Loan Facts

Small Business Loans to Start Your New Venture

Small business loans

Starting a new business takes time, energy, focus, and always money. Many people look for investors, many finance it themselves, and many use small business loans. Many low-interest and no-interest loans, however, are sitting unused.
Using small business loans to create jobs
The American Recovery and Reinvestment Act, among other things, made a point of trying to create jobs. Small businesses account for a large number of the jobs created in the United States each year. The Small Business Jobs Act of 2010 created loans and stimulus programs intended to encourage businesses to hire. The idea is that small businesses are the […]

Cap Rates on Cash Advances are not Ideal

cap rates on cash advances

Cap rates on cash advances is a common practice in the financial industry. It may seem like it’s a good thing to do to protect consumers from unfair interest rates. In reality, interest rate caps can sometimes be an unfair standard on cash advance loans. Furthermore, rate caps constrain businesses in an industry in which almost half of all loan lenders are small business owners.
The cap rats on cash advances use bad math
Many states have introduced initiatives that cap interest rates on loans, aimed at capping the rate of a cash advance, usually at 36 percent APR. It seems like […]

Student Loan Collections – What You Should Know

What to Do if student loan collections Debt Collector Calls

There are trillions of dollars of student loans currently in the U.S. market, and $67 billion is in default with student loan collections. Student loans are one of the few things that can’t be written off in bankruptcy, doesn’t go away after seven years, and must be paid off at some point. Though there are programs to help loans in default, federal student load debt collectors may not be offering those programs to troubled lenders.
Student Load Debt Collectors
The Department of Education does not directly collect on overdue student loans. Instead, the Department of Education contracts out with debt collection agencies […]

5 Things to know about Short Term Loans

short term loans facts

Can short term loans help?
Times are tough and money is short. Are you struggling with less money than you need to get by? Have you had an emergency and just need a little help? Would Short Term Loans help you get through? Do you have concerns about getting paydayloans? Do you have credit problems, or even a bankruptcy?
Here are 5 things you should know about Short Term Loans:

Short Term Loans are FAST! It takes just minutes to apply for these loans, and then you get an approval within a few more minutes. These loans are deposited quickly into your checking […]

CFPB to oversee nonbank student loan servicers

Richard Cordray

The Consumer Financial Protection Bureau (CFPB) proposed a new rule on March 14 that will allow it greater oversight of non-bank firms that collect and keep records of student loans, both federal and private.
CFPB ‘oversight to the student loan market’
The new rule would give the federal watchdog the authority to audit the activities and procedures of non-bank student loan debt servicers that have more than a million clients. These companies handle billing and collection chores for student loan leaders. The CFPB already has oversight of large banks that act as student loan servicers.
“Our rule would bring new oversight to the […]

Debt rate falls for young adults, but not a good sign

college fund

A recent study found that, in the last decade, the debt rate has decreased dramatically for American young adults. While that sounds encouraging on the surface, in fact it reveals a troubling economic trend. The reason for the decline is that the bulk of young adults just have too few assets and too little income to get substantial credit.
Debt rate falls, not a positive sign
According to the Pew Research Center’s study, released late last month, between 2001 and 2010, the debt level of young adults under the age of 35 fell by 14 percent. Conversely, the debt of those over […]

Student loan debt higher than ever, says report


According to a recent study by the Institute for College Access and Success, the average college student who graduated last year has $26,600 in student loan debt. That is the highest in the seven-year history of the report.
Student loan debt up 5 percent
In 2010, the average amount of loan owed by graduates was $23,350. That means it rose 5 percent in the intervening year. The report also said that about two-thirds of 2011 college grads with bachelor’s degrees have student loan debt looming over them.
About 20 percent of that debt is from private loans, which do not have the same […]

Fewer new home sales in August, but prices rise

home prices

New home sales fell slightly in August when compared to July, says the Commerce Department. However, the price of new homes simultaneously rose faster than it ever has before in a single month.
Ups and downs of new home sales in August
The Commerce Department said Wednesday that the about 373,000 new homes (seasonally adjusted) were sold in August. That is down a grand, or 0.3 percent, from July’s 374,000. However, that is 27.7 percent growth when examined year-over-year.
August’s home sales also fetched higher prices than they have in more than five years. The median price of a new home in August […]

Banks offer unsolicited mortgage relief

ticky tacky

Under a federal settlement, several of the nation’s major lenders are offering unsolicited mortgage relief deals to some selected distressed borrowers.
Unsolicited mortgage relief
These offers come from the banks and can not be applied for or requested. Some selected borrowers are offered a reduction in the principal of the loan, or in the lending rate. Some underwater borrowers are being refinanced. The average reduction in loans across the board is just over two percent.
In April, five of the nation’s largest lenders — Wells Fargo, Bank of America, Citigroup, JPMorgan Chase and Ally Financial (GMAC) — reached an agreement with the state […]

New CFPB rules target mortgage service providers


The Consumer Financial Protection Bureau has proposed new rules for mortgage service providers. The new CFPB rules attempt to provide more transparency for borrowers.
CFPB rules seek transparency
According to the CFPB, the new rules demand more transparency from companies that collect mortgage payments and handle foreclosure procedures.
Richard Cordray, director of the CFPB, said:
“The bottom line is to treat consumers fairly by preventing surprises and run-arounds… We want to make sure that at all times consumers can get information about how much they owe, what they are paying, and how their payments are being applied. And if consumers fall behind on their […]

Fannie Mae posts $5.1 billion profit in Q2


Fannie Mae announced a net income of $5.1 billion in the second quarter of 2012. It is the Federally-run mortgage buyer’s second consecutive quarterly gain since government intervention, following the Great Recession. The posting leaves little doubt that the U.S. housing industry is gaining ground.
Fannie Mae quarterly gain $2.2 billion
Wednesday, Fannie Mae announced that it will be paying out $2.9 billion to the Treasury Department in quarterly dividends, leaving a net gain of $2.2 billion.
The company posted profits of $2.7 billion in the year’s first quarter. In the first quarter of 2011, Fannie Mae posted a loss of $6.5 billion.
Susan […]

Mortgage rates are rising, says Freddie Mac

Mortgage rates

According to a weekly report from Freddie Mac, the rates on 30-year fixed mortgages went up, breaking a spell of record lows that has lasted for 13 weeks.
Mortgage rates tick up slightly
Freddie Mac, Uncle Sam’s mortgage buyer, reported Thursday that the average rate for a 30-year fixed mortgage rose from last week’s 3.49 percent to 3.55 percent. The 15-year fixed mortgage, which is commonly used for refis, also climbed from 2.80 percent to 2.83 percent.
Cautious encouragement
The increase comes following news of increased consumer confidence domestically, as well as news of efforts to relieve debts in the Eurozone. Frank Nothaft, Freddie […]

Feds roll out easy-to-understand financial aid form

student loan debt

The Obama Administration, in the interest of clarity and transparency, rolled out its new easy-to-understand financial aid form on July 24. The federal government is urging colleges and university to adopt the new “shopping sheet” for the 2013-2014 school year.
Financial aid ‘shopping sheet’
The new form will allow potential students and their parents to make more informed decisions regarding student loans. The “shopping sheet” lists the various options available to chose from in the way of loans. It also offers comparative, side-by-side information on estimated payments, annual costs and the default rate of student loans. In addition, the one-page form gives […]

The next steps in tackling the student loan crisis

A frozen water droplet dangles from a tree branch.

Congress passed omnibus legislation June 29 that freezes student loan rates, which were due to double. If the legislation hadn’t passed, 7.4 million U.S. student borrowers would have taken on an additional $1,000 in debt for each year of college, according to The Detroit News. With the freeze in place, it would behoove lawmakers to consider the next vital steps needed to prevent the student loan crisis from becoming the next financial bubble that drags the U.S. economy once more into the depths of hell.
Student loans: Much work to be done
Michigan Rep. Gary Peters (D-Bloomfield Township) noted that while the […]

For-profit schools fail to meet federal aid rule

student debt

The Department of Education has placed for-profit educational institutions on warning. Too many students from these institutions are finding it hard to pay off their student loans, says the federal agency. If the situation does not reverse, those schools could lose access to federal student aid.
The gainful employment rule
The U.S. Education Department said Tuesday that students in 193 programs at 93 institutions — that is five percent of all for-profit career training programs — have failed to meet all the standards set by the 2011 “gainful employment” rule. The rule pertains to the programs ensuring graduates will find work and […]

Personal loans: Get the basics right to finance your needs

Smiling man doing paperwork, using a computer.

People are always buried deep into some sort of debt. They take more credit to repay their mounting credit card bills. There is no way that can rescue these people from the troubles of debt. Sometimes, the outstanding balances give them a poor credit score that make them ineligible for other lines of credit. This forces them to take some self-initiated credit card debt reduction steps to improve the credit score.
Understand the basics of personal loans
Every now and then people need huge amount of cash. During this time, many of them look at personal loans as a safe alternative. However, […]

Foreclosures are a quarter of all U.S. home sales


Foreclosures drive down the price of homes and hinder the recovery of the market. Sadly, there seems to be no shortage of foreclosures on the horizon. A recent report by RealtyTrac, a web-based marketplace for foreclosure properties, concludes that more than a quarter of all home sales in the U.S. are foreclosures. Coupled with last week’s dismal jobs report, the data reinforces the picture of an already-sluggish economic recovery continuing to tap its brakes.
Foreclosures on the rise
The company’s quarterly Foreclosure Sales Report last week reported that 26 percent of all homes sold in the U.S. during the first quarter of […]