valuable (yet volatile) cryptocurrency over mortgage business shot up last year free stays or room upgrades. Page 5 See story on page 2 Walmart taps 6 veteran to run membership plan $60M Walmart has hired a veteran of American Express to run Walmart+, the membership $50M program it unveiled less than a year ago to counter Amazon.com’s Prime plan. Page 6 $40M Credit Suisse teams $30M 7 up with JPMorgan for sustainable food fund $20M Credit Suisse Group and JPMorgan Chase’s asset and wealth management business $10M are working together to develop a new investment strategy focused on sustainable $0 nutrition. Page 7 2018 2019 2020 2021 to date Blend values IPO at $414M, Source: CF Bankshares 8 completes Title365 purchase The company is looking to sell 20 million shares, with a 3 million underwriters’ option, at between $16 and $18 per share. Page 7 BMO Harris turns to fintech dailybriefing 3 to create a smarter HSA Fannie and Freddie As the popularity of health savings accounts 9 forbearances drop to lowest Shake-up at OCC: grew, the Chicago bank decided it needed level since March 2020 1 Supervision teams will a more competitive product that tracks Rebounding employment brought total report to agency’s chief spending and uses artificial intelligence to forborne mortgages under 2 million, The chief operating officer now oversees maximize benefits. The high-tech Lively will according to the Mortgage Bankers numerous divisions at the Office of the help BMO soup up its offering.Page 3 Association. Page 8 Comptroller of the Currency. But as part of a reorganization, the COO’s position Zettle in: PayPal adapts Mr. Cooper sells reverse is being eliminated and several units will 4 its European card 10 servicing to Mortgage come under the direct authority of the reader for U.S. market Assets Management comptroller. Page 2 The payment company is blending The $16 billion Champion Mortgage technology from its Swedish subsidiary portfolio sale follows Ocwen Financial’s Quitting while ahead: with other features, such as invoicing, purchase of different assets from MAM a few 2 CF Bankshares exits to provide a more robust offering to U.S. weeks prior. Page 8 consumer-direct mortgages merchants. Page 4 The Ohio community bank generated 76% of its 2020 revenue from the three-year-old business . But mortgages are cyclical, and the bank wants to step back before things get rough. (See chart above.) Page 2 THURSDAY JULY 8, 2021 AMERICANBANKER.COM PAGE 2

The shake-up comes as Hsu, a Biden by its three-year-old national direct-to- REGULATORY REFORM appointee, has signaled a change of direction consumer mortgage lending platform — for the OCC following Democratic criticism more than three-quarters of its total revenue over how the agency was managed under for 2020. Shake- the Trump administration. Paulson, who had Then last week, the bank announced plans become acting comptroller just days before to exit the business. up at OCC: President Biden took office, recently came According to CF, the holding company for under fire from Democrats on Capitol Hill 129-year-old CFBank, shrinking margins, after he urged lawmakers not to overturn the tougher competition and heightened price Supervision OCC’s controversial “true lender” rule. volatility drove the decision to bail from the The rule, criticized by consumer advocates predominantly online channel. teams will who say it benefited predatory lenders, was “During 2021, the mortgage lending invalidated by a Congressional Review Act environment in our opinion, and in particular resolution signed by Biden last week. DTC, has changed substantially,” CEO report to Timothy O’Dell wrote Tuesday in an email to American Banker. “Our mortgage-lending agency’s chief COMMUNITY BANKS focus go-forward will be on more traditional retail loan originations,” such as business By Brendan Pedersen from brokers and word-of-mouth referrals. July 06, 2021 Quitting while In 2020, CF’s net gains from selling WASHINGTON — The Office of the mortgage loans totaled $58.37 million on Comptroller of the Currency announced a ahead: CF originations topping $2 billion. Though the series of organizational changes Tuesday proportion of loan sales to total revenue fell that will result in key bank supervision units to 37% in the first quarter from 66% in the reporting directly to acting Comptroller Bankshares fourth quarter and 76% for the full year 2020, Michael Hsu. mortgage lending’s contribution remained The changes, which the OCC said in a exits con- significant, with net gains on loan sales press release were designed “to enhance the totaling $6.36 million in the three months agency’s efficiency and effectiveness,” will that ended March 31. include the elimination of the chief operating sumer-direct There’s no question the move will produce officer’s position. That position is currently a near-term drag on earnings. Indeed, the held by former acting Comptroller Blake mortgages $1.6 billion-asset CF said Thursday that its Paulson, who will take on the role of senior second-quarter results would include about deputy comptroller for supervision risk and By John Reosti $2.5 million in after-tax losses associated analysis, the agency said. July 06, 2021 with DTC mortgage lending. Traditionally, the agency’s COO has At its annual meeting last month, CF Brendan Nosal, who covers CF for Piper had authority over several supervisory Bankshares in Columbus, Ohio, spotlighted Sandler, termed the exit decision “an abrupt departments, including the offices of Bank the “extraordinary” earnings lift generated about-face in strategy” in a research note Supervision Policy, Midsize and Community Bank Supervision, Large Bank Supervision, and Supervision Risk and Analysis, as well Established 1836 One State Street Plaza, 27th floor, New York, NY 10004 as the Office of Management. Under the Phone 212-803-8200 AmericanBanker.com restructuring, all five of those divisions will report to Hsu. Editor in Chief Alan Kline 571.403.3846 Copy Editor Neil Cassidy 212.803.8440 The agency also said it plans to merge its Managing Editor Dean Anason 770.621.9935 Enterprise Risk Management Office with the Reporters/Producers OCC’s Office of Enterprise Governance. The Executive Editor Bonnie McGeer 212.803.8430 Laura Alix 860.836.5431, Kate Berry 562.434.5432 combined office will be overseen by Senior Washington Bureau Chief Joe Adler 571.403.3832 Deputy Comptroller Larry Hattix, who will Executive Editor, Technology Miriam Cross 571.403.3834 take on the title of chief risk officer. He will Penny Crosman 212.803.8673 Jim Dobbs 605.310.7780 succeed Bill Rowe, who will retire at the end BankThink Editor Rachel Witkowski 571.403.3857 of July. John Heltman 571.403.3847, Allissa Kline 716.243.2679 Community Banking Editor Paul Davis 336.852.9496 The changes, which are expected to be Hannah Lang 571.403.3855 implemented sometime this summer, “will Contributing Editor Daniel Wolfe 212.803.8397 John Reosti 571.403.3864, Gary Siegel 212.803.1560 improve collaboration, alignment, and Digital Managing Editor engagement within the agency,” Hsu said in Christopher Wood 212.803.8437 Kevin Wack 626.486.2341 the press release.

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Thursday. In a follow-up note Friday, Nosal seen as a plus — eventually. in HSAs totaled $82.2 billion by the end of slashed his second-quarter earnings estimate “As mortgage grew as a percentage of the 2020, a 25% increase over 2019, according to by 37% to 51 cents per share. top and bottom lines, earnings exhibited Devenir Research’s 2020 Year-End Devenir “This may understate the magnitude of material seasonality, as well as cyclicality,” HSA Market Survey. the second quarter DTC loss,” Nosal wrote. Nosal wrote in the follow-up note. “The exit “We are at a tipping point in employee He reduced his full-year 2021 estimate 26% of the DTC business will provide far more benefits where high-deductible health to $2.28 per share. CF reported net income earnings visibility coupled with less volatility. plans are regularly replacing traditional of $6.4 million, or 96 cents per share, for We view this as a key positive.” deductible plans,” largely to keep premiums the quarter that ended March 31, and $29.6 As part of its plan to wind down direct-to- affordable, said Amy O’Meara Chambers, million, or $4.47 per share, for 2020. consumer mortgage lending, CF suspended chief operating officer and co-founder O’Dell declined to provide additional new rate lock commitments on June 30. The of HealthBridge Financial, a health care details on the exit decision’s impact on company said in its press release that it would benefits company in Grand Rapids, earnings, or whether CF has plans to replace close out its existing pipeline “in the next few Michigan. “The large financial institutions direct-to-consumer mortgage lending with months.” are seeing this wave coming and understand another business line. He cited the quiet that the contributions, not to mention the period in advance of its second-quarter rollovers and transfers from other accounts, earnings report, which is set for release CONSUMER BANKING add up quickly.” Aug. 4. Today, BMO Harris, a unit of BMO At the same time, O’Dell expressed Financial Group in Toronto, lets customers confidence that the company’s expanding BMO Harris deposit funds directly or through their core banking business would quickly fill any employers. They also get a dedicated debit earnings gap. Enhanced cash-management turns to card. capabilities — paid for in large part by “But our customers don’t have a digital mortgage profits — have led to a doubling experience with HSA-specific features they of noninterest deposits, while commercial fintech to might want,” said Ben Schack, head of retail loan pipelines are at all-time highs, he said deposit products for the U.S. division of Thursday in a press release. create a BMO. CF entered the Indianapolis market in the To step up its digital game, BMO first quarter, hiring veteran local banker Dan turned to Lively, an HSA record-keeper Cobb to recruit a team of lenders. The bank smarter HSA and administrator in San Francisco that says it is on a path to reach $1 billion of assets offers accounts directly to consumers, to in each of its four major markets, Columbus, By Miriam Cross employers and now to financial institutions Cleveland, Cincinnati and Indianapolis. July 06, 2021 like BMO. The bank will safeguard HSA “DTC mortgage lending was a strong BMO Harris Bank saw demand growing deposits, but Lively will take over record- fee income contributor during these past for health savings accounts, but the Chicago keeping, tax reporting and customer service, couple of years, enabling us to accelerate the bank worried its offerings were too plain for starting with new BMO accounts this fall investment in and growth of our core banking such a fast-evolving market. and then existing account holders in 2022. franchise,” O’Dell wrote in the email. The $159.2 billion-asset BMO’s current Kevin McKechnie, executive director of CF’s move away from direct-to-consumer HSAs resemble a standard checking the American Bankers Association’s Health mortgage lending comes as the post- account. They lack digital tools that analyze Savings Account Council, estimates that pandemic housing boom, which pushed the spending or record health care receipts 2,500 financial institutions administer HSAs. dollar volume of mortgage originations to and others that could help individuals By partnering with a fintech such as Lively a record $3.8 trillion in 2020, appears to be maximize the advantages of HSAs, a type of or Starship, banks can attract customers fading. In its most recent Mortgage Finance savings account meant to cover deductibles, with more robust features and offload the Forecast, the Mortgage Bankers Association copayments and other health insurance work of building these features themselves. projected a 9% decline in origination volume expenses. These differentiating tools may become for 2021 followed by a steeper drop next year. The bank plans to change this soon, with more important as more banks want in. Meanwhile, lenders’ net gain per loan, the help of a fintech partner. “The HSA industry is growing rapidly, while still substantial, has declined markedly The need to offer a more tech-savvy HSA and we didn’t feel like our offering was since the record level reached during the is becoming stronger as high-deductible as competitive as we wanted it to be,” said third quarter of 2020, according to the MBA. health plans become more common among Schack. “More importantly, as we put on MBA declined to comment on CF’s employers and interest in HSAs rises in our customer hats, we felt we could do more decision, citing a policy against commenting tandem. HSAs are only available to members to help our customers make real financial on the business activities of individual of high-deductible plans; these users progress.” lenders. contribute funds on a pretax basis, earn BMO chose Lively because, Schack says, Nosal says the decision to get out of the interest that is tax-deferred and withdraw it offered a distinctive digital experience. direct-to-consumer mortgage lending will be the money without paying taxes on it. Assets Customers will log into a portal co-branded

For up to date and complete coverage go to AmericanBanker.com THURSDAY JULY 8, 2021 AMERICANBANKER.COM PAGE 4 by BMO and Lively where they can access online and offline systems, product catalogs, their accounts and monitor progress toward MOBILE POINT OF SALE inventory management systems and other meeting their deductibles. A feature called functions, Magats said. A merchant that Expense Scout will use artificial intelligence works with BigCommerce for example, can to scan a linked credit card or bank account Zettle in: press a button and BigCommerce’s inventory to unearth HSA-eligible expenses. The portal gets synced to the retailer’s store inventory. will also offer investment options and the PayPal adapts “This is especially important for small ability to add a new expense to a queue where businesses that often have to keep their in- the user can request reimbursement at a store and online inventory siloed,” Magats later date. Employers will get a dashboard to its European said. “We see PayPal Zettle as an orchestrator help them add or remove employees from a for commerce tools. Our job is bringing all of plan and manage contributions. card reader these solutions together to make it easier for These kinds of elements “are going to be small businesses.” table stakes,” said Chambers. “You can’t For PayPal, Zettle will boost point of offer yesterday’s HSA platform. Consumers for U.S. sale capabilities beyond PayPal Here, are going to demand more.” the company’s point of sale card reader. There are other reasons banks may soon market While Here is mostly focused on payment enhance their offerings or embrace HSAs for acceptance, Zettle offers a broader range of the first time. By John Adams services that help businesses manage tasks At the end of 2020, the Federal Deposit July 06, 2021 beyond checkout. Insurance Corp. issued a rule that clarified PayPal has launched Zettle in the U.S. — PayPal Zettle is a much more robust, that HSAs are not considered brokered but it’s not the same product PayPal bought integrated, end-to-end product for small and deposits, which are more heavily regulated. just three years ago. medium-size businesses that offers a better “It’s one of those things that reassures Zettle, formerly iZettle, launched in 2010 in customer experience and includes features banks about the low risks of entering this as a local rival to Square’s mobile like contactless payments, PayPal and business in the first place,” said McKechnie. point of sale platform. PayPal purchased QR Codes, popular digital wallets, Adding HSAs to a bank’s product lineup Zettle in 2019 for $2.3 billion, despite having an improved product library and reporting, also makes sense when the institution its own competing offering, called PayPal integrations with partners and a better user is already trying to capture a customer’s Here. experience design, Magats said. The payment checking account, home loan and retirement The American version of Zettle supports company will continue to support both fund. connections to PayPal’s invoicing service PayPal Zettle and PayPal Here, but it will “Even though the HSAs have been around and a business Mastercard. Zettle eventually develop one product, according to for a decade and a half, they are coming to enables integrations with accounting and PayPal. the forefront,” said Chambers. e-commerce technology connections such Zettle helps PayPal address a longstanding On BMO’s end, “We’ve always liked HSAs, as BigCommerce, Lightspeed, Quickbooks goal of building a physical point of sale and I think other banks do, too, because they Online and SalesVu, with added partnerships franchise, a strategy that has taken on more are an unequivocal good for consumers,” planned over the next few months. importance as the pandemic accelerates said Schack. “They have tax advantages and By integrating with other providers, both online sales and in-store technology they are stable deposits where customers PayPal is working to help businesses manage to accommodate omnichannel, or a like to build those balances over a long time.” overall finances, with potential connections combination of shopping, marketing, BMO also announced a strategic to PayPal’s merchant lending arm that’s ordering and payments in different channels investment in Lively on June 24 but didn’t tied to consumer payment flow. PayPal is on different devices. By expanding Zettle, disclose the dollar amount. Lively works trying to sell merchants on a combination PayPal is attempting to bring omnichannel to with thousands of employer groups and has that includes measuring consumer demand its small-business customers. PayPal has also signed contracts with two other financial against supply, and streamlining B2B expanded its crypto support, enabling crypto institutions. payments and treasury management. trading to its Venmo P2P app, in a prelude to “Our hope is by giving customers a best- These integrations speak to “a historic expanding crypto options for merchants. in-class digital experience and the right shift in consumer behavior towards digital “PayPal has been focused on helping tools to manage these funds, more will adopt channels, which poses an unprecedented online and mobile businesses,” Magats said. HSAs and the customers we already have challenge to small businesses that are “With the launch of PayPal Zettle, PayPal will feel empowered to build their balances,” struggling to adapt to meet these new will be able to better serve in-store and said Schack. customer demands,” said Jim Magats, senior omnichannel businesses in an integrated and vice president of omni payments for PayPal, seamless way, and help in-store businesses which works with a network of about 30 seamlessly go digital.” million businesses, mostly small- to medium- PayPal is not operating in a vacuum, and sized enterprises. these strategies are playing out at other Small merchants value the ability to sync merchant technology companies.

For up to date and complete coverage go to AmericanBanker.com THURSDAY JULY 8, 2021 AMERICANBANKER.COM PAGE 5 has used a series of investments to add new sale to a digital payments franchise. Shopify The Wyndham integration, which is payment technology designed to reach offers POS terminals, for example, since expected to launch this year, allows users to merchants that were traditionally offline, many merchants on its marketplace also convert loyalty currencies such as points to but it added digital capabilities during the have physical stores, according to Pucci. And cash, bitcoin or discounted gift cards. Bakkt pandemic, such as online storefronts and GoDaddy in late 2020 spent $320 million to users can also pay with points within Bakkt’s payments. acquire Poynt to serve the same strategy. merchant network. Square recently launched its financial The POS field will become more Wyndham is addressing a trend to improve services business, which enables it to competitive especially now as Zettle also the options for earning and redeeming combine direct lending to merchants with goes up against leading market players rewards. Starbucks, for example, recently Square’s mix of multichannel payments for Clover and Square, Pucci said. “Small and updated its incentive program to add more small businesses, its crypto trading support medium-sized merchants will benefit as payment options without having to preload and products for consumers, such as its more payment vendors will aggressively fight a gift card, as well as more support for Square Cash peer-to-peer app. for their business.” digital wallets; Starbucks was also an early And Fiserv has used the Clover point of sale customer of Bakkt. There is also momentum system that it acquired from Fiserv to build for cryptocurrency rewards. Quontic Bank out an increasingly larger menu of merchant LOYALTY AND REWARDS and NYDIG in late 2020 launched a card that services, including a recent acquisition of pays 1.5% in bitcoin back for each debit card Pineapple Payments to improve Clover’s payment. distribution. Wyndham “We’re looking to allow members to use While most commerce still takes place at and earn reward points in different ways,” the physical point of sale, the pandemic’s Hotels said Geoff Crossan, group vice president impact on retail requires merchants to of loyalty and partnerships at Wyndham support both digital and physical points Rewards, adding internal research has found of sale, with integrations between online experiments consumers are more likely to use the loyalty and instore shopping, said Richad Crone, a program if there are more options. payments consultant. with new The debit card and Wyndham contract Consumers can spend prepaid idle PayPal capped a busy spring for Bakkt, which balances, use buy now/pay later and spread operates a digital currency exchange as its social payments through worth-of-mouth guest reward: core business. Since launching a digital promotions via the combination of products wallet to combine bitcoin and other digital that PayPal and Zettle support, Crone said. Bitcoin assets at the end of March, the three-year-old “It’s the perfect timing for this launch as company has stacked a series of products to it’s propelled by the demand demented by By John Adams support incentive marketing and payment the pandemic for integrating commerce with July 06, 2021 processing. check in, checkout, payment and supply A chart of bitcoin’s value, even for one An April partnership with digital payment chain management for the merchants,” hour, looks like a Richter scale readout along company Cantaloupe is designed to support Crone said. an active fault line — though for Bakkt that cryptocurrency payments and incentive PayPal’s acquisition of Zettle was in part doesn’t harm the asset’s appeal as a rewards marketing points across Cantaloupe’s a counter to Square’s European expansion. perk. If anything, it enhances the appeal. network of unattended retail clients. Another PayPal often buys competitors in newer “Even with the volatility we’re seeing in Bakkt upgrade in June allows product categories. the market there’s broader adoption from Bakkt users to send bitcoin, gift cards and PayPal can use its scale, including about consumers and businesses, and there’s cash to any user, not just those using the 400 million users and its merchant network, an uptake in acquiring digital assets,” said Bakkt app, a move designed to spread digital to build an “Amazon-like” effect in merchant Sheela Zemlin, chief revenue officer of the asset transactions to broader social circles. services, according to Ray Pucci, director of Atlanta-based Bakkt. “We want to make digital assets accessible the merchant services practice at Mercator Bakkt recently signed a deal with to the masses, to use digital assets like Advisory Group. Wyndham Hotels & Resorts to integrate rewards and loyalty points, whether it’s “PayPal has a robust network effect Wyndham Rewards with the Bakkt platform, spending on merchandise or exchanging whenever they expand services and features opening an addressable market that includes points for bitcoin to share and send to family to provide a suite of payment solutions and 50,000 hotels, resorts and rentals globally, members,” Zemlin said. business tools for merchants,” Pucci said. with 87 million enrolled members. Bakkt in Cryptocurrency suffers from price swings, “Introducing PayPal Zettle at point of sale late June also debuted a virtual Visa debit and the most recent volatility was extreme is a logical move as many of their online card, allowing consumers to use bitcoin even by bitcoin’s standards. Bitcoin recently merchant customers also have an in-store and cash balances in stores, online and fell below $30,000 after reaching a high of presence.” across and ’s footprint, more than $64,000 in April. Dramatic daily Beyond Stripe and Square, other covering retailers, supermarkets, transit and valuation swings have often resulted from technology firms are adding physical point of other categories. events as benign as Tesla CEO Elon Musk

For up to date and complete coverage go to AmericanBanker.com THURSDAY JULY 8, 2021 AMERICANBANKER.COM PAGE 6 either purchasing bitcoin, or making a joke Bakkt argues it supports a variety of left last month to join a private equity firm. about cryptocurrency on television. currency types for incentive marketing, and Cracchiolo will report to Whiteside, a fellow There have also been regulatory moves this provides flexibility. “Crypto and bitcoin veteran of American Express. that highlight the uncertainty of bitcoin are not the only things you can acquire,” Walmart debuted the $98-a-year trading and its valuation. U.K. regulators have Zemlin said, noting that gift cards are another membership program in September but banned the Binance exchange following the option. has said very little since then about how exchange’s withdrawal of an application to There is also a potential benefit from the service is performing. Walmart+ offers register with the Financial Conduct Authority crypto’s volatility, particularly if the consumer unlimited free home delivery of groceries because it did not meet anti-money- views the “cash out” for the loyalty points and other items, as well as fuel discounts. laundering requirements. Governments to bitcoin as an investment more a means The program also recently added discounted in China and India have long pushed of payment. Square, for example, has used prescriptions. restrictions on cryptocurrency. bitcoin trading to drive revenue as crypto has Morgan Stanley estimates it has nearly Regulators in the U.S. and are also become more mainstream. 12 million members, but is growing “at a signaling tighter controls. Michael Hsu, the “Various types of cryptocurrency can modest and somewhat inconsistent pace.” acting comptroller of the currency, in early improve loyalty programs,” said Rick Those members, though, spend “far more” at June told U.S. regulatory agencies to set up Ogelsby, president of AZ Payments Group, Walmart than other customers, according to a “perimeter” to regulate cryptocurrency, adding when the crypto is issued for free Consumer Intelligence Research Partners. reports the Financial Times. Stefan Ingves, to consumers, the volatility can provide a Walmart has declined to share information the governor of Sweden’s central bank, said benefit as it provides upside to the recipient. on membership or sales for Walmart+, leaving stricter regulations are on the way because Additionally, cryptocurrencies are analysts to guess about its performance thus the crypto market has become so large it’s generally transferrable, Oglesby said. “These far. Chief Executive Doug McMillon played drawing consumer interest, according to features can provide an added bonus versus down the service on a call with analysts in Bloomberg. traditional loyalty programs that issue fiat May. He said that with so much else going on Bitcoin’s reputation for volatility and its currencies or points that can be used towards at the company, the membership program potential risk for money laundering have long future purchases at a set rate.” shouldn’t be “the primary focus at the hindered its use as a form of payment. Most moment.” It’s also unclear if Walmart+ will be cryptocurrency payment products involve a linked to the new fintech startup it launched conversion to traditional money before the LOYALTY AND REWARDS earlier this year. transactions. Some use stablecoins, which tie a digital asset’s value to a traditional currency. Prime competition Writing for American Banker, Felix Walmart taps Amazon’s Prime program, by comparison, Shipkevich, a principal at Shipkevich PLLC, is a primary focus for Walmart’s rival. While said there is a future for digital assets in American the Seattle-based company also doesn’t incentive marketing, but “between the share specifics, CIRP estimates that Prime volatility of certain digital currencies, paired has 147 million U.S. members and a renewal with conversion rates, you don’t want to Express rate of 98% after the first year, showing that be losing money or creating regulatory it’s able to hold onto customers after trial problems.” veteran to run subscriptions expire. Prime also includes In an interview this week, Shipkevich said if streaming video, and Amazon is looking to the reward is decentralized and tied to market expand its reach in Hollywood by acquiring fluctuation, there could be a major upside or membership Metro-Goldwyn-Mayer. downside. “Until we have some regulatory Cracchiolo was previously senior vice clarity regarding these decentralized rewards, plan president of global rewards and lifestyle it’s buyer beware,” he said. “You can wake up benefits for the credit card company, where and find a diminished value.” By Bloomberg News he was responsible for American Express’s Wyndham did not address bitcoin’s July 06, 2021 Membership Rewards program, according to volatility specifically, but pointed to the Walmart has hired a veteran of American the memo. Echegoyen, whose background is general popularity of cryptocurrency and a Express to run Walmart+, the membership in marketing, served as chief customer officer desire to provide consumers a crypto option program it unveiled less than a year ago to of Walmart’s Jet.com unit before taking the among a larger menu. counter Amazon.com’s Prime plan. Walmart+ role. “We want to meet members where they Chris Cracchiolo, a senior executive who “Walmart+ is an important part of our are and allow them to do whatever they spent 19 years at the credit-card company, business and I can’t wait to see how Chris want with the rewards,” Crossin said, adding will take over as senior vice president and and the team find new ways to deliver for our that regardless of how consumers choose to general manager of Walmart+ on July 12, customers,” Whiteside said in the memo. convert points, providing more choice will Chief Customer Officer Janey Whiteside increase the value of Wyndham Rewards said in a memo obtained by Bloomberg points. News. He replaces David Echegoyen, who

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or obese, and food systems are already lenders, including AmeriHome, Caliber ESG responsible for 20% of global greenhouse gas and the mortgage insurer Enact Holdings, emissions and account for more than 90% have postponed their IPOs, citing market of the world’s freshwater consumption. The conditions. Credit Suisse new strategy is intended to “make a positive The mortgage technology firm’s offering contribution to addressing the double preserves co-founder Nima Ghamsari’s teams up with burden of malnutrition — control of the company. Ghamsari will be the feeding people and protecting the sole holder of over 10.9 million Class B shares planet,” said Michael Strobaek, global chief that give him 77% voting power. JPMorgan for investment officer at Credit Suisse. In addition, Ghamsari gets an option This isn’t the first time Credit Suisse to purchase 26.1 million shares of Class A sustainable has partnered with a giant of finance on common stock at $8.58 per share. Those sustainability. Earlier this year the bank shares vest “upon the satisfaction of a liquidity teamed up with BlackRock to work on similar event-related performance condition, a food fund investment products. service condition, and/or a performance- based market condition,” according to the By Bloomberg News company’s updated prospectus. July 06, 2021 IPOs Blend’s prospectus also allows for the Credit Suisse Group and JPMorgan Chase’s creation of Class C common stock, but it does asset and wealth management business not plan to issue any as part of the IPO. are working together to develop a new Blend values Proceeds from the IPO would be used investment strategy focused on sustainable for general corporate purposes, including nutrition. IPO at $414M, working capital, operating expenses and The fund will invest in public companies capital expenditures. The money also could that “address the ties between nutrition, be used to repay debt, make acquisitions health, biodiversity and climate, with a completes or invest in other businesses. Other than particular focus on nutrition’s societal and the Title365 deal that closed at the end of environmental aspects,” Credit Suisse said Title365 the second quarter, the prospectus lists no in a statement on Tuesday. The banks plan material transactions that could affect the to launch the fund by the end of the year, company’s value. according to a Credit Suisse spokesman who purchase Title365 had net income of $16.97 million said financial details for the joint venture in the first quarter. On a pro forma basis, were not currently available. By Brad Finkelstein taking account of acquisition and financing With growing investor demand for July 06, 2021 transaction adjustments — but not IPO costs products that address environmental and Blend Labs’ initial public offering could — the Blend/Title365 combo would have societal issues, from climate change to racial raise as much as $440 million in gross lost $17.7 million in the first quarter. That equality, banks and fund managers are proceeds if the stock sells at the upper end of marks an improvement on the $27.1 million churning out an ever greater number of ESG its $16 to $18 per-share range. the company lost as a standalone entity. funds and investments. Still, investors in the The mortgage technology provider is Including the IPO adjustments, the loss new vehicles have no intention of sacrificing looking to sell 20 million shares of its Class would be $22.7 million. returns. That’s why Credit Suisse and A stock and also has a 3 million share For the full year in 2020, Title365 made JPMorgan intend to deliver “both financial underwriters’ option. Less than 10% of the $36 million. Blend’s loss would have been and purpose-driven outcomes, while total Class A stock will be outstanding after reduced to $47.8 million on a pro forma basis building lasting portfolio value,” said Lydie the IPO of approximately 208.7 million from the reported $74.6 million if it owned Hudson, head of sustainability research and shares. The prospectus estimates the IPO will Title365 at the time. investment products at Credit Suisse. deliver net proceeds of $309.5 million at $17 The banks are “committed to developing per share. That amount rises to $357 million if CORRECTION sustainable solutions for clients that provide the underwriters’ option is exercised. The correct price range for Blend’s IPO is strong financial outcomes, while also Blend, which is used by major banks, between $16 and $18 per share, giving it a addressing the most important challenges is set to launch its offering in a market $414 million valuation. facing our planet and society,” said Mary that has recently proved challenging for Callahan Erdoes, chief executive of JPMorgan nondepository lender IPOs. Every mortgage Asset & Wealth Management. company that has launched one recently The new fund will address a topic that is has cut both the number and dollar amount crucial for humankind: almost 700 million of shares. Examples include Rocket Cos.’ people around the world are undernourished launch last August and the June 17 listing of while 1.8 billion people are overweight Angel Oak Mortgage. Several other nonbank

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Of all the exits through June 27, 2021 Conversion Mortgages and other assets. SERVICING from June 1, 2020, 27.9% ended in deferral (HECMs are the dominant form of reverse or partial claim, 23.8% continued to make mortgage.) their monthly payments, 15.2% exited Mr. Cooper does not expect the undisclosed Fannie and without a loss mitigation plan, 13.7% were consideration it’s receiving for the sale is reinstatements, 10.4% modified their loans, to have a material impact on its second Freddie 7.5% paid through refinance or sale, and 1.5% quarter results. However, it will help the entered a repayment plan, short sale, or a company streamline and focus its operation deed-in-lieu. as it moves into the second half of the year. forbearances A 10.8% share of all forborne mortgages sit Servicing work in general could pick up in in the initial forbearance stage, 82.9% shifted the next six months due to the pending end drop to lowest to extended plans and the remaining 6.3% re- of most foreclosure bans, and the evolution of entered forbearance after exiting previously. other pandemic-related relief measures. As a Forbearance requests as a percentage of result, resources are being shifted to handle level since servicing portfolio volume held at 0.04% from customers in distress. the prior three weeks. Call center volume as “From a strategic standpoint, this is a March 2020 a percentage of portfolio volume fell to 5.9% major transaction — we can now completely from 7.2%. focus on our core origination and servicing By Paul Centopani The MBA’s sample for this week’s survey segment,” Mr. Cooper Chairman and CEO Jay July 06, 2021 includes a total of 48 servicers with 25 Bray said in a press release. The number of mortgages in coronavirus- independent mortgage bankers and 21 The Champion Homes portfolio related forbearance decreased for the 18th depositories. The sample also included two announcement coincided with a separate consecutive week, dropping 4 basis points subservicers. By unit count, the respondents one about the completion of Mr. Cooper’s between June 21 and June 27, according to represented about 74%, or 37 million, of Title365 sale to Blend. It also comes a few the Mortgage Bankers Association. outstanding first-lien mortgages. weeks after a competitor, Ocwen, purchased Home loans in forbearance plans represent the assets of Reverse Mortgage Solutions 3.87% of all outstanding mortgages, about 1.9 from MAM. million homeowners. That reflects a decline SERVICING Mr. Cooper’s move suggests that it may from 3.91% the week earlier and the lowest be paring back its exposure to the reverse level since 3.74% on April 5, 2020. The shares mortgage servicing business as Ocwen of forborne loans at independent mortgage Mr. Cooper invests more heavily in it. Mr. Cooper will list bank servicers and depositories both fell 3 Champion as a discontinued operation after basis points to 4% and 4.11%, respectively. sells reverse the sale. q “Strong job growth in June should provide a springboard for further improvements in the © 2021 Arizent and American Banker. forbearance numbers over the next month,” servicing to All rights reserved. Mike Fratantoni, senior vice president and chief economist of the MBA, said in a press Mortgage release. “The rate of forbearance exits and new forbearance requests remained at low levels, but we expect the pace of exits to Assets increase with reporting next week for the beginning of July.” Management Government-sponsored entities saw the greatest decrease loan distress, dipping to By Bonnie Sinnock 1.99% from 2.02%. It represents the first July 06, 2021 time Fannie Mae and Freddie Mac forborne Mr. Cooper on Monday announced mortgages got under the 2% mark since the sale of its reverse mortgage servicing March 2020. portfolio, exiting the business that allows for Ginnie Mae loans — composed of Federal home equity withdrawal by borrowers age Housing Administration, Department of 62-plus. Veterans Affairs and U.S. Department of The divestiture of the Champion-branded Agriculture Rural Housing Service products business to Mortgage Assets Management — fell to 5.1% from 5.13%. Private-label reduces the unpaid principal balance of Mr. securities and portfolio loans — products Cooper’s servicing portfolio by $16 billion. It not addressed by the coronavirus relief act — also decreases Mr. Cooper’s balance sheet by dropped to 7.92% from 7.97%. $5 billion in federally insured Home Equity

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