Smart Borrower Blog

Archive for October, 2010

New Grads Have More Debt, Less Opportunities

Graduating from college is supposed to be an exciting time, filled with hope about the future and its many possibilities. Unfortunately, that is not the case in general for today’s graduates. A new study by the Project on Student Debt and reported on CNN Money.com, says that student debt is rising and the number of grads finding jobs is shrinking. Students who graduated from college in 2009 from either public or not-for-profit private schools carried an average student loan debt load of $24,000, a 6 percent increase from the previous year. Perhaps that wouldn’t be a noteworthy change if this... more »

Bank of America Admits Finding Mistakes in Foreclosure Documents

Just one short week after Bank of America started examining foreclosure documents, they are owning up to finding errors. The company so far has looked at not even 1% of the cases they must review, but in those they have reviewed, they have found somewhere between 10 and 25 errors. The mistakes range from misspelling of names to wrong addresses to missing signature and even missing files, but so far the bank is claiming none of the errors would have led to wrongful foreclosure procedures. While the mistakes found so far would most likely not have resulted in faulty foreclosures,... more »

Half of Small Businesses Are Denied Loans

A recent survey by the Federal Reserve found that almost half of all small business loan requests are denied by banks these days, a very troubling statistic considering the following information: “Small firms employ nearly half of all Americans, account for about 60 percent of gross job creation, and historically have created more jobs than larger firms at the start of economic recoveries,” according to a report from the Federal Reserve Bank of New York released Monday as quoted on CNN Money.com. “Yet recent contractions in business borrowing may be limiting the capacity of small businesses to play this critical... more »

Citigroup Continues to Recover with Better-than-Expected Third Quarter Profits

While financial analysts continue to debate whether or not the economy is starting to recover, Citigroup, one the largest global banks, is showing profits for a third straight quarter. This is leaving many experts to believe that the bank just might be standing on solid ground. Citigroup was one of the hardest-hit financial companies of the recession and received government funding in the amount of $45 billion to stay afloat. The $45 billion has dwindled and predictions are that Citigroup will be running totally on its own by year’s end. “Achieving our third straight quarter of positive operating earnings is... more »

Personal Loans: Regaining Popularity

Up until last year, personal loans were all but dead. Banks just weren’t promoting them when money was so easy to come by with home refinances, credit cards, or small business loans. Now that most of those sources have dried up for many people, personal loans are becoming an important source of funds for consumers. According to CBS’ MoneyWatch, many of the big banks are now advertising the personal loan again. Wells Fargo is offering $3,000 to $100,000 with a loan term of up to five years, while Citibank allows loans from $300 to $7,500. Discover Financial and CapitalOne are... more »

First-Time Home Buyer Tax Credit Extended for Veterans

If you or your spouse is a member of the armed forces and has recently served active duty outside of the US for at least 90 days between January 1, 2009 and April 30, 2010, you could still qualify for a first-time Home Buyer Tax Credit of up to $8,000. Using the tax credit in conjunction with a VA loan could save you even more. If you are unfamiliar with VA loans, they are home loans that are available to active military personnel, veterans and their spouses. VA loans are typically serviced through a mortgage provider who specializes in the... more »

When Will True Small Business Lending Recover?

Since Congress passed the Small Business Jobs Act just a few weeks ago, the government has backed another $5 billion in loans to small business owners. These hard working folks had all been on a long waiting list, the Recovery Queue so-called since the time money ran out from the last small business stimulus infusion. And I’m glad they are getting their funding – they need it and the economy needs them to get it. But I’m wondering when the private sector is going to open the capital spigot and start lending on its own again. Since the Recovery Act... more »

Racially Predatory Loans Had Impact On The Foreclosure Crisis

A new study published in the American Sociological Reviews shows race played a factor in factor in the wave of foreclosures that hit after the subprime mortgage market went into free fall. The study conducted by Professor Douglas Massey of the Woodrow Wilson School of Public and International Affairs at Princeton University and Jacob Rugh, analyzed data from 100 large metropolitan areas in the US. The study found that that highly segregated residential areas of African American and some Hispanic neighborhoods went into foreclosure at a higher rate that those with similar credit profiles and other common factors. Subprime loans... more »