Smart Borrower Blog

Archive for June, 2009

HUD Requests a $798 Million Credit Subsidy

Jun 29th, 2009 @ 3:53 PM by Alden Smith

Recently, the Department of Housing and Urban Development (HUD) released its 2010 budget.  In their budget, they asked for a $798 million credit subsidy for the reverse mortgage program that is handled by the FHA.  HUD has never requested a subsidy of any kind.  It begs the question is the Home Equity Conversion Mortgage (HECM) […]

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Bad News For Lenders of Student Loans

Jun 26th, 2009 @ 2:17 PM by Alden Smith

With the ever soaring cost of higher education, student loans have been an almost indispensable tool when trying to put the kiddies through college.  Tuition has reached a level of $50,000 a year in some private colleges and universities.  At that rate, a graduate can expect to be in debt for a quarter of a […]

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Weak Small Business Rescue Plan Unlikely to Deliver Relief

Jun 24th, 2009 @ 8:17 PM by Amber Nelson

Where is the government’s promised help for small businesses, some of the hardest hit entities of this economic downturn? According to the Small Business Administration, the newly created “America’s Recovery Capital Loan Program” went into effect on June 15, offering interest-free loans for as much as $35,000 to qualified businesses. This new loan program, made […]

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Fannie & Freddie Tighten Lending Standards

Jun 22nd, 2009 @ 3:30 PM by Alden Smith

According to the Wall Street Journal, Fannie Mae, in efforts to provide some stability in the mortgage market, have said that they will no longer guarantee mortgages on condominiums that are in buildings where fewer than 70% of the units have been sold.  Representatives Barney Frank, D., MA and Anthony Weiner, D., NY, have written […]

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Sallie Mae In Financial Trouble

Jun 19th, 2009 @ 2:15 PM by Alden Smith

Sallie Mae, formerly known as SLM Corp., makes student loans.  Recent news from Forbes indicates that the Obama administration unveiled on Thursday a new budget proposal that would make the government the sole provider of federally backed loans for students.  This spells bad news for Sallie Mae, whose shares tanked on the news. According to […]

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Obama Unveils Plans for More Lending Regulation

Jun 17th, 2009 @ 10:32 PM by Amber Nelson

In order to make sure all financial industries are behaving well, President Obama announced plans today for a new regulatory commission – the Consumer Financial Protection Agency or CFPA. This body would be in charge of overseeing the practices of mortgage lenders, credit card companies, and insurance and investment banking corporations. Here’s why Obama thinks […]

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Mortgage Rates Once Again On The Rise

Jun 15th, 2009 @ 4:53 PM by Alden Smith

A recent article in Newsweek tells us that it’s a known fact that the Federal Reserve has been working to keep a mortgage rates down.  They have been buying treasury debt in an effort to keep mortgage rates low.  Although that has seen some light at the end of the tunnel, many economists are warning […]

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A Look At Alt-A and Pay Option ARM’s

Jun 12th, 2009 @ 4:18 PM by Alden Smith

If there is one thing I learned, it is that you cannot make any assumption without the proper data.  One of my favorite websites is  Doctor Housing Bubble.com.  His data is so good that I follow him on Twitter.  Although most of the data is centered around Southern California, he often shows the bigger picture.  […]

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Auto Loans Still Hard to Come By

Jun 10th, 2009 @ 1:42 PM by Amber Nelson

Even though many banks receiving federal bailout money promised to make more money available for auto loans, it appears that not much has changed lately in terms of how hard it is to get car financing. For example, a recent CNN article reported that GMAC bank announced plans last December to earmark $5 billion for […]

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Kiva Brings Non-profit Microlending Model To U.S.

Jun 10th, 2009 @ 10:30 AM by Amber Nelson

When banks tightening credit in the last year, small businesses have had to struggle to get financing.  Enter Kiva.org, an innovative Silicon Valley non-profit that has garnered plenty of buzz and goodwill microlending  to poor entrepreneurs in the developing world.  Kiva will now begin a pilot program in U.S. to allow individuals to make small […]

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