Smart Borrower Blog

Archive for November, 2009

Will FHA Mortgages be the Next Mortgage Crisis?

Federal Housing Administration-backed mortgages are now the next market crisis waiting to happen, according to home builder Robert Toll, CEO of Toll Brothers Inc, the nation’s largest luxury builder. “Yesterday’s subprime is today’s FHA,” Toll said today at a New York builders conference. “It’s a definite train wreck and the flag will go up in the next couple of months: Bail us out. Give us more money.” Toll likely based his comments on reports last week from the FHA that its reserves ratio has fallen to 0.53 percent, well below the federally-mandated 2 percent designed to protect against fund default.... more »

Small Businesses Still Struggle to Obtain Loans

Even with government stimulus programs, small businesses are constantly struggling just to stay afloat. Small businesses help to create as much as 80% of new jobs, so this is dismal news for our struggling economy and especially our rising unemployment rate. Many small businesses have faced reductions in bank credit and it has been increasingly difficult for them to get a small business loan. Overall, they are struggling at record high rates. Could help be on the way? This week the Obama administration has a meeting planned that could brighten the future for the small business owner. Timothy Geither,... more »

Tips for Personal Loans in Today’s Economy

In today’s struggling economy obtaining a personal loan can be a challenge, but not entirely impossible. More important than ever before you should do your research before filing any loan application. Dotting your I’s and crossing your T’s can greatly increase your chances of obtaining the loan you desire. Review Your Credit Report Thoroughly Before applying for your loan you should first review your credit report. If you have less than stellar credit, this will be particularly important. Look closely for any discrepancies. If there are any mistakes get them corrected before seeking your loan. If there are hits... more »

Credit Unions May Offer Best Credit Cards Deals

According to a recent study released by the Pew Charitable Trust, you may be much better off applying for a credit card from your local credit union than with any of the nation’s top banks. “The observed credit unions presented a distinct alternative to credit card pricing and other practices of the observed banks,” the study entitled “STILL WAITING: ‘Unfair or Deceptive’ Credit Card Practices Continue as Americans Wait for New Reforms to Take Effect” said. “In July 2009, median advertised interest rates on cards from the 12 largest credit unions were between 9.90 and 13.75 percent annually, depending on... more »

Is That All She Wrote for Private Student Loan Lenders?

The Student Aid and Fiscal Responsibility Act, currently moving through Congress, would stop the FFELP (Federal Family Education Loan Program). The FFELP has allowed third party (private) lenders to issue student loans which are backed by the government. In 1992, the Federal Direct Student Loan Program began, which allowed parents and students to borrow directly from the U.S. Department of Education without a FFELP lender or involvement from a bank. If the Student Aid and Fiscal Responsibility Act is passed by Senate vote, critics of the act argue that it will put most private student loan lenders out of business... more »