Lending money – Ibook Linux http://www.ibooklinux.net/ Thu, 20 Jan 2022 17:02:24 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://www.ibooklinux.net/wp-content/uploads/2021/06/ibook-150x150.png Lending money – Ibook Linux http://www.ibooklinux.net/ 32 32 KeyBank Reports Record Revenue and Expects Further Loan Growth https://www.ibooklinux.net/keybank-reports-record-revenue-and-expects-further-loan-growth/ Thu, 20 Jan 2022 15:30:00 +0000 https://www.ibooklinux.net/keybank-reports-record-revenue-and-expects-further-loan-growth/ CLEVELAND, Ohio — KeyBank on Thursday reported record full-year and fourth-quarter revenue and beat analysts’ expectations. The Cleveland-based bank reported annual revenue of $7.29 billion, down from $6.72 billion in 2020. Net income was $2.63 billion, down from $1.34 billion dollars in 2020. The company said annual revenue was a record. Fourth quarter revenue was […]]]>

CLEVELAND, Ohio — KeyBank on Thursday reported record full-year and fourth-quarter revenue and beat analysts’ expectations.

The Cleveland-based bank reported annual revenue of $7.29 billion, down from $6.72 billion in 2020. Net income was $2.63 billion, down from $1.34 billion dollars in 2020. The company said annual revenue was a record.

Fourth quarter revenue was $1.95 billion, compared to $1.85 billion in the last quarter of 2020.

Earnings per share in the fourth quarter were 64 cents, beating analysts’ expectations of 56 cents, according to stock analyst site Seeking Alpha.

CEO Chris Gorman said on an investor call Thursday morning that there had been strong momentum – in both consumer and commercial lending.

The company is also seeing growth among those under 30, and its digital banking brand, Laurel Road, is doing well, Gorman said. And the company is also seeing growth in its investment banking business and the fees it generates, said Don Kimble, vice president and chief financial officer.

Key benefited from fewer bad loans and less bad credit, likely because consumers saved more money from COVID-19 stimulus. Non-performing loans, meaning loans that are unlikely to be fully repaid, are down 42% from the same period last year. Net write-offs, which are debts that are unlikely to be collected, now represent less than a tenth of a percent of average loans.

Both types of bad debt represent small parts of the bank’s portfolio.

Gorman said the bank expects consumer trends to normalize in 2022 or later, with delinquency rates returning to normal. Right now, the bank has $5 billion more in consumer deposits than before the pandemic, showing that consumers are still full of money.

He added that the bank also expects an increase in commercial lending. Right now, companies are using 27% of their allocated credit, historically they’re using about 35%, he said. Gorman said he expects companies to use more credit as supply chain issues ease, predicting they will fill inventory when possible.

KeyBank is also targeting renewable energy and affordable housing as areas for more commercial lending.

In its 2022 forecast, the company said it expects lending to grow in the double digits, excluding the impact of paycheck protection loans that are being forgiven.

Deposits will grow by around 1% to 3%, the bank predicts. It also predicts that revenue will grow at a slow and steady pace.

KeyBank, like many other companies, is seeing increased expenses due to rising salaries. Gorman said starting salaries are on average 40% higher than five years ago and the company has 10% more senior bankers than last year.

Asked by an analyst, Gorman said KeyBank would continue to invest profits in the business, rather than just increasing the bottom line.

Previous cover

PNC Bank predicts loan growth in 2022, noting the uptick is already happening for commercial loans

Sherwin-Williams says raw material costs have held back 2021 sales, expects momentum in 2022

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Should You Ever Refinance Your Car Loan? https://www.ibooklinux.net/should-you-ever-refinance-your-car-loan/ Tue, 18 Jan 2022 15:30:00 +0000 https://www.ibooklinux.net/should-you-ever-refinance-your-car-loan/ Borrowing for a car may seem like a questionable financial decision, but there are certainly scenarios where car loans can help you get ahead. For example, new vehicles often come with 0% APR finance offers, and people with great credit often pay low interest rates that are comparable to mortgage rates. Not only that, but […]]]>

Borrowing for a car may seem like a questionable financial decision, but there are certainly scenarios where car loans can help you get ahead. For example, new vehicles often come with 0% APR finance offers, and people with great credit often pay low interest rates that are comparable to mortgage rates. Not only that, but borrowing for a car may be the only way you can line up transportation to and from work.

So what is the problem? Overall, Americans have become accustomed to using auto loans to finance more than they can reasonably afford. We know this because not only does the average car loan size keep rising each year, it also continues to rise. longer.

A 2021 report from Experian – the state of the auto finance market in Q3 – just highlighted all the dreadful facts. Here are some of the most disturbing statistics:

  • In the third quarter of 2021, the average new car loan amount was $37,280, compared to $34,682 in the third quarter of 2020.
  • During the same quarter, the average payment for a new car was $606, compared to $565 in the third quarter of 2020.
  • During the same quarter, the average term of new car loans was 69.47 months. That’s actually shorter than in 2020, when the average loan term was 69.64 months. But it’s still almost 6 years!

In short, we are borrowing more than ever and staggering repayments for as long as we can. Remember that the medium the new car loan lasted more than 69 months in the 3rd quarter of 2021, but that’s the average. There are also many 84-month car loans, which leave people with a crushing car payment for seven full years.

With all of this in mind, you may be wondering if now is the time to change the way we process auto loans or refinance your auto loan for a better deal. There are many scenarios where refinancing makes sense, but there are still times when it’s best to stick with the car loan you have.

When to refinance your car loan

There are four main reasons why you should consider refinancing your car loan, and several can apply for it at the same time.

Your credit score has improved significantly since you bought the car

If you had poor credit when you bought your car, refinancing now could help you save on interest or pay off your car faster. This is because, for the most part, the interest rate you can qualify for is closely tied to your credit score.

According to Bankrate, people with credit scores between 300 and 500 paid an average APR of 12.99% on their car loans at last count, while those with scores of 501 to 600 were charged an average APR. of 9.92%. On the other hand, people with fair to excellent credit, or scores of 601 to 850, paid APRs ranging from 6.32% to 2.58%.

If your credit was poor when you bought your car but your score is well over 600 now, refinancing your car loan might be a financially smart move.

Interest rates have dropped since you originally financed the vehicle

Maybe your credit score is about the same as it was several years ago. In this case, it is still possible that you could benefit from the lower auto loan rates that are available today.

For example, the Experian study showed that the average auto loan APR for new cars was 5.38% in 2019, then fell to 4.23% in 2020 and 4.05% in 2021. If you check the rates today and they are lower than they were when you took out your auto loan several years ago, a refinance might make sense.

You want to pay off your car faster

If you want to pay off your car loan faster, refinancing into a new loan with a shorter repayment term could put you on the right track. This is especially true if your current auto loan is one of the longest at 84 months.

Of course you don’t duty refinance your auto loan to pay off your car faster. Provided your current loan doesn’t charge any prepayment penalty, which it shouldn’t, you can pay more than the minimum loan payment on your car and accomplish the same thing.

You need a more affordable monthly payment

Maybe you need a more affordable monthly payment than what you have now. In this case, refinancing into a new car loan with a longer repayment term, a lower interest rate, or both, could help you achieve this goal.

Just keep in mind that extending your repayment term puts you in even longer debt. You could also end up paying a lot more interest.

Refinancing your car loan: what we need to watch out for

While any of the above reasons can make refinancing your car loan a good deal, there are some serious pitfalls to avoid. For example, you need to watch out for refinancing fees, including prepayment penalties on your existing car loan and fees for the new car loan you’re considering.

Although most auto loans don’t have a prepayment charge, you’ll still want to read your loan agreement to verify. In the meantime, you’ll also want to compare new car loans to look for options that don’t charge origination fees or application fees.

Also keep in mind that refinancing your auto loan to extend the term can have its own set of pros and cons. You may be able to get a lower monthly payment, for example, but you may end up paying off your car loan much longer than you’d like.

You should also ask yourself if refinancing your auto loan is worth the time and effort. If you don’t owe much and can afford to pay more than the minimum, you can get off your car loan sooner by making larger monthly payments instead.

The essential

Does refinancing your car loan make sense? For most people, the answer to this question is a solid “maybe”. In the end, it really comes down to what you stand to gain by refinancing.

For example, could refinancing help you save time, money, or both? Maybe you could get a lower monthly payment that better matches your current income and bills. Consider playing around with an auto loan repayment calculator to find out for sure.

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Soft or hard? China’s real estate sector is coming in for a landing https://www.ibooklinux.net/soft-or-hard-chinas-real-estate-sector-is-coming-in-for-a-landing/ Sun, 16 Jan 2022 19:39:10 +0000 https://www.ibooklinux.net/soft-or-hard-chinas-real-estate-sector-is-coming-in-for-a-landing/ The Chinese government is trying to persuade the rest of the world that the real estate crash is well under control, everyone’s money is safe, and the growth narrative will pick up after the commercial break. After all, the Winter Olympics will soon begin in Beijing, and just over a year and a half later, […]]]>

The Chinese government is trying to persuade the rest of the world that the real estate crash is well under control, everyone’s money is safe, and the growth narrative will pick up after the commercial break. After all, the Winter Olympics will soon begin in Beijing, and just over a year and a half later, China’s supreme leader, Xi Jinping, will (likely) be named ruler for life.

Unfortunately, there is little evidence that the “soft landing” is actually happening. For a decade, oversupply of housing and accompanying construction has been the main driver of national growth. With the Evergrande collapse that began last August, that is ending. Even though the Chinese government eased credit, opened up mortgages and funneled money to bankrupt developers, it only managed to make the decline slightly less extreme.

The chaos started in the small towns, the ones they call Tiers 4 and 5 in China. Prices there are falling by 20-40% despite government warnings that vendors should not discount too much. Market confidence improved in December, but only compared to November. Buy transactions recovered 29% month-over-month for China’s top 100 developers, but were still down 38% year-over-year.

The government injected money into the market:

· Banks have been instructed to ease mortgage requirements and speed up issuance.

· The proposed property tax has been mothballed, or at least delayed.

· Restrictions on loans to developers have been relaxed.

· The People’s Bank of China (PBOC) cut reserve requirements by 50 basis points in December, the second time since July. The 50 basis point drop freed up about 1.2 trillion yen for new lending.

The PBOC cut the benchmark lending rate in December for the first time since April 2020, cutting the one-year prime rate from 3.85% to 3.8%.

· Restrictions on buying homes have been removed in many cities.

· About 30 cities set floors on the prices at which real estate transactions can be recorded.

It helped some but not enough. In December, Vanke (000002 SZ, 2202 HK), Greenland Holdings

LNGN
(600606 SH) and Shimao Group (0813 HK) all saw their sales fall by more than 50% year-on-year.

Defaults are shaking the sector. Evergrande (3333 HK) is just the best known: the company has defaulted on $1.2 billion in bond payments and is undergoing forced restructuring in China. But in the meantime, there have been many others. Kaisa Group (1638 HK), which experienced one of the world’s most peculiar defaults in January 2015, defaulted on a payment of $400 million. Shimao Group failed to pay 645 million yen out of a total of 792 million yen due on Dec. 25. Guangzhou R&F (2777 HK) said it would default on $725 million due on January 13. Sinic Holdings defaulted on $250 million of offshore bonds last October. China Properties Group defaulted on $226 million of notes on October 15. Fantasia Holdings (1777 HK) defaulted on $206 million in early October. And many more are now in danger.

The drop in real estate transactions pushed construction into a tailspin. New housing starts are at their lowest since 2017. A drop in demand for steel in 2022 of at least 5% – or about 100 million tonnes of iron ore – is inevitable.

If China fails to save its real estate market, there will inevitably be contagion on international markets. We see the order of training effects as follows:

Commodities supplied from abroad such as iron ore, coking coal, copper and potash

The share price of foreign listed companies with significant operations in China

The luxury segment in China, so largely fueled by real estate capital gains

Consumer spending in China

Chinese exports, largely fueled by subsidies, and ultimately,

· The value of RMB. As the RMB devalues, expect deflation to spread throughout the global economy.

A question on which there has been too little analysis: the Chinese real estate market has been the most egregious example of elite theft on the planet.

During the first two decades of reform, China was so poor that even a small amount of investment capital induced a lot of growth. The vast majority of the population was young, rural, and willing to accept any hardship to give the next generation a head start in prosperity. The workers who migrated to the factories on the coast in the 1990s, and of course the civil servants who took generous cuts from investment capital, made buckets of money.

In the mid-2000s, the government had a dilemma: it wanted people to be incentivized to keep working hard, but it didn’t want to give all the surplus to households. This would have reduced the ever-increasing amounts of investment capital deployed by the government as well as the ever-increasing streams of trickle-down for government officials. The solution? The real estate market.

Workers who were getting rich poured their money into the millions of apartments built across the country, and a drumbeat of positive statistics told them that their property was worth many times their annual salary. Local governments converted land intended for agricultural use into residential land and reaped monetary windfalls. They tricked local people into acquiring new residential towers on the promise of massive gains and a future life of urban leisure. In the last decade of the crazy real estate bubble, Chinese government officials raised billions, if not trillions of dollars

Now, as real estate values ​​plummet, it is farmers, taxi drivers, waitresses and factory workers who will see their imaginary wealth melt away. The officials who designed all of this already have their money overseas.

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Four million payday and home loan customers from Provident, Greenwood and Satsuma must request repayments NOW https://www.ibooklinux.net/four-million-payday-and-home-loan-customers-from-provident-greenwood-and-satsuma-must-request-repayments-now/ Sat, 15 Jan 2022 07:00:00 +0000 https://www.ibooklinux.net/four-million-payday-and-home-loan-customers-from-provident-greenwood-and-satsuma-must-request-repayments-now/ MORE than four million payday and home loan customers are being asked to request any repayments that may be owed to them. If you were mis-sold a loan by Provident, Greenwood, or Satsuma, you might be in line for compensation, even if you’ve already paid it back. 1 Provident, Greenwood and Satsuma customers receive small […]]]>

MORE than four million payday and home loan customers are being asked to request any repayments that may be owed to them.

If you were mis-sold a loan by Provident, Greenwood, or Satsuma, you might be in line for compensation, even if you’ve already paid it back.

1

Provident, Greenwood and Satsuma customers receive small payments as compensation

Some home loans from Provident and Greenwood, payday loans from Satsuma, and collateral loans from Glo were mis-sold to cash-strapped borrowers who couldn’t afford them.

Thousands of borrowers had their repayments written off late last year after Provident closed its home loan business.

Now, lenders are offering payments under a borrower repayment program – even if they paid off their debts years ago.

Customers who mis-sold loans at unaffordable rates have just weeks left to claim a share of a £50million compensation pot.

The claims window closes at the end of February and it is best to apply as early as possible.

Here’s what you need to know:

What compensation can I get?

You’re unlikely to get back as much as the company owes you, but it could still be hundreds.

And you may also have bad marks on your credit report.

Debt Camel blogger Sara Williams told The Sun: “The provident loans were only meant to be used for short-term borrowing – that’s why the interest rate was so high.

“But Provident did not do proper checks on borrowers. Hundreds of thousands of people have borrowed continuously from Provident for years.

“They have a good chance of having their ‘unaffordable loan’ application confirmed – even if they made all the repayments on time.

“If you win, you’ll get some of the interest you paid back – it’s worth applying.”

If you took out a loan from Provident, Satsuma, Greenwood or Glo between April 6, 2007 and December 17, 2020, you may be eligible for a refund.

How much you get back will depend on how much you borrowed and for how long, as well as how many other people are asking for repayment.

The money will be distributed after the redemption program closes at 5 p.m. on February 28, 2022.

Payment will not be immediate, however, as each claim will be assessed individually.

Where can I request my refund?

If you think you have received an unaffordable loan from Provident, Satsuma, Greenwood or Glo, visit scheme.providentpersonalcredit.com.

You can submit a complaint online or by calling 08000 568 936 – or you can download a form to submit.

Filing a complaint is free.

But beware of claims companies that say they’ll do this on your behalf, as they’ll take some of the money you recover – and it’s easy to do it yourself anyway.

You will need a Program ID to submit your application, which should have been emailed or mailed to you.

Call the number above if you don’t have it.

You won’t need your loan details to make the claim, Sara says, but you may need to show proof of defaults or county court judgments.

These will be on your credit report if it’s within the last six years.

It’s best to make a claim as soon as possible – just in case there is a problem submitting information close to the deadline.

What else should I keep in mind?

Sara also advises you to file a claim again if you have already been refused for a refund or accepted a small amount.

This is because lenders have dismissed too many complaints before.

Its claims guide also points out that you can make a claim if you paid the loan on time, in default, or if the loan was sold to a debt collector.

None of the four companies are currently lending to new customers.

If you are a former customer of The Money Shop, Payday UK or Payday Express, you could be compensated today (January 14) or Monday.

And if you think one of the still-operating lenders may have wrongfully sold you an unaffordable loan, here’s how to file an affordability complaint.

Martin Lewis issues holiday warning for Britons booking trips abroad

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Crypto Conduit API provider wants to be the decentralized finance gang – TechCrunch https://www.ibooklinux.net/crypto-conduit-api-provider-wants-to-be-the-decentralized-finance-gang-techcrunch/ Thu, 13 Jan 2022 13:01:57 +0000 https://www.ibooklinux.net/crypto-conduit-api-provider-wants-to-be-the-decentralized-finance-gang-techcrunch/ Financial institutions continue to look for ways to enter the crypto market, and decentralized finance (DeFi) products are one mechanism that could help them capture shares. Investors in DeFi products can earn a return on their capital by lending their cryptocurrency in exchange for interest. But DeFi loans are much riskier than traditional loans, in […]]]>

Financial institutions continue to look for ways to enter the crypto market, and decentralized finance (DeFi) products are one mechanism that could help them capture shares. Investors in DeFi products can earn a return on their capital by lending their cryptocurrency in exchange for interest.

But DeFi loans are much riskier than traditional loans, in part because of the volatility of the asset class. Just as “high yield” bonds pay investors more money to bet on riskier-than-average businesses, DeFi loans can offer much higher interest rates than the traditional savings account in which customers basically lend their money to a bank.

Conduit creates a set of APIs that developers can use to build platforms that provide access to DeFi products. As vice president of products for the BRD crypto wallet, which Coinbase acquired in November last year, Conduit CEO and co-founder Kirill Gertman faced challenges in finding vendors who would provide the core tools including his team needed to create his product aimed at users. After a stint at Arrival Bank and six months as a product manager at Consumer Fintech Eco, Gertman created Conduit to be the backend solution he was looking for but couldn’t find.

The Conduit team in video call Image credits: Led

“When you look at the fintech side of things, there is already a huge stack that has been designed to support that. You have Stripe, you have Marqeta if you want to issue cards – whatever use case you can come up with, you have someone with an API that’s ready to give it to you, ”Gertman told TechCrunch in an interview.

Conduit aims to be a one-stop-shop for neobanks and financial institutions to connect their own products to the DeFi ecosystem, which Gertman says is made easier because Conduit itself is regulated and compliant, thus easing the burden of compliance. of companies using its tools.

In order for consumers to earn DeFi returns, their fiat currency is first converted into stablecoins, a type of cryptocurrency indexed to the value of fiat money, so that it can be invested in various crypto protocols like Compound and AAVE. Conduit offers two solutions to help companies access these returns.

The first is its Growth Gains Account, which neobanks offer customers so they can invest their fiat currency in DeFi. The second is Conduit’s corporate treasury solution, which offers high-yield DeFi accounts to businesses.

“We do the bookkeeping, and we do a lot of things that basically create a very simple package for [our clients], so they don’t have to worry about the complexities, “like how to convert dollars into stable coins or how to calculate rates,” Gertman said.

Gertman declined to name specific clients of Conduit, but said they fell into two categories: neobanks and small cryptocurrency exchanges, especially in regions like Latin America. Its biggest customers are in Canada, where its product was first launched, and Brazil, and it is looking to expand into markets such as the United States and Europe, Gertman said.

Gertman sees two types of benefits in expanding DeFi products, he said. The first is access – DeFi protocols are authorization-free, allowing any user to lend and borrow funds without having to provide a credit score, identity verification, or collateral. The second is that DeFi connects users globally, allowing investors in countries with extremely low or negative interest rates to earn higher returns, and making it easier for businesses to borrow money. money at great rates by tapping into a global liquidity pool, Gertman added.

Conduit has announced plans to triple its workforce, which is fully isolated, over the next year in the North America and LatAm regions by hiring engineering, sales and compliance professionals. with localized knowledge. Regulation has played a role in the countries Conduit has targeted, he added, saying a lack of regulatory clarity from the Securities and Exchange Commission (SEC) has slowed Conduit’s entry into states. -United.

To fuel its global expansion, Conduit has raised a $ 17 million funding round led by Portage Ventures, with backing from Diagram Ventures, FinVC, Gemini Frontier Fund, Gradient Ventures and Jump Capital, the company announced today. A number of fintech executives also participated in the round, from companies such as PayPal, Coinbase, Google Pay and others.

Conduit incurs high legal fees to ensure it is compliant in all of its markets, so Gertman decided the company needed to raise a “larger than average seed round,” he said.

“Obviously the market conditions helped us, and we took advantage of it, and I’m not going to hide it… Even if there will be a crypto winter or something like that, we can survive it,” said Gertman.

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New $ 100 Million Loan Fund for Black and Brown Philly Businesses https://www.ibooklinux.net/new-100-million-loan-fund-for-black-and-brown-philly-businesses/ Tue, 11 Jan 2022 16:50:12 +0000 https://www.ibooklinux.net/new-100-million-loan-fund-for-black-and-brown-philly-businesses/ Philadelphia community aid groups and commercial banks have teamed up to fund a new loan program for area black and brown business owners, with the goal of lending $ 100 million over the four coming years. The Philadelphia Growth, Resiliency, Independence, Tenacity (GRIT) Fund has so far raised loan and grant commitments totaling just over […]]]>

Philadelphia community aid groups and commercial banks have teamed up to fund a new loan program for area black and brown business owners, with the goal of lending $ 100 million over the four coming years.

The Philadelphia Growth, Resiliency, Independence, Tenacity (GRIT) Fund has so far raised loan and grant commitments totaling just over $ 13 million, according to Varsovia Fernandez, executive director of the Pennsylvania Network, which has helped build. organize the new fund. “This is the first phase of a four-year program,” she said Tuesday.

The new fund is the result of some 30 financial institutions, including the Federal Reserve Bank of Philadelphia and the Urban Affairs Coalition, who have joined the Recharge and Recovery initiative of the Greater Philadelphia Chamber of Commerce to mitigate the impact of the pandemic on small businesses.

The group transformed into the Greater Philadelphia Financial Services Leadership Coalition and launched the fund.

“Despite efforts over the past year, the assistance provided to small businesses has not met their needs, especially minority businesses,” said Dan Betancourt, president of the Pennsylvania CDFI Network and CEO of Community First Fund.

“This effort is unique – we don’t know of the heads of financial institutions meeting on this scale.”

The funds will initially be disbursed through 11 community development finance institutions, known as CDFI, which have been used by the federal government to distribute funds for P3s and other emergency programs since. the onset of the COVID-19 crisis.

CDFIs will first receive funds from the PHL GRIT Fund, then turn around and provide loans. The reason?

“Many small businesses lack confidence in financial institutions,” Betancourt said. “We help them bridge the gap to the mainstream over time. This building of trust is important.

Loans vary in size and duration. “More flexible terms help better prepare small businesses,” said Sue Lonergan, director of mid-market and specialist commercial loans for Fulton Bank and group co-chair.

“To grant these loans, CDFIs must maintain a healthy balance sheet. Usually the banks don’t support these organizations, so it’s unique to this program, ”Lonergan said. “Coming together in this way to support CDFIs is a new model for us and one that we hope to expand over time. “

So far, the effort has attracted regional banks such as Customers Bank, Univest, and WSFS, as well as minority depositories Asian Bank and United Bank of Philadelphia. Larger institutions, such as Bank of America, Citizens Bank and PNC Bank, also made capital commitments, but details were not available.

“Some [banks] are committed to multi-year grants and that capital will grow over time as CDFIs make loans, ”Fernandez said. For example, a small CDFI “can take $ 2 million this year from the bank, take it out in 2022, then take $ 2 million more.” A big CDFI can take $ 5 million, take it out, and then take more. “

Smaller CDFIs will receive money first: Beech Capital, Entrepreneur Works, Enterprise Capital, Women’s Opportunity Resource Center, Impact Loan Fund, Neighborhood Progress Fund and VestedIn. These will receive $ 10 million in capital for loans and over $ 1 million for balance sheet, operating capacity and technical assistance, including professional advisory services. The Chamber of Commerce hired 100 volunteers to advise recipients of small business loans.

In the next phase, the Community First Fund, the IPDC and the Reinvestment Fund will receive money from the new fund.

Q: Where does the money come from?

A: Contributions come from the banks and the Frances P. Kellogg Fund of the Philadelphia Foundation.

Who decides who gets it?

The Pennsylvania CDFI Network manages the program and will distribute balance sheets and transactions to CDFIs. Strengthening these areas is necessary to support lending and assistance to small businesses.

Who backs or guarantees the loans against losses?

Banks provide investments in the form of loans directly to CDFIs. For example, a CDFI can take $ 2 million in capital and then lend to the small business. CDFIs take capital based on the capacity of the balance sheet and the ability to obtain loans.

Will the program evolve (new loans funded by past loan repayments)?

As with all loans, if a client wants to refinance – maybe an interest rate is lower at that time or if they need to increase the loan amount for working capital or to buy a building – he can refinance.

How are loans secured? Are borrowers required to have or provide assets as collateral for loans? Unsecured loans, such as credit cards or student loans, are much riskier than secured loans, such as mortgages, where you can foreclose the property in payment if the payments stop.

Some are not secure, some are secure. This will depend on the needs of clients and small businesses and the structure of the loan.

Any other programs in other cities that this can be compared to?

We believe this is the only such program in the country where banks have come together to work collectively for the good of small black and brown businesses. It is the only one in the state.

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Four financial assets you can get a loan against https://www.ibooklinux.net/four-financial-assets-you-can-get-a-loan-against/ Sun, 09 Jan 2022 19:50:17 +0000 https://www.ibooklinux.net/four-financial-assets-you-can-get-a-loan-against/ Gold is not the only financial asset that you can pledge to get a loan when needed. Term deposits (FD), PPFs, insurance policies and mutual funds (MF) can also be used to obtain a loan. In addition, a loan on these assets is cheaper than a personal loan. Fixed deposit (FD): Banks offer an overdraft […]]]>

Gold is not the only financial asset that you can pledge to get a loan when needed. Term deposits (FD), PPFs, insurance policies and mutual funds (MF) can also be used to obtain a loan. In addition, a loan on these assets is cheaper than a personal loan.

Fixed deposit (FD): Banks offer an overdraft facility (OD) on FDs of up to 90% of the value of the FD. The interest rate is 0.5% to 2% higher than the interest on the FD and there is no repayment term because you can repay the borrowed money as long as you hold the FD. Please note that you cannot borrow against economic FDs over 5 years.

FPP: The loan facility on the balance of the public provident fund (PPF) is subject to several conditions. You can only get a loan on your PPF balance from the third year of opening the account until the sixth year. The maximum amount you can borrow is 25% of the total available balance in your PPF account immediately preceding the fiscal year in which you are requesting the loan. As for the interest rate, 1% is charged, but the balance of the PPF equivalent to the loan taken out does not earn interest until the loan is repaid. The loan is repayable in 3 years, failing which an interest rate of 6% is taken on the loan.

MF / actions: Typically, banks provide 50-70% of the market value of stocks or the net asset value of mutual funds (MFs) as a loan. The interest rate on these loans ranges from 10 to 12%. Adhil Shetty, Managing Director of BankBazaar.com, said that not all stock or holdings of MF can get you a loan. “Banks have their own list of securities they accept as collateral. They usually take into account parameters such as market cap, volatility of the share price and liquidity of the share to decide and the loan amount can fluctuate with the volatility of the market. If the stock’s value drops, the lender may ask you to increase the stock’s value by pledging more stock or replenish it by putting in the necessary cash funds. “

Equity Linked Savings Program (ELSS) funds cannot be pledged towards a loan.

Assurance: Only traditional policies can be pledged for loans and only after 3 years from the start of the policy. You can borrow up to 90% of the cash value of the contract at an interest rate of 9-12%. If the policyholder dies before the loan is repaid, the remaining loan amount is deducted from the claim amount.

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Fahour’s latitude expands buy now, pay later grow with deal Hmmm https://www.ibooklinux.net/fahours-latitude-expands-buy-now-pay-later-grow-with-deal-hmmm/ Thu, 06 Jan 2022 02:57:28 +0000 https://www.ibooklinux.net/fahours-latitude-expands-buy-now-pay-later-grow-with-deal-hmmm/ As part of the Latitude offer, Humm will maintain its commercial activity which provides asset finance to businesses. Humm Managing Director Rebecca James, who helped expand Humm’s business into new lines of business, will join Latitude as part of the transaction. The Latitude deal will see Humm receive 150 million Latitude shares and $ 35 […]]]>

As part of the Latitude offer, Humm will maintain its commercial activity which provides asset finance to businesses. Humm Managing Director Rebecca James, who helped expand Humm’s business into new lines of business, will join Latitude as part of the transaction.

The Latitude deal will see Humm receive 150 million Latitude shares and $ 35 million in cash. Humm said in a statement to ASX that the deal was equivalent to 68 cents per Humm share. Humm shares rebounded on Thursday, initially climbing 8% before slashing those gains to trade 0.5% at 90 cents as investors digest what the deal meant for the value of the activity Humm’s remaining business once the deal is done.

Humm has granted Latitude exclusive due diligence until Jan. 31 as part of a non-binding agreement between the two companies. Since the offering is in both stock and cash, Humm will also be performing due diligence on Latitude’s business. The transaction, if it goes through, will be subject to reviews by the tax office and approvals from regulators and Humm shareholders.

Humm President Christine Christian said the company is committed to maximizing shareholder value. “In this context, we believe that Latitude’s proposal is potentially attractive to HUM shareholders and warrants due diligence and detailed negotiation. “


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Banks lend more money to homebuyers now than in the days of the Celtic Tiger https://www.ibooklinux.net/banks-lend-more-money-to-homebuyers-now-than-in-the-days-of-the-celtic-tiger/ Tue, 04 Jan 2022 05:28:00 +0000 https://www.ibooklinux.net/banks-lend-more-money-to-homebuyers-now-than-in-the-days-of-the-celtic-tiger/ According to a report released Tuesday, banks are lending more money to homebuyers than they were in preparation for the 2008 real estate crash, according to a report released Tuesday. But there are fewer homes available than ever. Average asking prices for homes rose 9.7% nationwide last year, to € 290,000, according to the latest […]]]>

According to a report released Tuesday, banks are lending more money to homebuyers than they were in preparation for the 2008 real estate crash, according to a report released Tuesday. But there are fewer homes available than ever.

Average asking prices for homes rose 9.7% nationwide last year, to € 290,000, according to the latest assessment from real estate website, MyHome.ie and stock brokers Davy, including an “unusually strong” increase of 1.2% “during the normally calm period. winter months “.

The report shows that banks are increasing the amounts loaned to those they approve for mortgages, especially those who already own a property. In November, the average mortgage loan granted to anyone moving was a record € 304,000, almost 12% more than a year earlier, according to MyHome.ie.

“The average drawdown per engine was € 284,800 in the third quarter of 2021, for the first time surpassing peak Celtic Tiger-era levels,” Davy’s chief economist Conall MacCoille said.

He said the summer had seen “a degree of panic in the housing market, with buyers bidding well above asking prices.”

“The unfortunate message from this quarter’s MyHome report is that there are few signs of easing conditions.

“There are only 11,300 homes for sale on MyHome, the lowest on record and down 21% from 2020, with the shortage of residential properties for sale most acute outside Dublin. The same is true in the rental market, ”he said.

Dysfunctional

MyHome.ie Managing Director Angela Keegan said it was “clear that we will be struggling with a dysfunctional market for some time to come.”

“Over the past 12 months, we have seen a huge and sustained demand for housing fueled by significantly increased savings among the cohort of potential buyers,” she said. “This, coupled with record declines in supply, has led to the worst-case scenario for those looking to access the real estate ladder: significant price inflation and limited choice.

By September, house prices had risen to € 330,375 nationwide, seven times the € 47,198 the average Irish worker earns, according to MyHome.ie. Photograph: Chris Ratcliffe / Bloomberg

“As we noted earlier this year, there is just too much money for too few homes.”

Mr MacCoille said the average mortgage approved by banks reached a “cyclical high” of € 269,000 in November, an 8% increase from the same period in 2020. He said growth of wages – with a current wage increase of 5.4% – was a factor in the increase in mortgages, as lenders comply with rules imposed by the central bank.

Ms Keegan admitted that only the Central Bank’s rules had “somewhat” curbed house price inflation. The Central Bank calculates that its mortgage rules have kept house prices from rising 10 to 25 percent above existing levels.

Multiple salary

In September, house prices had reached € 330,375 nationally, seven times the € 47,198 an average Irish worker earns, according to MyHome.ie, and higher than the average UK price.

Mr MacCoille said MyHome.ie and Davy may have to increase their forecast that house prices will rise 4.5% this year.

“The latest MyHome report suggests that the foam in the housing market has continued over the last few months of last year and that early 2022 is expected to see further strong price inflation,” he said.

In Dublin, prices rose 7.4% last year to € 380,000, including a 1.7% jump in the last quarter. Outside the capital, prices jumped 10.6% in 2021 to € 245,000, gaining 1.1% in the last three months of the year.

The asking prices increased the fastest in the richest districts of the Republic. In south Dublin, sellers asked € 694,000 for four-bedroom semi-detached houses last year, up 9% from 12 months earlier. In Galway City, prices rose 2.2% over the year to € 285,000. In Cork City, they increased by 1.9% to reach € 295,000. In the city of Limerick they increased by 7.7% to € 210,000 while in Waterford they increased by 6.3% to € 169,000.


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Iain Macwhirter: Stagflation is the buzzword in 2022 as funny money gets serious https://www.ibooklinux.net/iain-macwhirter-stagflation-is-the-buzzword-in-2022-as-funny-money-gets-serious/ Sun, 02 Jan 2022 05:00:00 +0000 https://www.ibooklinux.net/iain-macwhirter-stagflation-is-the-buzzword-in-2022-as-funny-money-gets-serious/ It seems reasonable to bet that the Covid-19 pandemic is in its final stages and will turn gray sometime in 2022. Barring a new virus, life will return to something akin to normalcy. But we’ll likely find that the economy hasn’t returned to normal, or something like that, and not just because of the temporary […]]]>

It seems reasonable to bet that the Covid-19 pandemic is in its final stages and will turn gray sometime in 2022. Barring a new virus, life will return to something akin to normalcy.

But we’ll likely find that the economy hasn’t returned to normal, or something like that, and not just because of the temporary upheavals caused by lockdowns and holidays. In 2022, people are going to feel a lot poorer as inflation combines with fuel prices, tax hikes, mortgage increases and Brexit upheaval. The party is really over, and not just in issue # 10.

Fundamental changes have taken place in the economic undergrowth that worryingly resemble a throwback to the 1970s and 1980s. The word of the year will be stagflation – inflation combined with low growth. GDP is shrinking while wages are growing at a faster rate than we have seen in decades, in part because of Brexit but also because workers, often white collar workers, are rediscovering bargaining power.

This is combined with an energy crisis as deep as the OPEC oil price shock of 1973. And with tax increases which, according to the Resolution Foundation, amount to £ 3,000 per UK household.

Then comes the transition to net zero: the imponderable cost of scrapping a fossil fuel-based economy that has supported economic growth over the past century.

You might have thought that COP26 was a non-event, but the story

see it as a turning point. This year – 2022 – will see the end of the bizarre climate war as companies divest themselves of their stockpiles of fossil fuels and a generation of politicians realize they risk being held responsible for the consequences of warming. climate. Climate change is no longer about veganism and bicycles, but investment and big science.

After years in which nobody really thought about the cost of money, we will probably become obsessed with it in 2022. Inflation is currently heading towards 6%, even in the German powerhouse, and will force central banks to put the brakes on it. cheap money by raising interest rates. The rising cost of borrowing discourages investment and spending, depressing economic activity. It also increases the cost of servicing the public debt, just as an increase in mortgage rates increases repayments.

The Bank of England’s surprise pre-Christmas hike in the key rate to 0.25% is a harbinger of things to come. It will take a lot of trouble to get back to “normal” interest rates between 4% and 6%, and not all will happen in 2022. But economists and governments alike are realizing that over the past decade , something very strange happened. is happening in the world of money. The emergence of Bitcoin, a purely fictitious currency without any foundation in economic reality, is a symptom, a kind of metaphor, of the bizarre world we live in.

Since the financial crash, banks in the developed world have been printing money through bond purchases or quantitative easing (QE). Deliberately seeking to undermine the value of their currencies by increasing the money supply and encouraging inflation. Britain injected nearly £ 1 trillion into the economy through QE. That someone thought it was normal is going to be considered one of the great illusions of the time.

The price of the loan has been, in real terms, below zero for more than a decade. This is unprecedented in the Bank of England’s 300-year history. Ultra-cheap money has prompted governments to make spending commitments based on an unrealistic expectation that interest rates will stay at zero or near zero indefinitely. The result has been a huge expansion in public debt. UK debt is now approaching 100% of GDP at £ 2.2 trillion. The global debt pile is 100 times greater. Yet the total value of all the world’s stock markets, all companies combined, is only £ 70 trillion. Either way, the debt will have to be paid off.

Proponents of what is called Modern Monetary Theory (MMT), a kind of New Age Marxism, applauded this money creation. It stimulates economic activity, so why worry? Still, it’s strange that the left is getting on the inflation train, ignoring the huge increase in wealth inequality that has directly followed quantitative easing. Cheap money simply increases the wealth of the richest 10% who own assets. The most obvious sign of this is the ridiculously inflated prices of houses with low mortgage rates.

UK house prices have risen 30% since their pre-crisis peak in 2007 – an extraordinary development since it is house price inflation, supported by irresponsible lending on subprime mortgages, which caused the financial crash of 2008. In London and southern England, prices nearly doubled. In many central London postcodes the average cost of a house is over £ 1million and in some over £ 2million.

This perverse allocation of societal investment priorities has excluded a generation of young people from the housing market. Meanwhile, the lucky ones who have seen home values ​​rise faster than their incomes have also benefited from the rise in asset prices in the stock market which has fueled pensions and ISAs.

QE is madmen’s gold. It has reduced wealth inequalities to levels not seen since Edwardian times. A golden generation of mostly middle-aged asset owners in the south of England has grown into a political force with extraordinary influence over government. They are now determined to pass this unearned wealth down to the next generation. Hence Boris Johnson’s cap on elderly care costs at £ 86,000, the most unfair tax measure since the voting tax.

Yet the Johnson government finds itself in the least conservative position of having raised taxes to the highest levels since the 1950s while increasing public spending to levels not seen since the 1970s. This Conservative government has become more committed to the tax savings and spending that the Labor Party. Keir Starmer has opposed both Johnson’s corporate tax hike and recent increases in national insurance, even though NICs are a stealth income tax.

Boris Johnson has already borrowed three times what Jeremy Corbyn planned for in 2019 and still intends to ‘build back better’ by spending and borrowing even more. In addition, the revenue from recent tax increases goes mainly to the National Health Service. According to the Institute for Fiscal Studies, around 44% of all public service spending will be spent on health care by 2024. It’s hard to believe a Labor government would spend more.

There will be no return to austerity – the rigid budget cuts introduced by Conservative Chancellor George Osborne in 2010. However, it will take some accountability. Boris Johnson will falter until 2022, beaten and bruised by a cost of living crisis that will infuriate his Red Wall voters. That was the real message of the North Shropshire by-election, the Conservatives’ worst electoral defeat since 1993.

No government can survive stagflation for long, certainly not a government led by such an erratic and unconvincing leader as Boris Johnson. Indeed, the only thing the Prime Minister will not have to worry about is a referendum on independence. Scottish voters will have too much in their minds in 2022 to contemplate a Brexit-style constitutional upheaval.


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