Smart Borrower Blog

Archive for March, 2010

Too Much or Too Little Regulation – Small Banks Can’t Win

Mar 31st, 2010 @ 9:32 PM by Amber Nelson

There was obviously too little regulation during the recent housing boom as many banks went hogwild making loans, traditional as well as risky ones. Now the market has crashed and banks have regulations and examinations up the wazoo, and they are having a hard time even making normal small business loans. A recent article in […]

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Small Banks Struggling to Lend to Small Businesses

Mar 29th, 2010 @ 4:40 PM by Debbie Dragon

Many small businesses throughout the country are still finding it difficult to get approved for loans from the banks that have always, in the past, lent to them. Even businesses with perfect credit records and profits are being turned away. At the same time economists continue to say that our economic recovery depends on the growth of small businesses. The Obama administration has also stressed the importance of small business and has openly supported small business lending. So why isn’t small business lending happening?

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Finally, Some Real Mortgage Help

Mar 24th, 2010 @ 12:57 PM by Amber Nelson

Bank of America has announced a dramatic change to its mortgage modification efforts that may finally offer some serious relief for the most at-risk home loans on its books. The company announced yesterday that it plans to initiate a $3 billion loan forgiveness program that could help as many as 45,000 homeowners. “The centerpiece of […]

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Student Loan Bill Passes the House

Mar 22nd, 2010 @ 2:24 PM by Debbie Dragon

The House, this past Sunday, passed the largest student loan overhaul seen in decades. Under the new legislation federal backing of private student loan lenders will end, and instead the federal government will be funding student loans. While private companies will still help in servicing the loans, the federal government would now be issuing them. The savings for this program is in the billions. Just over 60 billion dollars over ten years, is the projected savings according to the Congressional Budget Office.

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Subprime Borrowers: It’s Used Cars or Nothing…For Now

Mar 18th, 2010 @ 1:13 PM by Amber Nelson

The newest data from Experian Automotive shows that the average credit score was 775 for a new car loan in the third and fourth quarters of 2009. That’s right, 775! So basically that means if you are a subprime borrower in the market for a new car, you are out of luck (unless you can […]

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Student Aid Bill: Will It Finally Pass?

Mar 15th, 2010 @ 3:03 PM by Debbie Dragon

This week the student loan bill is back in the news. The bill that would put the government in charge of dispersing student loans instead of commercial lenders, passed by the House last year has yet to pass in the Senate. Private Lending lobbyists have been working overtime to stop the bill, and have succeeded in the very least at stalling it in the Senate. The bill was originally predicted to save the federal government around $87 billion dollars over a ten year time period. New cost saving estimates show that the number may be closer to $61 billion.

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Credit Card Rates Soar in Wake of New Laws

Mar 10th, 2010 @ 9:16 PM by Amber Nelson

CreditCards.com reported today that average interest rates on new credit card offers are skyrocketing since the implementation of the CARD Act. According to its data, the national average interest rate on new credit cards is now 14.56 percent, the second highest figure on record since the survey began in 2007. The higher rates are very […]

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SBA Stimulus Funding Extended Through March 28th

Mar 8th, 2010 @ 11:03 AM by Debbie Dragon

The Small Business Association (SBA) and small businesses across the country got their wish last week when congress passed and Obama signed an extension to an SBA stimulus program that had expired on February 28th. The stimulus funded program provides money for SBA funded loans. The funds are used to waive fees associated with SBA backed loans and to provide a higher backed loan value of 90%. The program will now run through March 28th of this year.

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Small Business Administration Fully Funded…For Now

Mar 3rd, 2010 @ 9:49 PM by Amber Nelson

Very recently the Small Business Association announced that it had run out of funding for its special economic relief loan programs. That left plenty of small business owners in the lurch when it came to financing. Fortunately for those, and thousands of others, the Senate passed an unemployment benefits bill that will include extra money […]

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Mortgage Delinquencies Hit a New High

Mar 1st, 2010 @ 3:31 PM by Debbie Dragon

While the economy is showing few signs of recovery and the national unemployment rate is staying steady at around ten percent, more and more people are struggling every day to make ends meet. Each month the number of homeowners across the country who must make the decision to purchase food for their family or to […]

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