“Personal Finance Daily: The week's 10 best Personal Finance stories (Market Watch)” plus 4 more |
- Personal Finance Daily: The week's 10 best Personal Finance stories (Market Watch)
- Foreclosures hitting more people with prime loans (Washington Post)
- Expect tightening from the FHA (Washington Post)
- Urban League and partner to offer small biz loans (Washington Post)
- Dizzy Nova Scotia student's loans cleared (Canada.com)
| Personal Finance Daily: The week's 10 best Personal Finance stories (Market Watch) Posted: 21 Nov 2009 05:25 AM PST
Alert
Email
Print
By MarketWatch In case you missed them, here are the top 10 Personal Finance stories from MarketWatch for the week of Nov. 16-20: Credit-card balances move higher
After months of paying off debt, some Americans pulled out their credit cards and started charging in October, according to data from two credit tracking firms. The data suggest consumption habits don't ever really die, especially when the busiest shopping season of the year is at hand.
Gift-card fees keep on giving -- to card issuers
Just in time for the holidays, the Federal Reserve announced new rules that will restrict fees and expiration dates for gift certificates, store gift cards and general-use pre-paid cards. Alas, like a gift card that was improperly activated, the Fed only provided the rules, it didn't put them into place.
Primary-care doctor crunch offers no quick fix
It's a phrase people are loath to hear when they're looking for a new primary-care doctor: Not accepting new patients. Some parts of the country already lack an ample supply of general internists, pediatricians and family physicians, forcing patients to drive further or wait longer for care. If a comprehensive health-reform bill passes and extends coverage to millions of uninsured Americans, many are asking if there will be enough primary-care doctors to handle the increased demand for medical services.
Even after Madoff, investor scams abound
If you thought investment scams ended with Bernie Madoff's arrest, you'd be very wrong. Recent headlines point to a slew of frauds aimed at separating investors and retirement savers from their money, but there are ways to protect yourself.
So many savings goals, so little money
Our 10-week-old baby arrived on the heels of the recession. Now my husband and I have to figure out how to provide for our family's future. That includes saving up for our daughter's college costs, but also funding our own retirement -- and all on a limited budget.
Delinquencies, foreclosures break record
Job losses caused more Americans to fall behind on their mortgage payments in the third quarter, leading to a record 14.41% of loans either in foreclosure or with at least one payment past due, the Mortgage Bankers Association's chief economist said Thursday.
If you and your real-estate agent disagree on price, trouble will ensue
Question: My husband and I signed a contract with a real-estate broker to list our home for six months, and so far it's been one month of pure hell. Luckily, everyone who has visited our home has put in a bid on it. But rather than fight for us during the bidding process, this woman will argue with us at every turn. We're not talking $2,000 or $3,000 here; we're talking tens of thousands that she wants us to come down. The most we've come down so far is $19,000.
What you need to know about the extended, expanded home-buyer tax credit
House shopping usually slows down in the winter, as people put their home searches on hold to trim the tree, buy presents to put under it and avoid the chilly weather. This winter, however, might be different, thanks to the extended -- and expanded -- first-time home-buyer tax credit.
Big choice faces international small-cap investors
Hard-hit during the market collapse last year, international small-cap stocks have since made up for the pain they inflicted on investors' portfolios. Yet investment managers don't expect the rally to continue unabated and say it's time to get selective.
Global fund managers turn to commodities
Global fund managers are hedging their bets against future inflation and pouring more money into commodities and emerging markets, according to a monthly survey released Wednesday.
This content has passed through fivefilters.org. |
| Foreclosures hitting more people with prime loans (Washington Post) Posted: 19 Nov 2009 07:41 AM PST The latest evidence was a report Thursday that a rising proportion of fixed-rate home loans made to people with good credit are sinking into foreclosure. That's a shift from last year, when riskier subprime loans drove the housing crisis. The report from the Mortgage Bankers Association also found that 14 percent of homeowners with a mortgage were either behind on payments or in foreclosure at the end of September. It was a record-high figure for the ninth straight quarter. The data suggest the housing market and the broader recovery will remain under pressure from the surge in home-loan defaults, especially as unemployment keeps rising. Lost jobs are the main reason homeowners are falling behind on their mortgages. After three years of plunging prices, the housing market started to rebound this summer. That lifted hopes for the overall economy. But analysts say there are too many foreclosed homes that have yet to be dumped on the market and expect further price declines. Among states, the worst damage is still concentrated in the states hardest hit from the start: Florida, Nevada, California and Arizona. Together, they accounted for 43 percent of new foreclosures. One in four mortgages in Florida were either past due or in foreclosure, the most in the U.S. Nevada was close behind at 23 percent. "There's no indication in this data that foreclosures are going to abate anytime soon," said Mark Zandi, chief economist at Moody's Economy.com, who projects that nationwide home prices will fall up to 10 percent before bottoming next fall. Driven by rising unemployment, prime fixed-rate loans to borrowers with good credit accounted for nearly 33 percent of new foreclosures last quarter. That compares with 21 percent a year ago. Many laid-off homeowners might be able to survive on their savings for a while, but "the longer the economic situation stays in place, the less likely they are to hold on," said Jay Brinkmann, chief economist at the Mortgage Bankers Association. In markets where foreclosures already are high and still rising, prices likely will remain soft. That will cause developers to keep their bulldozers idle and prevent the industry from making a big contribution to the economy's recovery. "Builders only start homes when they can make money," said John Burns, an Irvine, Calif.-based real estate consultant. "In a lot of areas, until prices go back up, construction doesn't make any sense." This content has passed through fivefilters.org. |
| Expect tightening from the FHA (Washington Post) Posted: 20 Nov 2009 09:00 PM PST In the wake of an independent actuarial study that found the FHA's insurance fund reserves far below the congressionally mandated minimum, the agency confirmed that it is actively exploring ways to pump up its reserves -- including raising insurance premiums and minimum down payments and a variety of other unspecified moves. How might these changes affect home buyers and refinancers? FHA officials won't discuss precisely what they're looking at. But here's a quick overview of some of the possibilities: -- Higher down payments. The FHA's current minimum cash down payment is 3.5 percent. On a $200,000 house, a buyer can bring as little as $7,000 to the table, aside from closing costs. A purchase of a $500,000 house in a high-cost area requires only $17,500 in cash. Critics say 3.5 percent does not force purchasers to have enough "skin in the game" to discourage them from missing payments or risking foreclosure. Rep. Scott Garrett (R-N.J.) introduced legislation last month requiring a minimum 5 percent down payment for all future FHA loans. Ed Pinto, who served as Fannie Mae's chief credit officer in the 1980s and is now a mortgage industry consultant, said the FHA needs to move to a 10 percent minimum. But many lenders and mortgage brokers argue that raising the limit could scuttle the FHA's core purpose -- serving consumers of modest means. Jeff Lipes, president of Family Choice Mortgage near Hartford, Conn., said a move to a 10 percent minimum "would effectively eliminate FHA as an option for first-time buyers." A 5 percent standard would reduce volume, he said, but not exclude such a wide swath of currently eligible borrowers. -- Higher mortgage insurance premiums. The FHA charges an "upfront" mortgage insurance premium of 1.75 percent of the loan amount. Most borrowers roll that into their loan and finance it. The agency also charges an annual premium, paid in monthly installments, of either 0.5 percent or 0.55 percent, depending on the down payment. To rebuild reserves, the FHA could tweak one or both premiums to yield more revenue. It could, for example, raise the upfront premium to 2 percent or as high as the current statutory maximum of 2.25 percent. It could also raise the annual fee, but the total premium could not exceed 3 percent under current congressional limits. Mortgage industry officials say raising premiums would be a logical move, with a gentler impact on borrowers. Lipes calculates that on a $200,000 loan, an increase in the upfront premium to 2 percent -- and a move to 0.6 percent on the annual -- would raise a borrower's monthly payment by just $10 at today's interest rates. -- Cutting home-seller "concessions" to borrowers' loan costs. One of the big attractions of FHA financing has been the agency's liberal allowance for seller contributions to borrowers to offset settlement and loan-related fees. The current FHA limit is 6 percent of the house price, which critics believe to be excessive. They say the policy effectively allows financially marginal borrowers to buy houses they shouldn't, thereby raising the FHA's exposure to losses. Pinto calls the 6 percent allowance "insane on a loan with a 3.5 percent down payment." He wants Congress to order the FHA to reduce maximum concessions to 2 percent. -- Toughening credit standards. In the mortgage market, the FHA is by far the most lenient and flexible player when it comes to evaluating applicants' creditworthiness. It does not have a minimum credit score, though it permits lenders to impose FICO score minimums. The FHA also traditionally has been far more tolerant of credit-history peccadilloes than Fannie Mae or Freddie Mac. When there are extenuating circumstances associated with credit problems -- medical, marital or employment -- the FHA seeks to give applicants the benefit of the doubt. But critics say underwriting generosity can lead to higher delinquencies, foreclosures and losses. They want the FHA to toughen up. In fact, many mortgage market participants would prefer to see the FHA move to the approach used by private insurers -- risk-based pricing. Paul Skeens, president of Waldorf-based Colonial Mortgage Group, said the FHA should calibrate premiums to a tiered system of credit scores and down-payment amounts, charging more for borrowers with low down payments and low scores, and less for those with higher cash in the deal and better scores. "If that's what it takes to make FHA solvent, I'm all for it," Skeens said.
This content has passed through fivefilters.org. |
| Urban League and partner to offer small biz loans (Washington Post) Posted: 18 Nov 2009 06:38 AM PST On Deck Capital will provide loans through Urban League local affiliates, starting in Philadelphia and Los Angeles and then expanding across the country, it was announced Wednesday. The program offers one-year loans ranging from $5,000 to $100,000 at interest rates of 18 to 36 percent. All the loans must be repaid through automatic daily "micro-payments" from the business' bank accounts. The program will focus on urban areas with high concentrations of minority businesses and help create new jobs there, said Patricia A. Coulter, president and CEO of the Urban League of Philadelphia. "In today's really tight market, credit has dried up, banks are not lending," she said. "It's even more critical for small and minority businesses to have access to capital." To qualify, businesses should generally have between $500,000 and $2 million in annual revenue and have been operating for at least three years, said On Deck founder and CEO Mitch Jacobs. Jacobs said that for small loans, banks rely on the business owner's personal credit score, which often has suffered because the owner has tapped every possible avenue to grow their company. On Deck uses a proprietary technical system to examine other data about the business, such as customer transactions, online payments and other electronic banking records. Jacobs acknowledged that banks offer better interest rates, but said they do not have the time or resources to deal with "micro-loans." On Deck has made about 1,000 loans totaling about $50 million since 2007, he said. Their typical customers: "Restaurants, retailers, hair salons, pet shops, flower shops, doctors offices, dry cleaners," Jacobs said. "Really the broad spectrum of main street and off-main street businesses." The loans will be offered through the Urban League's Entrepreneurship Centers, which are located in Atlanta; Cincinnati; Cleveland; Jacksonville, Fla.; Kansas City; New Orleans; Chicago; Los Angeles; and Philadelphia. There was no indication how much money is available for the loans. --- On the Net: On Deck Capital:http:/ / www.ondeckcapital.com National Urban League:http:/ / www.nul.org This content has passed through fivefilters.org. |
| Dizzy Nova Scotia student's loans cleared (Canada.com) Posted: 19 Nov 2009 12:10 PM PST Health problems, including stress and dizziness, were cited as reasons for clearing a former Nova Scotia university student from paying back more than $50,000 in student loans. The decision — released Wednesday by a N.S. Supreme Court bankruptcy court — gave Alfredo Abdo an absolute discharge from paying back the loan to the Royal Bank of Canada after he argued health problems ended his studies and have kept him out of the workforce and dependent on his mother for support. Abdo, who represented himself at the hearing last month, entered Dalhousie University in Halifax in September 2004 to study engineering after posting a strong record in high school. He filed for bankruptcy on Nov. 18, 2008. Between the fall term of 2004 and the fall term of 2006 — when his studies ended — Abdo switched his academic focus from engineering to commerce. In August 2005, he received a $20,000 student loan from RBC, but before the end of the year, he was in financial trouble due to poor investments, the decision read. His loans officer then offered an additional $30,000, which Abdo accepted. The decision from registrar Richard Cregan said that despite academic "intensity" through high school and his first year of university, Abdo's behaviour shifted before he changed programs. "Somewhere along the way, he did not have the emotional resources to keep it all going," Cregan wrote, adding that Abdo hoped the switch to commerce would relieve the pressure on him. "He started to question whether it was all worthwhile. This has manifested itself physically in that he suffers from dizziness." Cregan said Abdo has now become "quite uncomfortable in social situations," felt bullied around the university campus and "decided that he could not stand the environment" before moving to commerce. Cregan said the additional $30,000 loan was "a loan to an immature 19-year-old investor . . . to temporarily solve a financial problem. RBC took the risk." He also said in the decision that there was no evidence that Abdo continued to trade after becoming aware of his insolvency. Cregan said Abdo's situation was "unfortunate," but said that RBC, at least in part, was responsible for the situation. "(Paying the credit line) would only be another impediment to him dealing with his substantial personal problems," Cregan wrote. "He has no income presently and little expectation that he will have significant income in the foreseeable future to justify requiring him to make payments." A spokesperson from RBC, which opposed the discharge, was not available for comment Thursday. This content has passed through fivefilters.org. |
| You are subscribed to email updates from Add Images to any RSS Feed To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
0 comments:
Post a Comment