Credit Card Payments Now Trump Mortgage Payments
Feb 3rd, 2010 @ 1:36 PM by Amber NelsonTime for mortgage lenders to totally rethink their business. A new survey from credit bureau TransUnion shows that the old rules and assumptions about the average American homeowner have been thrown out the window. The recent survey found that Americans, in record numbers, are now paying off their credit card bills before they try to keep up with their mortgage payments. This is a radical departure from the traditional financial thinking of most Americans. “Conventional wisdom has always been that, when faced with a financial crisis, consumers will pay their secured obligations first, specifically their mortgages,” said Sean Reardon, the... Read full article »
Small Business Loans are Needed to Drive the U.S. Economy
Feb 1st, 2010 @ 8:50 AM by Debbie DragonSmall businesses could play a major role in the recovery of our fallen economy, that is if they can get the funding they need to operate and expand. Small businesses tend to hire new employees, provide new ideas and often develop into large companies that are a force within the business world. The issue at hand is that so far small business lending has not been happening. While government officials, banks and economic experts all seem to agree that more funding needs to be available for small businesses, no one as of yet has come up with a funding... more »
Debbie Dragon is a full time freelance writer and the co-owner of ReliableWriters.com.
Freddie CEO Defends His Company’s Existence
Jan 27th, 2010 @ 9:11 PM by Amber NelsonAfter Congressman Barney Frank suggested recently that government-sponsored entities Freddie Mac and Fannie Mae should be “abolished,” Freddie’s CEO took a stand listing off the reasons his company needs to remain in business. During a speech at the Detroit Economic Club on Tuesday, Freddie’s chief executive Charles “Ed” Haldeman Jr. said he would like to remind policymakers that Freddie and Fannie have helped to make the 30-year fixed rate mortgage possible. He also said that they have provided the most liquidity to the mortgage market, as they were the source of roughly 75 percent of all liquidity in 2009. Haldeman... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
- Posted in Federal Loans, Mortgages
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Obama Announcing Initiative to Ease Student Loan Burden
Jan 25th, 2010 @ 3:08 PM by Debbie DragonWith the economy in shambles and unemployment all over the country at an all-time high, college grads, especially recent ones, are struggling to pay back their student loans. For those struggling, there is some good news. Help may be on the way. Obama is expected to announce at the State of the Union Address new initiatives to help the struggling middle class. College graduates who have student loans would be one of the benefactors of his plan. Currently, recent graduates spend 15 percent of their disposable income just to pay their federal student loans each month. Payments on some loans... more »
Debbie Dragon is a full time freelance writer and the co-owner of ReliableWriters.com.
Government May Nationalize Student Loans
Jan 20th, 2010 @ 10:45 PM by Amber NelsonThere is a new bill being kicked around in Congress that would essentially exterminate the private student loan industry, paving the way for the government to make all loans directly to college students. It’s called the Student Aid and Fiscal Responsibility Act and it calls for the elimination of the Federal Family Education Loan (FFEL) program that has created millions of dollars of subsidized student loans each year. Here’s how subsidized loans work: The government encourages lenders to loan money to students at low rates by promising to make up any profit losses or to repay the money if a... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
Something Fishy - Bankers Love Credit Card Regulations
Jan 13th, 2010 @ 1:34 PM by Amber NelsonThe Federal Reserve has released new rules limiting the power of credit card companies to abuse consumers. Among these are the following: Credit card companies may not issue cards to anyone under age 21 unless the applicant has a cosigner or can prove that he/she has the means to make required payments. Card issuers must send out bills at least 21 days before they are due. Card rates may not be increased during the first year of the contract, unless the original card offer included a low introductory rate (and the introductory rate must last at least 6 months now).... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
- Posted in Credit Card Debt, Other Loans
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Is the Auto Lending Industry on the Mend?
Jan 6th, 2010 @ 10:36 PM by Amber NelsonBuyers with poor credit are still being priced out of the auto loan market, but with the help of government money, the car loan industry is seeing some signs of life. The Associated Press says that car and light truck sales for December are expected to have reached about 1 million, the highest sales figure since August’s Cash for Clunkers boom. Total sales for the year, however, will likely be around 10 million, the lowest number in 30 years. Another positive sign is that lenders created 5.5 percent more car loans in the third quarter of 2009 than the previous... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
- Posted in Auto Loans
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Why Banks Promise to Lend More But Won’t
Dec 30th, 2009 @ 1:11 PM by Amber NelsonSmall businesses need more loans. Home buyers and car buyers need more loans. College students need more loans. It seems everyone is looking for funding but is not finding it with banks around the country. Two weeks ago, President Obama met with a group of Wall Street executives and bankers. He urged, or rather begged them to start lending more. Specifically he commented that “banks could be doing more to lend to small businesses.” A recent article by Chuck Saletta on the Motley Fool website does a good job of explaining why banks have little or no intention of lending... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
Obama Signs Bill to Extend Funding for SBA Loans
Dec 28th, 2009 @ 6:43 AM by Debbie DragonStarting today, small businesses will once again be able to apply for and receive two popular SBA (Small Business Association) loans, the 7 (a) and the 504, with no fees and a higher guarantee rate of 90%. From February through November of this year, this federal funded stimulus package helped thousands of businesses across the country. Last week, to the relief of the SBA and small business owners, Obama signed a bill to extend the funding. The Small Business Association is an independent federal government agency that helps protect the interest of small businesses. According to the SBA website, their... more »
Debbie Dragon is a full time freelance writer and the co-owner of ReliableWriters.com.
- Posted in Small Business Loans
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Bailout Has Not Saved All Banks
Dec 23rd, 2009 @ 11:21 PM by Amber NelsonNew data from bank research firm SNL today showed that even though high profile banks like Wells Fargo, Citigroup, and Bank of America have paid off their government loans, there are 55 smaller lenders that have fallen behind on just repaying the required quarterly dividends as of November. There were only 33 such tardy banks in August. To date, the government has shut down 140 banks this year, a record high since 1992, and this new data shows that more closings may follow next year as lenders are unable to meet their financial responsibilities. The government loans are part of... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
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No Sign of Looser Auto Lending in 2010
Dec 16th, 2009 @ 10:25 PM by Amber NelsonThe latest forecast about auto loans points to rising delinquency rates by the end of next year, a sign that lenders are likely to remain stingy with their loans for some time. Credit information collector TransUnion says that the delinquency rate (borrowers that are 60 days late or more on their auto loans) is expected to reach 0.86 percent by the end of 2009, but will probably rise to 0.92 percent at the end of 2010. “Our forecast indicates we will see auto loan delinquencies drop in the first and second quarters of 2010 due to many factors such as... more »
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.
- Posted in Auto Loans, Used Car Loans
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