Loan online – Ibook Linux http://www.ibooklinux.net/ Sun, 19 Sep 2021 06:35:42 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://www.ibooklinux.net/wp-content/uploads/2021/06/ibook-150x150.png Loan online – Ibook Linux http://www.ibooklinux.net/ 32 32 Evergrande gave workers a choice: lend us money or lose your bonus https://www.ibooklinux.net/evergrande-gave-workers-a-choice-lend-us-money-or-lose-your-bonus/ https://www.ibooklinux.net/evergrande-gave-workers-a-choice-lend-us-money-or-lose-your-bonus/#respond Sun, 19 Sep 2021 06:27:36 +0000 https://www.ibooklinux.net/evergrande-gave-workers-a-choice-lend-us-money-or-lose-your-bonus/ When struggling Chinese real estate giant Evergrande ran out of cash earlier this year, it turned to its own employees with a strong case: Those who wanted to keep their bonuses should give Evergrande a short loan. term. Some workers have asked friends and family for money to lend to the company. Others borrowed from […]]]>

When struggling Chinese real estate giant Evergrande ran out of cash earlier this year, it turned to its own employees with a strong case: Those who wanted to keep their bonuses should give Evergrande a short loan. term.

Some workers have asked friends and family for money to lend to the company. Others borrowed from the bank. Then, this month, Evergrande suddenly stopped repaying the loans, which had been billed as high-interest investments.

Today, hundreds of employees joined panicked homebuyers to demand reimbursement from Evergrande, rallying outside the company’s offices across China to protest last week.

Once China’s most prolific real estate developer, Evergrande has grown into the country’s most indebted company. It owes money to lenders, suppliers and foreign investors. He owes unfinished apartments to homebuyers and has racked up over $ 300 billion in unpaid bills. Evergrande faces lawsuits from creditors and has seen its shares lose more than 80% of their value this year.

Regulators fear that the collapse of a company the size of Evergrande will cause upheavals throughout China’s financial system. Yet, so far, Beijing has not intervened with a bailout, having promised to teach the indebted corporate giants a lesson.

Angry protests by homebuyers – and now the company’s own employees – could change that calculation.

Evergrande is at the mercy of buyers of nearly 1.6 million apartments, according to one estimate, and could owe tens of thousands of its employees money. While Beijing remains relatively silent on the future of the company, those who are owed money say they are getting impatient.

“We’re running out of time,” said Jin Cheng, a 28-year-old employee from the eastern city of Hefei, who said he invested $ 62,000 of his own money in Evergrande Wealth, the investment arm of the company, on demand. senior management.

As rumors circulated on the Chinese internet that Evergrande could go bankrupt this month, Mr. Jin and some of his colleagues gathered outside provincial government offices to pressure authorities to intervene.

In the southern city of Shenzhen, homebuyers and employees crowded into the lobby of Evergrande’s head office last week and screamed for reimbursement. “Evergrande, give back my money that I earned with blood and sweat!” some could be heard screaming in video footage.

Mr. Jin said employees at Fangchebao, Evergrande’s online platform for real estate and auto sales, have been told that each department should invest in Evergrande Wealth on a monthly basis.

Evergrande did not respond to a request for comment, but the company recently warned it was under “enormous” financial pressure and said it had hired restructuring experts to help determine its future.

It hasn’t always been that way.

For more than two decades, Evergrande has been China’s largest developer, making money out of a real estate boom on a scale the world has never seen. With each success, Evergrande has expanded into new areas: bottled water, professional sports, electric vehicles.

Banks and investors cheerfully invested the money, betting on China’s growing middle class and its appetite for homes and other properties. More recently, real estate has come under intense scrutiny from Chinese regulators who want to end the boom years and have forced the industry to start paying down debt.

The idea was to reduce the exposure of Chinese banks to the real estate sector. But in the process, regulators withdrew the money developers like Evergrande needed to finish building homes, leaving families without the homes they had already paid for.

“The Chinese financial system is really complex and when you see cracks like this you realize the impact it could possibly have on society,” said Jennifer James, investment manager at Janus Henderson Investors. “If Evergrande were to disappear tomorrow, it could be a socially systemic problem. “

Ms James and other investors said they only heard about Evergrande’s wealth management strategy involving its employees this month, when the company revealed it owed $ 145 million in funds. refunds.

Evergrande has attempted to sell parts of his vast empire to raise new funds, but said last week he was “not sure the group would be able to close such a sale”. He accused the media of triggering panic among homebuyers with negative coverage.

But Evergrande’s funding channels started to dry up long before last week. According to employee interviews, state media reports and corporate documents seen by The New York Times, the company began forcing staff members to help bail it out as early as April, when she started selling short term loans.

About 70 to 80 percent of Evergrande employees across China were asked to donate money that would then be used to help fund Evergrande’s operations, Liu Yunting, consultant for Evergrande Wealth, recently told Anhui. Online Broadcasting Corporation, a public news group.

A version of this interview went offline on Friday. Anhui Online Broadcasting did not respond to a request for comment.

The scope of the campaign and the amount of money it could have raised was unclear. Employees were told to each invest a certain amount of money in Evergrande Wealth products, and if they didn’t, their performance pay and bonuses would be tied up, the employees told Anhui.

Company management said the investments were part of “supply chain finance” and would allow Evergrande to make payments to its suppliers, Liu said in his interview with Anhui. “Because we, the employees, had to fill a quota, we asked our friends and families to put in some money,” he said.

Mr. Liu said his parents and in-laws invested $ 200,000 and that he invested around $ 75,000 of his own money in Evergrande Wealth.

Even before the protests last week, Evergrande was on the wrong side of Beijing. At the end of last month, its executives were called to a meeting with regulators. Officials from major banking and insurance supervisors in China have called on the rulers to pay off their huge debt in order to keep the Chinese financial market stable.

The authorities’ biggest concern is the unfinished apartments at Evergrande. The company has nearly 800 developments underway in more than 200 cities across China.

Evergrande, which has often pre-sold apartments to raise funds before their completion, may still have to deliver up to 1.6 million properties to homebuyers, according to a Barclays estimate.

Under close scrutiny, Evergrande convened its top executives earlier this month and asked them to publicly sign what he called a “military order” – a pledge to complete unfinished real estate developments.

Wesley Zhang and his family are among the hundreds of thousands of families still waiting for their apartments, and they are hopeful that the company will be able to deliver. Mr. Zhang, 33, joined other homebuyers who protested in Hefei last week after learning that Evergrande also owed its employees money.

“Everyone is anxious, we are like ants on a hot pan, having no idea what to do,” Mr. Zhang said, using a Chinese expression to describe the distress of seeing a investment of $ 124,000 potentially disappearing. He said he hoped the protests would spur the government to act before it was too late.

“We hope this will prompt the central government to pay enough attention,” Zhang said. “Then someone would come out to intervene. “


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Moving? 4 ways to reduce your costs https://www.ibooklinux.net/moving-4-ways-to-reduce-your-costs/ https://www.ibooklinux.net/moving-4-ways-to-reduce-your-costs/#respond Sat, 18 Sep 2021 11:32:35 +0000 https://www.ibooklinux.net/moving-4-ways-to-reduce-your-costs/ Whether you’ve just bought a new home or moved from one rental to another, moving can be a chore. It can also be very expensive. If you have a move in your future, here’s how to keep your costs down. One Email a Day Could Save You Thousands Expert tips and tricks delivered straight to […]]]>

Whether you’ve just bought a new home or moved from one rental to another, moving can be a chore. It can also be very expensive. If you have a move in your future, here’s how to keep your costs down.

One Email a Day Could Save You Thousands

Expert tips and tricks delivered straight to your inbox that could help save you thousands of dollars. Register now for free access to our Personal Finance Boot Camp.

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1. Reduce the size of your belongings

The more things you have, the more you will be charged to haul everything. So if you have furniture or other possessions that you are not sure you want to keep, don’t move those items to your new home. Instead, get rid of the things that worry you before you move.

If you have items in good condition, you can sell them online or through a garage sale. This is a good way to put money in your bank account which can come in handy once your moving date arrives.

2. Make your own packaging

There are full service moving companies that come to your home and pack your belongings securely. Following this route could save you a lot of time. And, you don’t have to pay for the packaging supplies.

But make no mistake, a full service move can be very expensive. You pay a lot more for a full-service move than for a business to come to your house and load your already-packed items into their truck. If you are self-employed and would lose income spending time packing your bags, it may be worth paying for this service. Otherwise, you save money by doing it yourself.

3. Move during the week

Many people prefer to move on a weekend. This way, they don’t have to dip into their limited reserve of personal time or vacations from work. But if you want to save money, opt for a midweek move. You often save money by moving at a less desirable time.

4. Take the tour

You often hear it said that it is important to shop around with mortgage lenders before taking out a home loan. Likewise, it is a good idea to get quotes from moving services before choosing one.

With that said, be sure to compare apples to apples. Some movers charge by the job and give you an estimate in advance of what it will cost. Other moving companies charge by the hour. You also get different quotes depending on the services provided by your movers, so carefully review the details of each estimate before making your decision.

Also, be sure to check out any moving company you plan to work with. Talk to people who have used this business and see what their experience was like. If there were any hidden charges or surprises, consider looking elsewhere.

Whether you are moving around the neighborhood or across the country, expect to spend a large amount of money transporting your belongings. But there are steps you can take to keep your costs as low as possible. And that way you will keep some cash that can give you the leeway to set up or furnish your new digs as you wish.


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Disaster relief available for businesses and nonprofits affected by Hurricane Ida, SBA says https://www.ibooklinux.net/disaster-relief-available-for-businesses-and-nonprofits-affected-by-hurricane-ida-sba-says/ https://www.ibooklinux.net/disaster-relief-available-for-businesses-and-nonprofits-affected-by-hurricane-ida-sba-says/#respond Fri, 17 Sep 2021 19:56:31 +0000 https://www.ibooklinux.net/disaster-relief-available-for-businesses-and-nonprofits-affected-by-hurricane-ida-sba-says/ Some members of the business community who have been touched by the history Hurricane Ida earlier this month are eligible for physical disaster loans via the U.S. Small Business Administration, the agency said this week. Six Pennsylvania counties are included in the agency’s target for major counties: Philadelphia, Bucks, Chester, Delaware Montgomery, and York. These […]]]>

Some members of the business community who have been touched by the history Hurricane Ida earlier this month are eligible for physical disaster loans via the U.S. Small Business Administration, the agency said this week.

Six Pennsylvania counties are included in the agency’s target for major counties: Philadelphia, Bucks, Chester, Delaware Montgomery, and York. These counties have physical disaster loans available to businesses of all sizes, nonprofits, faith-based organizations, landlords and tenants. Small Qualifying businesses and nonprofits will automatically be considered for a working capital loan when they apply for a physical disaster loan.

Three types of loans are available for businesses in these counties:

  • Business physical disaster loans assist in repairing or replacing property, inventory, supplies or equipment damaged by the hurricane.
  • Economic disaster loans are working capital loans to help small businesses that cannot meet their necessary financial obligations.
  • Disaster home loans go to homeowners or tenants to repair or replace damaged property and personal property.

Seven other counties are included as contiguous counties and are only eligible for working capital loans, known as Economic Disaster Loans (EIDL) which are available to small businesses and non-profit organizations. eligible profit. These counties are Adams, Berks, Cumberland, Dauphin, Lancaster, Lehigh and Northampton.

SBA also opened a business turnaround center in Schuylkill Library Falls at 3501 Midvale Ave. for in-person assistance Mondays and Wednesdays from noon to 8 p.m., Tuesdays and Thursdays from 10 a.m. to 6 p.m. and Fridays from 10 a.m. to 5 p.m.

To be considered for all forms of disaster assistance, applicants must register online at DisasterAssistance.gov or download the FEMA mobile app. Applicants can apply online using the Electronic Loan Application (ELA) through the SBA’s secure website.

The SBA will consider your credit history, repayment capacity, and collateral for loans over $ 25,000. Interest rates are as low as 2.8% for businesses, 2% for nonprofits, and 1.5% for landlords and tenants. The deadline for applications for this loan program is November 9 for property damage and June 10, 2022 for economic damage claims.

Applications are free and loans do not have to be accepted, if offered. For a quick overview of how the program works, watch the videos below:

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SBA Loans May Help Businesses Affected by COVID-19 https://www.ibooklinux.net/sba-loans-may-help-businesses-affected-by-covid-19/ https://www.ibooklinux.net/sba-loans-may-help-businesses-affected-by-covid-19/#respond Fri, 17 Sep 2021 10:20:08 +0000 https://www.ibooklinux.net/sba-loans-may-help-businesses-affected-by-covid-19/ Last week, the U.S. Small Business Administration made significant changes to the Economic Disaster Lending Program that helps small businesses affected by disasters, including COVID-19. The program has been a lifeline for many small businesses in need of access to working capital due to the impact of the COVID-19 pandemic on their cash flow and […]]]>

Last week, the U.S. Small Business Administration made significant changes to the Economic Disaster Lending Program that helps small businesses affected by disasters, including COVID-19. The program has been a lifeline for many small businesses in need of access to working capital due to the impact of the COVID-19 pandemic on their cash flow and operations.

Small businesses (and nonprofits) can now apply for up to $ 2 million in EIDL funds instead of the SBA’s previous cap of $ 500,000 through their lending portal at www.sba.gov. You can apply for up to $ 2 million today, but loan funds over $ 500,000 won’t be approved until after October 8. Loan funds up to $ 500,000 can be granted immediately after online applications are processed.

The EIDL also now allows restructuring of existing commercial and federal debt, meaning you can repay outstanding loans or debts with EIDL funds, increasing flexibility for most small businesses. With terms of 3.75% for small businesses and 2.75% for nonprofits up to age 30, this can be an important tool in reducing the burden of debt at interest rates. higher. You can still use the funds for rent, utilities, payroll, and other previously authorized operational expenses.


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Loans increase in year of pandemic, linking financial institutions to local businesses | national news https://www.ibooklinux.net/loans-increase-in-year-of-pandemic-linking-financial-institutions-to-local-businesses-national-news/ https://www.ibooklinux.net/loans-increase-in-year-of-pandemic-linking-financial-institutions-to-local-businesses-national-news/#respond Wed, 15 Sep 2021 22:00:00 +0000 https://www.ibooklinux.net/loans-increase-in-year-of-pandemic-linking-financial-institutions-to-local-businesses-national-news/ In the midst of the pandemic, community banks, credit unions and other financial institutions have distributed Paycheck Protection Program (PPP) loans to countless small businesses. Adopted under the CARES Law and later revived because of its success, the Paycheck Protection Program was a huge asset to small businesses across the country and to the workers […]]]>

In the midst of the pandemic, community banks, credit unions and other financial institutions have distributed Paycheck Protection Program (PPP) loans to countless small businesses.

Adopted under the CARES Law and later revived because of its success, the Paycheck Protection Program was a huge asset to small businesses across the country and to the workers it was supposed to keep employed. Between April 3, 2020 and May 31, 2021, financial institutions distributed over 11.8 million PPP loans totaling nearly $ 800 billion through the Small Business Administration (SBA).

Congressman Fred Keller introduced legislation to honor these contributions. Commenting on the resolution, Keller said, “The onset of the COVID-19 pandemic has resulted in extensive shutdowns that have forced businesses across the country to shut down or modify their operations. While many businesses have been forced to shut down for good, the diligent efforts of our country’s lenders have saved millions of businesses and countless livelihoods. “

The Woodlands Bank has also supported these efforts, with Vice President John Engel, Jr. valuing this legislation to “recognize collaborative efforts of the SBA, Treasury, and private financial institutions.

Through the SBA’s Paycheck Protection Program, a total of 5,467 financial institutions distributed 11,823,594 loans for a total of $ 799,832,866,520.


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Tired of your big bank? Consider these 4 alternatives https://www.ibooklinux.net/tired-of-your-big-bank-consider-these-4-alternatives/ https://www.ibooklinux.net/tired-of-your-big-bank-consider-these-4-alternatives/#respond Sat, 11 Sep 2021 16:57:00 +0000 https://www.ibooklinux.net/tired-of-your-big-bank-consider-these-4-alternatives/ Current account fees, low savings rates, impersonal customer support. The reasons why you may choose to leave a large national bank vary, but the next step can be a more difficult decision. Many of America’s largest banks share many of the same advantages, including extensive networks of bank-owned branches and ATMs and robust mobile apps. […]]]>

Current account fees, low savings rates, impersonal customer support. The reasons why you may choose to leave a large national bank vary, but the next step can be a more difficult decision.

Many of America’s largest banks share many of the same advantages, including extensive networks of bank-owned branches and ATMs and robust mobile apps. But they also share many of the same drawbacks, such as high overdraft fees and low savings rates. If you want different benefits to better suit your needs, consider one of these four alternatives to big banks.

Credit unions

Credit unions are community-based, non-profit institutions that generally focus on customer support. They offer similar accounts, services, and deposit protections to the big banks, but their accounts usually have better rates. Compared to banks, on average, credit unions pay higher interest rates for some savings accounts and charge lower rates for auto and home loans, according to June 2021 data from the National Credit Union. Administration.

“Credit unions are built on service, not profit,” says Chris Lorence, executive director of CU Awareness, a division of the Credit Union National Association. “Instead of returning funds as dividends to shareholders, credit unions return profits to members beyond operating expenses in the form of better rates, improved services or access to services. “

Each credit union limits the number of members who can become members based on certain factors. These factors can include where you live or work, having a parent member, or even being affiliated with a certain group through a small one-time donation. These membership conditions mean that some credit unions are not accessible to everyone. Another potential downside of credit unions is that they tend to adopt new technologies, such as mobile banking capabilities, in which big banks can afford to invest more quickly.

Community banks

Community banks are smaller financial institutions, measured by asset size, that focus on specific geographic areas. They provide a vital neighborhood presence for relationship banking services, particularly for mortgages and small business loans. One in three mortgages in rural areas came from a community bank or credit union with less than $ 10 billion in assets, according to a 2018 Brookings Institute report. And in some parts of the country, a community bank is the only physical bank for miles around and can accommodate more personalized factors for loans and other accounts than the big banks.

Community banks – defined by the Independent Community Bankers of America as banks with $ 50 billion or less in assets – issued 4.7 million loans under the Paycheck Protection Program for affected small businesses by the pandemic. The loans totaled $ 429 billion and saved an estimated 49 million jobs, according to an ICBA analysis of data from the Small Business Administration. In addition, community banks processed PPP loans five to ten days faster than other PPP lenders.

Earlier in the pandemic, “there were so many stories of small businesses that couldn’t get accounts at a big bank,” says Chris Cole, executive vice president of ICBA. Community banks, meanwhile, have played “a disproportionate role in the PPP to ensure that businesses continue to operate.”

Like credit unions, community banks also struggle to keep up with new technologies used by large institutions and online providers.

Online banking

Online banks are typically national institutions that customers access through websites and usually, but not always, through mobile apps. Because they don’t have branches, online banks can pass savings from non-payment of physical locations to customers in the form of minimal fees and some of the highest savings rates available. Some online banks are stand-alone entities and some are online divisions of traditional banks, but in all cases customer money is insured by the Federal Deposit Insurance Corp.

About 40% of Americans who opened accounts online only in the first year of the pandemic did so because of their high rates, according to a 2021 NerdWallet study. Online savings can be around 0.4% to 0.5% annual percentage return, or more than 20 times the average rate of 0.02% for the basic savings option in each of the four plus major banks – Chase, Bank of America, Wells Fargo and Citibank. Online checking accounts tend to have little or no overdraft fees compared to these four banks, which charge an average fee of $ 35 per transaction that results in a negative account.

Going with online banking means forgoing certain services, which can include in-branch customer support, cash deposits, wire transfers, and cashier’s checks. Additionally, not all online banks offer the same variety of accounts, so make sure you choose one that has the types of accounts you need, whether they are checking accounts, savings or both.

Neobanks

Neobanks are financial technology companies that offer mobile-centric banking services, especially low-cost checking accounts that offer more benefits than traditional institutions. Neobanks, such as Chime and Current, partner with a bank to provide their accounts or, in rare cases, become a bank. In both cases, neobanks have FDIC insured accounts that act like regular online bank accounts.

These institutions use the technology to provide features that most of the bigger banks and some online banks do not, such as two-day early access to direct deposits, cash deposits at retailers, etc.

“Neobanks… are integrating many money management tools and financial health ideas into their core banking services from the start,” said Brenton Peck, director of the Financial Health Network, in an email. Some neobanks “have carved out a niche for themselves by meeting consumers where they were struggling” financially, such as SoFi, which started out as a non-bank student loan refinancing company.

Like online banks, neobanks do not offer all of the services offered by traditional banks, such as in-person assistance. And only a few neobanks offer high savings rates. It was also reported that neobanks, especially Chime, had slow customer support response times and faced suspicion of account fraud by shutting down accounts abruptly instead of giving customers enough time to respond to complaints. .

If you’re ready to leave your big bank, think about your banking needs – from early access to paychecks to high savings rates – to see if any of these four alternatives are right for you.

More from NerdWallet

Spencer Tierney writes for NerdWallet. Email: spencer.tierney@nerdwallet.com. Twitter: @SpencerNerd.

The article Tired of Your Big Bank? Consider these 4 alternatives that first appeared on NerdWallet.


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Student loan crisis arose from “giving families a blank check,” says author https://www.ibooklinux.net/student-loan-crisis-arose-from-giving-families-a-blank-check-says-author/ https://www.ibooklinux.net/student-loan-crisis-arose-from-giving-families-a-blank-check-says-author/#respond Wed, 08 Sep 2021 19:33:14 +0000 https://www.ibooklinux.net/student-loan-crisis-arose-from-giving-families-a-blank-check-says-author/ The student loan debt crisis came after legislative changes over the years that created a largely unchecked system of lending to millions of students, according to a journalist and author of a new book. “If you keep issuing student debt the same way, which basically gives families a blank check, you’re just going to have […]]]>

The student loan debt crisis came after legislative changes over the years that created a largely unchecked system of lending to millions of students, according to a journalist and author of a new book.

“If you keep issuing student debt the same way, which basically gives families a blank check, you’re just going to have more and more families who are going to end up with non-repayable debt over the years,” and that doesn’t really solve the underlying problem, ”said Josh Mitchell, Wall Street Journal report and author of“ The Debt Trap: How Student Loans Became a National Catastrophe, ”on Yahoo Finance Live (video above) .

The growth of the student loan program, from the Lyndon B. Johnson administration in the mid-1960s, was the result of a growing desire to see the American population obtain college degrees in order to become more competitive internationally. and promote social mobility.

President Lyndon B Johnson signs the Higher Education Act in San Marcos, Texas on November 8, 1965 (Photo by Frank Wolfe / Interim Archives / Getty Images)

Therefore, according to Mitchell, the intentions to create the student loan mechanism were noble in that they were designed “to reduce inequality, to help the poor enter the middle class.”

The data shows that college degrees generally offer a good return on investment (depending on the college). What’s more, according to a New York Fed study in July 2020, taking a gap year before going to college “cuts back to college by a quarter and can cost tens of thousands of dollars in cash. loss of income for life “.

A graduate repairs her outfit before having her photo taken in Washington Square Park, New York, on May 19, 2021. (Photo by TIMOTHY A. CLARY / AFP)

A graduate repairs her outfit before having her photo taken in Washington Square Park, New York, on May 19, 2021. (Photo by TIMOTHY A. CLARY / AFP)

Considering the benefits, Mitchell said, “Congress was very reluctant to deny anyone access to university. And it has become the path of least resistance to give loans to people.

At the same time, he added, “it became very easy to ignore the fact that a lot of people were defaulting on their loans and a lot of people were lying to each other that people would pay off this debt.”

Congress “just applied rose-colored glasses to this program over the years and said, ‘Listen, we need to give our constituents access to student loans,'” Mitchell said, and individual lawmakers were reluctant to cut back. “Access to that golden ticket for the middle class.”

Fast forward to 2021: With an estimated 44 million student loan borrowers owing $ 1.7 trillion in debt, prominent Democrats have repeatedly urged President Joe Biden to use executive power to enact a large forgiveness of student loans.

Mitchell noted that waiving interest on federally guaranteed student loans is one way to resolve the issue given the amount of bad debts on the US government’s books. According to Mitchell’s reports, the federal government is expected to lose more than $ 400 billion from the student loan program.

“If you look at how much debt is what I would call toxic debt, which means it will never be repaid, anywhere that a third or more of the debt will not be repaid, according to a published report. under the Trump administration, ”Mitchell explained.“ This approaches the amount of toxic debt that was on the books of private lenders during the real estate crash: Private lenders lost $ 535 billion on subprime mortgages during the 2008 financial crisis. “

Aarthi is a reporter for Yahoo Finance. She can be contacted at aarthi@yahoofinance.com. Follow her on Twitter @aarthiswami.

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A Guide to Home Buying and Selling for Military Families https://www.ibooklinux.net/a-guide-to-home-buying-and-selling-for-military-families/ https://www.ibooklinux.net/a-guide-to-home-buying-and-selling-for-military-families/#respond Wed, 01 Sep 2021 22:09:03 +0000 https://www.ibooklinux.net/a-guide-to-home-buying-and-selling-for-military-families/ Home buying and selling decisions will almost always have significant financial implications. For active-duty military personnel who are frequently uprooted, these deliberations become even more complicated. Since you may not be staying in one place for very long, it becomes essential to think about the long-term consequences of buying a home. It is also important […]]]>

Home buying and selling decisions will almost always have significant financial implications. For active-duty military personnel who are frequently uprooted, these deliberations become even more complicated.

Since you may not be staying in one place for very long, it becomes essential to think about the long-term consequences of buying a home. It is also important to know about special programs that can help you get the best value for your money at home.

Key points to remember

  • Staff on active duty generally have on-base and off-base housing options, the latter offering greater flexibility but also requiring commuting.
  • Those who choose private accommodation can apply their Basic Housing Allowance (BAH) to rent or mortgage payment.
  • Since military personnel are often faced with the prospect of receiving transfer orders, it is important to weigh the long-term impact of buying a home versus renting.

Accommodation options

Military families have several options when it comes to finding housing. While off-base housing often offers more options to meet your needs, you may also find yourself bearing some of the costs. If you buy a home, you are responsible for the mortgage payments on the transfer, unless you can sell it. Conversely, government-provided housing generally offers more convenience and simplicity, but this comes at the cost of flexibility.

As a general rule, it’s a good idea to check with the facility’s housing office to review your options. Here are some common lifestyles that may be available:

  • Basic government-owned housing—These units within the military installation belong to the Ministry of Defense. Residents have rent and utilities covered by the military.
  • Basic private accommodation—In recent years, the Ministry of Defense has started to partner with private developers to create housing on its bases. The house itself is owned and managed by a private company. Military personnel receive a Basic Housing Allowance (BAH) to help cover the cost of rent or a mortgage. If you have a portion of your allowance left, you can use it to cover the cost of utility bills.
  • Non-base accommodation—Some families simply want housing that they cannot find on the base or prefer to raise their children in a different environment. If so, you can buy or rent properties off base using your BAH. However, most of the expenses beyond your allowance must be paid out of pocket.

To buy or not to buy?

Active duty military personnel who opt for a private residence receive a BAH whether they rent or buy a house. The amount you receive each month depends on where you live, your level of earnings and your dependency status. You can project your BAH using the Housing Allowance Calculator on the Defense Travel Management Office website.

When considering monthly payments, buying a home often seems like a better option than renting. However, this decision becomes more complicated for military personnel who can receive transfer orders in a short period of time. Unless you’re pretty sure you’ll stay in the home for three to five years, it can be difficult to build enough equity to cover closing costs when you buy (usually 2-5% of the home’s value). house), the higher the cost of ultimately selling the house.

Selling costs alone can be high. If, for example, your house costs $ 300,000 and you pay your agent a 6% commission, you are losing $ 18,000 just for the services of the realtor. And that doesn’t even cover any repairs or other expenses you might have to incur to get the house or condo on the market. Plus, you’ll have to worry about making mortgage payments if you can’t find a buyer when you leave town, the last thing military personnel are likely to want to think about when they enter the next phase of their military careers.

Get a mortgage

Mortgage loans from the Department of Veterans Affairs (VA) are among the most attractive home loans on the market. Since the government provides mortgage insurance to lenders who offer VA loans, you don’t need to add private mortgage insurance (PMI) to your payments. Plus, eligible borrowers can get a mortgage without a down payment.

Don’t be fooled by the name, these loans aren’t just for ex-military. Active duty military personnel, including those on reserves, with at least 90 days of continuous service may receive the Certificate of Eligibility (COE) you need to apply for a VA mortgage. You should also follow the lender’s income and credit guidelines, just as you would with other loan programs.

VA loans don’t offer the lowest interest rates for every buyer, but if you don’t have a lot of money to spend on a down payment, it’s worth comparing these government guaranteed mortgages with other loan options.

Difficulty selling your house

What if you end up receiving transfer orders and have trouble selling the house you just bought? You have a few options.

One is to hang on to it as a rental property. The upside is that you will have more years to build up equity, and if you live where the rental market is strong, you can even generate residual income after you make your mortgage payments.

The flip side is that you will have the stress of dealing with tenants who can live hundreds of miles away. Landlords often hire property management companies to take care of tenant affairs, although this will mean you will need to add their fees to your projected costs. Keep in mind that there is always a risk that you will have to spend a few months between tenants, so you need to make sure that you are financially prepared for this eventuality.

If renting the home isn’t possible and you’re behind on your payments, you’ll want to speak to your loan officer to explore your options, including a short sale or deed in lieu of foreclosure. The latter transfers the title of the home to the lender in exchange for the release of your loan. If your loan belongs to Fannie Mae, you can explore the possible solutions on her webpage for military personnel. Those who have a home owned by Freddie Mac can review possible remedies on his foreclosure relief options page.

Popular home sales scams that target service members include fake home listings on reputable websites by deceptive real estate agents.

Avoid potential scams

Unfortunately, scams targeting military personnel looking for new housing are commonplace. It is therefore imperative that you research the authenticity of the websites on which the properties are listed and the identity of the realtors and other housing experts you come across online.

In a common ploy, criminals create fake real estate ads, sometimes on websites that otherwise have a solid reputation. They will offer below market rates or quote military discounts in order to attract unsuspecting military personnel. When you find a property you like, they usually request that funds be sent electronically to hold it for you. It wasn’t until later that victims realized that the identity of the person they met online and the property itself were illusions.

Another scam targets homebuyers who are struggling to keep up with their mortgage payments. Authors may advertise or distribute flyers touting their ability to help you avoid foreclosure. They will then ask you for a fee which needs to be sent electronically and will quickly disappear once you send it.

You can reduce your chances of being scammed by avoiding advertisements that sound too good to be true and avoiding people who request wire transfers or other suspicious forms of payment. You can also search for rentals on the Department of Defense Automated Housing Referral Network (AHRN) website.

The bottom line

Decisions about how to get housing and how to sell a home can be stressors for military families who travel regularly. Fortunately, there are many resources for members of the military that can help you make the process more manageable.


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Do Online Mortgage Lenders Solve the Problem of Lending Discrimination? https://www.ibooklinux.net/do-online-mortgage-lenders-solve-the-problem-of-lending-discrimination/ https://www.ibooklinux.net/do-online-mortgage-lenders-solve-the-problem-of-lending-discrimination/#respond Sat, 28 Aug 2021 16:00:34 +0000 https://www.ibooklinux.net/do-online-mortgage-lenders-solve-the-problem-of-lending-discrimination/ For many years, discriminatory lending practices made it difficult for black mortgage applicants to embark on homeownership. Beginning in the 1930s, lenders openly discriminated against people of color, and actions such as redlining (labeling certain neighborhoods as predominantly black and then refusing to grant mortgages to borrowers in those neighborhoods) were never sanctioned. . The […]]]>

For many years, discriminatory lending practices made it difficult for black mortgage applicants to embark on homeownership. Beginning in the 1930s, lenders openly discriminated against people of color, and actions such as redlining (labeling certain neighborhoods as predominantly black and then refusing to grant mortgages to borrowers in those neighborhoods) were never sanctioned. .

The problem is so widespread that as part of his campaign pledge, Joe Biden has pledged to take action to hold financial institutions accountable for discriminatory mortgage lending practices.

According to data from the US Census Bureau, nearly 74% of white households own their homes. By comparison, only 45% of black households are homeowners. This disparity helps explain why black families only own about one-eighth of the net wealth of white families (since owning a home is a good way to increase a household’s equity).

But a trend in the mortgage industry can, surprisingly, help solve the long-standing problem of credit discrimination.

Online lenders equalize the market

As has been the case in many industries, the mortgage industry has evolved more and more online in recent years. Just as there are banks that do not have physical locations, there are also mortgage lenders that operate only online.

Online lending is a convenient way to transact. But it can also help close the homeownership gap between white and black households. It is often said that black borrowers, even when approved for a home loan, often enjoy less favorable mortgage rates than white borrowers. The same goes for Hispanic borrowers. But recent analysis found that among online mortgage lenders, black, Hispanic, and white borrowers receive virtually identical loan terms once approved to take out a home loan.

Just as significantly, online lenders offer more borrowing options and more competition. This, in turn, gives black borrowers more opportunities to get mortgage approval.

There is work to do

Zillow’s research indicates that home values ​​have grown at a faster rate for black households since 2014, and that since then homeownership rates have also risen faster for black and Hispanic households. This is obviously good news, and the growing availability of online mortgages may have contributed to the latter point. But that doesn’t mean the problem of loan discrimination is solved.

As President Biden moves forward with his housing plans, we can hope that more steps will be taken to make lending practices more equitable overall. Owning a home can pave the way for greater financial stability. Homes are the only asset that tends to increase in value over time, and their equity (the part that owners fully own) can be leveraged for increased financial flexibility. And all potential buyers should have an equal chance to finance one.

A historic opportunity to potentially save thousands on your mortgage

There is a good chance that interest rates will not stay at multi-decade lows any longer. That’s why it’s crucial to act today, whether you want to refinance and lower your mortgage payments or are ready to pull the trigger to buy a new home.

Our expert recommends this company to find a low rate – and in fact he used it himself for refi (twice!).

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We strongly believe in the Golden Rule, which is why the editorial opinions are our own and have not been previously reviewed, endorsed or endorsed by the advertisers included. The Ascent does not cover all the offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts. Maurice Backman has no position in the stocks mentioned. The Motley Fool owns shares and recommends Zillow Group (A shares) and Zillow Group (C shares). The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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Household incomes continue to recover from the pandemic, https://www.ibooklinux.net/household-incomes-continue-to-recover-from-the-pandemic/ https://www.ibooklinux.net/household-incomes-continue-to-recover-from-the-pandemic/#respond Wed, 25 Aug 2021 12:00:00 +0000 https://www.ibooklinux.net/household-incomes-continue-to-recover-from-the-pandemic/ CHICAGO, Aug.25, 2021 (GLOBE NEWSWIRE) – The percentage of consumers who said their household income is negatively affected by COVID-19 continued to decline, reaching 30% in early August. The latest Consumer Pulse study from TransUnion (NYSE: TRU) found that despite improving incomes, unknowns about new COVID-19 variants are causing changes in consumer spending. In particular, […]]]>

CHICAGO, Aug.25, 2021 (GLOBE NEWSWIRE) – The percentage of consumers who said their household income is negatively affected by COVID-19 continued to decline, reaching 30% in early August. The latest Consumer Pulse study from TransUnion (NYSE: TRU) found that despite improving incomes, unknowns about new COVID-19 variants are causing changes in consumer spending. In particular, the Millennial generation faces the greatest challenges.

The latest Consumer Pulse study includes a survey of 3,085 U.S. consumers from August 3-9, 2021.
The percentage of consumers who report their income is currently negatively affected by the pandemic has fallen to 30%, from 38% in the first quarter of 2021 and 32% in the second quarter of 2021. However, perhaps due to the increase of cases of COVID-19, households that expect or not if their income will decrease due to the pandemic in the future, they have fallen from 50% to 56% in the second quarter.

“It is a positive sign to see the continued improvement in household incomes, although it is evident that the solid recovery observed in recent quarters slowed down at the end of the summer. This is likely due to the recent increase in COVID-19 cases as new variants are impacting parts of the country, ”said Charlie Wise, head of global research and advice at TransUnion. “We have seen an increase in household income and an expansion of the credit market throughout 2021, both positive signs for the economy. Therefore, it will be important to monitor in the short term whether the increase in COVID-19 cases is a short-term incident or if they continue to grow for a longer period. “

Interest in building emergency funds and online credit research is growing

The recent increase in COVID-19 cases has also affected consumer spending behaviors, with more and more people turning to the internet. Of the 30% who say they will increase their online shopping in the next three months, 78% say it’s because of the recent spike in COVID-19 cases.

Americans are also working to make sure they have access to money and credit. A greater proportion of consumers, 21% from the second quarter, say they are saving more in an emergency fund. Of all generations, millennials and millennials are the top two groups who think it’s important to have access to credit to meet their financial goals, with about half of them considering applying for credit or getting credit. refinance a loan over the next year (Millennials at 54%; Gen Z at 43%).

About a third of consumers who report being in the risk category close to primary risk (credit scores between 601 and 660) and 27% of those who identify themselves as high risk consumers (credit score range 300 to 600) also plan to apply for new credit or refinance the credit during the following year. Of all the credit score ranges, those who report being blue chip (721-780) said they were the most likely to apply for new credit or refinance existing credit in the next year at 44%.

“The good news is that six in ten survey respondents said they check their credit at least once a month. This is consistent with 65% of Americans who say it’s very or extremely important to monitor their credit, ”said Margaret Poe, head of consumer credit education at TransUnion. “It is extremely helpful for an individual to understand where they stand from a credit health standpoint and how they can potentially improve their situation. “

Millennials continue to face the biggest challenges

In 17 of 18 TransUnion Consumer Pulse studies since March 2020, Millennials reported the largest negative impact on household income. In early August, nearly half (46%) said their household income was currently declining due to the pandemic. Millennials were the only generation to see this percentage increase from Q2 2021.

Millennials struggle to pay their bills, with 42% reporting missing a loan or bill payment in the past three months, the highest percentage of any generation. Seeking help, 25% say they rely “a lot” on government financial support to get through the pandemic – nearly twice Gen Z (13%), more than twice Gen X (10%) and more four times the baby boomers (6%).

“It can be disheartening to see your credit rating drop after a financial setback. But with a plan, good financial habits, and a dose of patience, you can rebuild your credit. By improving your overall financial situation, your credit will follow over time, ”concluded Poe.

TransUnion COVID-19 Support Center provides useful information for consumers who are concerned about their ability to pay their bills and loans. Those interested in learning how to read their credit report can click here. The full Consumer Pulse study can be viewed here.

About TransUnion (NYSE: TRU)
TransUnion is a global information and analysis company that makes trust in the modern economy possible. To do this, we provide a complete picture of each person so that they can be reliably and securely represented in the market. As a result, businesses and consumers can transact with confidence and achieve great things. We call it Information for Good.®

With a leading presence in more than 30 countries on five continents, TransUnion provides solutions that help create business opportunities, great experiences and personal empowerment for hundreds of millions of people.

http://www.transunion.com/business


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