Smart Borrower Blog

Archive for July, 2009

Frank Considers Reviving “Cram Down” Legislation

Barney Frank, House Financial Services Committee Chairman, is concerned that lenders aren’t doing enough to help modify home loans that are in stress. Frank is threatening to revive the “cram-down” legislation that failed to pass Congress earlier this year. Under this legislation, federal judges are given the power to cut interest rates, reduce mortgage balances […]

Swindlers Take Advantage Of Distressed Homeowners

Every night, the nightly news tells us about more and more foreclosures, and people in trouble with credit card bills and other unsecured debt. People, desperate to get out from under this staggering situation, are turning to any service or company that can help them find relief. With people in such distress, it is inevitable […]

Americans Cutting Back on Credit Cards More Than Others

In a new survey commissioned by international lender ING Direct , it appears that Americans are far more likely than their European counterparts to cut back on their credit card use during this recession in order to save money. A full 46 percent of Americans surveyed said they are refraining from charging their purchases with […]

Will America’s Recovery Capital Loan Program Work for Small Business Owners?

America’s Recovery Capital Loan program (ARC) will provide up to $35,000 in short-term relief for small businesses having problems meeting expenses. Small Business Administration (SBA) lenders are generating these loans, which will be available for small businesses until September 30, 2010. This $255 million loan program has been in effect for approximately one month. Some […]

What Are Banks Really Doing With TARP funds?

There have been 360 banks and lending institutions across that have received government funding from the Treasury Department’s Troubled Asset Relief Program (TARP). Have you been wondering what these financial institutions have been doing with your taxes? Well, a new report from the Office of the Special Inspector General, the oversight department for the program, […]

Is Obama’s Home Affordable Modification Program a Good Deal?

If you are in danger of default or delinquent on mortgage payments, you may wish to take advantage of the home affordable modification program that began in March. Although the program provides relief for home owners, what is little-known about the program is the damage that is done to your credit score. An article from […]

The End of Small Business Loans?

The End of Small Business Loans? With the announcement that CIT Group is in active discussions with its principal regulators on a series of measures to improve the company’s near-term liquidity position and now working with a law firm that specialize in bankruptcy dealings, small businesses may have been dealt another costly blow. CIT has […]

Obama’s “Cash For Clunkers” Program Gives Incentive to New Car Buyers

Last Thursday, Congress approved the new Cash for Clunkers program.  The program is designed to provide motorists with a $3,500-$4,500 incentive if they agree to trade in their older vehicles for one that is more fuel-efficient.  The Obama administration feels that this program will be a stimulus for car dealerships; it also provides the nation […]

Pimco Backing Out of U.S. Treasury Toxic-Debt Program

Pimco, the world’s largest bond manager, has backed out of the treasury’s plan to buy up to $40 billion in assets from banks, according to Bloomberg. The plan, called the Public-Private Investment Program (PPIP), was originally expected to buy as much as $1 trillion in mortgage backed assets and devalued real estate loans. Pimco had […]

Consumer Delinquency Rates Grow, Unemployment to Blame

A recently released report from the American Bankers Association (ABA) showed that 3.35 percent of consumers were behind on their loans during the first three months of this year, compared with 3.16 percent in the last quarter of 2008. These consumer loans include home equity loans, home improvement loans, direct and indirect auto loans, marine […]