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By 1996, Pamela was working as an accounts clerk for a bank, processing loan applications.
"None of these selective markup caps are justified by the dealerships' costs of arranging and or processing loan applications," Professor Ayres noted in his study.
A GMAC spokeswoman declined to discuss the case, citing its privacy policy, but said generally that the lender has been eagerly processing loan modifications.
He attended Glenville State College in West Virginia on a football scholarship but dropped out after a year, returning to Florida to work odd jobs: framing houses, spritzing cologne in a department store, processing loan applications, stripping.
But many financial-aid administrators also say private lenders do a better job than the government at processing loan applications and handling collections.
Tom Kelly, a Chase spokesman, says the bank first started processing loan modification applications for the government's program on April 4 and that it has given highest priority to the most delinquent customers.
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Processing loans rapidly is not a trick mainstream banks have mastered.
It's too bad that the debit card has attracted the bulk of the attention, since there are aspects of Reserve Solutions' system for processing loans that offer some potential improvements on the old-fashioned 401(k) loan repayment system.
Electronic Data Systems, the world's No. 2 seller of computer services, will offer $380 million for a majority stake in Mphasis BFL to expand its business for processing loans and credit applications in India.
As a result of an agreement last year involving Fannie Mae, Freddie Mac and New York's attorney general, Andrew M. Cuomo, lenders selling loans to Fannie and Freddie must follow stricter guidelines starting in May to ensure that people involved in processing loans do not also choose appraisers.
And at their third-quarter earnings conference call last Wednesday, executives of Sallie Mae, a private lender, spoke of the "transition risks," saying many schools' financial aid offices are thinly staffed, have only just finished processing loans for this academic year and would have trouble making the transition to a new lending system in time for next year.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com