Loans

Treasury Dept. 'SWAT teams' to move in on mortgage industry: War or a joke?

Charles Feldman Dec 1st 2009 @ 12:00PM EST Filed Under: Borrowing, Home, Real Estate, Mortgages, Refinancing

The theater darkens. The coming attractions are over. The movie studio logo (your choice) appears. The screen explodes into brilliant light. Music thunders and soars. Vans marked "SWAT" fill the large screen. The "SWAT team" jumps out and rushes into ... the bank, to pressure officials there to step up mortgage modifications. The title of the film appears: " Mortgage SWAT -- The Movie." The audience laughs. Yes, I said the audience laughs. Or should!

And just as a movie audience should laugh at such a silly idea for a film, people should laugh even harder since this is no movie script but real life (no, not real life television ... real, actual, life! (The type with no syndication rights!)

Continue reading Treasury Dept. 'SWAT teams' to move in on mortgage industry: War or a joke?

Senate bank bill could allow 'too big to fail' banks to grow even bigger

Bob Cesca Nov 30th 2009 @ 5:30PM EST Filed Under: Banks, Borrowing

The chain grocery store where my wife and I shop has a bank in it. There's the frozen food section, the bakery section, the pharmacy and ... the bank. It's not even a particularly large grocery store, but there it is. A bank. With a vault, a sit-down area and everything.

I'm not sure how common this is, but it certainly represents the trend here which appears to be rapidly nearing a ratio of more banks than people. Or at least, more banks than McDonalds, Subways, Starbucks, Walmarts and Targets -- combined. That's not an exaggeration. Within short walking distance of my very suburban neighborhood, there are four banks not including the one in the grocery store. Two of those banks are directly across the street from each other.

And, by the way, there are fewer community banks and credit unions here.

With that in mind, I had no idea that there were local laws regulating how many branches a bank can open in a particular states. Oh, and, according to Ryan Grim, Congress and the Treasury Department is trying really hard to undermine those laws.

Continue reading Senate bank bill could allow 'too big to fail' banks to grow even bigger

If you can't afford mortgage, don't borrow to send kid to college

Zac Bissonnette Nov 23rd 2009 @ 4:30PM EST Filed Under: Banks, Borrowing, College

When I can't think of anything else to write about, I sometimes like to pick up a copy of US News & World Report's America's Best Colleges, and spend about 30 seconds flipping through to find one piece of really, really, really horrible advice.

And so here it is, from an article by Kim Clark:

The federally backed parent PLUS loan can cover the student's entire cost of college (less any other financial aid). But PLUS loans can cost as much as 8.5 percent a year plus a fee of 4 percent of the loan amount, for a total annual percentage rate of as much as 9.4 percent. Shoppers can find discounts, however. Those who borrow directly from the federal government and make automatic electronic payments are charged just 7.65 percent in interest. (After fees, the APR totals 8.55 percent.) And the eligibility criteria are comparatively forgiving, even for parents who are a little behind on their mortgages.

Continue reading If you can't afford mortgage, don't borrow to send kid to college

Reckless lendings' fallout continues

Barbara Bartlein Nov 23rd 2009 @ 3:15PM EST Filed Under: Borrowing, Credit, Debt, Home, Real Estate, Bankruptcy, Mortgages

The Mortgage Bankers Association (MBA) reports that a record number of loans -- one in seven -- is delinquent, up from one in 10 a year ago.

Today's numbers also show that one in 22 families in the U.S. is in the process of losing their home, up from one in 34 a year ago. Based on these figures, we are now on track for 2.9 million foreclosure starts in this year alone.

The lenders' trade association is quick to blame this worsening trend on higher unemployment levels. But that ignores the fact that reckless lending precipitated the economic crisis and prolongs it each day with every new foreclosure, which forces down surrounding property values.

Continue reading Reckless lendings' fallout continues

What you need to know about the mortgage process

Ryan Minick Nov 23rd 2009 @ 12:00PM EST Filed Under: Borrowing, Real Estate, Video, The2MortgageGuys, Mortgages, Refinancing, 101 mortgages

You're buying a house, your offer is accepted, but you still need to secure a mortgage -- now what? Check out this week's episode of Show & Tell with The 2 Mortgage Guys and we'll walk you through the steps of processing your loan application and explain what happens at the closing table.

Ryan Minick and Steve DeLon are The 2 Mortgage Guys. Subscribe to their newsletter or visit them at www.The2MortgageGuys.com.

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To have and to hold (Title, that is): Advice for the unmarried

Amy Pyle Nov 20th 2009 @ 3:30PM EST Filed Under: Borrowing, Budgets, Debt, Real Estate, Saving Money, Wealth, Investing, Personal loans, Mortgages

Who doesn't have an unmarried friend who lost the house, or at least their investment in the condo, when the relationship went sour?

The key question when buying property together, according to a new book -- "Living Together: A Legal Guide for Unmarried Couples" -- seems pretty simple: Does your legal relationship match your private agreement?

But who wants to have that conversation when you are newly in love, or at least new to nesting?

No one, the book's author admitted to WalletPop.

Continue reading To have and to hold (Title, that is): Advice for the unmarried

Thinking about co-signing on a loan? Listen to this first!

Zac Bissonnette Nov 19th 2009 @ 1:30PM EST Filed Under: Borrowing

I listen to Dave Ramsey pretty regularly and I'm here to tell you: the rant that you're about to listen to is the best. thing. I. have. ever. heard. in. my. whole. life.

A nice lady e-mails Dave to ask whether it's OK to let her husband co-sign on a car loan for his parents. Dave explains why that's a bad idea and then goes. . . completely nuts.

Click here to listen to the call in its entirety -- and forward to anyone you know who might ever considering co-signing for anything ever for anyone.

New York returns money to 14,000 payday loan customers

Geoff Williams Nov 17th 2009 @ 4:00PM EST Filed Under: Borrowing, Debt

Going to a payday lender can be a good financial decision. That is, if your Attorney General threatens to sue your payday lender, and they settle up, and then you receive your money back.

New York Attorney General Andrew M. Cuomo has just announced a $5.2 million settlement with two companies running "payday loan" companies.

Cuomo's office will be sending money to more than 14,000 victims. You may be one of those victims if you live in New York and have ever taken out a small loan with the businesses, Telecash or Cashnet.

Continue reading New York returns money to 14,000 payday loan customers

Home buyer tax credit extended & improved!

Ryan Minick Nov 12th 2009 @ 11:00AM EST Filed Under: Borrowing, Real Estate, Tax, Video, The2MortgageGuys, Mortgages, Taxes-advice, Taxes-tax credits

The first time home buyer tax credit has officially been extended. If you're an existing home owner you may also qualify for the tax credit if you're planning on buying a new house! Check out this week's episode of Show & Tell with The 2 Mortgage Guys and we'll fill you in with the "nuts & bolts" of this new program. You can also get the complete details by visiting federalhousingtaxcredit.com.

Ryan Minick and Steve DeLon are The 2 Mortgage Guys. Subscribe to their newsletter or visit them at www.The2MortgageGuys.com.

Recession tales: Saving vs. spending a tough battle

Lita Epstein Nov 5th 2009 @ 9:00AM EST Filed Under: Borrowing, Credit, Debt, Saving Money, Recession, Credit cards

There's no doubt that the current downturn has changed people's spending habits.

Since the peak in housing wealth, homeowners lost more than $5 trillion in equity and 15 million homeowners own homes that are now underwater (worth less than they owe). Unemployment is hovering near 10% with no clear signs of falling.

Homeowners' previous piggy bank -- home equity -- is no longer available for spending. Even if people still hold a job, many are worried that their jobs are at risk and won't spend except for necessities.

People, afraid for their future also changed their savings habits. In the first quarter of 2008, before the recession took hold people saved about 1% of disposable income. By the second quarter of 2009 the savings rate soared to 5% of disposable income. But now that we appear to be near the end of the recession the savings rate dropped back to slightly above 3% in the third quarter of 2009, as people see the end of the recession in sight.

While economists now don't believe this recession will be as deep as the Great Depression, its depth and length will certainly change people's spending and savings habits for a long time to come.

Continue reading Recession tales: Saving vs. spending a tough battle

Bad actors continue to prey on seniors

Amy Pyle Nov 4th 2009 @ 5:00PM EST Filed Under: Banks, Borrowing, Home, Insurance, Real Estate, Retire, Fraud, Mortgages

Bad actors have solidly shifted their attention to reverse mortgages, causing a top consumer organization to warn seniors to choose such loans carefully.

A new report by the National Consumer Law Center likens the aggressive lending practices in today's reverse mortgage lending to those common in the sub-prime mortgage heyday -- featuring some of the same players.

"Well-funded marketing campaigns and perverse incentives to brokers are targeting seniors' home equity and using reverse mortgages as their tools," attorney Tara Twomey said in the NCLC news release.

Continue reading Bad actors continue to prey on seniors

The 2 Mortgage Guys: Fixed vs. adjustable mortgage rates

Ryan Minick Nov 2nd 2009 @ 2:00PM EST Filed Under: Borrowing, Real Estate, Video, The2MortgageGuys, Mortgages, Refinancing

Not all mortgage rates are created equal. There is a time and a place to consider an adjustable rate mortgage vs. a fixed rate.

If you have short term plans to pay off your loan in full then an adjustable rate may save you money over the term of the mortgage. If you're planning on keeping your mortgage for a longer period of time then an adjustable rate may be too risky considering today's evolving stock market.

Check out this week's video and we'll explain a few more scenarios to help determine which option is right for you.

Ryan Minick and Steve DeLon are The 2 Mortgage Guys. Subscribe to their newsletter or visit them at www.The2MortgageGuys.com.

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