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Construction loans: What is it and what do they mean? function


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The construction of a house can lead to having everything you want to be able to have with a budget of course. There’s no requirement that you need to be rich in order to achieve it. It’s about being to obtain the loan needed for construction.

The construction loans are different from a conventional loans. In one sense, the conventional mortgage can be described as a long-term loan which helps to pay for the purchase of a house. The loans for construction are credit for short periods which can be used to finance the construction of the home. It is able to be converted into a traditional mortgage after the building process is completed.

Is a building loan a type or loan?

The construction loan at https://www.paydaynow.net/emergency-loans/ allow you to obtain the funds to construct or improve your house.

When you purchase an apartment which is ready to move into the next day, you must have it to ensure that your mortgage will be able to pay for the purchase cost and even the closing costs.

In the case of building your own home (or buy a home that you’d like to renovate) There are more steps to take for purchasing the property including paying contractors, as well as passing the tests. This is another procedure that needs a different type or credit.

What does an construction loan investment include?

These loans for construction are a way to cover the costs of instance:

  • Land
  • Architectural plans
  • Design fees
  • Building permits
  • Construction materials
  • Contractor labor
  • Contingency reserves (in case your project goes over budget)
  • Interest reserves (to cover your interest expenses during construction)
  • Charges for closing
  • Construction Financing that is long-term when the construction is completed

What is the process to obtain a construction loans?

The construction loans are are created to finance the work in stages. This arrangement is referred to as”draw plan” also referred to as “draw schedule” minimizes risk to both the lender as well as the creditor as the contractor could receive a significant amount of cash at the beginning but still not finish the task.

This can also lower the chance of construction that is not up to standards because the lender must check the building at conclusion of each phase prior to the release of more money. In fact the lending institutions in the construction sector will require that their customers employ skilled construction workers capable of handling a significant quantity of work. They are also financially sound, licensed, insured as well as licensed.

While you may not be able to find better loans for construction with Credible we can help in finding a fair rate for your following conventional loan. Within a few minutes, you’ll be able to browse through the options for loans offered by our partner lenders. It’s fast and simple.

Construction loan rates

The rates of interest for construction loans are contingent on the lending institution that is lending them but they could be comparable to the current rates for home loans, or perhaps one percentage point higher. Being a competent lender (such for example, having a high credit score or ratio of debt to income) and choosing an institution designed for construction loans might help you get the best price.

The construction loans might be eligible for an interest rate that is variable or fixed rate at the beginning of building. If you decide to go with the construction loan with an interest rate which is variable it’s important to be aware of the limits of your interest rate’s fluctuations and also that you are able to alter the rate of your current (post-construction) mortgage for homeowners. However permanent loans are also an adjustable rates.

If you don’t want that uncertainty, seek out a construction-to-permanent loan with a fixed rate so that the rate stays the same during the construction phase and permanent phase.

Construction loan types

There’s several forms of HTML0 which can be used for loan construction. Find out which one is suitable to suit your needs.

Renovation loan

The term “renovation loan” is a kind of construction loan that can be used to purchase a home and fund major aesthetic or structural changes. Some examples of these loans include those that are offered in the FHA 203(k) loan as well as it’s the FHA 203(k) loan, and the Fannie Mae HomeStyle loan.

The most significant difference between a home improvement loan and standard purchase loan are that the second grants you cash to purchase the property and make improvements to the condition of it. This could require borrowing more than the value of the property in the present time.

Similar to a renovation loan, a construction-to-permanent loan combines what would normally be two loans. It provides you with both the money for building the house and the long-term financing that will purchase the house over time.

Instead, you’ll be offered a loan that has only one closing, an appraisal and only one closing expense. Additionally you’ll have to complete the required conditions at once. If your budget is changing when you build your home It’s still feasible to purchase the home.

A construction-to-permanent loan will also allow you to finance the purchase of the land if you don’t already own it. Or, if you have an existing lot loan, you can use a construction-to-permanent loan to pay it off.

FHA construction loan

individuals with low down payments as well as smaller credit scores may want to think about the possibility of FHA construction loan. They require the payment of just 3.5 percent. It is possible to use the equity accrued on your property to cover the down payment, even though it’s been a while since you bought the land that you’ll build your new home upon.

The FHA’s construction loan has a single closing (meaning it’s a construction-to-permanent loan) and doesn’t require you to make any payments during the construction process. The interest rate could be variable or fixed during the construction.

FHA permits the homeowner to serve as the contractor in the event that contractors you hire is accredited. Minimum credit scores required to be eligible typically 680 or depending on the institution that is lending the money.

VA construction loan

Military individuals who are eligible to be eligible for VA loan approval might think about applying for the VA Construction loan in order to construct the home that they have always wanted. The loans are offered for 100% financing that includes land and the construction of the house.

The VA provides two types of loan for building:

  1. One-time close loan (construction-to-permanent)
  2. The loan is closed twice (a credit for construction and one that is permanent)

Its name suggests the fact that “two-time close” is a reference to two different closings , which means that you’ll have to cover two closing costs.

In the event that you receive an VA Construction loan this means that you do not have to pay fees for the construction phase. Instead, the loan’s duration will be decreased based on the duration of building. If it takes you a year to construct your house and you are able to take it out for 29 years rather than.

VA will require the builder to pay different costs that borrowers could have to pay in construction loans including the cost of inspections for construction loans as well as the expenses for risk insurance. Similar to other VA loans, the veteran must pay an VA fund-raising fee.

Owner-builder construction loan

If you’re a skilled HTML0 contractor looking to construct your dream house, you could obtain an owner-builder’s mortgage if you can prove that you’re licensed and proficient, and insured and have a sound financial company. Additionally, you’ll need to meet the usual financial requirements for personal finance.

This kind of loan might be attractive for those who want to control expenses, as well as the satisfaction of building your own house.

One-time close construction loan

A one-time close construction loan (also called a single-close construction loan or construction-to-permanent loan, as discussed above) is any construction loan where a single loan covers your entire project. For instance the VA construction loan can be a one-time construction loan.

During the time it takes to build your house your financial status and the interest rates may alter. These changes could affect the price of loans, as well as the ability to get long-term loans. Additionally, every loan is subject to the expense of a deposit at the beginning as well as underwriting and closing fees.

How do I find the most efficient way to obtain the construction loans

Like other home loans, it is required to meet certain conditions in order to be eligible for construction loan. The requirements vary for every lender and are based on the kind of loan you’re seeking.

Construction loan requirements

It’s a generalization that, there are some requirements you’ll need to satisfy to be qualified in the construction lending.

  • Score The applicant must have an credit score of the minimum of 620 to be considered eligible for the use of an FHA and VA construction loan. For an Fannie Mae single-close loan, the minimum credit score of 700.
  • Downpayments If in the market for traditional construction loans, you’ll require at least five percentage. In certain situations you’ll be required to pay 10 percent or 20 percent of the cost to sell (land as well as construction expenses) (or the capital the value for the property). An FHA construction loan requires the deposit to amount to 3.5 percent, whereas an VA construction loan does not require an upfront amount.
  • Ratio of income to debt Your DTI should be lower than 43 percent or lower. A higher ratio is possible if you’re in good fiscal health.
  • Plan for repayment:Construction loans usually require zero payments or interest-only payment throughout the building phase. The principal will be fully amortized and interest payment once construction is completed.

How to obtain those construction loan

This is how you can get a building loan

  1. Get pre-approved by a lender to obtain building credit.
  2. Make an agreement with the construction company. Be sure to include an obligation to repay clause so to end this contract in the case that that you are unable to pay the installment loan for construction.
  3. You need to send your builder’s consent along with the subwriting documentation to your mortgage lender to get their approval. If the property you own is yours and you’re building on it you’ll need to provide the original deed and survey and , if you purchased the land in the last few years, then you should provide the settlement statement.
  4. Look up”Subject To Be Completed” Search for “subject for completion” appraisement of the possible house.
  5. The final approval must be obtained for the end of the construction financing.

After the close, work can begin. The lender will then make payments to the contractor through a variety of payment options , and will be sure to monitor each step of the way.

When the construction is completed with the construction loans is completed the loan is converted into permanent loans, or you’ll be eligible to get the loan that is permanent.

It is difficult to get your construction loans you require?

There’s no reason to be too difficult to get construction loans in the case of an established builder that is in an excellent financial standing.

However, there are a lot of steps needed to get a mortgage, making it more complicated and takes longer than obtaining an normal loan.

What can I do to discover the most efficient method of choosing the most suitable construction lender

The first thing to look for in a reputable contractor is the expertise in the field of construction loan. A lender who is able to handle large amounts in construction loan and is knowledgeable of the complexities of these loans will be more much more willing to collaborate together.

The HTML0 code is a great chance that you’ve never built an existing home before and need to locate a lender who will assist you with building your home using the highest efficiency. A lender who has been through the construction process for a long time has a deep understanding of how the procedure can go, and what could happen and the best way to prevent issues. They can aid you in ensuring the building process is executed with speed and efficiency.

Securing Blockchain Oracles for Blockchain Success and Mass Adoption


Education Department cancels $6 billion in student loans for 200,000 borrowers


The US Department of Education has agreed to forgive $6 billion in student loans for 200,000 student borrowers.

Here’s what you need to know.

Student loans

The Biden administration is continuing its commitment to forgive student loans for millions of student borrowers. As part of a class action settlement agreement, Sweet vs. Cardona, the Department of Education will provide full student loan forgiveness to approximately 200,000 student borrowers who have been misled by their college or university. Borrowers will also get a refund of student loan payments made and the removal of any associated negative marks on their credit report. This is a major victory for student borrowers who have been asking for student loan relief for several years. The announcement comes at a critical time as President Joe Biden considers large-scale student loan forgiveness for millions of student borrowers. The original class action included 264,000 student borrowers who attended more than 150 colleges and universities such as the University of Phoenix and DeVry.

Student Loan Forgiveness: Biden Forgave $8 Billion in Student Debt in Borrower Defense Until Repaid

Prior to this major student loan cancellation announcement, Biden canceled $25 billion in student loans. That amount included $7.9 billion in student loan forgiveness for 690,000 borrowers under defending borrowers from student loan repayments and school closures. Earlier this month, the Biden administration canceled $5.8 billion in student loans for 560,000 student borrowers. Borrower Defense of Repayment is an Obama-era rule that allows student borrowers to have their student loan forgiven if their school closes or they were misled by their college or university. Borrower defense against repayment has featured prominently in for-profit school lawsuits.

“From day one, the Biden-Harris administration has worked to address long-standing issues with the borrower defense process,” Cardona said. “We are pleased to have worked with the plaintiffs to reach an agreement that will provide billions of dollars in automatic relief to approximately 200,000 borrowers and which we believe will resolve the plaintiffs’ claims in a fair and equitable manner for all parties.”

How to qualify for this student loan forgiveness

Student borrowers who participated in this class action lawsuit will have their student loans forgiven. Here’s how to find out if you qualify:

  • If you applied for Borrower Defense Until Repayment and you attended one of the eligible colleges or universities, your student loans will be forgiven.
  • If you applied for Borrower’s Defense of Reimbursement and attended one of the eligible colleges or universities, but your application was denied, your Borrower’s Defense of Reimbursement application will be reinstated.

Termination of student loan: how to request a borrower’s defense to repayment

What if you didn’t participate in this class action but think you were misled by your college or university? You can request a borrower’s defense for student loan repayment online. To be eligible, you must demonstrate that:

  • your college or university closed while you were enrolled or shortly after you dropped out, or
  • your college or university has misled you.

As part of the borrower’s defense against repayment, you can obtain partial student loan forgiveness or full student loan forgiveness. If you don’t qualify for Borrower Defense Until Repayment, remember that there are other ways to get a lower student loan repayment, including:

Student Loans: Related Reading

9 million borrowers are now eligible for student loan forgiveness

Senators propose major changes to student loan forgiveness

Department of Education Announces Major Overhaul of Student Loans Service

Navient agrees to forgive $3.5 million in student loans

One year after Surfside collapse, two California startups create Carfax-like reports for HOAs – Orange County Register


As family and survivors commemorate the one-year anniversary of the deadly Surfside, Fla. collapse on Friday, June 24, two Southern California companies are offering new tools to help condo buyers and owners assess the strength of their own owners’ associations.

Their goal is to avoid pitfalls like those that may have contributed to the tragedy last June, when the 12-story South Champlain Towers collapsed in a pile of rubble, killing 98 people.

News reports showed the Champlain Towers board had argued for years over how to pay for $15 million in much-needed repairs. Repairs started too late.

With a federal investigation into the cause of the collapse not expected until 2024, the Miami Herald reported that construction flaws coupled with years of deferred maintenance caused a pool deck to move away. deterioration of the foundation, toppling pillars and causing the building to fall. like a house of cards.

In May, Association Reserves, a Westlake Village company that had Champlain Towers South as a client, unveiled a new product to help buyers, owners and board members assess the financial and physical health of their “ community associations”.

“We looked at condo associations across the country, and really, it’s bad,” said Christopher Gardner, founder of new consumer product, CondoFax. (Photo by Hans Gutknecht, Los Angeles Daily News/SCNG)

Called Association Insights and Marketplace, or AIM, it seeks to create a database covering the country’s 370,000 “association-governed” communities, including condominiums, co-ops and townhouses.

HOAs are recruited to upload their information to the database, which will then be used to create reports on maintenance reserve funds, finances and the physical condition of buildings, said Robert Nordlund, CEO of the Association. Reserves and co-founder of the new AIM product.

Reports are free to participating HOAs and their members, but will cost buyers $50.

Additionally, AIM creates a FICO-like score for each complex, called the FiPhO score. Had the score existed before the Champlain Towers collapsed, the Florida Towers would have received a 45 out of 100, Nordlund said — a low score.

“We’re here to change the whole community association industry ecosystem,” Nordlund said.

Nordland and the founder of another new HOA reporting company, Condofax, said they hope their products will become the condo industry’s version of Carfax, which provides used car reports to car buyers. cars.

Founded last November, Condofax charges $299 for reports based on a deep dive into an HOA’s documentation. Like AIM, it produces a brief report and its own version of a credit-like score.

“We’ve looked at condo associations across the country, and really, it’s bad,” said Christopher Gardner, founder of Condofax and an executive at FHA Pros, which helps condo resorts qualify for home mortgages. Federal Housing Administration. “One way or another, condominium associations have largely escaped scrutiny. It’s pretty amazing, and we hope to change that.

A third California organization, Oakland-based Transparency HOA, a non-profit organization, provides reports on HOAs for free. A fourth company, Indiana-based InspectHOA.com, provided $189 reports for 2.5 years to companies such as securities companies, iBuyers and real estate investment groups.

“What created momentum was many institutions buying houses,” said InspectHOA chief executive and co-founder Vishrut Malhotra. “(But) our customers started asking more questions after the Champlain Towers incident.”

Tool for buyers

The new products will be a boon to potential buyers who are now virtually flying blind when buying a home that is part of an HOA, according to product developers and real estate agents.

“It’s brand new. This is something we’ve never seen before,” said Lisa Dunn, regional sales manager for Century 21 Award, who led an Orange County Association of Realtors task force encouraging more HOAs to qualify for FHA mortgages.

The Westlake Village condo complex in Thousand Oaks where Robert Nordlund, founder and CEO of Association Reserves, lived is seen Tuesday, June 21, 2022. Nearly a year after the deadly collapse of Champlain Towers South Condos in Florida, Nordlund unveils a scoring system for homeowners associations that works like a credit score.  (Photo by Sarah Reingewirtz, Los Angeles Daily News/SCNG)
The Westlake Village condo complex in Thousand Oaks where Robert Nordlund, founder and CEO of Association Reserves, lived is seen Tuesday, June 21, 2022. Nearly a year after the deadly collapse of Champlain Towers South Condos in Florida, Nordlund unveiled a scoring system for homeowners associations that works like a credit score. (Photo by Sarah Reingewirtz, Los Angeles Daily News/SCNG)

“I’ve never seen a service like (these new) reports,” added Veronica Hicks, a broker for Condos Etc. based in Irvine. “No one can be certain of…the financial health of a community, the culture of the community, and the quality of board management and oversight. That would be a very beneficial report for a buyer, for an association of owners as well as for members.

A bundle of HOA documents provided during escrow should be enough to determine the strength of an association, said Dawn Bauman, vice president of government and public affairs for the Community Associations Institute, an HOA educational organization. Provided, that is, a buyer takes the time to read and understand all that paperwork.

But agents and product vendors say the association’s documentation, which can be up to 300 pages or more, often comes late in the escrow process and is so intimidating that many buyers don’t read it.

“They just don’t know what they’re looking at. They don’t know how to analyze a condo association,” Gardner said.

“If you’re thinking of spending $500,000 on a condo, $50 is one of the cheapest things and one of the wisest things you can do. … It just helps the buyer know what they’re getting into,” Nordlund said.

Special Assessment Risk

The Champlain Towers board received bad news about the condition of their building nearly three years before the June 24, 2021 tragedy. The once-luxurious towers needed major repairs totaling $15 million. To pay for this, the council had to impose a “special assessment” on unit owners, ranging from $80,000 to at least $200,000 each. But the co-owners resisted.

Report providers claim that their products can help buyers assess the risk of an association of a future special assessment, which is paid in addition to monthly assessments.

“If we find that (an HOA’s) reserves are running low and the roof needs to be replaced soon, you can expect a big increase in fees,” InspectHOA’s Malhotra said.

Kelly Richardson, a Pasadena-based HOA attorney and weekly contributor to the Southern California News Group, said Association Reserves’ AIM product is “the company’s first legitimate effort in this regard.”

But the product is far from ready. The AIM database requires thousands of HOAs to log into the company’s website and upload their data.

Nordlund says the company’s report will typically be 11 pages, covering an HOA’s financial health, property maintenance history, and good management of the association.

About half of HOAs have sufficient reserves to pay for necessary maintenance as their buildings age, Nordlund said. Co-owners tend to elect board members who promise to control monthly dues, which often compromises the financial strength of an association.

AIM seeks to give condo owners a “virtuous goal” of improving their score, rather than the destructive incentive of lowering their HOA dues and postponing maintenance.

The Condofax report covers six categories, including state law compliance, HOA financial condition, maintenance reserves, mortgage options for buyers, and insurance.

Robert Nordlund, who runs a company that helps HOAs build reserves for future maintenance, hopes his new AIM database will become the Carfax of the condo industry.  For $50, buyers will be able to purchase a report card showing the financial and physical strength of a homeowners association.  (Photo by Sarah Reingewirtz, Los Angeles Daily News/SCNG)
Robert Nordlund, general manager of the Reserves Association, wants to encourage condo owners to pay more dues for the maintenance of their properties. The Westlake Village HOA expert designed the FiPhO score to assess the financial, physical and operational health of each association. (Photo by Sarah Reingewirtz, Los Angeles Daily News/SCNG)

Transparency HOA provides a one-page report focusing on the financial aspects of an HOA, along with a score. The volunteer-run organization does not charge for its reports, although donations are welcome. Co-founder Amber Gill maintains her team is more willing to share bad news about an HOA because it’s independent.

“I find it hard to believe that (commercial suppliers) are going to bite the hand that feeds them,” she said.

Richardson said he’s not sure the reports are enough to fully assess an HOA.

“I fear that the information, while useful, is exaggerated in its importance,” he said. “HOAs can change quickly, and I’m concerned about how the reported data would be kept up to date.”

He also doubts that these reports alone will be enough to prevent future tragedies like the collapse of the Champlain Towers. But the collapse highlighted “how bad condos are” and the need for condo owners and buyers to have better access to information, suppliers said.

“That’s why the world changed,” Nordlund said of the Surfside tragedy. “That’s why we spent a lot of time and money (to develop this product). The future could therefore be different.

(Published in the Brainerd Dispatch, June – Brainerd Dispatch


(Published in the Brainerd Dispatch, June 22, 29, July 6, 13, 20, 27, 2022, 6t.) NOTICE OF MORTGAGE FORECLUSION SALE NOTICE IS HEREBY GIVEN that default occurred under the terms of the mortgage described below: DATE OF MORTGAGE: May 10, 2017 INITIAL PRINCIPAL AMOUNT OF MORTGAGE: $378,400.00 MORTGAGE AGENT(S): Kristopher Kaikkonen, a single person Loan, his successors and assigns DATE AND PLACE OF RECORD: Recorded on: May 12, 2017 Crow Wing County Recorder Document Number: A888308 MORTGAGE ASSIGNMENTS: And assigned to: PennyMac Loan Services, LLC Dated: August 16, 2021 2021 Crow Wing County Recorder Record Number: 957326 Transaction Agent: Mortgage Electronic Registration Systems, Inc. Mortgage Transaction Agent ID Number: 1004128-0002097269-4 Lender/Broker/Mortgage Originator: American Financial Network, Inc. , DBA: Orion Lending Residential Mortgage Servicer: PennyMac Loan Services, LLC COUNTY IN WHICH THE PROPERTY IS LOCATED: Crow Wing Property Address: 15284 Beaver Dam Road, Brainerd, MN 56401 Tax ID: 080333100D00009 LEGAL DESCRIPTION OF PROPERTY: The northeast quarter of the neighborhood Southwest, Section 33, Township 134, Range 28, except North 874.74 feet, in Crow Wing County and the State of Minnesota have been complied with; that no action or proceeding has been commenced at law or otherwise to recover the debt secured by said mortgage, or any part thereof; that it is a registered property; Pursuant to the power of sale contained in said mortgage, the property described above will be sold by the sheriff of said county as follows: DATE AND TIME OF SALE: August 09, 2022 at 10:00 a.m. PLACE OF SALE: County Sheriff’s Office, 304 Laurel Street, Brainerd, Minnesota to pay the debt secured by said mortgage and taxes, if any, on said premises and costs and disbursements, including attorneys’ fees permitted by law, subject to repayment within six (6) months from the date of such sale by the mortgagor(s), their personal representatives or assigns. If the mortgage is not reinstated under Minn. Stat. §580.30 or property is not redeemed under Minn. Stat. §580.23, the mortgagor must vacate the property no later than 11:59 p.m. on February 08, 2023, or the next business day if February 08, 2023 falls on a Saturday, Sunday, or public holiday. Mortgagor(s) released from financial obligation: NONE THIS COMMUNICATION IS FROM A DEBT COLLECTOR ATTEMPTING TO COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED FOR THIS PURPOSE. THE RIGHT TO VERIFICATION OF THE DEBT AND THE IDENTITY OF THE ORIGINAL CREDITOR WITHIN THE TIME LIMIT PROVIDED BY LAW IS NOT AFFECTED BY THIS ACTION. THE TIME ALLOWED BY LAW FOR REDEMPTION BY THE MORTGAGE AGENT, ITS PERSONAL REPRESENTATIVES OR AFFILIATES, MAY BE REDUCED TO FIVE WEEKS IF A COURT ORDER HAS ENTERED UNDER MINNESOTA STATUTES, SECTION 582.032, DETERMINING, AMONG OTHERS, THAT THE MORTGAGE PREMISES ARE IMPROVED WITH RESIDENTIAL HOUSING OF LESS THAN FIVE UNITS, ARE NOT PROPERTIES USED IN AGRICULTURAL PRODUCTION, AND ARE ABANDONED. DATED: June 16, 2022 MORTGAGE: PennyMac Loan Services, LLC Wilford, Geske & Cook, PA Attorneys for Mortgagee 7616 Currell Boulevard, Suite 200 Woodbury, MN 55125 (651) 209-3300 File Number: 050773-F1

What is a margin call? // The Motley Fool Australia

Image source: Getty Images

Introduction to Margin Calls

A margin call is a request from your broker asking you to deposit additional money into the margin account you hold with them. This usually happens when the stocks you bought while trading on margin have fallen, forcing you to top up your capital share.

There is a bit to unpack in this paragraph.

First, we’ll start with what it means to trade on margin. It’s when you buy stocks using a combination of your own money and money you borrow, usually from your broker. Borrowed money gives you the extra capital to buy many more stocks than you might otherwise have had, potentially increasing your earnings.

However, margin trading also carries increased risk.

In exchange for lending the extra money, your broker will ask you to put aside enough collateral – in the form of shares – to cover the loan. The stocks you borrow must be from your broker’s Approved Securities List (ASL). Likewise, the money you borrow can only be used to purchase securities from the ASL.

Unfortunately for all of us, stock prices can go down as well as up. If the price of the stocks you used as collateral suddenly drop, your assets might not be worth enough to cover the loan. In this case, your broker would issue a margin call.

This is a request that you repay part of the loan in cash, buy additional shares to increase your collateral, or sell some of the shares you already own (probably at a loss).

This can be an uncomfortable experience for any investor, and one that can end up being very expensive.

So how exactly do you trade on margin?

A better question might be, why would have you?

Well, although margin calls can be difficult to manage, margin trading allows you to significantly increase your potential returns.

This is best illustrated with a simplified example. Let’s say you already own $10,000 worth of Woolworths Group Ltd. (ASX: WOW) shares and you would like to invest an additional $10,000. On the one hand, you could pay the $10,000 cash for the shares up front, out of your own pocket. Alternatively, you can trade on margin and borrow most of the money needed to purchase the additional shares.

Woolworths is listed on your broker’s ASL, and your broker specifies that you can borrow up to 75% of the value of your existing Woolworths holdings, which is called the loan-to-value ratio (LVR) of the security. This means that by depositing only $2,500 of your own money once in a while and borrowing the remaining $7,500 (the maximum LVR), you can always walk away with $10,000 of new Woolworths shares. You can also use your loan to invest in other companies, as long as they are listed on your broker’s ASL.

Now let’s say Woolworths stock price suddenly jumps 10%.

If you had used your own money to buy the new shares, those shares would now be worth $11,000. If you decide to sell them, you could pocket the $1,000 profit (minus transaction fees) and realize your 10% gain. Not a bad thing return on investment.

What if you had decided to trade on margin instead?

In this scenario, you could invest just $2,500 of your own money, then borrow the remaining $7,500 using your existing Woolworths shares as collateral – and end up with the same $10,000 of new Woolworths shares. After Woolworths stock price climbed 10%, these additional holdings would also be worth $11,000. And if you decided to sell your shares, repay the loan, and then pocket your profit, you would have earned the same $1,000 (minus your interest payments and account fees).

However, since you only invested $2,500 of your own money initially, you managed to get a 40% return – your profit of $1,000 divided by your investment of $2,500. This means that by trading on margin, you have managed to quadruple your return on investment!

Can anyone do this?

Margin trading is open to everyone – however, you should ensure you have a full understanding of the risks involved before opening a margin account. Although some brokers allow you to open an account with only small amounts of capital, margin trading is still best suited for investors with a higher risk appetite and enough extra cash to meet any unexpected margin calls.

If you think margin trading might be of interest to you, first make sure it matches your long-term investment goals and personal risk appetite. And reduce your risk by borrowing less than the maximum LVR for the securities – while reducing your upside potential, it also reduces your chances of receiving a margin call.

What are the benefits of margin trading?

As mentioned before, the main advantage of margin trading is that you can significantly increase your returns, which potentially helps you reach your investment goals faster.

And, as margin trading gives you access to increased funding, you can now afford to diversify your investments. Instead of buying shares in just one or two companies, you can invest your borrowed money in four or five companies. Diversification is one of the best ways to reduce your overall portfolio risk because it makes you less dependent on the performance of an ASX stock to grow your wealth.

Additionally, it should be added that the interest paid on an investment loan is generally tax deductible, reducing your overall taxable income.

And the disadvantages?

Unfortunately, margin trading also magnifies your potential losses. A falling market can trigger a series of margin calls, costing investors a lot of money. Just as you top up your account enough to meet the requirements of the first margin call, stock prices could fall again, triggering a second margin call. And this process can go on and on.

Besides the risks, it can also be expensive – so always shop around for the lowest fees. Before subscribing to a margin charge, determine the return you would need to generate from your investments to at least cover your interest payments and account fees, then consider how feasible this is.

What triggers a margin call?

A margin call is triggered when the security value of the assets you have provided as collateral falls below the amount you have borrowed. The “safety value” is the total value of your shares multiplied by their LVR. For example, the starting value of the security value of the $10,000 of Woolworths shares you already owned was $7,500 because the Woolworths shares had an LVR of 75% (according to your broker).

As the market moves, the security value of your Woolworths shares may rise or fall. If it drops below your outstanding loan balance, your broker will issue a margin call.

Brokers can often grant investors an additional buffer on top of the LVR – sometimes 5% of the portfolio value. This means that a margin call will not be triggered until the total security value more the buffer falls below the loan amount.

How to Avoid or Prepare for a Margin Call

Borrow less than the maximum

Just because you box borrow as much as the LVR allows does not mean you to have to. Borrowing less means you’re creating an extra cushion in your margin account. Remember that it is only when the value of the security falls below your outstanding loan balance that a margin call is triggered. The lower the loan amount, the less likely you are to get a margin call.

To diversify

As we have already mentioned, diversification is a great way to reduce the overall risk of your portfolio. This can help you both prepare for (and even avoid) a margin call.

For one thing, if you use a diversified portfolio of ASL stocks as collateral, it becomes less likely to unexpectedly fall below the required minimum collateral amount. And if you use your borrowed money to buy several securities – rather than just one – you are less dependent on a single investment to generate your returns.

If some of your investments have gone up in value while others have gone down, you can take a profit from your best performing stocks and use it to meet any unexpected margin calls.

Set your own “maintenance margin”

Sometimes it is useful to define your maintenance margin. This is a level of capital you maintain in your account that exceeds the minimum security value required by the broker. If you leave extra money in your margin account to act as a buffer, you can avoid any nasty margin calls from your broker.

Regularly monitor your account

The most important thing you can do when trading on margin is to regularly monitor your account. Check the value of your security daily and frequently adjust the amount of leverage you use based on how risky you think the market is. If the conditions are particularly volatileor if prices fall, pay off part of your loan to reduce your leverage or add extra cash to your account as a precaution.

What happens if you can’t pay a margin call?

The worst case scenario is that you receive a margin call from your broker and cannot pay the requested amount. Since margin calls must be satisfied immediately, your broker may force you to sell some of your shares if you don’t have the cash available.

This can mean that you are crystallizing unrealized losses on your investments and missing out on potential future growth opportunities.

The latest HELOC rates and what you need to know before buying one


Although HELOC rates are on the rise, they’re still one of the most affordable types of loans — they typically have lower interest rates than credit cards or personal loans — for those with substantial net worth. in their house.

Getty Images/iStockphoto

Average home equity line of credit (HELOC) rates for loans with a 10-year repayment period fell to 4.89% after four straight weeks at 4.74%, according to Bankrate data from June 13. Meanwhile, 20-year HELOC rates rose slightly to 7.29% for the week ending June 20, from 6.84% the previous week. You can see the lowest HELOC rates you could qualify for here.

Although HELOC rates are on the rise, they’re still one of the most affordable types of loans — they typically have lower interest rates than credit cards or personal loans — for those with substantial net worth. in their house. But to get the lowest rates, you’ll want to have a high credit score (ideally 760 and above), a low debt-to-equity ratio (36% or less), and significant home equity.

If you’re considering a HELOC, it’s important to understand a few things about them. First, HELOCs are based on the amount of equity one has in their home, so the exact amount a borrower qualifies for will vary. Note that lenders like borrowers to retain at least 20% equity. HELOCs are secured by your home, so if you don’t repay the loan, you can lose your home.

And how you repay a HELOC is also important to understand: these loans have a two-part structure. They are generally made up of a 10-year drawdown period and a 20-year repayment period which together equal a 30-year term. During the 10-year drawing period, a borrower can withdraw as much or as little as they want in increments or all at once, and may only have to pay interest. After the start of the repayment period, the money can no longer be withdrawn and the borrower must start paying back the principal in addition to the interest.

Inaugural Gainesville Municipal Services Show showcases municipal programs and services


Press release from the City of Gainesville

The City of Gainesville invites all neighbors to its first City Services Fair to learn about city programs, events, services, job opportunities, charter officers, governance structure, and more.

When: 9am-12pm Saturday June 25

Where: Martin Luther King, Jr. Multipurpose Center, 1028 NE 14th Street

Residents will have the opportunity to learn more about the myGNV an app and website through which they can plan a bus trip, view live traffic cameras or report a power outage.

City staff will offer information about the Gainesville Community Fire Rescue Paramedic Program and offer assistance to low-income neighbors who may qualify for mortgage foreclosure, funds or other affordable housing programs offered by the city. They will also answer questions about the Gainesville Regional Utilities Low-Income Energy Efficiency Plus program and share information on reducing energy use, among other helpful tips. Solid Waste Division staff will also discuss the impact of recent changes to zero waste ordinances on city residents and businesses.

The fair will also include a small giveaway of trees (while supplies last) and staff from the Urban Forestry Division will share tree planting and pruning tips with attendees.

Neighbors will also be able to recycle their unwanted automobile tires at the event. Each person can bring up to six tires, without rims, to be recycled at the fair’s outdoor collection area. (Tyres on rims will not be accepted. The roundup of tires continues until 2 p.m.)

Representatives from the Gainesville Police Department, Transportation and Public Works will share information about their projects and programs; Parks, Recreation and Cultural Affairs and other departments will provide details of their annual and seasonal events. City employment opportunities will also be available. City staff plan to host the fair several times a year.

To help ensure public health and safety, neighbors are urged to follow CDC recommendations, including social distancing guidance for COVID-19 at events.

How Various Lenders Fill the Small Business Credit Gap


In recent years, MSMEs have been badly hurt by demonetization and policy reforms such as the GST, which have inflated compliance costs that small entrepreneurs have struggled to bear. The pandemic of the past two years and, more recently, high inflation have only aggravated their financial and operational difficulties.

According to the Ministry of MSMEs, the country has 63.3 million MSMEs. These companies contribute about 30% of the country’s nominal GDP and 48% of its exports. But the vast majority of them do not have adequate access to formal credit. Therefore, small businesses are affected by a lack of cash for working capital as there is a time lag in receiving payments from customers as well as capital expenditure due to lack of adequate documents and collateral. required for traditional forms of lending.

Barriers and risk factors

Although the Center has launched numerous tax initiatives to support MSMEs, including the Emergency Credit Line Guarantee Scheme (ECLGS), less than 10 million small businesses have been eligible to benefit from these loans. Worse still, most small entrepreneurs are not aware of these loans, which prevents them from benefiting from them.

Thus, barely 40% of the segment’s credit needs are covered by formal credit. For this reason, the MSME credit gap in India is pegged at Rs 30 lakh crore, representing a huge opportunity for lenders. In its 2019 report, the RBI-appointed Expert Committee on MSMEs mentioned three reasons for the large credit gap. The first was the high risk for lenders if MSMEs were unable or unwilling to pay. The second was the high cost of serving these small businesses due to lack of adequate information and lack of collateral. The third was the low presence of lenders in semi-urban and rural areas.

Given the role of micro and small enterprises in national economic growth, the new era digital lender collaboration model can benefit the national mission of inclusive development. Digital loans can help bridge the credit gap and bring micro and small businesses into formal credit. Moreover, a specialized understanding of digital lenders with last mile connectivity ensures negligible cost of credit and hence adequate returns for all stakeholders.

Co-loan model

In such a scenario, the co-lending model (CLM) could benefit small businesses through a symbiotic relationship between digital NBFCs and banks to meet the credit needs of unserved or underserved MSMEs. The CLM allows traditional banks and registered NBFCs to join together to provide loans underwritten jointly by the two entities and disbursed at a ratio of 20:80, with the largest share being provided by the banks.

CLM is a winning proposition for all stakeholders. As fintech companies and digital NBFCs provide last-mile connectivity, helping banks grow without the heavy expense of physical offices, banks have strong balance sheets to offer funds at a cost that makes lending more affordable. FinTech’s digital capabilities and superior understanding of underwriting and collection for these segments improves operational efficiency while reducing the cost of acquiring small customers, enabling funds to be provided at lower rates. lower interest.

Based on their digital lending model, fintech firms offer last-mile connectivity to MSMEs while personalizing credit assessment. With constantly evolving algorithms, in-depth understanding of each niche segment, data from various sources is aggregated through analysis through AI (artificial intelligence), ML (machine learning) and other tools. Backed by AI-based technology, fintechs can provide risk-based interest rates.

Tailor-made offers

In addition, digital NBFCs enjoy the benefits of omnichannel presence (online and offline) as well as fast processing through their fully digital and automated systems. This ensures easy access to loan services and faster processing time. For example, borrowers can apply for loans through a mobile app sitting in the safe comfort of their home or office and have it approved within hours to days. Post-disbursement issues and queries can also be resolved quickly through digital means.

Nevertheless, fintech companies may not have the large balance sheets needed to serve millions of borrowers. On the other hand, banks have strong balance sheets, but conventional standards prevent them from underwriting MSMEs due to inadequate data. Through partnerships between fintech players/new era digital lenders and traditional banks, these constraints can be overcome.

Additionally, as many small and micro businesses struggle to provide adequate collateral, cash flow based lending is being deployed to provide loans through the CLM. With the benefits of partnerships between traditional and new lenders, due diligence is performed by processing both structured and unstructured data for better risk assessment. Thus, micro and small enterprises can receive funds cost-effectively and quickly, kick-starting nation-building activities through greater job creation and inclusive development.



The opinions expressed above are those of the author.


OCSD borrows $18.4 million; district says taxes won’t go up | Local


Orangeburg County School District plans to borrow a total of $18.4 million to pay for capital projects, repay a 16-year-old bond and provide immediate cash while awaiting property tax revenue .

District officials say the borrowing plan will not raise taxes.

“The borrowing plan is intended to retain 42 factories,” district financial obligations attorney Frannie Heizer told trustees at their monthly board meeting on Tuesday.

“No mileage increases are expected with this debt,” she said.

The Trustees have approved the following binding resolutions:

• Borrowing $4.1 million in a general bond obligation for capital projects to be paid over one year.

Directors Idella Carson and Dr. William O’Quinn opposed this bond issue.

The Orangeburg County School District budget includes teacher increases;  the district is not planning a tax increase

• Borrow $4.3 million to repay a Qualified Zone Academy bond originally issued by the former Orangeburg Consolidated School District 5 in 2006. The bond at the time was a 0% interest bond. The bond is maturing and in order to have the funds to repay the debt, the district needed to issue a repayment bond.

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The deposit will be refunded by March using property tax. The vote to approve the loan was unanimous.

The initial deposit was used for the renovation of school buildings, the purchase of equipment, the development of programs and the training of school staff.

• Borrow up to $10 million in tax advance notice through the South Carolina Association of Governmental Organizations (SCAGO) tax advance notice program.

The loan allows the district to operate in the short term before property taxes start coming in during the months of November, December and January.

The SCAGO program allows districts to borrow money at a low interest rate.

In another area, trustees approved contractors and design firms for the $190 million bond referendum the district will present to county voters in November. The loan will be used to upgrade facilities across the district. School officials say a tax increase will not be needed for the loan plan.

The approved projects and contractors were:

• MB Kahn will serve as construction manager for a new $110 million Orangeburg-Wilkinson High School. LS3P would serve as the design professional for the project.

• Thompson Turner will act as construction manager for the construction of a 900-student, $45 million elementary school on the current site of Holly Hill Elementary School. LS3P would serve as the design professional for the project.

• Contract Construction would serve as the construction manager for the construction of classroom wings at Lake Marion High School and William J. Clark Middle School for $20 million. LS3P would do the design work for the additions.

• Contract Construction would serve as the construction manager to upgrade the district’s sports, arts and playgrounds as well as demolition work. LS3P would serve as design professional if needed. The cost of the project is $15 million.

• Trustees voted unanimously to sign an agreement to pursue the transfer of the High School for Health Professions charter school from the school district to the Limestone Charter Association.

The agreement includes the stipulation that approximately $2.1 million in unused federal emergency relief funds for elementary and secondary schools will be transferred to the association by July 31, 2022.

• Trustees unanimously approved several program applications that support the delivery of curriculum, instruction, and assessments for use in the district for the 2022-23 school year.

The programs will help students who need additional teaching tools to help them succeed.

• Four eighth graders from William J. Clark Middle School were honored as South Carolina Junior Scholars. They are Ariel Bryan, Kaitlyn Hyman, Nishka Patel and Giovanni Medina Diaz.

The SC Junior Scholar program recognizes eighth-graders who have scored 550 or higher on the evidence-based reading and writing subtests of the SAT/National Merit Scholarship (PSAT/NMSQT) Preliminary Qualifying Test and 530 or higher on the PSAT math subtest. /NMSQT.

Students also have summer opportunities in conjunction with participating South Carolina colleges and universities and the Governor’s School for Science and Math.

• The district recognized a dozen students for receiving the Seal of Biliteracy Award from the South Carolina Department of Education.

The award is given in recognition of students who have studied and mastered two or more languages ​​before graduating from high school. This is the second year that the OCSD has awarded students for this award.

The students and awards received were:

– Silver: Edisto High School students Kimberly Alas, John Sanchez Garcia, Esmeralda Velasquez, Juan Magana Salgado; Gian Carlo Vallejo and Roberto Cruz, students of Orangeburg-Wilkinson High School; and Lake Marion High School student Jackeline Serrao.

– Bronze: Edisto students Alexandra Uriostegui and David Austin Harrell; OW student Marlene Nerio and LMHS students Axell Carrillo and Ramses Rodriguez Osorio.

TheTandD.com: $5 for the first 20 weeks

• A District Leadership Retreat will be held August 1-22 at Lake Marion High School from 8:00 am to 4:30 pm Teacher Professional Development will be held August 8-12.

• School trustees unanimously approved the school board meeting schedule for 2022-2023. The council will meet on the second Tuesday of each month with the exception of November (due to Election Day) and April due to Spring Break.

• The school council will not meet in July. The next council meeting is scheduled for Tuesday, August 9 at the district headquarters at 102 Founders Court. The meeting will start at 6:30 p.m.

A True Wellness Story – Journal


AFTER weeks of pessimism, this Friday brought good news in that the international terrorist financing and money laundering watchdog, the Financial Action Task Force (FATF), was finally pleased with the progress of Pakistan in compliance with a 34-point action plan.

This means that Pakistan has safely put some distance between international financial isolation and can be removed from the “grey list” now, where it has been languishing since the summer of 2018, with prospects of improving its credit rating. credit and to be perceived more favorably as a destination for foreign investment.

It would be premature to celebrate success at this stage, as Pakistan remains on the gray list until a visit and “on-site” inspection by a FATF team is conducted to physically verify that all points of action have been implemented. At this point, Islamabad will likely be removed from the gray list. Nevertheless, it is safe to say that a big step has been taken in the right direction.

Much of the work on compliance criteria was done during the PTI government’s tenure and it cannot be denied credit for it. Congratulations to him. Many of its leaders, notably Imran Khan, sent messages of complacency. Well Named.

In this moment of relief for Pakistan, for which everyone took credit, an irony got lost somewhere along the way.

Mr Khan did not share credit with anyone else, as his party did for the handling of the pandemic when it attributed the success to the National Command and Control Centre, NCOC, which is jointly led by Asad Umar and a serving three-star general.

Lily: “Many fathers” of FATF success

Likewise, in another example of how far things have strayed from the same page of harmony with the PTI, since the army’s ‘neutrality’ pledge, the army’s chief spokesman praised the efforts of the “Central Cell” at GHQ (under the DGMO) which “led the civil and military effort” to bear fruit.

In this moment of relief for Pakistan, for which everyone took credit, an irony got lost somewhere along the way. It was former Prime Minister Nawaz Sharif who first raised the issue of global isolation due to Pakistan’s support for militant groups during a meeting with former Lt. Gen. Rizwan Akhtar of DG ISI in 2016, two years before the country was put on the gray list. .

What followed the publication of a report on this meeting in Dawn is common knowledge. Nawaz Sharif’s government has been systematically destabilized and his removal orchestrated after warning of impending national calamity was seen as an affront by one of the country’s most irresponsible institutions.

‘[The] Notification is dismissed’ was added to the national political lexicon after the army’s chief spokesman reacted with these words in a public message to a government notification listing its action after a commission of inquiry into the Dawn history submitted its report to him.

This tweet represented the beginning of a period of retaliation. The former prime minister and his daughter were sentenced to prison terms and it was assured that the 2018 elections would see a different party form a government in Islamabad and Lahore.

For independent media, the nightmare began in 2016. The fate of the PML-N government was no different. This hellish nightmare continued into the spring of 2022, although same-page harmony ended somewhere in the fall of 2021. The polarization and divisions in the country have deepened alarmingly.

The TV stations and their pundits, the “senior analysts” with the lowest levels of intellect and logic follow the lines of their favorite party/political leader and seem to broadcast to the public from their respective silos.

If these divisions and the tone and tenor of the posts on TV stations make you smile for their often utterly ridiculous, partisan and juvenile political content, social media is another story where meanness seems to be a prerequisite for partisan commentators. . It literally takes a while to escalate or descend into galum galoch (abuse).

Social media is often seen as a platform where little good can be found or traded, other than a lot of bile and poison. But is this always the case? Allow me to share my own experience this week. On Friday, a Twitter friend of Karak in Khyber Pakhtunkhwa asked me to retweet his brother’s plea for help.

The brother is a schoolteacher whose two-year-old son has not been able to hear or speak since birth. He said he took his son to a specialist medical facility in Peshawar and they said the only thing that could allow the boy to hear (and then speak) was a cochlear implant.

The cost of the device and the surgery, the primary school teacher said, was 4 million rupees, far from what he could afford on his meager government salary. I retweeted the appeal to support the family.

A few hours later, a friend of mine messaged me and told me that she knew a businessman from Karachi who might be able to help as he has also helped such patients before. This Saturday morning, she messaged me to say that the businessman (philanthropist) said he would pay for the device and surgery costs.

My friend and the businessman from Karachi had a condition. That their names weren’t mentioned because they weren’t looking for any publicity. As I informed the family of the offer and conditioned it on the anonymity of the donor, their joy was immeasurable.

In my 38 years of journalism, few things have given my professional life more meaning than this. As I write these lines, all pessimism is far from my mind. At least for now. All I can feel are tears of gratitude and a welcome lump in my throat. Please join me in wishing the child the best. And more power to anonymous donors.

The writer is a former Dawn editor.
[email protected]

Posted in Dawn, June 19, 2022

Hochul announces $50 million investment in East Buffalo


BUFFALO, NY (WKBW) – Governor Kathy Hochul announced a targeted investment of $50 million on Saturday to meet the needs of the East Buffalo community.

The announcement comes five weeks after the fatal mass shooting at the Tops on Jefferson Avenue.

This investment, according to Hochul, will help rebuild and strengthen the community as state and local authorities work together to determine long-term economic development.

Hochul said the investment will help address food insecurity in East Buffalo by expanding free transportation services to other grocery stores or markets.

Funding will also be delegated to capital and operating grants for local small businesses, job training efforts, foreclosure prevention and a pilot program that offers door-to-door educational programs.

The Governor also announced that $3 million would be invested in the Western New York Resource Council, which has provided daily services and food access to the East Buffalo community since the attack.

Saturday’s announcement builds on investments the governor has made in East Buffalo, including:

  • Up to $1 billion to reconnect neighborhoods across the Kensington Freeway in Buffalo.
  • $55 million for Phase 3 of the Northland Corridor Redevelopment Area
  • $55 million for Central Terminal improvements
  • $37 million for the Broadway market
  • $30 million for the Michigan Street African American Heritage Corridor
  • $21 million for the Northland Workforce Training Center
  • $6 million in support of MLK Park
  • $3 million for Bus Rapid Transit on Bailey Avenue

Do Kwon and Terraform Labs Hit by Class Action


Do Kwon, Terra’s “broken-hearted” co-creator, headlines a series of named defendants in a class action filed Friday in U.S. District Court in Northern California.

Kwon is joined by a group that includes Terraform Labs, Jump Crypto and Three Arrows Capital. Plaintiff Nick Patterson alleges, among other charges, that the Terra tokens were sold as “unregistered securities” and that the “The defendants made a
series of false and misleading statements regarding the largest digital assets in the Terra ecosystem by market capitalization, UST and LUNA, in order to induce investors to buy these digital assets at inflated prices. »

Kwon and Daniel Shin started Terraform Labs in 2018, initially with the goal of disrupting payment giants like PayPal. Later that year, the pair raised $32 million, and in 2019 an initial coin offering raised $62 million.

UST and LUNA imploded last month, wiping out tens of billions of dollars in value, for which Kwon was pilloried online. After promising that Terra’s dollar-pegged algorithmic stablecoin couldn’t collapse, while also attacking rivals on Twitter, sympathy was scarce.

But that still didn’t stop the Terra community from endorsing “Terra 2.0” following the staggering collapse, a project that included creating a new LUNA token and relegating the previous one to “LUNA Classic” status. , to swap under LUNC instead.

As of this writing, the new LUNA is trading at $1.81down from the initial high of $19.54, according to CoinMarketCapwhile LUNC hovered around $0.00005.

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Meadow Lake Prepares Borrowing Bylaw


This will depend on the selection of a lender to provide the capital financing. Once the contract has been awarded, draft regulations will be submitted to the selected bidder.

Seymour said this was important to avoid financial hurdles at Meadow Lake.

“Just so the city doesn’t become cash strapped, we had to provide the ability to borrow money for these two projects,” he said.

If necessary, staff will amend the borrowing by-law to indicate the approved rate and payment amounts.

Seymour added that they have continued to talk to the Saskatchewan Health Authority about the long-term care facility, which he hopes will soon be ready for use.

“Assuming all work is completed within the next six weeks, we will move in and begin operations,” he said.

The city is also continuing communications with the Northwestern School Division regarding a partnership request on the potential joint-use facility. Staff asks for details on what developments the city should make, what the partnership would look like on design, construction and ongoing operations, and referrals for contacts in other communities where this has been done successfully. They are also looking for letters of support from the wider community to gauge the level of local support for such a partnership.

Seymour said no decision will be made until that kind of information is gathered.

“There is no capital or anything offered for this yet, since our budget is already in place,” he said. “But we need to have further discussions about what we think is best for the community as a whole.”

The city is also working on developing a governance framework for the annual projects. This requires community engagement to determine the best points of communication, particularly determining how residents wish to be communicated. This is scheduled for the end of the year.

[email protected]

On Twitter: @meadowlakeNOW

Putnam County Court Files – The Lima News


Putnam County Court of Common Pleas

The following individuals were indicted by the Putnam County Grand Jury on June 14.

Dominic A. McCrate, 28, Ottawa; domestic violence.

Aaron L. Hazelton, 33, Pandora; falsification of records and counterfeiting.

Cindy Hartman; 71, Columbus Grove; complicity in the commission of an offence.

Jennifer L. Hahn, 41, Oakwood; stealing drugs and practicing nursing without a licence.

Brian K. Bennett, RN, 34, Cloverdale; domestic violence.

Jeffrey T. Stocklin, 40, Cloverdale; domestic violence.

Crystal Cattell, 40, Fostoria; great flight.

Abbie L. Holton, 33, Cloverdale; possession of narcotics and aggravated possession of narcotics. Tiffany A. Hernandez, Bryan; aggravated possession of narcotics.

Juan F. Pardo, 27, Leipzig; aggravated possession of narcotics.

Jeremy W. Vold, 47, Napoleon; aggravated possession of narcotics.

Stephanie A. Hutton, 45, Pandora; illegal cultivation of marijuana.

Joshua P. Cutlip, 38, Leipzig; tampering with evidence.

Todd M. Settlemire, 37, Leipzig; tampering with evidence.

Victor B. Lomeli, 45, Leipzig; criminal assault and domestic violence.

June 6

Anthony N. Hutchison, 39, of Columbus Grove, was placed under community control for five years for violating community control standards. Violations included failing to submit to a drug test. He must get and keep a job and pay court-ordered child support. He must pass all recommended advice and treatment. He was originally convicted of failing to support dependents.

Sophia S. Chamberlin, 35, Leipsic, pleaded guilty to attempted aggravated drug possession, a misdemeanor. She faces up to 180 days in jail and a $1,000 fine. Bond was prosecuted while a pre-sentence inquest is being held with sentencing set for 1.30pm on June 27.

June 7

Joy E. Howard, 34, Lima, was sentenced to 30 days in jail for violating community control standards. Violations included drinking alcohol and failing to stay away from establishments that serve alcoholic beverages. She was credited for six days of service. She was initially convicted of attempted identity theft and misuse of credit cards.

June 8

Paramount Residential Mortgage Group, Inc., Ewing, NJ, obtained a foreclosure judgment against Alexandra C. Sargent, Columbus Grove, in the amount of $104,531.61, plus interest and costs.

New cases

Hilty Memorial Home, Inc., Pandora, v. James Lora, Pandora; other civilians ($28,795).

Newrez, LLC, Greenville, SC, vs. Kristy Thompson, Gaylesville, Alabama, Charles Thompson, Gaylesville, Alabama, Ericka Plescher, Cartersville, GA, and Gary Plescher, Cartersville, GA; foreclosure.

Colton Schwab, Pandora, and Allyson A. Schwab, Pandora; dissolution of marriage without children.

Wilmington Savings Fund Society, Salt Lake City, Utah, against Daniel Good, Fort Jennings and Angela Good, Fort Jennings; foreclosure.

Douglas C. Calvelage, Cloverdale, and Lacy Calvelage, Ottawa; dissolution of marriage with children.

Steven Brinkman, Defiance, c. Sandra Buss, Kalida; other civilians ($25,000 excess).

Stacy L. Hiltner-Ruck, Continental, c. Steven J. Ruck, Continental; dissolution of marriage with children.

Olivia Bennett, Middle Point, and Brian Bennett, Cloverdale; dissolution of marriage with children.

Larry J. Stechschulte, Fort Jennings, and Patti L. Stechschulte, Fort Jennings, v Lawhorn Concrete Construction, LLC, Cloverdale; other civilian.

Discover Bank, New Albany, c. Adam Montgomery, Pandora; other civilians ($18,173.25).

Putnam County Municipal Court Provisions

June 6

Joshua J. Schaffer, 43, Defiance, pleaded guilty to an amended charge of physical control. Sentence: 180 days in jail, 135 days suspended sentence, $250 fine and a drug and alcohol evaluation. Two OVI charges and one open container charge were dismissed.

June 9

Aaron J. Stringer, 23, Lima, pleaded guilty to drug possession. Penalty: $150 fine and six-month license suspension.

Putnam County Municipal Court Judgments

June 6

LVNV Funding, LLC, Greenville, SC, default judgment v. Elvira Perez, Ottawa, $1,212.15, plus interest and costs totaling $95.

Village of Ottawa, default judgment v. Cindy Camareno, Ottawa, $652.69, plus interest and fees.

What lessons can we learn from Terra’s LUNA/UST collapse?


The recent sell-off in the crypto market was highlighted by the failure of Terra LUNA/UST, which left investors in shambles, wiped out tens of billions of dollars of value in days, and will most likely induce a political response. strict when it comes to stablecoin regulations. close future.

TerraUSD, or UST, was designed to be an algorithmic stablecoin – a specific digital asset pegged to the value of one US dollar. To maintain their value, algorithmic stablecoins are backed by a set of smart contracts on the blockchain, also called a “protocol” that require collateral in the form of other digital assets to be placed in the system in order to issue algorithms. stablecoins. .

Unlike reserve-backed stablecoins – which rely on a third-party organization to manage the monetary supply and maintain adequate reserves, usually in the form of US Treasury bonds, cash equivalents or other traditional assets – Algorithmic stablecoins do not rely on a third party but rather on programmable software to control supply and maintain adequate collateral.

The peculiarity of the UST, which made it very susceptible to a bank run, was that the liabilities of the UST were mainly backed by LUNA, a sister cryptocurrency native to the same underlying network – the Terra blockchain. Every time someone wanted to create a show of UST, a certain amount of LUNA had to be taken out of circulation (burned). And vice versa, every time someone burned UST, they created LUNA (minted) tokens.

Terra Economy: The LUNA and UST Relationship

Terra’s algorithmic stablecoin and its reserve currency LUNA worked in an intentionally structured and symbiotic way. Did this amount to a Ponzi scheme? Consider built-in incentives.

From March 2021, the Anchor protocol – a decentralized protocol native to the Terra blockchain – offered between 18 and 23% interest rate on UST filings, and naturally it started attracting a lot of depositors. The deal seemed almost too good to be true: all everyone had to do was get their hands on UST and deposit it on the Anchor protocol for a return of around 20% on the dollar.

As the market demand for the UST increased, the circulation of the stablecoin increased and for this, as explained earlier, the burning of LUNA tokens was necessary. This created upward price pressure on LUNA for several months – its price rose from US$6.50 to a high of US$116 in just over 13 months, a 16x increase. But with the increase in stakes (depositors) on the Anchor protocol, the passive interests of the Terra blockchain have skyrocketed in absolute value.

Luna Foundation Guard, a Singapore-based nonprofit created to facilitate the Terra ecosystem, had to repeatedly inject capital into the Anchor protocol so that it could cover debts and pay out the return to depositors.

It was not a stable system initially, but as long as the adoption rate of UST was coupled with the rising price of LUNA, there was theoretically enough collateral, even if it consisted of a single underlying asset volatile and poorly constructed.

However, when the price of LUNA started to drop sharply, the real chaos began. All the dynamics that followed can be simplified as follows:

  1. People take out (burn) UST and get (mint) LUNA;
  2. They sell LUNA to other stablecoins like USDC, USDT, and DAI to get out of the Terra ecosystem completely;
  3. The price of LUNA drops;
  4. The cycle repeats and grows stronger as panic and uncertainty spread further.

When enough people are engaged in this cycle, the time comes when the UST’s liabilities exceed its assets and a “bank run” begins.

At this point, market speculators also play their part. Seeing the system shaking, they add more fuel to the fire by starting to bet against the Terra ecosystem – shorting out both UST and LUNA. Somewhere at this point, the UST begins to unanchor significantly from the value of 1 USD.

Enter the death spiral

And here comes the infamous death spiral. Arbiters are beginning to exploit UST’s interleaved mint/burn mechanism. The relationship between the two digital assets is programmed in such a way that 1 UST can always be exchanged for 1 USD of LUNA, regardless of the current price of LUNA.

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So, whenever the UST is below $1, it is economically feasible to buy it back for $1 in LUNA and instantly sell LUNA to complete the arbitrage. Unsurprisingly, that is exactly what happened. It drained all collateral from the system, demolished the price of LUNA, and drained the majority of deposits from the Anchor protocol. The number of UST filings rose from around 14 billion on May 6 to 1 billion on May 19, a drop of 93% in less than two weeks. It was truly a storm of biblical proportions.

Additionally, the supply of LUNA is elastic, which means that when the price drops, more LUNA is released to help maintain the active/liability balance of the UST. The price drop, however, was so severe and rapid that elasticity was a bug and not just a feature in this particular case and completely destroyed the value and recoverability of the underlying LUNA.

Following the withdrawal of the UST, the circulating supply of LUNA dropped from 345 million to 6.5 trillion (yeah trillion) coins, making it essentially worthless. LUNA, now renamed Terra Classic, or LUNC, now has a much lower price $0.0001according to CoinMarketCap.

Could the collapse of Terra have been predicted?

Should the world have seen the LUNA/UST crisis coming? Without question, yes. The transparent nature of blockchain and algorithmic stablecoins also provides anyone curious enough with all the tools to see and understand the circulating supply pattern, mint/burn cycle, and collateralization mechanisms. Even with Terra, there were plenty of whistleblowers publicly campaigning for the impending doom that is approaching, but human psychology has triumphed over all.

Even though you were skeptical at first but continued to earn a 20% return on your assets, after a while, probably subconsciously, you started to minimize the red flags and focus on the positives. At least until shit hits the fan.

Lessons to be learned

The tragic case of Terra, which could be the biggest wealth destruction event in the crypto market, does not indicate that there is “no low risk in crypto”, but rather shows that the market is still in its development phase, and what we have witnessed can be classified as the adaptation of the crypto market to the changing environment.

TerraUSD is a peculiar and poorly designed stablecoin, and this is the main reason why this experiment ended badly. Since then, other stablecoins and their respective collateralization mechanisms have also come under market pressure. On May 12, even Tether (USDT) – the largest centralized stablecoin, experienced a 6% unpeg event that lasted around four hours.

Some stablecoins have been completely #rekt, some have lost their peg for a while, and some have come out unfazed, like USDC or DAI. The lesson here is that fundamentally sound systems prevailed and acted as safe havens during the overall market sell-off. It will not go unnoticed by market players, and confidence in them will only grow.

Each upcoming competitor will have to earn their place among the stablecoin elite. They will be tested, as they should be, and the fittest and best-designed ones will survive, ultimately making the whole ecosystem more efficient, safer, and more resilient.

Your student loan officer is about to change, if you’re on track for this key loan forgiveness program


Buckle up – millions of borrowers who are on track for a key student loan forgiveness program for public service workers are about to be transferred to a new student loan service. Here’s what you need to know.

How the Federal Student Loans Service Works

A student loan manager is basically an agent or contractor hired by a lender to administer student loan accounts on their behalf. Usually, a student loan officer does not actually “own” the loan. Rather, it is an entity engaged to manage borrower accounts, communicate with borrowers, process payments, and review applications.

To administer its extensive federal student loan system, the US Department of Education contracts out service operations to several companies. But over the past two years, there have been major changes in the federal system for administering student loans. Several large loan managers have retired, while other loan managers have been recruited or have had their roles expanded. For example, Navient – one of the department’s main student loan managers – began withdrawing from the federal student aid system last year; the Department made the transfers of borrower accounts from Navient to Aidvantage – a new loan servicer – earlier this year.

Loan servicing transfers have always been disruptive to borrowers, and sometimes key borrower account information or records are lost in the reshuffle. Managing transfers can also be confusing for borrowers.

This year, that confusion can only be compounded by the nationwide suspension of outstanding payments on most federal student loans, which has been in effect for more than two years. Most federal borrowers have not had to make payments or contact their loan officer since March 2020. The payment pause is currently scheduled to end August 31, 2022, but could be extended.

A new student loans manager will support the PSLF program

The Pennsylvania Higher Education Assistance Agency (PHEAA) operates FedLoan Servicing, which has been a major contractor for the Department of Education. In particular, FedLoan Servicing is the government’s prime contractor to administer Public Service Loan Forgiveness (PSLF) – a key federal student loan forgiveness program that can enable borrowers to obtain forgiveness from their loans after 10 years of qualifying payments while working full-time for nonprofits or government organizations.

FedLoan announced last year that it would withdraw from the Department’s loan management system. His federal contract was due to expire in December, but FedLoan and the Department of Education reached an agreement to extend it until 2022 to allow for a smoother transition. Millions of borrowers who have FedLoan accounts have already had their loans transferred to several other loan servicers under contract with the Department such as EdFinancial and Nelnet

But borrowers on track for the PSLF have continued to stay with FedLoan, especially as the Department implements the Limited PSLF Waiver — a temporary initiative by the Biden administration that loosens PSLF rules and will allow the Department to education to retroactively count more eligible payments for borrowers, bringing millions closer to student loan forgiveness.

That’s about to change. On June 3, the Education Department confirmed that beginning this summer, PSLF borrowers will transfer from FedLoan to MOHELA, one of the Department’s other student loan servicers. MOHELA will take over the administration of the PSLF program.

“Beginning in early July, the first transfers of FedLoan Servicing Public Service Loan Forgiveness (PSLF) borrowers to MOHELA will take place,” the ministry said in a June 3 announcement. “These transfers will continue throughout the summer, and no action is required of you during this process.

What PSLF Borrowers Need to Know About Transferring Student Loan Servicing from FedLoan to MOHELA

According to the Ministry of Education, borrowers will receive multiple notices as transfers occur, both before and after the transfer.

The Department also says borrowers who have submitted PSLF certification forms or applications need not worry about disruptions.

“PSLF discharges for borrowers who meet all eligibility requirements will continue to occur during the transfer period,” the Department says. “If you first submitted a PSLF form after May 1, 2022, your form will be sent to MOHELA for processing after July 1, 2022. Once your PSLF form has been processed, your account will be transferred from your current provider to MOHELA. ”

Borrowers who obtain forgiveness of their loans under the PSLF before the transfer will not be transferred to MOHELA, according to the Department.

“Federal Student Aid is committed to keeping borrowers informed about the transition of the Public Service Loan Forgiveness Service (PSLF) from FedLoan Servicing to MOHELA,” said Richard Cordray, Chief Operating Officer of Federal Student Aid, in a Tweeter tuesday.

If you are unsure if your federal student loan officer has changed, you can get key information about your loan officer through your StudentAid.gov portal. In the meantime, borrowers should ensure that their contact details (including mailing address and email address) are up to date. It may also be a good idea to upload and retain key records and correspondence, such as payment histories, PSLF payment statements, and other important letters.

Further Reading on Student Loans

5 things borrowers should know about Biden’s $25 billion student loan forgiveness

Student loan pause: Biden officials hint at another extension, potentially tied to student loan forgiveness

560,000 borrowers will get automatic student loan forgiveness, but others can still apply for relief

Biden’s new student loan forgiveness changes could end up costing some borrowers

Comment Deadline Approaches for CA’s Tedious Complaint Handling and Reporting Proposal | Manatt, Phelps & Phillips, LLP


What happened

DFPI released proposal to implement California Consumer Financial Protection Act (CCFPL) Section 90008, which requires DFPI, by rule, to require certain “Covered Persons” to provide timely responses consumer complaints and inquiries.

Who would be affected by the proposal?

As we noted prior to the adoption of the CCFPL, the term “Covered Person” is broadly defined to include any person who offers or provides a consumer financial product or service to California residents. But then the CCFPL exempts from coverage a large number of people who meet the definition but are already subject to some level of supervision by California or another agency. The proposed complaint handling regulations add two categories of exempt persons: (i) any consumer reporting agency as defined by the Fair Credit Reporting Act and (ii) any student loan officer as defined by Section 1788.100 (s) of the California Civil Code. But even after these exemptions, the proposed regulations on handling complaints would still apply, among others:

  • Merchants, retailers, and others routinely extend consumer credit under the federal Truth in Lending Act, such as through retail installment sales contracts that meet certain conditions
  • Collection agents
  • Payday lenders operating under the California Deferred Deposit Transaction Act
  • Persons and entities providing debt settlement and credit repair services

The heavy demands proposed

The proposal would require responses to both “complaints” and “inquiries”:

  • A “complaint” generally refers to any expression of dissatisfaction by a consumer with a financial product or service.
  • An “enquiry” would mean a question or request for information, interpretation or clarification submitted by a consumer regarding a specific issue or problem with a financial product or service.

1. Complaint Requirements

The regulations would require affected consumer financial service providers to issue a written “final decision on all matters” for each complaint within 15 calendar days of receiving it. This written response should include the following details: an explanation of the decision, the specific reasons for the decision, a summary of the steps taken to respond to the complaint, and any corrective action that will be taken in relation to the complaint.

The recipient of a complaint may extend the response time for up to an additional 45 calendar days if it provides the complainant with a written update regarding the status of the complaint within three calendar days of the end of the initial response period. 15 days.

The regulation would also require affected providers to, among other things:

  • Maintain a phone number through which complainants can file oral complaints either (i) to a live representative during normal business hours or (ii) to voicemail, which should be returned by a live representative within 24 hours.
  • Disclose in all written communications to consumers of financial products or services, excluding text messages, the procedures for filing complaints in at least 12 point text.
  • Prominently post at or near the top of the main page of their websites a link to a complaint form and instructions on how consumers can submit oral and written complaints.

Public reporting to the DFPI: Affected providers would also be required to submit very detailed statistics on the handling of complaints to the DFPI every quarter, along with a description of any “pattern of complaints” and a “summary of any corrective actions taken” . These submissions to the DFPI would be made public.

Third-party service providers: Relevant providers should also contractually require third-party service providers to conduct independent investigations, in addition to the providers’ own investigations, into complaints about the third party’s conduct.

2. “Enquiries” Requirements

Requirements for handling “inquiries” would be similar to requirements for handling complaints, with a few exceptions, including that recipients: (i) would need to review each request to determine whether it should be treated as a complaint; (ii) would not be entitled to an extension of the 15 calendar day period to respond to a request; (iii) should submit to the DFPI an annual (rather than quarterly) report on the investigations, which would apparently not be made public; and (iv) would not need to require third party service providers to conduct independent investigations of inquiries.

why is it important

Mandatory complaint and inquiry processes and reporting requirements may require a substantial investment of compliance resources, especially as reports become public. Further, the requirement that relevant vendors require third party service providers to conduct independent investigations of consumer complaints involving the third party may add significant transaction costs to negotiating such third party relationships. Similarly, existing contracts with third-party service providers should be amended to comply with this requirement.

Affected vendors may also find it difficult to fully and adequately respond to complaints and inquiries within the relatively short response time allowed by the proposal. The proposal would also appear to require responses even to frivolous or irrelevant disputes, disputes filed by credit repair agencies, and duplicative disputes.

In light of these concerns, affected consumer financial service providers should strongly consider submitting comments to the DFPI by the July 5 comment deadline.

Redico of Southfield completes Bloomfield Village redevelopment

The 87-acre mixed-use Village at Bloomfield comprises nearly 1.1 million square feet of development. // Courtesy of Redico

Redico, a Southfield-based real estate investment and development company, has completed the redevelopment of its The Village at Bloomfield property in Bloomfield Township.

The 87-acre mixed-use development, located on Telegraph Road in the Bloomfield Hills business district and near Pontiac, comprises nearly 1.1 million square feet of development.

Prior to REDICO’s purchase of The Village at Bloomfield, the site was envisioned as a lifestyle center, including condos, retail stores, a health club, movie theater and hotel.

Construction on the project, then called Bloomfield Park, began in 2006, but the original developer did not complete construction and the property lay derelict for nearly a decade.

In the fall of 2014, Redico and its California-based financial partner, Pacific Coast Capital Partners, purchased the foreclosure rights to the site from mortgagee Wells Fargo Bank. Redico changed the name to The Village at Bloomfield and began redevelopment in 2018, tearing down all of the original construction except for a building and an adjoining parking structure.

“The completion of The Village at Bloomfield is a long-awaited announcement in the community,” said Dale Watchowski, President and CEO of Redico. “The Redico team have worked hard to ensure this attractive mixed-use development gets the end it deserves – becoming an epicenter of activity in a bustling area. We are thrilled that residents of Bloomfield Hills, Pontiac and surrounding areas can enjoy all it has to offer.

The development includes retail, medical offices, fitness centers, restaurants, grocery stores, hotels, seniors’ residences and multi-family housing. One tenant, Henry Ford Health, owns an 85,000 square foot ambulatory care facility, as well as a Henry Ford OptimEyes-branded retail store and optical center.

For more information, visit redico.com.

APX Stream partners with Seismic to enable managers to streamline and automate data publishing


BOERNE, Texas, June 14, 2022 /PRNewswire/ — Flux APX, Inc.the industry-leading independent investment data management and distribution company, announced a partnership with Seismicthe global leader in activation, which will offer asset managers a transparent pipeline for data submission and automated generation of marketing materials.

APX Stream offers a cost-effective solution that automates investment manager data connectivity with an enterprise-grade solution for investment data assembly, warehouse management, and distribution process to over 50 investment databases. investment. The Seismic Enablement Cloud™ helps organizations of all sizes engage customers, empower teams, and drive revenue growth. The alliance between APX Stream and Seismic now offers asset managers a turnkey solution for managing investment data and extensive marketing distribution.

Kevin DunnPresident and Managing Partner of APX Stream, says “this new alliance is significant for current and potential new customers. In our continued pursuit of providing excellent data management and automated solutions, our integration with Seismic will further increase efficiency and consistency of data flow across the entire spread of our client’s marketing strategy Our goal is to provide the asset manager with a single location in which they can assemble, store and distribute all of their marketing and compliance data APX Stream Data Vault will now be able to power Seismic with the same marketing materials information asset managers use to create reports and publish to consultant databases.”

The alliance between APX Stream and Seismic will bring even more benefits to their joint customers, including:

  • Data flow efficiency, streamlined with prebuilt integration
  • Content including performance, assets under management (AUM) and portfolio holdings as well as characteristics
  • Consistency across all data sources
  • Use of content validated by compliance
  • Creation and distribution of fact sheets, client presentations, pitch books, etc., using real-time data

“We are always looking for new ways to meet our customers’ needs and help them access their seismic content and data wherever they work,” said Preseetha Pettigrew, Global Vice President, Strategic Alliances , Seismic. “We are excited to launch this integration with APX, which allows our joint customers to seamlessly create personalized and compliant customer-facing content.”

For over a decade, APX Stream has managed client profiles in the industry’s leading asset manager databases. With its expertise in data warehousing, reconciliation and data distribution, APX Stream provides the asset management community with extensive brand visibility and recognition to those conducting real-world mandate searches.

“Seismic is one of the most widely used destinations for data globally. APX Stream is the largest independent investment data hub powering not only the entirety of global databases, but now also includes a DDQ and collateral company like Seismic,” says Richard Jackson, Founder and CEO of APX Stream. “Asset managers want to be efficient and profitable in their data marketing. To have access to the deepest and most impactful APX vault, the manager’s data warehouse, and to have that connection to Seismic for the production of guarantees enables APX Stream customers to place all data in one place that distributes to every location the manager needs through automation and security without compromising data integrity.The APX Stream and Seismic tools designed to share data are state of the art and the fastest delivery we have ever built.With the leading technology teams at APX Stream and Seismic, the asset manager relies on our IT teams to develop effective tools as well as their own company’s other technologies.”

Asset managers interested in learning more about working with APX Stream can visit https://apxstream.com or email [email protected] request a demo.

APX Stream helps investment management firms, from single product boutiques to global asset managers, effortlessly manage and market their investment data. APX Stream Data Vault is the emerging market leader in investment data storage, management and distribution. A highly secure and customized SQL database, APX Data Vault enables the automated assembly, storage, reconciliation and distribution of investment management data. APX Stream also offers traditional investment management marketing consulting services, including design and maintenance of marketing materials, digital strategy, website design, product positioning and due diligence.

CONTACT: Zachary Allegretti II1-973-850-734


Opinion: Are lenders dropping the ball on homeowner assistance?


Buying a home is stressful in any market. Now, with inventory levels at historic lows and median home prices at historic lows, the buying climate has become a Thunderdome. Nearly one in four recent home buyers have scheduled additional therapy sessions to deal with stress, according to a recent Realtor.com survey. Homebuyers are also looking for information about another possible source of help: homebuyer assistance programs.

From Multiple Listing Services (MLS) to consumer-facing giants like Zillow, real estate agent.com and red finthe real estate industry is raising awareness of homebuyer assistance programs through agent training and self-service tools that help consumers find the programs they qualify for.

If real estate professionals are perfectly positioned to introduce the concept of home ownership assistance, real estate financing is not their thing. So they’ve taken what I like to call the “ask your doctor” approach, where they advise buyers to ask their “doctors” (i.e. their lenders) if the buying a house suits them. With hundreds of thousands of people using online homebuyer assistance tools every day, it’s time for lenders to get up to speed on these programs to help customers determine if homebuyer assistance is buying a house suits them.

Is it still possible today to win offers with help with the purchase of a house?

An unfortunate, though common, misconception among lenders is that buying a home with homebuyer assistance is not feasible in today’s competitive market. In fact, over half a million people have bought homes with the help of these programs in the past year.

Additionally, there is an abundance of homebuyer assistance programs to meet borrower demand. As of the first quarter of 2022, there were 2,238 active homebuyer assistance programs nationwide — a figure that includes down payment and closing cost programs, mortgage credit certificates and affordable first mortgages — with at least one program available in each of the 3,143 US counties and 10 or more programs available in over 2,000 US counties.

There is consumer demand for home buying assistance. There are programs to support the application. And, most importantly, borrower financing with home purchase assistance is good for business.

The Business Case for Offering Home Buying Assistance

An analysis of loans refused by Down payment resource found that almost a third of all denials could have been converted into closed loans if home purchase assistance had been used. By simply putting homebuyer assistance on the table, lenders could potentially close over 30% of units. And even better, this low hanging fruit can be reaped by capturing leads that lenders have already had a hard time getting through the door.

In addition to providing a significant income opportunity, home buying assistance also connects lenders with real estate professionals. This signals a huge opportunity for lenders in a buying market where relationships with real estate professionals, especially buyer’s agents, are king.

One of the most common questions asked by real estate professionals is: “Can you tell me which lenders offer home purchase assistance programs?”

Inventory constraints and rising prices are making it harder than ever for buying agents to help homehoppers move into the homes they love. As a result, agents are eager to connect with lenders who not only offer home buying assistance, but who they can count on to explain these programs and facilitate a smooth financing experience.

In today’s market, every lender needs a superpower, and it’s in demand. Additionally, financing with homeownership assistance is a relatively uncontested market space, as many loan originators are inhibited by their fear of the unknown.

In addition to being the right thing to do, helping borrowers become homeowners through homebuyer assistance puts lenders at the heart of a transformative financial step that creates loyal customers for life.

To understand why borrowers who qualify for home purchase assistance can be so grateful to a lender who offers a winning financing game plan, consider their circumstances. After recovering from the economic setbacks of the Great Recession, a large cohort of millennial homebuyers are entering the market with solid incomes and demonstrated ability to pay – only to have their dreams dashed. As housing prices rise in communities of color, many are trying to get their foot in the door before they get paid.

First-time and traditionally underserved homebuyers are in dire straits right now, not because they are missing out on some abstract American dream of homeownership, but because they are losing their best opportunity. sustainably increase their wealth.

Home ownership is the primary vehicle for creating wealth in the United States, where the average homeowner has a net worth 40 times that of the average renter. Today, many homebuyers watch in anguish as a narrow window of opportunity for financial security closes just beyond their reach, perhaps forever.

What to do

As housing finance professionals, we have a significant impact on the ability of cash-strapped borrowers to access home ownership, and we must strive to be informed of the affordability programs available to borrowers in our markets. . While homebuyer assistance programs are not a panacea for affordability issues facing consumers, they are an important tool for giving qualified borrowers a boost in homes.

When homebuyers lose a handful of deals to cash offers, it’s easy for them to get discouraged. It is essential that lenders encourage them to persevere, because house prices and rents will only continue to rise.

In ultra-competitive markets, winning deals for borrowers who don’t have cash reserves on hand to cover valuation spreads can require difficult conversations where expectations about neighborhood and timing of purchase must be reset. When mortgage professionals have these discussions, it is important that borrowers understand the cost of waiting. Appreciation will likely exceed borrowers’ ability to save, and interest rates and inventory issues are highly unlikely to improve in coming years.

Instead of spending years saving to increase available cash, lenders should help homebuyers finance with a down payment assistance program, of which there are thousands. It’s a common misconception that homebuyer assistance programs only cater to low-income borrowers, new homeowners, and properties with a limited sale price. In truth, there are a plethora of programs designed for people of color, veterans, community heroes such as firefighters and nurses, and more.

Borrowers who need home buying assistance are no longer a niche market segment. With home prices skyrocketing at an unprecedented rate, borrowers who would benefit from homeownership assistance now represent a large market segment on their own. Especially as refi volume evaporates and purchase volume declines, it is crucial that lenders offer relevant lending programs in order to capture every fundable loan.

Rob Chrane, Founder and CEO, Down Payment Resource.

This column does not necessarily reflect the opinion of the editorial staff of HousingWire and its owners.

To contact the author of this story:
Rob Chrane at [email protected]

To contact the editor responsible for this story:
Sarah Wheeler at [email protected]

Australia and EU could take the lead in BNPL regulation


Australia, the European Union, the United Kingdom and the United States are considering regulating the buy now, pay later (BNPL) sector. Last year, the three entities announced initiatives to bring these mostly unregulated products into a legal framework that could offer more protection to consumers.

Six months into 2022, regulators are still deciding what the next steps are. During these six months, some BNPL providers have taken this issue into their own hands and decided to voluntarily increase disclosure, transparency or even start sharing information with credit agencies to allow consumers to build a credit history. This is for example the case of Klarna, which since June 1 has shared BNPL purchases made in the United Kingdom with two credit agencies.

But in recent weeks, policymakers in some of these Western countries have resumed efforts to regulate the sector. Unlike in 2021, when the US and UK appeared to be leading a regulatory push, Australia and the European Union are now perhaps the countries that have taken the most steps to design a new regulatory framework.


Last week, Stephen Jones, Australia’s financial services minister, said the government would press ahead with plans to bring the BNPL under credit laws. BNPL providers are currently exempt from laws designed to protect borrowers using products such as credit cards or personal loans.

“Products like Zip and Afterpay, I think are a good innovation in the credit market,” Jones said. “Can we stop arguing about whether [they’re] credit or not? It really is a dead end street. Let’s start working on the regulations [them] in the credit area. We welcome the fact that they have introduced a code, [and will] move on to legislating and closing the gaps.

European Union

The EU bloc is taking tentative but quick steps to regulate the BNPL. Unlike other countries that may seek comprehensive BNPL regulations, EU regulators are modifying existing regulations to accommodate BNPL products and provide more consumer protection.

The European Commission is expanding the scope of its consumer credit directive to include new types of loans, and BNPL products are one of them. If these new rules are approved, BNPL providers will have to meet more transparency and disclosure requirements, but no obligations on the types of fees or the amount of loans will be imposed. Last Thursday (9 June), the Council of the EU adopted some amendments to the text which may be less burdensome for BNPL providers than the original text. This week, the European Parliament is expected to vote on the proposal at committee level. If the Council of the EU and the European Parliament reach an agreement, the new rules could be approved at the last plenary session before the summer break at the end of July.

Read more: EU Council Amendments to Consumer Credit Bill Favor BNPL Suppliers


BNPL products in the UK are unregulated as they have an exemption in the law for short-term credit-free credits. In 2021, the Treasury launched a consultation on BNPL with the clear intention of bringing these products into a regulated legal framework. The consultation closed on January 6, but neither the results nor an action plan have yet been published.

This consultation was to gather information from relevant stakeholders and the public, not to decide whether or not to regulate, and although this is likely, according to various stakeholders, it would be the Financial Conduct Authority (FCA), not the Treasury, which would design the new rules. However, given that the FCA cannot conduct its own consultation until it has the green light from the Treasury, any regulatory framework seems unlikely before 2023.

Read also: UK closes BNPL consultation, eyes new regulations in 2022

United States

The Consumer Financial Protection Bureau (CFPB) opened an investigation into Buy Now, Pay Later (BNPL) on December 16, 2021. As part of this investigation, the CFPB asked five key BNPL suppliers to provide data intended to clarify the risks and benefits of this product for consumers. The agency also sought public comment on this issue. The deadlines for submitting information were March 1 and March 25 respectively, and now the agency must decide what to do next.

In one of the submissions, 21 attorneys general urged the CFPB to analyze the BNPL market and use its regulatory powers to increase fee transparency, disclosure, credit reporting, dispute resolution mechanisms and the use of consumer data, among others.

Yet despite the agency’s interest in regulating this space, CFPB Director Rohit Chopra did not list the BNPL sector as a priority when he testified before the House and Senate. He has mainly focused his attention on promoting open banking, imposing limits on “junk fees” and increasing surveillance of repeat offenders.



About: PYMNTS’ survey of 2,094 consumers for The Tailored Shopping Experience report, a collaboration with Elastic Path, shows where merchants are succeeding and where they need to up their game to deliver a personalized shopping experience.

SKELETON CREW’s Phylicia Rashad wins 2022 Tony Award for Best Performance by an Actress in a Featured Role in a Play


Phylicia Rashad won the 2022 Tony Award for Best Performance by an Actress in a Featured Role in a Play for SKELETON CREW.

Phylicia Rashad brought laughter to millions of viewers around the world, moved viewers to tears, thrilled moviegoers, opened up new perspectives for students by teaching masterclasses at renowned educational institutions such as Howard University, Julliard and Carnegie Mellon, served on the boards of prestigious organizations and broke new ground as a director. She is one of the most extraordinary performers in the entertainment world.

She became a household name when she portrayed Claire Huxtable on The Cosby Show, winning numerous honors and awards for over two decades. She teamed up with Bill Cosby years later on TV as Ruth Lucas on Cosby. She performed the role of Dr. Vanessa Young in the NBC series, Do No Harm.

She has also been a force on stage, appearing both on and off Broadway, often in projects that showcase her musical talent such as “Jelly’s Last Jam”, “Into The Woods”, “Dreamgirls” and “The Wiz” as well as dramatic roles in August Osage County (Violet Weston), in Tennessee Williams‘ Cat on a Hot Tin Roof (Big Mama – a role she reprized on the London stage), in August Wilson‘s Gem Of The Ocean, (Aunt Ester – Tony Award nomination) and in Shakespeare’s Cymbeline (Queen Britannia) at Lincoln Center.

She received both the Drama Desk and the Tony Award for Best Actress in a Play, as Lena Younger in the Broadway revival of Lorraine HansberryIt’s A Raisin In The Sun. She appeared in Tyler Perry‘s Good Deeds, and starred in its highly acclaimed film version of Ntozake ShangeIt’s for girls of color who’ve thought about suicide when the rainbow isn’t enough. She received rave reviews from critics for her directorial debut at the Seattle Repertory Theater with August Wilson‘s Gem of the Ocean and for the Ebony Repertory Theater’s production A Raisin in the Sun in the spring of 2011. She recently directed August WilsonCome and Gone by Joe Turner at Forum Mark Taper in Los Angeles.

She is the first recipient of the Denzel Washington Chair of Theater at Fordham University and received honorary doctorates from Spelman College, Fordham University, Carnegie Mellon University, Howard University, Providence College, Morris Brown College, University Clark Atlanta, Barber Scotia College, St. Augustine College and Brown University. She sits on the advisory board of the PRASAD project and on the board of directors of Theater of True Colors, the Broadway Inspirational Voices, the Actors Center, the Center for African American Studies at Princeton University, and the ADEPT Center, which is leading the restoration of the historic Brainerd Institute. Originally from Houston, Texas, she graduated magna cum laude from Howard University.

A gripping and timely Broadway premiere from the Tony Award® nominee Dominique Morrisseau (That’s not too proud, Pipeline). In 2008 Detroit, a small auto factory is on the verge of foreclosure and a tight-knit working family is at stake. With uncertainty everywhere, the line between blue-collar and white-collar workers is becoming blurred, and this working family must reckon with their personal loyalties, their survival instincts, and their ultimate hopes for humanity. The New York Times awarded this astonishing work a Critics’ Choice and applauded: “A very fine new play…hot-blooded, shrewd, profoundly moral, and profoundly American.” And The Amsterdam News hails it as “a great example of how theater imitates life…intense, touching and funny”. Management is MTC’s Tony-winning artistic advisor Ruben Santiago-Hudson (Lackawanna Blues, August Wilsonis Jitney).

bank ordered to repay the interest subsidy on the loan | Bangalore News

Bangalore: A branch of a nationalized bank in Bangalore refused to grant an interest subsidy for the student loan raised by a doctor from an underprivileged background. After graduation, the doctor took the case to a consumer court in Bengaluru.
Bank officials were ordered to pay the amount of the subsidy into the borrower’s savings account with interest, in addition to paying him 35,000 rupees as compensation for the unfair practice.
In 2014, HMT Layout resident NG Chetan Kumar and his father Ganganna approached the Sudhamanagar branch of the bank for a student loan. Ganganna, who earned only 95,000 rupees a year, produced a certificate from the tahsildar of Bengaluru North taluk to the banking authorities to show that they belonged to the economically weaker section of society. The father and son applied for an interest-subsidized education loan offered by the Indian government to students from disadvantaged backgrounds, which the SBI branch manager blatantly refused. Keeping Chetan’s future in mind, Ganganna offered his house worth Rs 95 lakh as collateral and secured a loan of Rs 15 lakh.
Chetan then completed his medical degree at Texila American University, specializing in pulmonary medicine. On September 18, 2020, the doctor released his SBI student loan, including interest and additional fees, saving his father’s house. On January 4, 2021, he approached the branch manager of the bank in Sudhamanagar to seek reimbursement of the interest subsidy amount for his fully repaid student loan. Despite multiple requests, the bank demanded that no interest subsidy be granted for a guaranteed student loan.
In February 2021, the doctor contacted the Bengaluru 1st Rural and Urban Supplementary District Consumer Dispute Redress Forum in Shantinagar, with a complaint against SBI for service deficiency. The bank’s lawyer argued that the doctor only contacted the court after closing the loan amount, which meant that he had the ability to repay it and did not belong to the party economically the most. weakest in society. In the event that the doctor’s request is taken into account, a Pandora’s box will be opened and anyone who has cleared student loans with the bank will try to seek reimbursement of the amount paid in the form of interest, he said. he adds.
On May 17, the consumer forum noted that the bank’s approach was flawed. According to the bank’s scheme, collateral is obtained for loans above Rs 7.5 lakh and up to Rs 20 lakh. The judges said that the interest subsidy should be granted irrespective of the amount of the loan, provided that the student belongs to the economically weaker stratum of society and has a family income of less than Rs 4.5 lakh per year. year. Parents’ annual income has been increased to Rs 8 lakh per year.
In view of this, the bank’s assertion that the plaintiff is wealthy because he owns a property worth Rs 95 lakh and has repaid the loan and is therefore not eligible for the grant cannot be accepted.

All the hilarious things we heard at Selfridges, from borrowing £10,000 for a shopping spree to bizarre complaints


Selfridges is like Harrods’ little brother. Equally chic and expensive but slightly more modern and surrounded by less glitz and circumstance.

It attracts people from all over the world, from tourists to curious East Londoners. So, unsurprisingly, there are plenty of juicy conversations floating around the huge department store.

There’s plenty to admire in their six floors, from expensive jewelry and designer clothes to exquisite homewares and artisan chocolates. Visitors are understandably fascinated by all that is on offer, so I braved the rush hour crowds of Oxford Street for a stroll and some playful listening.

READ MORE: All the hilarious things we heard at Harrods, from tourists browsing Royal Family wares to shoppers who vowed to go to M&S instead

I left for a eavesdropping

Despite its fame, Selfridges has regular customers like any other store and the security guards know them well. An elderly lady was greeted at the door with a theatrical raising of a hat and a booming “hello, milady”.

Most tourists immediately flock to the famous perfume department of Selfridges, where vendors offer samples left and right. And while the smell is overwhelming to many, one woman was disappointed with her recently purchased diffuser.

At the store, diffusers range from £27 to £475 and the buyer had already had two refills: ‘I bought hers last week and my house barely smells of Selfridges,’ she complained.

The woman was disappointed with her diffuser

Meanwhile, a guy coming down the escalator loudly proclaimed, “This escalator keeps giving me an electric shock.” Selfridges is known for catering to the wealthy, and a passer-by told her friend that someone had ‘borrowed £10,000’ from a third party.

But the shop’s price didn’t stop a soul in the chocolate aisle from asking for more chocolate in her candy box: “One of those please.” And one of those. Three of those. Oh go on, one more. “She was still advancing when I walked away.

Not everyone can resist a good selection of chocolates

“I don’t usually call my friends, so consider yourself lucky,” one customer sneered into her phone as a child next to her shouted “you’re still leaving me” at her mother. The latter stood barely five feet away and shouted at him: “Go faster, then!”

And Selfridge’s prices don’t seem to be stopping many people from enjoying themselves despite the loud music, excessive spraying of perfume, and confusing layout. In the extremely sparkly jewelry section, a woman asked the staff how much a particular bracelet was worth. When told it was £100, she eagerly replied, “Only? How sweet!”

Do you have a shopping story you think we should cover? If so, email [email protected] or [email protected]

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JPM Lending set to expand reverse mortgages to seniors in Colorado and now all of Florida


Leading financial solutions provider, JPM Leading, announces plans to expand its innovative reverse mortgage programs to provide easy access to capital for seniors in all Florida counties.

A reverse mortgage program is designed to allow seniors to adequately support themselves without putting undue financial pressure on their loved ones. Therefore, Joe Parker, CEO of JPM Lending, one of the leaders in providing Reverse mortgages for seniors here in Colorado, seeks to help more seniors in this regard as the company expands its services for seniors in all Florida counties.

There are many misconceptions about reverse mortgages, one of the most common being, “I don’t have enough income to qualify for a reverse mortgage.” This is where the vast experience of the mortgage professionals of JPM loan prosperous, the company’s typical customers normally benefiting only from social security. The company also has the expertise to know how to access other resources to meet the minimum income requirement.

A second very common fallacy is that “I can’t qualify for a reverse mortgage because I’m currently in foreclosure.” JPM Lending excels at this too, recently rescuing a senior who was so far into foreclosure that the sheriff’s sale was looming in less than a week. “Many other reverse mortgage companies would not even consider helping this elderly person. We stepped in and committed all of our resources to help this elderly person save their home. One of the secrets that other reverse mortgage companies won’t tell you is that there is no underwriting on a reverse mortgage when it comes to FICO credit scores on a reverse mortgage. In fact, this person had a credit score of less than 400. The reverse mortgage was designed to help relieve seniors and allow them to age in place and keep their home.said Joe Parker, CEO of JPM Lending.

For more information on how to get a reverse mortgage and the range of solutions offered by JPM Lending, visit – www.jpmlending.com.

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Contact person: Joseph Parker
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Russia seizes Putin critic’s property as collateral for charges he denies


Ukraine tried to push back Russian troops in the east and south on June 10 as France offered to help secure access to the port of Odessa to allay fears of a global grain crisis.

Fierce fighting continued in the eastern region of Donbass, where President Volodymyr Zelenskiy said Ukrainian forces were “holding on” as Moscow concentrated its firepower there.

Live briefing: Russia’s invasion of Ukraine

RFE/RL Live briefing gives you all the major developments on the invasion of Russia, how Kyiv is fighting back, the plight of civilians and the Western reaction. For all of RFE/RL’s coverage of the war, click here.

The fiercest fighting is taking place around the eastern industrial city of Syevyerodonetsk, a battle which Zelenskiy says is crucial for the fate of the Donbass region.

Ukrainian forces now control about a third of the key city despite Russia sending overwhelming numbers of troops and equipment into the battle, officials said.

Pro-Russian rebels said they surrounded the Azot chemical plant in Syevyerodonetsk, trapping a small group of Ukrainian forces there.

Rodion Miroshnik, an official in what separatists call the Luhansk People’s Republic, said on Telegram that all escape routes had been cut off. Miroshnik acknowledged the possibility that civilians could still take shelter at the besieged site.

Ukrainian Defense Ministry spokesman Oleksandr Motuzyanyk said Russia was looking for weak points in Ukrainian defenses near the Siverskiy Donets River. He told state television on June 10 that Russian forces had not given up on attempts to launch assault operations in the region.

Some areas of the Zaporizhzhya region have been placed under an extended curfew due to “active hostilities in the region and the real threat to life and safety”, authorities said.

The curfew will be held from 10 p.m. on June 11 to 5 a.m. on June 13 in Vasylivka, Berdyansk, Melitopol and Pologi districts.

The General Staff of the Armed Forces of Ukraine said in its June 10 evening report that Russian troops launched airstrikes on several towns in the Donetsk region using Su-25 aircraft, Ka-52 helicopters and Mi-8 helicopters.

The General Staff declared that the Russian units were prepares to resume an offensive on the eastern city of Sloviansk, firing artillery at several towns.

None of the reports of the fighting could be independently verified.

Zelenskiy’s senior aide, Mykhaylo Podolyak, said that due to Russia’s unbalanced advantage in heavy artillery, Ukraine was losing between 100 and 200 soldiers a day on the front line.

The figure put forward by Podolyak was higher than an earlier estimate by Defense Minister Oleksiy Reznikov, who said on June 9 that Ukraine was losing 100 soldiers a day and another 500 were injured. The discrepancy between the numbers seems to indicate the difficulty of obtaining accurate battlefield information.

Podolyak told the BBC that Ukraine needed hundreds of Western artillery systems to level the playing field with Russia in the Donbass.

Ukraine has also requested humanitarian aid to fight an outbreak of dysentery and cholera in the port city of Mariupol, which has been reduced to rubble.

Mayor Vadym Boychenko told state television that sewage systems were broken and corpses were rotting in the streets.

“Unfortunately… these outbreaks of infection will claim thousands more Mariupolites,” Boychenko said.

He called on the United Nations and the International Committee of the Red Cross to work to set up a humanitarian corridor to allow the remaining residents to leave the town, which is now under Russian control.

The UK Ministry of Defense said earlier on June 10 in its daily intelligence bulletin that there was a risk of a major cholera outbreak in Mariupol.

The bulletin says isolated cases of cholera have been reported in Mariupol since last month. British intelligence also assessed that Russia was struggling to provide basic public services to people in the territories it occupied in Ukraine.

Ukraine and Russia conducted another prisoner exchange, Mykolaiv regional governor Vitaliy Kim said on Telegram. The swap involved four Russian captives for five Ukrainians, including a village chief who was “kidnapped” by Russian forces on March 10, he said.

As Ukrainian grain deliveries increased day by day, an adviser to French President Emmanuel Macron said France was ready to participate in an operation to allow safe access to Ukraine’s Black Sea port of Odessa.

The port has been under a de facto blockade by Russia, and grain is waiting to be exported amid growing fears of global food shortages, particularly in developing countries.

“We are at the disposal of the parties to put in place an operation that would allow safe access to the port of Odessa, that is to say the passage of boats despite the fact that the sea is mined”, has said an adviser to Macron, who asked not to be named.

Macron’s office announced that the French president would visit Moldova and Romania next week to express France’s solidarity with the two allies.

Macron will visit French troops in Romania on June 14 and travel to Moldova the next day.

With reports from AFP, BBC, Reuters, dpa and AP

US banks are finally seeing a recovery in credit card borrowing


NEW YORK, June 10 (Reuters) – Big U.S. banks including JPMorgan Chase & Co (JPM.N) and Citigroup (CN) look poised to boost profits on the back of a recovery in the struggling credit card industry, but a possible recession would set consumers back and result in losses on outstanding loans.

Last week, JPMorgan Chairman and CEO Jamie Dimon warned of growing recession risks and prepared investors for a likely “hurricane.” Read more

In times of economic stability, cards are one of the most profitable businesses for banks, and analysts say a continued recovery in card borrowing would bring relief to banks.

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When consumer spending slumped during the pandemic, Citigroup hit a low point as 2020 ended with a 13% decline in quarterly Citi-branded U.S. card revenue from a year earlier.

Now, overall balances on credit cards and similar loans at U.S. banks are up 15%, as of May 25, from a year earlier, and are back near pre-pandemic levels, according to data. Federal Reserve data. Even better for banks, cardholders are now allowing more of those balances to roll over and incur interest charges instead of paying them off monthly.

Although the size of revolving balances is rarely disclosed by banks, it is critical because interest from revolving accounts generates far more revenue than merchant transaction fees, some of which are shared with card networks, such as Visa and MasterCard.

“The most profitable part of the credit card business is consumers’ revolving balances and their repayment over time,” said Barclays analyst Jason Goldberg.

At JPMorgan, revolving balances are up 8% from the low, Marianne Lake, co-head of its consumer bank Chase, said at an investor conference in May.

During the pandemic shutdowns, consumers have reduced their credit card spending and paid down their balances like never before, thanks to stimulus payments and cash from refinancing mortgages.

The share of active card accounts with revolving balances has increased over the past two quarters to 52.6% after plunging to 51.3% during the pandemic. These balances generally prevailed at around 60% for the seven years before COVID-19, after reaching 70% during the 2008 financial crisis, according to data from the American Bankers Association.


Banks say cardholders are paying off their debts a little slower now, leading to higher interest-bearing balances. Discover Financial Services, for example, said payment rates were still significantly higher than before the pandemic, but had stabilized and even declined slightly in the first quarter.

As lockdowns lifted, banks last year stepped up card marketing and eased credit standards they had tightened earlier in the pandemic. Read more

Credit cards issued quarterly jumped 39% in the fourth quarter of 2021 from a year earlier to 21.5 million, the highest on record and 14% more than before the pandemic, according to the agency. TransUnion credit assessment.

Chase, the largest card issuer in the United States, found evidence to dispel some investor concerns that consumers had moved away from credit cards, JPMorgan’s Lake said.

“The younger generations,” Lake said, “contrary to popular myth, are not averse to credit or credit cards.” Millennials and Gen-Zers among Chase customers spend 60% of their spending on credit cards. And they borrow more as they get older, she said.

Now, some investors fear the banks are getting too much of a boost for credit cards just as the risk of recession is rising with the Federal Reserve’s policy tightening.

Banks say they learned from the financial crisis that knowing who to lend how much is more important to profits than trying to anticipate recessions.

Although card default rates have increased over the past three quarters, they are still below pre-pandemic levels, according to TransUnion data. According to data from the Federal Reserve, credit card bad debt write-off rates at banks rose from 1.57% to 1.82% in the first quarter. That’s half of what they were before the pandemic and low enough for the banks to make money.

For now, unemployment, a big driver of credit card losses, is low and wages are rising, Barclays’ Goldberg noted.

“In the short term,” Goldberg said, “it should be a pretty profitable business. But banks need to be aware of the upcoming financial downturn.”

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Reporting by David Henry in New York Editing by Denny Thomas and Nick Zieminski

Our standards: The Thomson Reuters Trust Principles.

Army officer charged with multiple cases recommended for separation


A commission of inquiry into Lt. Col. Richard Kane Mansir – who has been accused of lying to and cheating on multiple women while still married to his wife, and phoning military awards and deployments to bolster his lies – recommended that he be separated with a general discharge, Task & Purpose has learned.

The commission of inquiry, which met on Monday, recommended that Mansir be separated with a general characterization of the service, according to an army official who spoke on condition of anonymity. A Board of Inquiry is an administrative procedure in which officers senior in rank to the officer in question review the allegations and findings of the investigation and make recommendations on whether or not to retain the officer.

The discharge would allow Mansir to retain his VA benefits, but ultimately prevent him from retiring. While a general discharge is “considered ‘good paper,'” according to the Army, “a discharge under general conditions may result in loss of GI Bill benefits and Civil Service Retirement Credit.”

Lt. Col. Randy Ready, spokesperson for the US Army Center for Initial Military Training at Joint Base Langley-Eustis, Va., confirmed that the council “concluded its work and made its recommendations.” These recommendations will now be sent to the Army Human Resources Command for decision.

“As the board proceedings are not complete until the HRC has made a final decision, no further details will be released due to Lt. Col. Mansir’s confidentiality interests as the matter is still ongoing. “, said Ready.

Soldiers and NCOs compete in the Division Soldier/NCO of the Quarter competition, March 9, 2022, at Fort Drum, New York. (US Army/Sgt. Josue Patricio)

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Mansir’s actions were first revealed by The Daily Beast last year, which reported that the civil affairs officer based at Joint Base Langley-Eustis, Va., was engaged and expecting a child with a woman. , while being engaged to another woman and still married. to his 18-year-old wife, with whom he has three children. As reported by The Daily Beast, he had serious relationships with at least six women for five years while he was married.

He also allegedly lied about deployments and military awards and decorations, even going so far as to provide a woman with false deployment orders and claiming to have received the Silver Star. According to his military record, Mansir served in the 91st Civil Affairs Battalion, 75th Ranger Regiment and Army Special Operations Command. He was deployed twice to Afghanistan, in 2011 and 2012, and served in Mali, Kuwait and Germany, although his file does not provide details.

Among his military awards and decorations are the Bronze Star, the Joint Service Medal of Honor, four Meritorious Service Medals and three Army Medals of Honor. He doesn’t have a Silver Star, according to his file, but in the grand scheme of things, the Silver Star is just one thread in a complex web of lies that Mansir has been accused of spinning.

Chelsea Curnutt, who was engaged and had a child with Mansir, told The Daily Beast that, in retrospect, there were things about their relationship that seemed wrong, but he always explained. In one instance, she recalled finding a video of Mansir online, in which he was talking about a girl he had never told Curnutt about. When questioned, Mansir said his daughter had died.

Army officer charged with multiple affairs and bogus deployments recommended for separation
The oath of office is projected on a screen behind an ROTC cadet as he takes the oath. (Ken Scar/US Army)

In another instance, after the couple decided to move in together, Mansir told Curnutt he was suddenly deployed. She had already been to their new townhouse in Virginia and he was due to follow her shortly, but just two months before he planned to move, he called her from Kuwait, The Daily Beast reported. He said he didn’t know how long he would be deployed.

Four months later, in August, Curnutt saw his jeep near the army post, and although he initially denied it was his car, she saw him again a few days later. . He “played like he was trying to surprise me after the deployment,” Curnutt told The Daily Beast.

“He did his typical thing of putting me down, making me feel like I was crazy, and then [saying,] “I love you, everything will be fine, don’t think about it too much,” she said. In September 2021, Mansir was relieved of command of U.S. Army Support Activity Fort Eustis following an Army investigation that substantiated the allegations against him.

In a statement to Task & Purpose on Thursday, Curnutt urged fellow service members to “report instances of abuse of power and wrongdoing when they actually occur,” and said Mansir’s business isn’t even the main problem of his case. His “duty to uphold the law while leading others, while being so easily willing to break it himself, is the biggest issue here,” she said.

“In the long run, his behaviors will affect more than the people he served with,” Curnutt said. “There are children who will be greatly affected by his behaviors as a father and to see someone do these things and disregard these repercussions is really sad. I hope it brings everyone he is with contacted a little peace.

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Superior Court Hits $1 Million in Foreclosure Excess Refunds | 963XKE | Classic Fort Wayne Rock


FORT WAYNE, Ind. (ADAMS) – The Superior Court in Allen has returned more than $1 million in excess funds from the sheriff’s sale to former homeowners who lost homes to foreclosure, or to their heirs.

An all-out effort to find the legitimate recipients of the money was launched in July 2021. The milestone was reached last week when the total reached $1,003,356.

“The Superior Court has never undertaken a project like this before, so hitting the million dollar mark soon proves the work was worth it,” said Judge Jennifer DeGroote, who hears foreclosure cases at the Superior Court. “But it’s more than just a milestone number. In many cases, this money is enough to help people start on a new path after the devastating loss of a home.

Last summer, the Superior Court announced that it had launched a project to return surpluses from the sheriff’s sale. A surplus represents the difference between the amount owed to the financial institution that seized the property and the amount for which the property was sold in the sheriff’s sale.

So far, the Superior Court has refunded funds in 67 foreclosure cases. Amounts returned to former owners or their heirs ranged from less than $200 to almost $69,000.

The Allen Superior Court issued the following:

In most cases, excess funds from a sheriff’s sale are held by the clerk of the courts until claimed. A court order is required to claim these funds. If the money is still unclaimed, it can be turned over to the Indiana Attorney General’s Unclaimed Property Division after five years.

As successful as efforts to return surpluses are, there is still money to be claimed. Currently, the Superior Court is seeking the rightful beneficiaries of funds held in 59 foreclosure cases with surpluses totaling nearly $520,000. Individual surpluses range from $145 to nearly $50,000.

The Superior Court continues to actively reach out to those who have a claim over excess funds. In addition to sending letters to those named in foreclosure cases, the following outreach efforts remain in place

A list of foreclosure cases with excess funds has been released on line. The list includes case numbers, amount of excess funds held, and other information.

· People’s names are not displayed on the web page. Anyone with a past foreclosure case, or their heirs, can view the list for their case number. If they do not have this case number, it can be obtained by visiting mycase.in.gov and searching by name.

A designated email address, [email protected] was created to answer questions. Claims on a foreclosure overage cannot be filed through the email address.

· If anyone believes they have a claim on a specific surplus from the sheriff’s sale, they should submit a letter to the Allen County Clerk, setting out their claim on the funds. This letter should contain the original foreclosure case number. Letters should be sent to the Allen County Clerk, 715 S. Calhoun St., Room 200A, Fort Wayne, IN 46802.

Claims submitted on excess seizure funds may result in a hearing in court.

Using personal loans for home improvement


Other ways to pay for home renovations

Getting a personal loan for home renovations isn’t the only way to cover this big expense. If a personal loan isn’t what you had in mind for your home improvement needs, explore the other options on the table.

Credit card

A credit card might be the most accessible way to pay for your home renovations. This is especially true if you already have a credit card in your wallet with a high enough limit. You will not need to complete another loan application. Instead, you can start covering costs with your plastic right away.

But there’s a big downside to using your credit card for a home improvement loan. It’s the high interest rates associated with credit cards. That higher interest rate can mean paying a lot more in finance charges for the same home improvements.

If you need to jump-start the home improvement process right away, consider credit cards as a temporary solution. But look for a more permanent option in the form of a lower interest rate loan.

Home Equity Loan

A home equity loan is essentially a second mortgage based on the equity you have accumulated in your home. Equity is the difference between the current value of your home and the outstanding balance of your mortgage. So if you own a $250,000 house and still owe $100,000 on the mortgage, then you will have $150,000 of home equity.

You cannot borrow all the capital you have built up in a house. But depending on your situation, you could tap into a relatively large loan amount. After receiving the lump sum loan amount, you will make regular monthly payments for a set number of years.

If you default on the loan, the lender has the right to foreclose on the home. For homeowners who can commit to another mortgage payment and want to make lots of improvements, a home equity loan might be a good choice.

Home Equity Lines of Credit (HELOC)

Like a home equity loan, a home equity line of credit (HELOC) is based on the equity you have accumulated in your home. But unlike a home equity loan, a HELOC is a revolving line of credit that you can draw on as needed.

When using a HELOC, the loan details will look more like a credit card. This is because you can withdraw funds when you need them throughout the draw period. However, you will still need to make regular monthly payments to pay off this balance. And don’t forget that this monthly payment is in addition to your current mortgage payment.

If you’re not sure how much your home renovations will cost, this type of financing gives you the flexibility you need to cover the costs. But you will use your home as collateral for this line of credit. With this, the lender can seize your home if you are behind on your payments.

Refinancing by collection

A cash refinance allows you to take out a new mortgage with different loan terms. If you have built up equity in your home, this type of loan allows you to withdraw a lump sum.

Of the financing options on this list, you’ll likely get the lowest possible interest rate with a cash refinance. But make sure you can get an interest rate lower than your current mortgage rate before you jump in.

You will need to know the cost of your home improvement project before finalizing your cash refinance. Otherwise, you risk not getting enough to complete the project. You will not be able to withdraw the necessary funds with this financing solution.

Plus, you’ll have significant upfront costs with a cash refinance. Essentially, any closing costs you paid for your original mortgage will have to be paid again for your new loan. Typically, closing costs run into the thousands of dollars. Take the time to crunch the numbers before you go ahead with a cash-out refinance.

Buy now, pay later Users in the UK are borrowing to pay their debts

More than 40% of people in the UK who opt for such offers – which allow shoppers to pay for their purchases in installments, often without paying interest – have borrowed money to make their repayments, according to news data from the charity Citizens Advice.

Just over a quarter of customers used credit cards to pay for their purchases. Buy now, pay later (BNPL) service users also borrowed from family and friends, used money from their bank overdraft, and took out loans and payday loans – a type of short-term loan that usually incurs high interest – to meet repayments, the charity said.

“Buyers are piling on more borrowing and hoarding themselves into increasingly desperate situations that can seem impossible to escape,” Clare Moriarty, managing director of Citizens Advice, said in a press release.

Young users were most likely to take on more debt. The charity found that 51% of 18-34 year olds had borrowed money to pay for BNPL purchases, compared to 39% of 35-54 year olds and 24% of people aged over 55.

The charity surveyed 2,288 people in March who had used BNPL’s services in the past year.

The findings are likely to deepen scrutiny of an industry that has exploded during the pandemic, giving people access to cheap and easy credit, but which remains largely unregulated compared to other forms of finance.
Demand shows few signs of slowing as Britons endure the worst cost of living crisis in decades, which has forced many households to cut back on essentials such as heating or groceries.
Around 15 million people in the UK regularly use BNPL services, according to a November survey by Equifax, a credit reference agency. These include popular platforms offered by companies such as Klarna, Clearpay and PayPal (PYPL).
On Monday, Apple (AAPL) said it would offer US users of its new iOS 16 phone a BNPL service, allowing them to split the cost of purchases into four equal payments over six weeks.

While BNPL companies say they offer a safer and more accessible alternative to credit cards, many consumer advocates say the services can encourage people to spend more than they can afford. Many BNPL companies do not perform external credit checks on customers or communicate with each other to ensure that a user is not racking up debt across multiple platforms.

UK financial regulators have already started asking some BNPL companies to make their payment terms fairer and easier for customers to understand, despite there being no laws to enforce their demands – something the government is seeking to change.

Millie Harris, debt counselor at Citizens Advice, said in the press release that most of the BNPL users she advises “live on overdrafts and credit cards”.

“It’s heartbreaking to see parents who can’t afford to buy clothes or shoes for their children, turn to buying now, paying later, thinking it’s doing them a favour.” she declared. “Really, it’s just more debt and more creditors, on top of what they’re already dealing with.”

After a sluggish first quarter, the US solar market is supported by the tariff suspension – pv magazine International


The Wood Mackenzie/SEIA US Solar Market Insight Q1 report reveals that the two-year suspension of new solar tariffs is just the start. Passing new clean energy legislation could increase US solar installations by 66% over the next decade.

From pv magazine USA

The U.S. solar industry has recorded its lowest quarter of installations since the start of the COVID-19 pandemic, according to the U.S. Solar Market Insight report published by the Solar Energy Industries Association (SEIA) and Wood Mackenzie. In Q1 2022, price increases and supply chain constraints continued to dampen the solar market, with the industry installing 24% less solar capacity than in Q1 2021.

However, the tide turned yesterday when the Biden administration announced a 24-month tariff exemption on solar modules made in Cambodia, Malaysia, Thailand and Vietnam. Without this action, massive project delays and cancellations would have continued through 2022, jeopardizing President Biden’s climate goals.

Since the Department of Commerce (DOC) announced in March that it would act on a petition filed by Auxin Solar and launch an anti-dumping investigation into Chinese companies working in Cambodia, Malaysia, Thailand and Vietnam, manufacturers of solar modules have halted shipments to the United States. , causing an industry-wide shortage of mods. According to the US Solar Market Insight Q1 report, these supply constraints are expected to ease as manufacturers increase shipments to the US in the coming months.

“The solar industry faces multiple challenges that are slowing clean energy progress in the United States, but this week’s action from the Biden administration provides a jolt of certainty companies need to move forward. projects and create jobs,” said Abigail Ross Hopper, President and CEO of SEIA. “President Biden has taken clear note of how industry downturns are hampering network resilience. By acting decisively, this administration is breathing new life into the clean energy sector, while positioning the United States as a global leader in solar manufacturing.

The effects of the DOC investigation have taken their toll on what was once a booming industry, with 2022 guidance halved due to ongoing supply chain challenges and anti-circumvention investigation .

“The White House executive’s action brings relief to the U.S. solar industry, which has been mired in uncertainty over the Commerce Department’s anti-circumvention investigation launched in late March following a a petition filed by Auxin Solar, a national module manufacturer,” said Michelle Davis, principal analyst at Wood Mackenzie.“Despite this, this announcement should create around 2-3GW of upside potential for Wood Mackenzie’s base scenario outlook for 2022, assuming the global market returns to normal.” Davis added.

Almost every sector of industry has been affected, but the greatest pain has been felt in the utilities sector. Utility-scale solar set an annual installation record in 2021 at nearly 17 GWdc; however, final installations in 2021 were lower than expected due to the many challenges facing the industry. Solar power in the United States suffered its largest decline in the first quarter of 2022 and saw its lowest quarter of installations since 2019. Several gigawatts of projects pushed back their online dates from 2021 to 2022 or later . It also had the lowest number of new projects added to the pipeline since 2017.

The commercial solar market was down 28% quarter over quarter, while the community solar market was down 59% quarter over quarter. Project delays due to interconnection issues and supply chain constraints have limited growth in both sectors.

The bright spot for the U.S. solar industry was the residential sector, where installations totaled 4.2 GWdp in 2021, setting an annual record and surpassing more than 500,000 projects installed in a year for the first time.

Residential solar also has a bright future. Wood Mackenzie predicts 13% growth for residential solar in 2022, although analysts note that NEM 3.0 in California and the ITC expiration have a big impact on the base-case outlook from 2023. California volumes are expected to drop 45% in the first full year of NEM 3.0, and Wood Mac predicts a 2% market contraction in 2023. The market will grow everywhere but California by 18% over the same period. An ITC extension would paint an even rosier picture, with residential rising to 13 GWdc, or 21%, from 2023 to 2032.

The 24-month rate extension provides certainty at a time when it is needed most, and it buys time for the implementation of clean energy industrial policies such as long-term tax credits and manufacturing incentives. Certainty around the investment tax credit (ITC) would be a major catalyst for the industry, increasing plant capacity by 66% over the next decade, according to the Q1 Insight report.

An overall increase of 66% represents an increase of 20% for residential, 15% for non-residential (commercial and community solar) and 86% for utility solar. Total solar installed in the United States under this scenario by 2032 would be almost 700 GWdc compared to 464 GWdc in the base case.

For this Year in Review report, Wood Mackenzie has published a 10-year outlook for each segment. Overall, the solar industry is expected to more than triple, from 120 GWdc installed today to 464 GWdc by 2032. While this is good news, it is well below what is needed to meet the Biden administration’s clean energy goals.

The Build Back Better (BBB) ​​Act is unlikely to pass; however, there are opportunities for many of the clean energy provisions included in the BBB Act to be adopted into final legislation. The Wood Mac/SEIA report concludes that enacting an extension of the Investment Tax Credit (ITC) and other clean energy provisions would be a significant catalyst for the solar market, increasing installations by 66 % over the next decade compared to the baseline scenario.

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April 2022 Volume of home sales in California: an alarming drop in the spring


California Home Sales Volume fell in April 2022, down from the previous month and the previous year. This month-over-month decline was atypical for the spring sales cycle, as sales volume typically moves from an annual low point recorded each January to a mid-year high.

42,300 new home and resale transactions closed in escrow California in April 2022. The number of homes sold in April was 5% lower than the previous month and 10% lower than the previous year, or 7,200 fewer sales. For reference, the rapid pace of sales recorded in California since 2020 began to decline in the second half of 2021, continuing into 2022.

The large annual increase in sales volume that occurred earlier in 2021 was due to homebuyers taking advantage of historically low interest rates and stimulus measures. Homebuyers were also influenced by the fear of missing out (FOMO) from a low inventory of homes for sale.

Historically low inventories continue into 2022. But as the effects of the 2020 and 2021 stimulus measures are now behind us and interest rates are rising rapidly with the Federal Reserve (the Fed) actions aimed at cooling an overheated economy, homebuyers have quickly slowed and sales volume is plummeting.

Along with a significant reduction in home price potential, rapidly rising interest rates in 2022 are stagnating sales. In response to a recent first tuesday survey, 34% of readers report escrow cancellations due to the recent rise in interest rates.

Related article:

2022 rate hike reduces homebuyers’ buying power

Pandemic-era government efforts to close the gap are over

2021 ended with 536,600 annual home sales in California. This is 97,400 more home sales than in 2020, an annual increase of 22%.

However, this increased performance follows several years of flat declining sales volume (the bumpy tray recovery after the foreclosure crisis and financial crash of 2009). And yet, despite recent gains, the strong year 2021 was still 29% lower than the record year for sales volume in 2005.

Why have home sales volume and home price increases in 2021 been so strong compared to recent years?

The Federal Government has introduced a number of measures to create a bridge for consumers, to support them from the time of the 2020 recession until the end of the pandemic response. The result has been a buoyant housing market, with low interest rates and extra liquidity providing a launch pad for renters, buyers and investors to make the real estate leap.

Government measures included:

  • keeping artificially low interest rates in 2020-2021, held back by the Fed’s purchase of mortgage-backed bonds (MBBs) and a zero rate on its benchmark interest rate;
  • a moratorium on evictions and foreclosuresthat allowed renters and landlords unable to make housing payments to stay in their homes (and kept those homes off the market);
  • individual stimulus checkswhich fueled consumer spending not just for those who lost their jobs during the 2020 recession, but for consumers of all incomes;
  • a continuous pause on student loan repayments, which also boosted consumer spending, supporting the economy; and
  • establish and extend the Paycheck Protection Program (PPP) and an economic disaster loan grant program to help small businesses stay afloat.

All of this federal action has helped drive up enthusiasm (and prices) not just for real estate, but for assets of all types.

However, while the government created a bridge to carry consumers through the pandemic-era recession, it was only temporary. Government efforts delayed the inevitable. As stimulus winds down, the economy is on course for its next recession.

California home sales in 2022 and beyond

Despite the jump in sales volume in 2021, home sales will continue to decline in 2022, due to:

  • rapidly rising mortgage interest rateswhich led to a drop in the purchasing power of buyers by 25% compared to the previous year in May 2022;
  • The expiry in 2021 of the moratorium on foreclosureswhich has resulted in a backlog of forced sales in the market, creating a further drag on house prices and discouraging buyers;
  • lower owner turnover as FOMO buyer looks to relief from rising rates and rising inventories; and
  • the ongoing recovery of job losses of 2020, of which more than 300,000 are still absent from the California labor market in April 2022.

The housing market will not start a consistent recovery until California recoups the historic job losses of 2020. This job recovery will likely take shape around 2023 – when the second act in recession 2020 to arrive at.

Related article:

Can the Fed calm inflation without setting up another recession?

The difference between seasonal and sustainable trends

Home sales fluctuate from month to month for a variety of reasons, the most important being buyer demand. This demand is influenced by several factors currently at work in the California home buying market, including:

  • seasonal differenceswhile sales volume tends to peak in the middle of the year, falling in the sluggish winter months (a trend that was disrupted by the unusual drop in April 2022);
  • mortgage interest ratewhich were at historically low levels in 2020-2021 but jumped significantly in 2022;
  • buyer confidencewhich has oscillated sharply since the start of the 2020 recession and continues its volatile path through today’s recession hangover;
  • available Multiple Listing Service (MLS) Inventory, which remains well below buyer demand in 2022; and
  • in 2020-2021, buyer fear of missing something (FOMO)which pushed both sales volume and prices above sustainable highs.

Year-to-date (YTD) Home sales volume can be a good predictor of annual sales volume. In April 2022, the year-to-date sales volume is 8% lower than the previous year.

first tuesday predicts sales volume will fall below 2021 through 2022, tempered by rising interest rates, a still-recovering job market — and more sober homebuyers.

To Read more on home sales trends and the first tuesday analysis, see graphs of California home sales volume.

– BusinessToday


The student loan has become crucial as the cost of higher education whether in India or abroad has increased. This comes in handy when students face a financial crisis and sometimes need to stake their property and other assets to finance their dream of education. Although there are many options available in the market, ranging from public sector banks, private sector banks and NBFCs to fintech companies, sometimes it becomes difficult to choose the best option as the cost may not be just one of many things to consider.

Here is a list of things that could play a crucial role in determining the right loan product and the right lender.

The first is the interest rate offered by various lenders. “If you take out a student loan from a public sector bank, the average interest rate starts at around 7.75%. In the same private sector bank, the interest rate starts at around 10, 5 percent So it is clear that public sector banks are a good option but when it comes to processing the key you should also pay attention to this because comparatively the processing is very fast in private banks and NBFCs,” says Ankit Mehra, CEO and co-founder of GyanDhan.

Besides the type of bank, there are other factors on which the interest rate depends. Like what course you are taking, what institute you are doing and what is your credit score among others.

“First, students should check if the university/institute has links with banks or NBFCs for student loans. In several cases, these links help to speed up loan processing and reduce overall costs to students. Additionally, the disbursement experience can be quite seamless and hassle-free. University-recognized lenders are generally quite well vetted based on their reputation and service mindset and take additional steps to help the student get the best loan option,” says Ashwini Kumar, Managing Director (India) and Vice President, MPOWER Financing.

Also, interest rates on student loans can be floating or fixed. For variable rate products, the interest rate is made up of two parts: the base rate and the margin. The base rate is a reference rate which can be LIBOR (London Interbank Offered Rate) or MCLR (marginal cost of funds based lending rate). The margin is added to the benchmark based on the risk assessment at the client level.

“The base rate changes over time based on market conditions. With the expectation of central banks raising their rates, base rates will rise in the future, leading to a commensurate increase in the rates offered by lenders. Fixed rate loans will not be affected by rising interest rates. However, fixed rate loans sometimes have reset clauses which, if present, will cause interest rates to increase in the future,” says Mehra.

Kumar adds, “A variable rate product may, in some cases, offer a lower interest rate, but over the life of the loan it has a high probability of being above the fixed rate and at levels that may make the fixed rate much lower rate than variable rate. Remember that your valuable time for education, learning, networking, absorbing a multicultural and diverse environment should not be wasted by the stress of rising variable rates – a fixed rate offers the necessary peace of mind, especially while you are at school.

Another important aspect to look for is the expectation of the lender instead of the loan. For example, secured student loans are the cheapest source of funding because the estimated risk of a secured student loan is lower due to the pledged collateral.

“Conventional wisdom pushes for collateral or other assets like a house, land, etc. or a cosigner who cannot vouch for the loan. Modern and more savvy means of lending have allowed the student to free his parents, family or friends from the stress of obligation and to assume the loan without collateral or co-signer – only according to his own academic potential, this is an important variable that the student should consider when looking for a reliable lender,” says Kumar.

Also Read: Demand for New Students Up 19%, Import/Export Sector Sees Highest Job Vacancies: Report

Also Read: India leads Sri Lanka’s tourism market despite crisis due to current economic crisis

Borrowers have a record $11 trillion in usable equity


Escalating home prices generated a record $1.2 trillion gain in usable equity for borrowers in the first quarter of the year, Black Knight reports.

Mortgage holders enjoy a total of $11 trillion in workable equity, or $207,000 per borrower, also the highest on record, according to the April Black Knight Mortgage Monitor report. House prices rose 19.9% ​​in April, down slightly from the 20.4% annual gain recorded in March.

“Depending on your position, this could be the best or the worst of all possible markets,” Ben Graboske, president of Black Knight Data and Analytics, said in a statement.

Potential home buyers in April faced the worst affordability in nearly 16 years. In May, it took 33.7% of median income, or $1,958, to make a monthly principal and interest payment on an average-priced home with a 30-year mortgage rate of 5.25%, Black said. Knight. This figure is a hair below the 34.1% share in June 2006, the height of the housing market of that time.

According to the report, mortgage rates exceeding 5.35% or house prices rising another 1.1% could drive affordability to a new record high. Rates have however flattened last week amid financial market concerns about slowing economic growth. The deceleration in house prices in April was likely a reflection of modest rate increases earlier this year, Black Knight said, and the recent 5% threshold crossover could be reflected in future sales indices.

refinance continued their slide in April and are down 54% over the past 12 months, driven by an 80% annual freefall in rate/term refis, according to the report. Withdrawal refis accounted for 75% of all refis in the first quarter, up from 36% last April. In total, mortgage holders withdrew more than $75 billion in equity through cash remittances, the highest volume in 15 years, according to Black Knight.

Borrowers in dire straits also improved their position, with the national delinquency rate falling 1.3% to a record high of 2.8% in April, according to the report. Payment delays of 30 to 60 days increased by 8%, but serious payment delays of 90 days or more fell by 7.8%.

The number of forbearances fell by nearly 37,000 in April, but as of mid-May 645,000, or 1.2% of all mortgages, remained in active forbearance, according to Black Knight. The combined outstanding balance between the forborne loans was $115 billion.

Prepayment activity also fell 19.1% to a 3-year low in April, Black Knight reported. Total prepayment activity remains down 61.8% from a year ago as rates continue to rise.

Why I’ll Probably Never Have Perfect Credit Again – And That’s That’s Okay


Image source: Getty Images

It’s a very hard thing to get – and not worth pursuing.

Key points

  • In my twenties, I managed to have a perfect credit score.
  • I don’t see this happening again due to changes in my drinking habits, but that’s not a problem either.

When I applied for my first apartment in my 20s, I was shocked – in a good way – to learn that I actually had perfect credit (or so the rep said management company that processed and approved my application). These days, however, my credit rating isn’t perfect, and it may never be again. And frankly, I don’t care.

How I got perfect credit

Back when my credit score was perfect at 850, I had a few advantages. First, I had bills in my name for several years that I had never paid late. I also hadn’t applied for new credit cards in a long time and always paid off my (relatively low) credit card balances in full. This latest decision has helped me keep my credit utilization rate nice and low.

Also, of the two credit cards I had, one was my parent’s card on which I was an authorized user. To be clear, I did not charge this card – I was added to my parent’s account for emergency purposes only. But since their account had been open for many years, it gave me a longer credit history.

All of this combined led to me having a perfect credit score. But things are different now.

Different Spending Causes Credit Score Fluctuations

These days, I have very good credit. My score tends to hover around 800-820, which any lender is likely to consider favorably. But I only have 850 left, and for several reasons.

First of all, I recently received some serious inquiries on my credit report due to new credit card applications. Each of them lowered my credit rating by about five to ten points.

I also tend to charge more on my credit cards now than I did in my twenties. It’s because I have more expenses these days. And although I try to pay off my credit cards every month to avoid interest charges, during that brief period of time until my bills are paid, my credit utilization rate tends to go up. up a notch (not to the point where it hurts my credit, but enough that it prevents me from having perfect credit).

It’s not serious

While it was cool to learn years ago that my credit score was perfect, I don’t mind that it’s not the case anymore. First of all, perfect credit is really hard to get. Something as innocent as applying for a mortgage refinance will cause your credit score to not be perfect for several months due to the extensive investigation of your credit report. But in some cases, refinancing a home loan can be a smart move, and not worth putting off to avoid a little credit crunch.

Plus, no matter what type of loan or credit card you apply for, once your credit score is in the 800s, it’s likely to be viewed favorably. And so if my credit score is currently 812, guess what? I don’t need it to be higher. I’m unlikely to have a different borrowing experience with an 812 versus an 832 versus an 850.

That’s not to say that I don’t like to keep an eye on my credit rating. But I gave up on having perfect credit, and I’m totally at peace with that.

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After signing Medallion debt deal, company says Cabbie Union twisted arm in new suit


A federal lawsuit has disrupted the fragile peace over a debt relief deal for hundreds of cash-strapped taxi medallion owners, months after Senate Majority Leader Chuck Schumer brokered the pact between the city, a group of taxi drivers and a recalcitrant moneylender.

O’Brien-Staley Partners/OSK, whose investments in the taxi industry include loans for the expensive metal badges that allow yellow cab drivers to pick up hail from the street, accused the New York Taxi Workers Alliance of “seek to compel” the company to restructure its entire loan portfolio — even in cases where borrowers are paying or have a proven ability to pay.

“Once NYTWA began advising companies in good standing to strategically default on their loans, everyone felt that it crossed a line from public defense to tort interference,” said Jerry O. ‘Brien, CEO of O’Brien-Staley Partners, in a statement. Towards the city. “Rather than argue in the press, we asked a judge to order NYTWA to stop – just to stop.”

The suit accuses the taxi workers’ alliance of relying on ‘uncompromising activism’ and ‘relentless militant action’ to disrupt the Minnesota-based company’s payment plans with individual borrowers whose already fragile finances were slammed by the onset of the pandemic in 2020, when the number of taxi rides have dropped when the city was largely closed.

“‘Uncompromising activism’ and ‘nonstop activism’ are not tools to disrupt legal transactions,” OSK said in the lawsuit filed June 2, according to court records.

“Long before the city announced its own debt relief initiative, [OSK] worked with individual owner-drivers to facilitate payment based on the unique circumstances of each borrower,” the company’s attorneys wrote in the lawsuit originally filed May 24 in federal court in Manhattan, but moved to Brooklyn the week last.

“Crush the Debt”

The executive director of the taxi workers’ alliance said the lawsuit was a backlash against drivers who lobbied for debt relief.

“This baseless lawsuit is an attempt to retaliate against the drivers and their organization for fighting – and winning – debt relief that led to suicides and abject poverty,” said TWA’s Bhairavi Desai at THE CITY. “We will continue to fight for our members with all our vigor and strength.

“All drivers deserve a life without this crippling debt.”

The lawsuit, which seeks at least $774,046 in damages, is the latest twist in a long battle between the OSK and the 25,000-member organization, which represents drivers of yellow taxis and green and black cars .

A taxi driver asks the town hall to do more to help relieve the medallion’s debt, October 20, 2021.

The OSK argues that the taxi workers’ alliance ‘has no collective bargaining power’ and seeks to prevent it ‘from encouraging, advising or inducing borrowers to strategically default on the terms of their contracts “.

Desai called the costume “meritless”.

In March, OSK accepted an invitation from Schumer to participate in a Taxi and Limousine Commission debt relief program designed to cap debt service payments at $1,122 per month, with the city guaranteeing the restructured loan.

The previous deal followed months of protests – and a two-week hunger strike at City Hall by medallion owners – until the city and the taxi workers’ alliance agreed in November of a debt restructuring agreement with Marblegate Asset Management, the largest holder of taxi medallion loans.

But O’Brien-Staley Partners/OSK stayed away from that pact until the spring, saying at the time that it would participate in the program once it was up and running. The company has also pledged to end private sales of repossessed medallions and stop seizures on medallions held by owners who keep their loans in good standing.

Lose ground

A February article in THE CITY – to which Schumer credits bringing to light the plight of locket owners facing seizure – revealed that 250 lockets had been seized in the first three months after the company’s restructuring plan was agreed. November debt, including

94 in January alone.

CCM data shows that there have been 281 seizures this year, including 31 last month.

Medallions that once cost more than $1 million have for nearly a decade seen their value plummet to a fraction of that due to the rise of app-based ride-hailing companies like Uber and Lyft.

In court documents, the OSK says that at the start of the pandemic, it temporarily implemented six-month payment plans for “individual drivers with documented financial hardship,” initially charging them $100 per week in March 2020, a figure that, starting June 1, up to $350 per week.

The firm says it had nothing with the city’s March 2022 restructuring deal with Marblegate Asset Management.

“As of today, the program is unfunded, not fully documented and not operational,” the lawsuit states.

The Taxi and Limousine Commission told THE CITY the program has so far secured $50 million in debt forgiveness and is finalizing the secured portion of the loan.

Nigerian Universities Need Full Autonomy – Outgoing OAU VC


The outgoing Vice Chancellor of Obafemi Awolowo University (OAU) Ile-Ife, Prof. Eyitope Ogunbodede has said there is a need for full autonomy for universities in Nigeria.

Speaking over the weekend at the commissioning of the Agricultural Value Addition and Entrepreneurship Center and the Dispatch Program held in his honor at the Institute of Agricultural Research and Training (IAR&T) in Ibadan, Professor Ogunbodede, pointed out that universities are not fully autonomous in the country.

The outgoing vice-chancellor said the time had come for full autonomy for universities to free them from internal and external control, lamenting that the government in most cases adopts policies which may not be suitable to institutions.

“Every institution in Nigeria is in a very turbulent situation at the moment because we have the problem of funding, government intervention in most of the occasions which does not suppose it to be so. Universities are not totally autonomous. Thus, the government, in most cases, has developed policies that may not be suitable for the institutions. As we speak, all university unions are on strike. ASUU, SSANU, NASU are on strike,” he said.

Prof Ogunbodede added: ‘And as a VC you still have to keep the university running. Several internal and external interventions affect these universities. So God has helped me over the past five years to coordinate university activities to mitigate collateral damage.

The outgoing vice-chancellor noted that there had been a lot of turmoil before he assumed his duties as vice-chancellor, but that he had cordial relations with workers and students, even if there were challenges before taking office, adding that he was able to mitigate collateral damage through the wisdom and support of stakeholders in the university community.

Borrower repays loan, app operators threaten – The New Indian Express


Express press service

KOCHI: Police have filed a complaint against people who operate an online money lending app for allegedly threatening a Rajasthani native working in Kochi even after he repaid the loan amount. The case was filed against the app named Cash Advance at Kochi Cyber ​​Police Station on May 30 following a complaint by 21-year-old Narsi Ram Meghwal from Nagaur who worked at a company here .

“The plaintiff took out a small loan after downloading the app from Google Playstore on January 24. He repaid the amount via UPI on January 31. However, two weeks later, he started receiving calls and messages saying he hadn’t paid the loan fee. Although he tried to convince the app operators that he had refunded the full amount, they continued to be in denial mode,” a police officer said.

When he refused to pay the amount again, he started receiving abusive WhatsApp messages and calls. The app operators claimed they accessed Narsi’s phone and threatened to send obscene messages to his friends.

The case was registered under IPC Section 506 for Criminal Intimidation, Kerala Police Act 120(o) for causing a nuisance through calls, letters, messages , e-mails and anonymous messages and Article 67 of the Computer Law for the publication or transmission of obscene material in electronic form. .

“This is a bogus company with no proper contact information. We are trying to trace the people running the app. Preliminary investigation revealed that similar cases have also been registered against the company in other states. We will coordinate with the police in these states to identify individuals operating the app,” an official said.

In March this year, the Delhi Police’s Intelligence and Strategic Operations Fusion Unit (IFSO) arrested eight people associated with the Cash Advance app. Delhi police have found that once the app is downloaded, operators hack user data from cell phones. The application has been used to install malware on mobile phones using which all content can be accessed. Money extorted from borrowers was found to be funneled to China, Hong Kong and Dubai via cryptocurrencies. Several people thus deceived have made negative comments about the application on Google Playstore. Google Playstore details show that the app has had over a million downloads.

How to improve your Cibil score using credit cards?


The CIBIL score or credit score of an individual plays an important role in the loan application process and hence it is necessary to maintain a good credit score.

A high score represents creditworthiness and can get better and faster loans, while a lower score makes the individual a risky borrower and can impact their chances of getting approved for a loan.

CIBIL scores depend on the credit history of the individual and the credit card can be used to increase the credit score.

Increase in credit card use

Credit cards are increasingly becoming a tool for achieving short-term financial goals. According to data released by the RBI for March 2022, credit card users spend an average of Rs 14,500 per month compared to Rs 700 per debit card per month.

Although the credit card has its advantages, it also has some disadvantages. For example, it is advisable to maintain a credit utilization rate of 30% of the credit card limit, as this would make the user appear to be credit hungry and negatively impact their CIBIL score. , Business Intern reported.

How to use the credit card to improve the score?

A user can use their credit card in several ways to get a good CIBIL score. Indeed, these cards are also a credit instrument and their judicious use can add to an individual’s exposure and credit mix. Here is an overview of some measures.

Choose wisely: It is better to choose a credit card that best suits the purchasing habits of the individual rather than opting for one with special offers. When banks offer special offers, they usually lead to a credit application, which will require the issuer to thoroughly investigate the individual’s CIBIL report. Difficult requests have a negative impact on the CIBIL score and lower it.

Pay your bills on time: The credit card issuer allows the individual to make payment for the minimum amount or the full amount due within a specific payment window. It is better to pay the entire credit card bill instead of the minimum amount to improve the CIBIL score. A person who pays off credit card bills in full will establish a regular repayment history which will significantly increase the CIBIL score.

Maintain old cards: As long as the person can pay the bills in full and on time, they can continue to use the old credit cards. Older cards give the individual a long and sold credit history which has a positive impact on the CIBIL score.

Don’t settle for just one shot: Sometimes, individuals approach banks for a watered-down deal to pay off their outstanding credit card. However, even if the banks accept such requests, these regulations have a negative impact on the credit score because they show that the individual has not paid his dues in full. If the person settles the outstanding amount with the credit card company, it is advisable to convert the status from “settled” to “closed”. To move to closed status, the individual and the credit card company would need to agree on a mutually agreeable amount for settlement.

Yanks’ Donaldson out of IL, making 1st start since Anderson banned


NEW YORK (AP) — Josh Donaldson was activated from the 10-day injured list and into the New York Yankees roster on Friday night for the first time since being suspended by Major League Baseball for a star remark of the Chicago White Sox Tim Anderson.

Donaldson was suspended one game for making multiple references to Jackie Robinson during a conversation with Anderson on May 21. Donaldson appealed the discipline.

Donaldson played the next day against Chicago but has not been fielded since due to COVID-19 and right shoulder inflammation. He was scheduled to play third base and clean up bats against the Detroit Tigers upon his return.

The 2015 AL MVP is hitting .239 with five home runs, 15 RBIs and a .764 OPS in 37 games in his first season with New York.

Donaldson was isolated from the team for several days after the Anderson incident because he had symptoms of COVID-19. He apologized to the Robinson family during this time. When he returned, he said he was hurt that his teammates didn’t support him.

He is likely to get a warm reception from fans, however, after booing Anderson in the May 22 series finale against the White Sox.

Boone said slugger Giancarlo Stanton could be activated out of the 10-day IL this weekend. Stanton was sidelined with a right calf injury and can return on Saturday.

Meanwhile, Yankees reliever Chad Green has had Tommy John surgery and will likely be sidelined until at least the summer of 2023.

New York said the right-handed ulnar collateral ligament was reconstructed Wednesday by Texas Rangers team physician Dr. Keith Meister at Trinity Park Surgery Center in Arlington, Texas.

Green, 31, is eligible for free agency after this year’s World Series. He was 1-1 with a 3.00 ERA in 14 games when he was injured in the sixth inning at Baltimore on May 19.

Green said after the game that he felt discomfort in his right forearm. The Yankees placed him on the 15-day disabled list two days later and moved him to the 60-day disabled list on May 27.

Green is 33-22 with a 3.17 ERA in seven major league seasons and has a salary of $4 million this year. He was 10-7 with a 3.12 ERA in 67 appearances last year, striking out 99 in 83 2/3 innings.


More AP MLB: https://apnews.com/hub/MLB and https://twitter.com/AP_Sports

Real Finance will refund $1.36 million to borrowers it overcharged


Anna Rawlings, Chair of the Commerce Commission. Photo/NZME

Real Finance is to pay $1.36 million to 515 customers it overcharged after reaching a settlement agreement with the Commerce Commission.

The commission opened an investigation into the Wellington-based consumer lender in 2018 after it received a request from the District Court to intervene in a Real Finance claim for summary judgment against a borrower.

The commission then filed a civil suit against Real Finance in 2019, alleging that it charged borrowers unreasonable fees.

In a statement released today, the commission said Real Finance admitted to entering into consumer credit agreements with borrowers between April 2013 and March 2020 that violated the Credit Agreements and Consumer Finance Act ( CCCFA) because the fees charged exceeded the reasonable costs incurred by the company.

Commission chair Anna Rawlings said when people borrowed money to buy goods on credit, the credit and default charges they were charged were not meant to be used to cover expenses general business or to make a profit.

“This case will help lenders to set charges in a way that is consistent with their obligations under credit law. It also shows that regular review of your charges is not enough on its own. Lenders must also respond to the findings of any review.”

Although Real Finance undertook annual fee reviews, it took no action to prevent fee-generating profits, Rawlings said.

“If lenders find their fees to be unreasonable, they should be reduced. If borrowers are overcharged, the commission expects a lender to reimburse affected borrowers.”

The commission engaged KPMG to calculate reasonable costs and found that the basic set-up, administration and default fees charged by Real Finance included expenses that were not closely related to the matter for which the fees were billed.

In April 2022, the High Court granted statements requested by the commission, unopposed by Real Finance, that Real Finance had breached its obligations under the CCCFA by charging unreasonable fees.

The commission said Real Finance would contact affected borrowers as part of the settlement and agreed to create a page on its website with information about repayments due to affected borrowers.

In a statement on its website, Real Finance said it had updated its fee-setting practices to ensure future charges were reasonable.

“Real Finance sincerely apologizes for the inconvenience resulting from your loan account receiving a partially unreasonable charge.”

Chief Executive Rodney Varga said he has been proactively engaging affected consumers since February 2022 in anticipation of this settlement.

“[We] are pleased with the progress made so far and the understanding and positive interactions with these customers. »

Real Finance is owned by David Ure and Varga, according to Companies Office records.

Waldorf Astoria opens in Trump’s former palace


Welcome to the Checks & Imbalances newsletter. Today, we take a look at a few members of Congress facing ethics investigations as well as Trump’s DC hotel successor.

House Ethics Office: ‘Substantial Reason to Believe’ Two Members of Congress Violated Ethics Laws

JThe House Congressional Ethics Office found “substantial reasons to believe” that Congressmen Pat Fallon (R-Texas) and John Rutherford (R-Fla.) violated House ethics rules for failing to disclose stock trades in a timely manner, according to documents released Tuesday.

Investigations into possible violations have been forwarded to the bipartisan House Committee on Ethics for further review. Unlike the independent, nonpartisan Congressional Ethics Office, this 10-member panel has the power to subpoena and discipline House members.

The office’s board was split over similar allegations against Rep. Chris Jacobs (RN.Y.).

The Stop Trading on Congressional Knowledge Act, or STOCK Act, requires representatives to report securities transactions to the House Clerk’s Office within 45 days. Fallon failed to file timely disclosures for 122 transactions valued at more than $9 million between January and December 2021, according to the report. Between January 2017 and December 2021, Rutherford belatedly disclosed 157 transactions worth at least $652,000, according to the House Ethics Office. Both members of Congress declined to be interviewed by investigators.

A lawyer for Fallon and Rutherford, Kate Belinski, acknowledged lawmakers were late in disclosing their trades. But she called the queries “unnecessary” in responses to the reports, citing “taxpayer expense and administrative burden.” Belinski asked the House panel to reject the dismissal, noting that members of Congress had already paid fines.

Those fines were $600 for Fallon and $800 for Rutherford, according to the ethics office. He said Rutherford’s penalty was calculated incorrectly, while Fallon did not provide enough information to assess the accuracy of his fine.

The panel did not release a report on Jacobs, but it did release its response to the inquiry, which provided information about the allegations. These are government securities, as well as shares acquired as part of a corporate split and merger.

“Congressman Jacobs takes compliance and transparency seriously and, as such, has proactively filed the periodic transaction reports in question and worked with the House Ethics Committee to pay the applicable fine. “, a spokesperson said in a statement. “The congressman looks forward to the committee meeting in person to complete his review and resolve this matter.”

In April, the committee revealed that it had launched separate investigations into Fallon and Rutherford, who is a member of the ethics committee. At the time, the committee did not provide any details on the investigations, saying only that it would announce an action plan by May 31. Last week, the panel revealed it was investigating Rep. Madison Cawthorn (RN.C.) for allegedly engaging in an inappropriate relationship with a staff member and promoting a cryptocurrency in which he had an undue interest. disclosed. The committee also revealed last month that the Ethics Office had found “substantial reasons to believe” Rep. Ronny Jackson (R-Texas) had spent campaign funds on personal expenses.

Details of an investigation into Rep. Tom Suozzi (DN.Y.) are expected to be released by July 29.

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In case you missed it

Watch: Asa Hutchinson discusses Arkansas’ economy, 2024 presidential race, and more

Continuous irresolution

Updates on previous Checks & Imbalances reports

“Outgoing Rep Madison Cawthorn (R-NC) revealed on Friday that he sold over $250,000 of the Let’s Go Brandon meme cryptocurrency on Dec. 31, 2021, the day it saw its peak market value,” reported the Washington Examiner. “Less than a month later, the coin meme had lost 100% of its value.”

The House Ethics Committee has previously announced that it is investigating Cawthorn for allegedly promoting a cryptocurrency in which he had an undisclosed interest (as well as engaging in an improper relationship with a staff member).


“In March, a jury swiftly and finally convicted then-U.S. Rep. Jeff Fortenberry (R-Neb.) of two counts of lying to federal agents and one count of attempted concealment. from the source of $30,000 in dirty campaign funds,” reports the Omaha World-Herald. “Now the former Nebraska congressman wants those convictions overturned.”

Even before he was charged, Fortenberry had paid $80,000 in campaign money to defense attorneys.


“A year-and-a-half-long investigation by the House Ethics Committee into alleged spending of campaign and congressional money and misuse of his office by Rep. Steven Palazzo (R-Miss .) is not expected to yield results, said an attorney for the class who filed the original lawsuit against the congressman,” reports the Bugle register.

Palazzo’s campaign spent at least $61,000 in legal fees related to the investigation.

Top golfer Johnson joins Trump, Saudi-backed tournament – Skipping PGA event – And upsetting sponsor

In a move likely inspired by massive payouts from LIV Golf backed by Saudi Arabia’s sovereign wealth fund, “former A-list golfer Dustin Johnson will be taking part in the first LIV Golf event next week, the budding contender has announced. PGA Tour on Tuesday night,” Derek Saul reports:

Former President Donald Trump is intimately involved with LIV Golf, as his National Doral Golf Club in Miami will host LIV Golf’s final 2022 tournament in October. Trump posted in favor of the new league on his TruthSocial platform last week, according to Golf.com, writing that the PGA has “benefited from players for many years” and that “LIV can change that!”

Asset Tracking

The Waldorf Astoria Washington DC, which replaced Trump’s hotel in the old post office, opened on Wednesday, according to a press release from Hilton, the brand’s parent company.

Hilton’s reservations website accepts overnight stays, although your correspondent abandoned the reservation process when you were asked to enter a credit card for a $1,700/night stay (an exercise I will repeat gladly if a publisher cares to provide me with a corporate credit card).

According to its website, the detrompification of the hotel appears to have been minimal so far: the Ivanka Trump Suite is now, quite simply, the “bi-level loft with library” while the Trump Townhouse has been renamed Waldorf Townhouse. For dining options, Sushi Nakazawa, the Michelin-starred restaurant in the basement of the building, is now joined by Peacock Alley, a spin-off of a restaurant in the Waldorf Astoria New York.

If you’re curious about how the transition works for groups that had booked stays at the Trump International Hotel, only for it to no longer exist, here’s an email the National Shooting Sports Foundation sent out Monday regarding its conference. annual import/export in August:

As some of you may have heard, the Trump International Hotel has been sold to Hilton Hotels. While the venue has changed hands and is now called Waldorf Astoria Washington DC, the NSSF® Annual Import/Export Conference will take place at the same time and place. Advance pricing will be extended until June 17 to allow those who have been waiting to make reservations to secure a room. Reservations already made will be transferred from Trump to Waldorf Astoria.

  • “Trump just appealed the dismissal of his federal case against NYAG Tish James for ‘unlawfully’ investigating him.” (Twitter/Reporter Liz Dye)
  • “US Oversight is suing the National Archives for communications and documents related to Trump files recovered from Mar-a-Lago” (US Oversight)

Editor’s Choice

  • “James Biden – Presidential Brother, Caregiver, Political Wildcard” (The Washington Post)
  • “Republican Senate candidate Herschel Walker failed for months to bring in millions in revenue” (Insider)
  • “These 25 companies waving the rainbow flag have donated $13 million to anti-gay politicians since 2021” (Popular Information)
  • “Super PACs Spend Record $1 Million in Wyo’s US House Race” (The Wyoming Tribune Eagle)
  • “Ethical Issues Cloud Zinke’s SEAL PAC” (roll call)
  • ‘Owner of beleaguered Ukrainian steel mill adds PR help, Ferox signs Qatar’ (Politico)
  • “Former congressional candidate pleads guilty to wire fraud and falsifying documents” (DoJ)
  • “Ted Cruz complains about the ‘elite’ using bodyguards. He’s one of them. (The Daily Beast)
  • “Rep. Eric Swalwell (D-California) asked the FEC to issue an advisory opinion on the use of campaign funds to pay for child care when traveling for campaign events (not necessarily his own ) or at the request of foreign governments/entities in his capacity as a Member of Parliament” (Twitter/Taylor Giorno of OpenSecrets)
  • “Billionaire Ken Griffin has now contributed $50 million to Richard Irvin’s gubernatorial campaign” (The Chicago Tribune)
  • “Spending billionaires are shaking up politics. The Los Angeles mayoral race is the final test. (Policy)
  • “Conversely, EPA Deems Pruitt’s Phone Booth a ‘Violation'” (E&E News)
  • “Where did the Hill offices eat last quarter? We did the calculations. ” (Policy)

In conclusion

please tell me now

Is there anything I should know

– Duran Duran, “Is there anything I should know?”

Why Bitcoin Doesn’t Need DeFi, But DeFi Needs Bitcoin


Bitcoin is the most secure network in human history. Without Bitcoin’s own security and immutability, DeFi will never achieve mass adoption.

Dr. Chiente Hsu is CEO and co-founder of ALEX (Automated Liquidity Exchange), the first fully-featured Bitcoin-based DeFi exchange.

Bitcoin is the only way to achieve truly decentralized finance (DeFi). DeFi has yet to emerge as a game-changing force as it requires fully expressive smart contracts which are not possible on the core Bitcoin protocol due to their security trade-offs. However, several projects are hard at work creating overlay solutions that enable the variety of smart contracts that have recently made DeFi on Bitcoin a reality.

As Bitcoin DeFi grows, this will allow sovereign collectives to determine their own bitcoin yield curve, increase the capital efficiency of bitcoin as an asset, and accelerate mass adoption and the development of the bitcoin economy.

Truly become your own central bank

We want to be clear that Bitcoin doesn’t need DeFi. Bitcoin existed years before DeFi emerged, and Bitcoin will remain if DeFi were to die out. DeFi, however, needs Bitcoin; without Bitcoin’s own security and immutability, DeFi will never achieve mass adoption.

It was only recently that we discovered bitcoin, the ultimate form of money. What we recognize as modern civilization, however, is not built on money but rather on finance. Global debt will always exceed physical currency in circulation because of the banking systems. Finance includes banking, marketplaces, financial instruments, credit and leverage; currency is just one of many asset classes. Consider that there are approximately $1.5 trillion physical USD in circulation, but the US national debt alone is exceeded $30 trillion.

The reason is that time – not money – is the most valuable resource. Debt – especially in the form of yields and interest rates – is the medium of exchange for the time value of money. There are people who need money today and are willing to pay a premium to receive it. There are people who will only need their money in the future and are willing to receive a premium for the risk of lending it out until they need it.

A favorite phrase among Bitcoiners is that it allows you to “become your own central bank” because you hold durable assets and are solely responsible for the safekeeping of your bitcoin. A bank, however, is more than just a safe. A bank borrows funds from depositors at low interest rates and then invests by lending the funds at a higher interest rate, profiting from the spread. Becoming your own central bank means you are responsible not only for the security of your own bitcoin, but also for its productivity as an asset.

Capital efficiency – or maximizing the productivity of your capital over time – is the engine of modern finance, and at its core are interest rates. Who currently determines interest rates? Central banks control overnight rates, with bond market pricing determining the rest of the yield curve (different yields at different maturities). By raising interest rates, borrowing becomes more expensive and the economy slows down. By lowering interest rates, the opposite happens. Persistent inflation now threatens the stability of the whole system.

Bitcoin has enabled sovereign individuals, and it is inevitable that these individuals will join and form sovereign collectives. Bitcoin DeFi will allow these collectives to determine their own sovereign interest rate curves through trustless and decentralized transactions. Thanks to the emergence of a bitcoin yield curve, sovereign collectives will become the “Decentralized Bank of Bitcoin”.

Fixed-rate and fixed-term loans and borrowings

The lending and borrowing that currently exists in DeFi is variable, meaning the return you receive today is not the same as the return tomorrow or the following week, leading to significant uncertainty.

Recreating zero-coupon bonds in DeFi, analogous to a certificate of deposit that pays fixed interest to its holder on a predefined maturity date, is necessary to reduce uncertainty. These financial properties can be encoded into yield tokens that can be traded with confidence, making trading of these tokens the equivalent of lending and borrowing activity. While that might not sound very exciting, in a way, that’s the point.

Lending and borrowing should be boring and not “risky” activity, for there to be mass adoption of DeFi. Bonds are the brick and mortar of finance, and by mastering these building blocks, we can gradually recreate all of the top finance in the DeFi space.

Bitcoin Borrowing Without Liquidation Risk Through Dynamic Collateral Rebalancing Pools

Loans on all other DeFi platforms work with your collateral in a single pool of assets. If the collateral is bitcoin, the value of your collateral is directly the value of bitcoin, which is highly volatile (about six times the average volatility of the S&P 500). If the price of bitcoin drops and your loan-to-value ratio falls below the protocol minimum, you are liquidated, your position is sold, and you are charged a fee of up to 50% of the collateral value.

With the risky asset, say bitcoin, going up, the pool will move to risk to capture that upside gain. When the market is down, the pool will move towards less risk to minimize losses. When the market drops and the pool value drops below a predefined threshold, this triggers a “risk-free” condition in which the pool balance is shifted entirely to less risk.

It’s like having a seatbelt and airbags for your warranty; in an emergency, it will protect the value of your collateral so you don’t run the risk of liquidation.

DeFi and the Power of Bitcoin Capital Management

When it comes to financing, the traditional asset class for corporate treasuries are corporate bonds. Soaring US inflation will lead to high yields on bonds, meaning current bondholders will rush for exits as prices fall (bond yields and prices are inversely related) . These treasuries will be forced to turn to alternative asset classes like cryptocurrencies.

The recent market downturn and the correlation of bitcoin prices with technology shows us that institutional investors view bitcoin as a high-risk/high-reward speculative asset rather than a store of value. Basically, they are wrong. Bitcoin is regionally neutral. It is distant from the regional monetary and economic policies that guide other asset classes and markets, such as bonds.

As Bitcoin’s market capitalization grows and regulatory clarity is provided, it will increasingly allow corporate cash managers to navigate traditional financial markets during times of distress or uncertainty. of the market.

The bond market, however, is very expensive for most small and medium sized cash managers. Requirements to pay investment banking, legal, and operational fees make it difficult for many small and medium-sized businesses to access the bond market.

Bitcoin can solve this dilemma. Bitcoin’s decentralized foundations ensure that holders don’t necessarily need to jump through all the fiery hoops associated with traditional centralized financial services, but today’s high volatility is a challenge for cash management. Therefore, something like dynamic collateral rebalancing, which acts as a smoothing function and limits downside risk, will be a very attractive solution for corporate treasuries to better manage volatility and their cash flow.

In conclusion

At the heart of finance is security. As Bitcoin is the most secure network in human history, DeFi needs Bitcoin to replace traditional, centralized finance. Without making a single change to the base layer, Bitcoin DeFi uses the best form of sound money as the foundation to build the new gold standard of finance.

This is a guest post by Dr Chiente Hsu. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or bitcoin magazine.

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

Ohio Supreme Court dismisses series of challenges by foreclosure borrower


The Ohio Supreme Court recently dismissed the latest in a series of appeals and other challenges by a borrower to the validity of a foreclosure judgment against the borrower.

In this decision, the Court held that the doctrine of the law of the case applied, whereas the Supreme Court, in an earlier appeal, had found that the Borrower’s arguments were unfounded or had been abandoned.

A copy of the notice in Lundeen vs. Turner is available at: Link to Opinion.

The appeal arose out of a foreclosure action brought against a borrower (“Borrower”) by a mortgagee (“Bank”). A final judgment of foreclosure was rendered in favor of the bank and the borrower appealed.

In the first appeal, the Borrower argued that the court of first instance lacked jurisdiction because it was not properly served. The Court of Appeal found that the borrower had waived this defense and the Supreme Court did not allow the discretionary appeal.

Two years later, the borrower filed a prohibition action in the Court of Appeals, which sought to prevent the foreclosure sale. The complaint was dismissed on the grounds that the court of first instance had jurisdiction in the matter and that the borrower had adequate legal recourse by way of appeal.

A year later, the borrower filed a second prohibition action in the Court of Appeal, which again sought to prevent the foreclosure sale. The court again dismissed the complaint and dismissed the Borrower’s request for reconsideration. The Court of Appeal again held that the borrower’s appeal in the foreclosure action was an adequate legal remedy.

The borrower then filed a motion for dispensation from judgment before the Court of Appeal and a notice of appeal before the Supreme Court.

The Supreme Court denied relief in the direct appeal on the basis that the borrower had an adequate legal remedy to challenge the trial court’s exercise of jurisdiction over the foreclosure action. In reaching its decision, the Supreme Court rejected the Borrower’s argument that the trial court lacked jurisdiction due to allegedly insufficient service finding that the Borrower “voluntarily submitted to jurisdiction of the court of common pleas in the foreclosure action by filing an Ohio Civ. R.12(B) motion to dismiss without raising insufficiency of service or lack of personal competence as a defence.” lundeen i, 164 Ohio St. 3d 159, 2021-Ohio-1533, 172 NE3d 15 at ¶20. The Supreme Court also ruled that the borrower’s dependence on Ohio Civ. R. 3(A) does not raise any question regarding the subject matter jurisdiction of the trial court.

The Court of Appeals later dismissed the borrower’s Ohio Civ. R. 60(B) petition for relief finding that the petition was without merit because the borrower challenged personal jurisdiction and not subject matter jurisdiction, the borrower had an adequate legal remedy and the defense of absence of service had been abandoned.

Here, in this latter action, the borrower appealed the Court of Appeal’s denial of its motion for dispensation from judgment.

The Supreme Court found that the appeal was based on two essential points: (1) there was no subject matter jurisdiction over the foreclosure action, the bank being said to have failed to bring the action within of Ohio Civ. the one-year limitation period of R. 3(A); and (2) as the trial court had no subject matter jurisdiction, it also had no personal jurisdiction over him.

In order to prevail, the Borrower would have had to establish (1) that it had a valid claim or defense in the event relief was awarded; (2) that she was entitled to a remedy under any of the provisions of Ohio Civ. Rules 60(B)(1) to (5); and (3) that the motion was timely. Strack versus Pelton70 Ohio St. 3d 172, 174, 637 NE2d 914 (1994).

The Respondents argued that the Borrower could not establish a valid claim or defense that its petition had failed under the doctrine of the law of the case because the arguments had already been decided by the court in Lundeen I.

The doctrine of the law of the case is a “rule of practice rather than a binding rule of substantive law”, which “provides that legal issues resolved by a reviewing court on a prior appeal remain the law of that case for any subsequent proceedings both at first instance and on appeal. » Farmers State Bank v. Sponaugle, 157 Ohio St. 3d 151, 2019-Ohio-2518, 133 NE3d 470, ¶ 22; see also ex rel. Dannaher vs. Crawford, 78 Ohio St. 3d 391, 394, 678 NE2d 549 (1997) (recognizing that the doctrine applies to extraordinary acts). Absent extraordinary circumstances, “a lower court has no discretion to disregard the mandate of a higher court on a prior appeal in the same matter”. Nolan vs. Nolan11 OhioSt.3d 1, 462 NE2d 410 (1984), syllabus.

As the Supreme Court previously held that the Borrower’s argument that the trial court lacked jurisdiction under Civ.R.3(A) was unfounded and the Borrower had waived the argument of lack of personal jurisdiction for lack of service, the Supreme Court here held that the borrower could not establish a valid claim or defense.

The Supreme Court held that its previous decisions remained the law of the case. The Court further concluded that there was nothing “manifestly unjust” in its decision that would cause the doctrine not to be applied. Thus, the Supreme Court held that the Court of Appeal had not abused its discretion in rejecting the Borrower’s request for compensation.

The borrower alternatively asked the Court of Appeal to grant its motion because of its inherent power to set aside a void judgment. “The power to set aside a void judgment does not derive from the Ohio Civ. R. 60(B) but rather is an inherent power possessed by the Ohio courts. » Patton v. Diemer, 35 Ohio St. 3d 68, 518 NE2d 941 (1988), program paragraph four. “The traditional rule long followed in Ohio is that a void judgment is a judgment rendered by a court without subject matter jurisdiction over the case or personal jurisdiction over the parties.” State vs. Hudson161 Ohio St. 3d 166, 2020-Ohio-3849, 161 NE3d 608, ¶ 11 (case collection).

The Supreme Court concluded that the judgment was not void. The Supreme Court noted that the Court of Appeals was vested with subject matter jurisdiction over the prohibition action by the Ohio Constitution. See Ohio Constitution, Article IV, Section 3(B)(1)(d). The Supreme Court further held that personal jurisdiction had been conferred on the Court of Appeal to render judgment against the Borrower by the Borrower when it filed its complaint seeking relief in prohibition. See Moore v. Mt. Carmel Health Sys.162 Ohio St. 3d 106, 2020-Ohio-4113, 164 NE3d 376, ¶ 34.

Thus, the Court upheld the judgment of the Court of Appeal.

Foreclosure pressure not easing for some Minnesotans / Public News Service


Higher consumer costs and expired pandemic protections are putting more Minnesotans on the brink of losing their homes. Some regions are seeing higher foreclosure activity than others, renewing calls for those behind in payment to seek help.

According to data from this month’s Census Household Pulse Survey, 24% of Minnesota adults were at risk of being evicted or seized, up from 18% earlier this spring.

Janelle Bennett, program coordinator for Midwest Minnesota Communities Action in Grant County, said she’s seeing more pre-lockdown notices being sent to people the office follows up with.

“The ones I’ve had so far have been definitely linked to COVID, either losing their jobs or cutting their hours and just losing that income,” Bennett explained.

As the job market has rebounded, she said COVID disabilities are preventing some from getting their hours back. His domain is not the only one. The Federal Reserve Bank of Minneapolis recently reported nearly 10 Rural Minnesota Counties had foreclosure rates of at least 1%.

The Minnesota Homeownership Center said via its website that those behind can consult a network of nonprofits and community organizations with counselors who provide free advice.

Julie Gugin, president of the Center, said it was not surprising to see trends set in as the pandemic progressed. She noted that health care costs were rising for some people who had little or no paid leave, making it harder to be financially covered if they were forced to miss work.

“It’s a cascading effect that health crises, like we’re experiencing with COVID, can have lasting impacts on people’s ability to maintain their homes,” Gugin pointed out.

As for financial aid, she noted that larger counties can create their own aid programs as they get more federal aid to distribute, though that’s not always the case for smaller areas.

Gugin added that rural landowners can turn to statewide initiatives, such as the Home-Help MN COVID Relief Fund. The application deadline expires on June 17. Those who qualify can receive assistance if their hardship is COVID-related, but officials warned that what remains is unlikely to meet the demand seen across the state.

Disclosure: The Minnesota Homeownership Center contributes to our fund for reporting on civic engagement, housing/homelessness, living wages/working families, and poverty issues. If you would like to help support news in the public interest, click here.

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Kashmir sees spike in violence after Yasin Malik sentencing – Reuters


By Express press service

SRINAGAR: There has been an upsurge in encounters in Kashmir after an NIA court on May 25 handed down a life sentence to separatist leader Mohammad Yasin Malik in a terrorist financing case. Eight meetings have taken place between activists and security forces in the Valley in the five days since Malik’s sentencing.

Of the eight meetings, four were in South Kashmir, three in North Kashmir and one in Srinagar.

On Monday alone, two meetings took place in South Kashmir. In the first shooting, in Gundipora of Pulwama district, two local Jaish-e-Mohammad activists, Abid Hussain Shah and Saqib Azad Sofi, were shot dead by security forces.

Police said one of the activists killed, Abid, was involved in the killing of off-duty policeman Reyaz Ahmad on May 13. The second meeting of the day took place in Rajpora, in the same district. The shooting was in progress when the latest reports poured in.

In clashes since Malik’s conviction, 14 militants, including six Pakistani nationals and eight locals, have been killed. In addition, a policeman and an army porter were killed during the two clashes in northern Kashmir.

Before the JKLF president’s sentencing, eight meetings had taken place in the valley in 24 days. In the eight clashes, nine militants and two civilians were killed. Five of these meetings took place in South Kashmir and three in North Kashmir.

Kashmir’s Inspector General of Police (IGP) Vijay Kumar said on Monday that the police were working on a multidimensional front to prevent local youths from joining the ranks of militants.

Meanwhile, security forces shot and killed two Jaish-e-Mohammad (JeM) militants during an overnight encounter in Pulwama district, police said on Monday.

One of the terrorists killed was implicated in the murder of police officer Reyaz Ahmad earlier this month, a police spokesman said.

He said on a specific input generated by Kulgam Police regarding the presence of terrorists in Gundipora village of Pulwama, a joint cordon and search operation was initiated by the security forces.

“During the search operation, as the joint search team approached the suspected location, the terrorists who were hiding in the residential house of Nazir Ahmad Mir fired indiscriminately at the search team, which which provoked retaliation,” he said.

The spokesperson said that to avoid any collateral damage from the darkness, the operation was suspended overnight and resumed in the wee hours.

“In the ensuing encounter, two terrorists, identified as Abid Hussain Shah and Saqib Azad Sofi, were killed. They were affiliated with the banned JeM terrorist group,” he added.

According to police records, the spokesperson said the men killed were categorized as terrorists and were part of groups involved in several cases of terrorist crimes, including attacks on police and civilian atrocities.

“Relevantly, slain terrorist Abid Shah was involved in the recent murder of unarmed police officer, Constable Reyaz Ahmad at his residential house in Gadoora neighborhood in Pulwama on May 13, 2022,” he said. added.

Kashmir Inspector General of Police (IGP) Vijay Kumar has praised the forces for conducting the counter-terrorism operation in a professional manner without any collateral damage.

He also appreciated the joint team to track and neutralize the terrorists involved in the recent killing of police officers in Pulwama.

While interacting with the media, Kumar said the police had been largely successful in preventing young people from taking up arms and were working on multidimensional fronts to prevent local terrorist recruitment, those who motivate and attract young boys to the terrorism are being reserved under the Public Security Act (PSL).

“We also track new recruits through technical monitoring and bring them back,” the IGP said.

(With PTI inputs)

Meet a millennial with $250,000 in student debt 13 years after graduation

  • Janell Tryon owes over $250,000 in student debt.
  • $100,000 of that sum comes from interest, despite 13 years of payments.
  • She says the interest accrued on her original loans prevented her from repaying her debt.

At 34, Janell Tryon has a student debt of $250,000.

She only made $150,000 – $100,000 for an undergraduate degree at New York University and $50,000 for a master’s in public health.

The rest is all interest.

“For years I couldn’t bring myself to look at the numbers and felt completely out of control,” she told Insider. “The only way to live with it was to pay a certain amount every month and not default. I never felt like I could get over it.”

In the 13 years since she graduated from NYU, Tryon has made repayments on her loans, while feeling unequipped to handle the burden of debt. After graduating, she earned $23,000 a year as the manager of a coffee shop and bookstore and paid $700 a month on her loans, the same amount as her rent. After grad school, she spent about six years doing research for the New York City Health Department, speaking to residents about their experiences with addiction and homelessness. Now she is a full-time doctoral student at the University of Massachusetts Amherst.

All the while, his monthly payments were generally allocated to interest, not the principal amount of the loan. It’s a vicious circle, as the loan keeps earning more interest, which has to be paid back that month.

Tryon’s story is similar to that of many Americans, 45 million of whom have student loan debt — that’s one in eight, according to a NerdWallet analysis of May 2021 census data. are the most likely to have student loan debt, and millennials owe an average of $40,000, according to data from a 2021 Experian study.

Since March 2020, borrowers who owe the federal government have not been required to make student loan payments and have not been charged new interest, but pressure is mounting for President Joe Biden to cancel all or part of it. of this debt. Biden is reportedly preparing to write off $10,000 for those earning less than $150,000 a year, The Washington Post reported this week, though the typical borrower owes nearly triple that, according to research by Experian.

“A lot of these students come from families like mine, who didn’t know how to deal with student debt because it’s its own beast,” Tryon told Insider.

“It’s a really insidious process”

Like many Americans, Tryon owes a mix of private and federal debt.

Its federal loans were managed by Navient before Aidvantage took over their portfolio. Tryon’s private debt is serviced by banks and other lending groups, and all of its loans have an interest rate range between 4.5% and 11.5%.

In January, Navient – formerly known as Sallie Mae – settled a lawsuit that alleged the company pushed student borrowers into more debt instead of helping them build affordable repayment plans. Navient denied any allegations of wrongdoing in the deal, but agreed to forgive $1.7 billion in student loan debt for 66,000 borrowers out of the $73 billion in student loans it serves.

Tryon’s debt was not eligible. To qualify, borrowers must have had seven consecutive months of past due payments or attended for-profit schools.

Tryon called the settlement a “major distraction,” for everyone still struggling with their debt.

She thought that by going to college, she would eventually earn enough money to pay off the debt she had incurred.

She said she spent years trying to negotiate a payment plan with Navient and eventually forbore, meaning she suspended payments on her original loan while not paying. than interest. With this setup, a borrower usually ends up paying more in the long run.

“It was never about ‘how much can we charge this reasonable person for what they earn?'” she said. “It was, ‘How much can we lower the rate so she can make an interest-based payment, not a principle-based payment?'”

That was one of Navient’s lawsuit claims – in a statement, Pennsylvania Attorney General Josh Shapiro said the company “engaged in deceptive and abusive practices, targeted students it knew that they would struggle to repay their loans and put an unfair burden on people trying to improve their lives through education.”

Student loan expert Mark Kantrowitz, founder of privatestudentloans.guru, a free website on borrowing to pay for college, told Insider he believed the most serious allegation in the lawsuit was that Navient had distributed loans that would trap borrowers in a cycle of debt. to earn interest.

Sallie Mae handed out “opportunity cost loans” before they were inherited by Navient, loans that “were made in the knowledge that the majority of borrowers would be unable to repay the debt”, he said. declared.

Navient has previously denied all claims and told Insider they offer several different options for borrowers looking to repay their loans.

“The company’s decision to resolve these issues, which were based on unsubstantiated claims, allows us to avoid the additional burden, expense, time and distraction that prevails in court,” said Mark Heleen, chief legal officer of Navient. “Navient is and has always been to help student borrowers understand and select payment options that suit their needs. In fact, we have increased enrollment in income-contingent repayment plans and reduces delinquency rates, and every year hundreds of thousands of borrowers we support successfully repay their student loans.”

Since graduating from college, Tryon says her debt has kept her from planning for her future. Since joining Debt Collective, a syndicate of debtors, she said she has met others like her who feel misled by lenders and schools.

“It took me years to realize how manipulated I was by lenders,” she said. “It’s a really insidious process.”

Tryon added that while a college degree often represents financial mobility for people who grew up in low-income households, the resulting debt cripples people for years.

“The system might want us to aspire to be in a different situation

tax bracket

“, she said, “but if we are in debt, we are so much worse off than our parents. “

Meet New Yorkers trying to turn vacant ‘zombie’ buildings into affordable housing as real estate demand in the city overflows


New York faces a crippling housing shortage, but there are thousands of vacant homes across the state that could help ease its affordability crisis.

One group has a solution to turn these so-called “zombie” homes into affordable housing by forcing banks to complete the foreclosure process and return the home to livable condition.

Zombie houses are all they look like run down, dangerous and abandoned properties. But they are also a relic of the subprime lending gold rush of the mid-2000s, a time when many communities of color was victim to predatory lending practices that have often resulted in foreclosures.

The Local Initiatives Support Corporation, a national non-profit organization, funded and provided advice to the Department of Housing Preservation and Development, which is responsible for developing and maintaining the City of New York’s affordable housing stock. York to make sure banks follow the state’s “zombie law” to restore vacant homes into affordable units.

There is a valued 1.3 million zombie homes across the United States, and New York State has the highest share. From 2022, thousands of these vacant homes are scattered throughout the state, especially in communities of color. Not only do they reduce property values ​​and promote local crime, but the wasted housing stock also contributes to the worsening housing shortage in the state.

But there is a solution in the works, said Jenny Weyel, director of neighborhood stabilization at HPD New York. “We’ve successfully sued banks for letting vacant homes deteriorate, and now we’re finding ways to renovate them and resell them to low-income families,” she said.

New York is overrun by zombies

HPD estimates that over 2,000 zombie homes are vacant in New York City alone.

In 2013, a wave of seizures hit New York, resulting in a surplus of vacant homes and hung homes in the foreclosure process. When the state became the second-largest foreclosure inventory in the nation, the state attorney general’s office introduced the Abandoned Neighborhood Assistance Act, known as the Zombie Law.

With financial assistance from the Local Initiatives Support Corporation, HPD used the law to force banks to keep their promises to maintain vacant New York housing. The law, the first of its kind, could serve as a model for other states hoping to tackle backlogs of vacant and struggling homes with banking liens.

It requires financial institutions to maintain the exterior of vacant homes that hold delinquent mortgages by repairing windows, cutting grass and repairing roofs until a foreclosure process is completed. If banks do not follow the law, they are fined $500 a day for each house.

And so far it’s work in more than 11,000 homes.

Through the “Vacant Homes Initiative”, LISC and HPD have ensured that banks comply with the law by tracking and surveying properties, certifying that vacant homes are properly maintained and do not pose a threat to communities. that they infest. Their efforts have also led to new avenues to restore these properties into affordable housing.

“Each vacant home restored means a safe and affordable home for a family, increased taxes, and an infusion of vitality and care for the neighborhood and neighborhood,” said Helene Caloir, senior director of New York State Housing Stabilization. Fund, Insider said. “It has a positive multiplier effect on community life that you can see just by walking around.”

A home in Brooklyn’s Brownsville neighborhood is one of the city’s greatest success stories.

As of 2017, Wells Fargo owned the vacant home but failed to maintain the property. HPD filed a complaint.

When it did not receive a sufficient response from Wells Fargo, the city demolished the property, leaving the bank liable for demolition costs. Seeking to cancel this debt, Wells Fargo transferred ownership of the property to New York City.

By 2024, the property will be included in a Habitat for Humanity home ownership project that plans to turn it into affordable multi-family housing.

“With the housing crisis in New York, we can’t leave houses vacant for a year,” Weyel said. “Zombie homes are a potentially untapped source of affordable housing. Families could live in these homes and they could provide a homeownership opportunity for someone who may not be able to afford it.”

Report details active shooting event at Nipomo, officers acquit

May 28, 2022


Three peace officers were justified in the fatal 2020 shooting of a 42-year-old man in Nipomo to stop his shooting, according to a report released Friday by the San Luis Obispo County District Attorney’s Office.

The report, signed by District Attorney Dan Dow, says CHP Officer Jason Jennings and Sheriff’s Deputies Daniel Weagle and Chelsea Stevenson “discharged firearms to stop the active shooter threat” that resulted in the death of Scott Huffman of Bakersfield. The District Attorney’s Office investigation details the shooting of Huffman on August 21, 2020.

At 11:22 a.m., brandishing a black handgun and shouting, Huffman ran toward the Vons gas station on Tefft Street in Nipomo. But an employee locks the door with an automatic locking system switch located under the counter. Huffman fires several shots at the door, as the store employees crawl towards a desk.

Huffman running at the Vons gas station

At 11:23 a.m., Huffman returns to his vehicle and reloads his pistol. Huffman heads to Tefft Street and pulls into traffic hitting a fire truck en route to a call for medical help. While replacing the magazine, Huffman yells, “Don’t fuck me, I’m the bad motherfucker.”

At 11:24 a.m., brandishing his pistol, Huffman stops a small SUV. He opens the driver’s side door and orders the woman to remove her mask. He then reveals the weapon to the woman, her husband and their young son. After asking what the child’s name is, Hoffman lets them go.

Huffman stops the SUV

At 11:29 a.m., the dispatch informed law enforcement that Huffman was seen with a gun in his hand near Coast Hills Credit Union, about 100 yards from the Vons gas station. Even though the employees were still locked in the office of the gas station, the lock on the front door unlocks and five customers enter.

Huffman walks into the store, walks to the restroom, and says, “Honey, it’s okay.” He then fires three bullets into the door, kicks it down, and goes inside.

At 11:31 a.m., Huffman leaves the gas station with his gun pointed downward. Deputy Stevenson yells, “Put your hands up.” Huffman raises his gun.

Huffman leaving the gas station

At 11:31, Deputy Weagle yells, “Hey, put it down.” Ignoring the deputy’s order, Hoffman walks over to Weagle.

Deputy Weagle and Officer Jennings each fire a shot at Huffman, who falls forward and to the sidewalk. Appearing undeterred, Huffman lifts his upper body off the pavement using his forearms and elbows.

Officer Jennings fires two more shots and Deputy Stevenson fires one at Huffman, who dies at the scene.

Based on a lengthy investigation, Dow’s office determined that the use of lethal force was justified.

“There is reliable evidence that each officer’s actions were reasonable, necessary and justified in the totality of the circumstances when they shot or shot Scott Cameron Huffman,” the report said. “As a result, the San Luis Obispo County District Attorney’s Office has closed its investigation into this shooting incident.”

Irishman warns others against borrowing wife’s car after discovering ‘real problem’ on our roads


An Irish man has warned others not to borrow their wife’s car after the way he was treated on Irish roads and said it was a ‘real problem’.

He said he was aware of the problem of road rage in this country, but when he drove his wife’s car it was amplified.

Speaking to Reddit, he explained: ‘I only noticed how incredibly bad Irish drivers are for road rage after driving my wife’s car.

“She mentioned before how women are treated differently than men on the roads, and I didn’t really agree until I started driving her car.”

READ MORE: Woman who ate nothing but crispy sandwiches for 23 years has been diagnosed with a serious illness

For context, he explained that his wife drove a “very feminine car” – a dusty pink Fiat 500, while he drove a BMW, “and had never been mugged on the roads”.

Then he went on to explain, “When I get out of my wife’s car, it’s a whole different story.”

He said: ‘Cars literally driving so close to the rear that I can see the color of the driver’s eyes, to being constantly overtaken even when approaching or exceeding the speed limit.

“It’s worth saying that I don’t change the way I drive from car to car.

“I like to think I’m a responsible driver, but I’m by no means a slow driver.”

Speaking of a specific incident, he went on to say, “This morning I was driving on a windy country road, where the speed limit was 80 km/h.

Irishman warns others against borrowing wife’s car after discovering ‘real problem’ on our roads

“I was going 80, and the car behind me passed me coming into a corner.

“They had to drive at almost 100 km/h and brake hard when they came to the bend. I also noticed that they have L-shaped plates, which is even more mental.

“It happens almost every time I drive my wife’s car. I would like to know if others are going through the same thing.

People started responding with their own experiences, and one said, “Really, exactly the same thing happens to me but with my sister’s ‘N’ stickers. Constantly challenged on the roads. “

Another said: ‘I borrowed my mum’s Yaris once to take her to the store…never again for similar reasons.’

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Al Jazeera to refer murder of journalist Shireen Abu Akleh to ICC

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Al Jazeera news network said it would refer the murder of its longtime correspondent Shireen Abu Akleh to the International Criminal Court after it accused Israeli forces of shooting the Palestinian American journalist, whose death sparked global outrage.

A household name in the Arab world, Abu Akleh was shot this month while covering an Israeli military raid on the Jenin refugee camp in the West Bank. She wore a helmet and a blue bulletproof vest with “Press” written on it.

Arab-American journalists around the world shared stories about the impact and legacy of slain journalist Shireen Abu Akleh following her May 11 assassination. (Video: Joshua Carroll, Leila Barghouty/The Washington Post)

Witnesses, Palestinian authorities and the news channel, where she reported for more than two decades, said she was shot dead by Israeli troops. Israeli officials say they have not determined who killed her. After initially saying Palestinian militants were “most likely” responsible, the army said it was investigating the possibility that one of its soldiers fired the shot.

US Journalist Killed by IDF, Network Says; Israel calls for an investigation

The Qatar-based news network said in a statement on Thursday that it had assigned a legal team to take the case to court in The Hague and that the dossier would also include the Israeli strike on a skyscraper in the Strip. of Gaza housing the media offices. media, including Al Jazeera and the Associated Press last year – an attack that drew condemnation from media freedom advocates.

“The network is committed to pursuing all avenues to seek justice for Shireen and to ensuring that those responsible for her murder are brought to justice and held accountable before all international judicial and legal platforms and tribunals,” Al Jazeera added. .

At funeral of Shireen Abu Akleh, scenes of grief as Israeli police beat mourners

Several witnesses previously interviewed by The Washington Post said there was no exchange of fire between the Israeli military and Palestinian gunmen when Abu Akleh was shot, despite Israeli claims that she had been caught in the crossfire.

Human rights groups have called for an independent investigation into the journalist’s death.

As part of an ongoing investigation, the ICC decided last year that it has jurisdiction to investigate alleged Israeli war crimes in the Palestinian territories occupied by Israel in 1967, including the West Bank. Israel, which is not a member of the ICC, opposed the decision.

For Palestinian journalists, the death of a colleague strikes close to home

The Palestinian Authority has rejected requests to hand over the bullet that killed Abu Akleh to Israeli authorities and said it would share the report of its own investigation with US authorities and others. The State Department said this week that neither side has formally requested help, according to The Associated Press.

The Palestinian Authority announced the results of its investigation on Thursday, accusing Israeli forces of intentionally shooting the journalist, a charge that Israeli Defense Minister Benny Gantz called a “blatant lie”.

Abu Akleh’s funeral drew thousands of Palestinians to Jerusalem, with mourners hailing her as an icon. It also sparked outrage after Israeli police fired stun grenades and used batons to beat those carrying the coffin, which nearly fell to the ground. Jerusalem police said they would look into funeral arrangements.

Hancock 1 Superior Court – The Daily Reporter


The State of Indiana recently filed a lawsuit against the following individuals in Hancock County Superior Court 1:

May 17

James E. Alyea Jr., domestic assault, forcible confinement, intimidation, domestic assault by bodily waste, obstructing the reporting of a crime.

May 5

Adam Robinson, burglary, theft.

The following civil actions were recently filed in Hancock 1 County Superior Court:

May 16

Jefferson Capital Systems LLC v. Brandi McDonald, Civil Collection.

Bradley A. Couch v. Dennis Brackenridge Aaron McGee, Civil Plenary.

Indiana State v. James A. Fitzpatrick, Hancock County, Civil Plenary.

Freedom Mortgage Corporation v. Angelo White Jr., Stansbury Homeowners’ Association, Mortgage Foreclosure.

May 17

Matter concerning the estate of James A. Williams, unsupervised estate.

May 18

Discover Bank, Discover Products Inc. c. David Carver, Civil Collection.

May 19

Check out Bank v. James McNew, Civil Collection.

National Collegiate Student Loan Trust v. Robert McCarty, Civil Collection.

Michael Rousey, Hannah Rousey c. Donald Bolton, Lease Plan USA LT, State Farm Mutual Automobile Insurance Company, tort.

Case concerning the estate of Paul W. Hanson, unsupervised estate.

Case concerning the estate of Susan Kay Thomas, unsupervised estate.

May 20

Ciras LLC v. William M. Devine, Lindsi E. Devine, First Guaranty Mortgage Corporation et al, mortgage foreclosure.

LVNV Funding LLC c. Gary Flippen, Civil Collection.

GMS Service Group c. Greenfield SSG LLC, Civil Collection.

Today in FinTech: Bloom Gets $376 Million; Klarna shift


In today’s FinTech news, Bloom is raising money to fund digital startups, as experts weigh in on the disruption of cryptocurrencies. Additionally, Klarna is eyeing short-term profits rather than business growth.

Growth capital funding startup Bloom raises £300m

Bloom Group SA has raised £300m (about $376m) to expand its business across Europe as it aims to become a leading provider of revenue-based loans for digital startups. The company’s model offers pay-as-you-go pricing and a variety of product features, including revolving credit with cost predictability and transparency.

Competition experts from around the world discuss crypto and antitrust strategies

FinTech’s disruption of existing financial markets has affected lawmakers around the world, especially antitrust regulators, and cryptocurrency is the most troublesome aspect, according to experts in the June 2022 issue of Competition Policy International, a media company specializing in antitrust reporting.

Klarna is changing its game plan to prioritize profits over growth

Buy now, pay later (BNPL) FinTech Klarna shifts from growth to short-term profits after estimated net losses of $689 million in 2021. Klarna has laid off 10% of its staff of around 7,000 people due effects of inflation and Russia. – Ukrainian War. CEO Sebastian Siemiatkowski said the company is also looking for new funding.

10x, Westpac unveils its banking transaction platform

FinTech 10x Banking expands its partnership with Westpac and launches a transaction banking platform for the bank’s institutional clients. 10x Banking will use its technology to support the new platform in its move to cloud-native technology. Westpac aims to give its customers access to real-time data across multiple structures.

FinTech IPOs mix at the end of the month

The PYMNTS IPO index is down more than 8% this month with limited trading days in May. Some players were up 2.1% last week. Alkami has jumped 25% in the past few days, bouncing off earnings results from earlier this month. dLocal was up 18% over the week, while Affirm fell nearly 6%.



About: PYMNTS’ survey of 2,094 consumers for The Tailored Shopping Experience report, a collaboration with Elastic Path, shows where merchants are succeeding and where they need to up their game to deliver a personalized shopping experience.

Germany house price inflation to slow as borrowing and cost of living bite – Reuters poll


Facades of apartment buildings are pictured in the Mitte district of Berlin, Germany August 29, 2019. REUTERS/Axel Schmidt/File Photo/File Photo

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BERLIN/LONDON, May 26 (Reuters) – Property prices in Germany will rise faster this year than thought just three months ago, as tight supply outweighs worsening the cost of living crisis and the prospect of higher interest rates, according to a Reuters poll.

However, the resulting compression of disposable incomes should contain the rise in house prices over the next two years.

House prices are expected to rise 7.0% this year, according to median forecasts from 13 analysts surveyed May 11-25, with the pace slowing to 3.0% in 2023 and 2.0% in 2024. In a survey of March, these respective forecasts were 6.3%, 4.5% and 2.8%.

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“House prices will continue to rise, albeit at a slower pace, as rising interest rates, soaring prices over the past few years and falling disposable income undermine affordability,” he said. said Carsten Brzeski at ING.

The European Central Bank is expected to raise rates for the first time in more than a decade in July and on Tuesday ECB President Christine Lagarde hinted at a hike of at least 50 basis points by the end september. Read more

Like much of the world, Germany has seen a price spike, with inflation hitting its highest level in more than four decades in April, driven by soaring fuel and energy prices following the Russia’s invasion of Ukraine. Read more

Of the 13 respondents who answered additional questions about affordability, all conditions are expected to deteriorate for both first-time home buyers and the rental market.

Of those 13, ten saw affordability deteriorate significantly for first-time home buyers and four for renters.

“It’s the worst of all worlds: house prices still rising, interest rates rising rapidly, construction delays due to the scarcity of skilled labour, reduced purchasing power in due to high inflation,” said Timo Klein of S&P Global.

Klein said he also expects rents to rise due to reduced construction activity, landlords trying to stay ahead of inflation and additional demand from Ukrainian refugees. .

Asked where the ECB deposit rate, currently -0.50%, should go to significantly cool property market activity, the median response was 1.00%, a level not expected before 2024 according to another Reuters poll.

But one respondent, Marco Wagner, senior economist at Commerzbank, said 0.00%, a level expected for late September.

“Basically, every rate hike will do and contribute to a slowdown in rising prices,” he said.

(For more stories from Reuters Quarterly Housing Market Surveys:)

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Reporting by Zuzanna Szymanska and Jonathan Cable; Polling by Sarupya Ganguly and Milounee Purohit Editing by Tomasz Janowski

Our standards: The Thomson Reuters Trust Principles.

JPS refuses lease of unused building at Midtown Charter School


Following an unsuccessful attempt to lease a building from the Jackson Public School District, Midtown Public Charter School will be moving out of the Midtown neighborhood to a building near the intersection of Northside Drive and I-55 for the next school year.

The Charter School Authorizer Board approved the move on Tuesday.

Midtown Public, first opened in 2015, currently serves 240 students in grades 5 through 8, according to the Mississippi Department of Education. Midtown Partners, the charter school’s operators, attempted to lease Rowan Middle School, which closed in 2017. The building briefly housed an alternative GED program, but has been vacant for several years.

Charter schools are free public schools that are not under the jurisdiction of a school board, as traditional public schools do. Instead, they are governed by the Mississippi Charter School Authorizer Board. These schools are controversial among traditional public school supporters because they provide more flexibility to teachers and administrators regarding student instruction and are funded by local school districts based on enrollment.

This was the point of contention between JPS supporters and officials. This school year alone, JPS donated $888,747.60 to the school. If the district allowed Midtown to rent out one of its unused buildings, it could recoup funds with rent and any repairs the charter school was willing to make. But the reason Midtown came up with a decision was to increase enrollment, which ultimately means JPS would pay the school more money in future school years.

JPS School Board members raised a number of concerns about the proposed lease when it was presented at an April 5 board meeting, including the amount of rent payments and the processes for maintenance repairs and a possible reauthorization of the lease.

The charter school reportedly paid $78,000 a year in the lease and about $115,000 in proposed repairs. Some board members have lobbied for a higher rental amount, but state law prohibits public school districts from charging above the market value of the property.

There was also a discussion among board members about the broader merits of the charter school system, which Superintendent Errick Greene said should not be confused with the current lease issue.

“Whether Midtown, the charter school, should exist or not, should operate in Jackson, Mississippi or not, is a valid discussion and an issue that I am sure is ripe for a broader movement and a lobbying around the law that allows it to be,” Greene said. , but we have an organization standing in front of us right now with dollars that we know they have because they’re going through us and going to them, and an opportunity to get some of those dollars back.

Board member Cynthia Thompson said she felt they didn’t need to take the first offer that came along and suggested recruitment proposals to use the space for other purposes . She also expressed frustration with the design of the charter school system more broadly.

“I understand the constraints given to us as a neighborhood to follow. But it’s hard to play ball when the other person doesn’t have to follow those rules,” she said.

At the next board meeting on April 19, nine people came to speak with two-thirds opposed to hiring Rowan.

Ronica Smith, a parent of two Midtown Public students who came to speak in favor of the lease, said her children have done well and have been excited to learn since they’ve been there.

“Midtown is a good school. If you give Midtown a chance to get Rowan, you’re all going to see, it’s going to blossom,” she said.

Other community members cited Midtown’s low test results as a concern with the issuance of the lease, which was also under investigation by the state.

“We live in a state that has historically underfunded the education of black children, and continues to do so while simultaneously increasing funding for entities such as Midtown Public Charter Schools, which have done a poor job of best educate black children, scoring in the bottom ten percent of Mississippi schools,” said a man who spoke in the public comment section at the meeting.

JPS Board Chairman Ed Sivak pointed out that when Rowan was closed, Midtown students were instead sent to Brinkley Middle School, which does not fare better than Midtown Public.

The lease was resubmitted with changes at the April 19 board meeting, which council member Robert Luckett moved to approve, citing Midtown residents’ support for the lease. But due to lack of support from other board members, the proposal fell through.

Kristi Hendrix, the executive director of Midtown Partners, could not be reached for comment, but said in a letter to the Charter School Authorizer Board that the new facility they will be moving to off Northside Drive was previously used for the education, making it an easy transition.

“We were very hopeful that a lease could be secured with Jackson Public Schools for the use of one of their two vacant buildings for the neighborhood,” Hendrix said in the letter. “Despite overwhelming support from Midtown residents, the Jackson Public School Board has expressed its desire to leave the building vacant instead of allowing a charter school to use them.”

Kevin Parkinson, director of Midtown Public, also could not be reached for comment.

— Article credit to Julia James of Mississippi Today —

2022FC40, Foreclosure PNN | Legal announcements


IN CIRCUIT COURT OF THE MACON COUNTY 6TH JUDICIAL CIRCUIT – DECATUR, ILLINOIS PNC Bank, NA PLAINTIFF Vs. Jason R. Feller; Danielle L. Feller; Staley Credit Union; Capital One Bank (USA), North America; Unknown Owners and Unregistered Plaintiffs DEFENDANTS 2022FC40 NOTICE BY NOTICE OF PUBLICATION IS GIVEN TO YOU: Jason R. Feller Danielle L. Feller Unknown Owners and Unregistered Plaintiffs That this case has been brought in this Court against you and other defendants, praying for the foreclosure of a certain mortgage conveying the premises described as follows, namely: COMMONLY KNOWN AS: 2547 Harryland Rd Decatur, IL 62521 and which stated that the mortgage was granted by: Jason R. Feller the debtor(s) Mortgage(s), to National City Mortgage Co., as Mortgagee, and registered in the Macon County Recorder’s Office, Illinois, Document Number 1620572, Book 3317, Page 204 amended with 1938747; and for other relief; that the summons has been duly issued out of said Court against you according to law and that said action is now pending. YOU CAN ALWAYS SAVE YOUR HOME. DO NOT IGNORE THIS DOCUMENT. By order of the Chief Judge of the Circuit Court of the Sixth Judicial Circuit, this matter is scheduled for binding mediation on July 5, 2022 at 10:30 a.m. at the Macon County Building, 141 S. Main Street, Decatur, IL. A mediation coordinator will be on hand to discuss any options you may have and to assist you with any mortgage modification. For more information on the mediation process, please see the attached Notice of Mandatory Mediation. YOU MUST APPEAR ON THE SPECIFIED MEDIATION DATE OR YOUR RIGHT TO MEDIATION WILL TERMINATE. NOW, THEREFORE, UNLESS YOU file your response or otherwise file your appearance in this matter at the office of the Clerk of this Court, Sherry Doty Clerk of the Circuit Court 253 East Wood St. Room 129 Decatur, IL 62523 no later than June 24, 2022, A DEFAULT MAY BE ENTERED AGAINST YOU AT ANY TIME AFTER THIS DAY AND A JUDGMENT MAY BE ENTERED PURSUANT TO THE PRAYER OF SAID COMPLAINT. CODILIS & ASSOCIATES, PC Plaintiff’s Attorneys 15W030 North Frontage Road, Suite 100 Burr Ridge, IL 60527 (630) 794-5300 DuPage # 15170 Winnebago # 531 Our File # 14-22-02226 NOTE: This law firm is a collection agent. I3195053 5/25, 6/1, 6/8, 131065

Buying a Home with Bitcoin – A Deep Dive into the Latest Crypto Mortgage Trend – Bitcoin News


In recent years, cryptocurrencies have been integrated into traditional financial tools such as automated teller machines (ATMs), loadable debit cards, point-of-sale devices and direct payments for all kinds of goods and services. . Digital assets have also been added to retirement account offerings issued by financial giants like Fidelity. In recent times, cryptocurrencies can be capitalized more for making a down payment on a mortgage or securing a conventional home loan using bitcoin as collateral.

Conventional Crypto Home Loans

These days, at least in the United States, banks require at least 20% down payment if an individual or couple wants to buy a home using a conventional loan. Typically, people use cash as collateral or a down payment, but Americans can also use things like business equipment, inventory, invoices, general liens, and even other forms of real estate to secure a traditional mortgage.

As of April 8, 2022, the median home price in the United States was $392,000, which means a buyer needs $78,400 as collateral to get a conventional bank loan. Although crypto assets can be used to load debit cards and pay for items through point-of-sale commerce, few businesses allow people to use digital currencies for a crypto-backed loan.

Interested homebuyers looking to leverage their crypto assets to purchase a home can use companies like Milo and Abra. Going forward, Figure Technologies and Ledn aim to offer crypto mortgage products.

However, there are currently a few companies offering loans that use crypto assets as collateral or are planning to do so in the near future. Additionally, some companies that planned to offer crypto loans dropped the idea soon after.

For example, the second largest mortgage lender in the United States, United Wholesale Mortgage, has announced that it will accept bitcoin (BTC) for mortgages at the end of August 2021. However, a few months later, United Wholesale Mortgage revealed the company decided not to offer crypto services.

Company CEO Mat Ishbia told CNBC in October 2021 that the lender didn’t think it was worth it. “Due to the current combination of additional costs and regulatory uncertainty in the crypto space, we have concluded that we are not going to proceed beyond a pilot project at this time,” Ishbia told MacKenzie Sigalos. from CNBC.

Crypto-backed home loans powered by Abra and Milo

Meanwhile, one financial services company that just announced crypto home loans is the cryptocurrency company Abra. The company, founded in 2014 by former Goldman Sachs fixed income analyst Bill Barhydt, has been providing digital asset trading services and a cryptocurrency portfolio for more than seven years.

Abra CEO Bill Barhydt has revealed that the company will offer home loans through Abra’s Borrow app and a partnership with Propy.

On April 28, 2022, Abra announcement he joined the company Propy and home buyers can get a home loan using crypto as collateral through the Abra Borrow platform. The Abra loan app has different interest rates, depending on the amount of crypto collateral added, from 0 to 9.95%.

“While digital asset investing has exploded, most investors are unable to use their cryptocurrency holdings to directly fund the most important purchase of their lives, a home,” explained Abra CEO Bill Barhydt during the announcement. “Our partnership with Propy solves this problem and is a major step in bridging the gap between crypto and real estate,” the Abra executive added.

In addition to Abra, a company called Milo offer crypto mortgages for people interested in buying real estate. Milo is a Florida-based startup that raised $17 million on March 9, 2022, in a Series A funding round. California-based venture capital firm M13 led the funding round and QED Investors and Metaprop participated.

Milo offers crypto mortgages and accepts BTC, ETHand some stablecoins.

Milo offers 30-year loans to borrowers looking to raise up to $5 million. Milo accepts stablecoins, bitcoin (BTC), ethereal (ETH), and interest rates range between 5.95% and 6.95%, with loans having closing times of two to three weeks. When Milo raised $17 million last March, Milo CEO Josip Rupena said the company’s efforts were aimed at enabling crypto participants.

“This [funding] The funding round is a validation of Milo’s vision to empower global and crypto consumers and the opportunity to connect the digital world with real world real estate assets,” Rupena said at the time. “This is a multi-billion dollar opportunity, and we’re proud to be pioneering efforts in the United States for consumers with unconventional wealth.”

Ledn and Figure Technologies plan to offer crypto mortgage products

Crypto lender and savings platform Ledn revealed in December 2021 that it was planning “the imminent launch of a bitcoin-backed mortgage product.” At the same time, the company said it raised $70 million from a handful of well-known investors.

Although Ledn crypto mortgages are not yet available, people can sign up to join the waitlist.

ledn was founded in 2018 and the company has raised a total of $103.9 million to date. As of this writing, Ledn’s bitcoin-backed mortgage is not yet available, but people can join the Ledn mortgage product waitlist.

“By combining bitcoin’s appreciation potential with house price stability, this one-of-a-kind loan offers a balanced mix of wealth-building guarantees,” Ledn said. mortgage loan webpage said. “With the Bitcoin mortgage, you can use your assets to buy a new property or finance the house you already own. Get a loan equal to your bitcoin holdings, without selling satoshi.

Trick Technologies also plans to provide a crypto mortgage loan and people can join a waiting list to access Figure’s next product. Figure co-founder Mike Cagney Explain at the end of March that the company launched the mortgage program.

Figure aims to offer crypto mortgages up to $20 million with variable interest rates, from 5.99% to 6.018% APR.

“Figure is launching a crypto-backed mortgage in early April,” Cagney said at the time. “100% LTV – you’ve invested $5 million in BTC or ETH, we grant you a mortgage of $5 million. No tedious process, no withdrawals, any amount up to $20 million, for a 30-year mortgage. You can make payments with your crypto collateral. And we do not re-mortgage your crypto.

Although there aren’t many crypto mortgage products today, the trend is starting to get a little bigger in 2022. If the trend continues, such as the integration of crypto with ATMs, cards debit and the myriad of traditional financial vehicles, the concept of buying a home with bitcoin is likely to become a mainstay of society.

Keywords in this story

Abra, Bill Barhydt, Bitcoin Loans, Bitcoin Loans, bitcoin mortgage, bitcoin mortgages, bitcoin backed mortgage, crypto mortgage, crypto mortgages, crypto backed mortgage, crypto backed mortgage product, Ethereum, Figure Technologies, ledn, ledn bitcoin , ready , Mike Cagney, Milo, Propy, Stablecoins, waiting list

What do you think of the concept of crypto mortgage products? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the news manager for Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 5,000 articles for Bitcoin.com News about disruptive protocols emerging today.

Image credits: Shutterstock, Pixabay, Wiki Commons

Warning: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Focus on UK public sector bonds and flash PMIs


OWe saw a good start to the trading week for European markets yesterday, with decent gains across the board, but before we got too bullish, yesterday’s moves kept us below the highest levels. high observed this month.

US markets also had a good day, building on the rebound we saw on Friday from the 18-month lows of the Nasdaq and S&P500 to close slightly higher.

After falling for 7 straight weeks, US markets were a little slow to rebound, and unlike the declines of recent weeks, yesterday’s Nasdaq 100 rally lagged the Dow Jones and S&P500, which led the rise yesterday. We may well see further gains in the days ahead, but as with any bear market rally, we need to see movement above previous reaction highs to be confident that a short-term bottom is in place.

For that, we need to see sustained movement above 12,600 in the Nasdaq 100 and 4,100 in the S&P500, and we’re still a long way from that, as US futures fell sharply after Snap cut its forecast for the second quarter.

While US markets closed in solidly positive territory yesterday, momentum waned overnight so today’s European open is expected to be negative with the focus today on UK public sector borrowing and flash PMI data, as well as comments from the ECB. President Christine Lagarde.

UK public sector borrowing for April is expected to show an increase of £17.9bn, a modest increase from March’s £17.3bn figure. Nonetheless, today’s figures are still expected to mark a significant drop from the same month last year and the year before, when the UK government borrowed £28.3bn and £47.8bn respectively. sterling, because of the huge measures that have been taken to support the British economy. during the pandemic.

This fall certainly marks progress, but it is still well above the levels we saw in the years leading up to 2020, when public sector borrowing in April for 2019 was just £6.2tn.

Today’s flash PMI numbers are rapidly losing credibility, at least in terms of headline numbers, when it comes to assessing whether or not the French, German and UK economies are resilient.

In terms of the wider economy, it is quite evident that economic growth is struggling across the bloc as well as here in the UK.

However, looking at the PMI figures, it would be tempting to think that all is well. Nothing could be further from the truth with rising energy prices and supply chain disruptions posing significant challenges for businesses large and small.

The manufacturing and services PMIs are all expected to slow from the numbers we saw in April, which were all in the mid-50s for the three countries of the UK, Germany and France, but the slowdown should not be significant.

In France, the manufacturing sector is expected to slow to 55.2 from 55.7 and services from 58.9 to 58.5.

In Germany, manufacturing is expected to slow to 54, from 54.6, and services from 57.6 to 57.1.

In the UK, manufacturing is expected to slow to 55, from 55.8, and services from 58.9 to 57.0.

We also have the latest CBI retail sales figures for May, which are expected to see a slight improvement from -35 in April to -30.

The US dollar slipped slightly yesterday, with the euro nearing a four-week high, after ECB President Christine Lagarde and a few other members of the Governing Council indicated that rate hikes would begin in July in a blog. post yesterday. She is expected to elaborate on those comments in an interview at Davos later this morning.

EUR/USD – continued to push higher, above the 1.0650 area and looks set for a test of the 1.0800 level where we have trendline resistance from the February highs, as well as the MA of 50 days. We currently have support at the 1.0530 area.

GBP/USD – moved above the 1.2520 area, but now we need to see a move beyond the 1.2630 area to say that a short-term base is in place. We now have tentative support in the 1.2470 area, and below that in the 1.2320 area. Above 1.2630 argues for a return to the 1.2830 zone

EUR/GBP – has rebounded from the 0.8420/30 area, with resistance still at last week’s highs at 0.8525/30.

USD/JPY – still have strong support just above the 126.80 area, but we are currently struggling to break above the 128.30 level. A break below targets the 123.00 area. If 126.80 holds then a move towards the target of the 135.00 area remains intact.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not expressing opinions) is provided for informational purposes only and does not take into account your personal circumstances or objectives. Nothing in this document is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically restricted from processing prior to providing such material, we do not seek to take advantage of the material prior to its dissemination.

Rep. Alex Mooney ‘probably violated house rules and federal law,’ ethics office concludes


The OCE said that “HSP Direct’s payment for the Mooney family vacation, totaling at least $10,803.65 in travel, lodging, meals, amenities, entertainment and activities, is likely a prohibited gift under the rules. of the House”. Additionally, Mooney also “likely violated House rules and federal law when he enlisted his congressional staff to plan the Aruba vacation for his family at official time using official resources.”

HSP Direct is a direct mail fundraising company, which Mooney hired and paid for direct marketing ($60,688 from Mooney’s campaign committees to HSP Direct since 2020), the OCE said. Mooney has also received substantial campaign contributions from HSP Direct and its directors, according to OCE. Jamie Hogan, CEO of HSP Direct, and his wife have donated at least $28,100 to Mooney’s campaign committees since 2016, the OCE said. HSP’s attorney said Hogan and Mooney had been close friends for years.

When congressional staff and HSP Direct inquired about the involvement (or lack of involvement) of the House Ethics Committee in approving the trip to Aruba, Mooney dismissed them and continued the trip. without consulting the ethics committee, according to the OCE report.

Mooney and his wife, Grace Mooney, relied heavily on an assistant the report identifies as a former Staff 2 member to handle the logistics involved in transporting Mooney’s family of five to Aruba, including related obstacles. to COVID-19, the OCE said. This former Mooney staffer described the hours of work leading up to the March 6, 2021 departure.

The staff member worked to set up the COVID-19 tests required to enter Aruba, obtain travel visas for Mooney, Grace and their children, and purchase travel insurance. The day before the trip, the former Mooney staffer said he got home around 6 p.m. and worked with Grace until 11 p.m. to ensure the proper documentation was ready for the trip.

Mortgage relief for Californians after pandemic hardship


the California Mortgage Relief Program is open to people who have fallen behind on their housing payments, due to pandemic-related hardship. People can access the app here.

Sadie Weller, staff attorney at the San Luis Obispo Legal Assistance Foundation, told KSBY: “So far, 1,300 families have been assisted. The program’s goal was to help between 20,000 and 40,000 homes in California.

To qualify:

  • The amount outstanding must be $80,000 or less at the time of application submission
  • Applicants must have missed at least two mortgage payments
  • Household income must be at or below 100% of the median income in their area
  • The household faced an ordeal related to the pandemic

“Any time after January 2020 the pandemic caused a household to lose income like job loss, job cuts, things like that. Any kind of loss of hours, any kind of temporary or permanent reduction in household income,” Weller said.

“The goal here is really to prevent foreclosures,” Weller added. “It’s to prevent the displacement of families in California. The aid will therefore not need to be repaid.”

The family is eligible if they own a property, whether it is a family home, a condo or even a mobile home. The program does not include investment properties.

“The program is one-time financial assistance. It’s not a loan. It’s not like a second mortgage. They do not issue a lien on your property. It’s just a one-time payment, 100% of what you owe on your mortgage to bring it up to date,” Weller said.

According to Weller, the average median income for SLO County is $109,000 for a family of four.

Once a household receives the money and the family is no longer at risk of foreclosure or losing their home, they are expected to make ongoing payments if they still owe their mortgage.

San Luis Obispo County residents seeking more information about this program or assistance avoiding foreclosure can call (805) 543-5140 for eligibility review and legal support.

Think carefully before taking out a private student loan


If you are a student, you probably receive mail from private student lenders offering to cover “up to 100%” of your education costs.

Sounds good, right? But students and their families should exercise caution with such offers, financial aid experts say. Private loans — those from banks and lenders other than the federal government — offer fewer protections to borrowers than federal loans and tend to be more expensive. And unlike federal student loans, they can have interest rates that vary over the life of the loan. That could mean higher monthly payments, as rates likely go up.

Federal loan rates, which are affected by rising government bond yields, are expected to rise more than a percentage point for the next academic year, but they will be a better deal than private loans for most borrowers. Indeed, less than 10% of private borrowers — those with excellent credit — typically qualify for the lowest advertised rates on private loans, said financial aid expert Mark Kantrowitz. Most borrowers get higher interest rates, sometimes in the double digits.

Additionally, federal student loans offer repayment plans tied to the borrower‘s income and options to suspend payments if the borrower’s finances are in trouble. Borrowers may be able to get their debt forgiven if they work in government jobs, especially if the changes to the program work as intended.

Private lenders may offer flexible payment plans or forbearance options, but they are not required to do so, student advocates say.

“Buyer beware,” said Michele Streeter, associate director of policy and advocacy at the Institute for College Access and Success.

The current general pause in payments on federal student loans, which has been extended until August 31, does not apply to private loans. And any future federal student loan forgiveness is also unlikely to apply to private loans.

“Federal student loans are almost always preferable to private student loans,” said Abby Shafroth, an attorney at the National Consumer Law Center who focuses on student loans.

It is generally best for students to cover as much of the cost of their education as possible through grants and scholarships, which do not need to be repaid, as well as savings and income before borrowing. But many students still cannot pay for their education without a loan.

Students who need loans must first opt ​​for federal loans, although these loans have limits on the amount that can be borrowed. In the first year, the limit for dependent students is $5,500 and the limit increases to $7,500 in the third and fourth years. The total cap is $31,000 – in case it takes more than four years to graduate. (The limits are higher for independent and graduate students.)

But due to the high cost of a college education, students may turn to private loans because they need more than they can get from the federal government. The average published price of a year at a four-year public college (including tuition, tuition, and in-state room and board) was nearly $23,000 for the academic year 2021-22, according to the College Board. The average was nearly $52,000 at private, nonprofit four-year colleges.

To bridge the gap, families can turn to alternatives like Parent Plus loans — federal loans with higher interest rates than direct student loans that are available to parents after a cursory credit check — or private loans. Some data suggests that many students who take out private loans haven’t maxed out their federal loans, suggesting they may not be aware of the differences between loan types, Streeter said.

“We encourage students to borrow up to maximum federal eligibility before turning to private loans,” she said. Private lenders can ask a borrower’s college to certify that a student has reached the federal loan maximum, she said, but that’s not a requirement.

Kantrowitz said the need to borrow loans from parents or private students can be a red flag alerting families to rethink their approach to their child’s education. It “may be a sign that the family is borrowing too much to pay for their education,” he said.

Students choosing private loans should shop around to compare rates and terms, Kantrowitz said.

Unlike federal student loans, private student lenders require a credit check, and only applicants with top scores get the best rates.

Since many students do not have an established credit history, private loans often require an applicant to have a co-signer, usually a parent, who is responsible for payments should the borrower default. Being released as a co-signer can be tough, Kantrowitz said, so parents can be hooked for a long time.

Factors such as customer service also need to be considered, Kantrowitz said. Is there a helpline if you need to reach someone on weekends? Can you update your address or contact information online?

Private lenders include Sallie Mae, which provided loans to more than 397,000 families in 2021 (“more than any other private lender,” according to its regulatory filings), and Citizens Bank, as well as online lenders like College Ave and SoFi.

At least a dozen states also offer student loans under special programs, usually to in-state residents attending an in-state college. Borrowers shouldn’t assume that rates and terms from state agencies are better than those from private, for-profit lenders, Streeter said. Be sure to check the details.

Here are some questions and answers about student loans:

What is a reasonable amount to borrow for college?

Kantrowitz recommends that your total student debt be less than your projected first-year salary. If your debt is less than your annual income, you should be able to pay off your student loans in 10 years or less, he said. If you plan to earn $55,000 — the average starting salary for a four-year college graduate in 2021 — your total loans should be less than that amount.

A similar rule applies to parents, he said. They must not borrow more, for all their children combined, than their annual income.

What are the current interest rates on student loans?

Interest rates on federal student loans are set annually and apply to all new loans made in a given academic year. The rate is fixed for the term of the loan.

Undergraduate direct loan rates are currently 3.73%. But they are expected to increase to 4.99% for loans made from July 1 through June 2023. (Federal loan rates are set each spring and are tied to the 10-year Treasury note, using a formula The Department of Education hasn’t officially announced the new rates, but Kantrowitz and others are projecting them based on the 10-year Treasury bond auction that took place Wednesday.)

While that sounds like a big jump, the effect on a borrower’s monthly payment is only about $3 more for a student borrowing the maximum of $5,500 in the first year and paying off the debt over a standard term of 10 years, according to Bankrate.com’s loan estimator. .

Private loan rates vary by lender. Many advertise fixed rates ranging from 3.2% to over 14%, and variable rate loans starting around 1%. But fixed- and variable-rate private lending rates are expected to rise as the Federal Reserve continues to raise its benchmark interest rate, said Greg McBride, chief financial analyst at Bankrate. “Private student loans are also on the rise.”

But think twice about taking out an adjustable-rate loan now, Kantrowitz said. For these loans, the lowest interest rates “have no choice but to rise”.

Are there limits to the amount of private loan I can borrow?

Some lenders set a minimum loan amount — say $1,000 — and cap loans at the annual cost of attending college.

Are these 3 things to blame for today’s housing shortage?


It is estimated that there are about five million homes short in the United States to meet current housing needs. A decade of insufficient homebuilding in the wake of the Great Recession – when housing supply grew only 6.7% from 2010 to 2020, roughly half the rate of the previous decade – has put our market housing in a difficult situation.

But the lack of new housing is only one piece of the housing shortage puzzle. Several other contributing factors affecting the number of homes available today are overlooked and could be largely responsible for our current housing crisis.

Image source: Getty Images.

Wall Street Residential Takeover

The Great Recession ushered in a new era of opportunity for Wall Street buyers, which include REITs, iBuyers, real estate investment trusts (REITs), hedge funds and other large capital firms. -investment that had the capital of family homes at ultra-low prices. As rental prices and demand rebounded in the ensuing years, yields rose and institutional purchases increased dramatically.

In 2021, institutional buyers accounted for just under 17% of all homes purchased during the year, or about one million in total. That’s a lot of homes that could have gone to end buyers, but are instead in the hands of private equity firms and likely to be held for long-term rental. It is also a great contribution to increased competition in the market, as institutional investors have the power of cash offers.

To be fair, not all properties purchased by institutional buyers were listed on the traditional market or suitable for end buyers. Often properties are bought in bulk from banks or other funds, in foreclosure stages, or are vacant and need repairs or updates, which institutional buyers do before putting them up for sale or for rent. Nevertheless, it continues to reduce the number of existing homes, driving up prices as buyers have to bid higher or more aggressively to compete.

The Airbnb effect

Vacation rentals are becoming an increasingly popular investment avenue in the residential market. The high returns or the possibility of having a holiday home paid for by others make it an attractive investment. Plus, getting started in the vacation rental business has never been easier, thanks to popular vacation rental companies like Airbnb and VRBO.

Rising demand for vacation rentals as investment, coupled with a pandemic, has spurred a boom in vacation shopping. The last two years have seen a huge increase in the number of vacation homes purchased. In 2020, vacation home purchases outpaced existing home sales growth by 44% year over year. In the first months of 2021, it was estimated that just over 400,000, or 6.7%, of the homes purchased in the existing housing stock were purchased as second homes.

This makes it difficult for buyers of ideal vacation destinations to compete. I can personally attest to what I’ve dubbed “the Airbnb effect”. The last three homes I’ve bid on in my local market of St. Pete, Florida have all sold to buyers planning to use the property for an Airbnb. This drove the housing stock away from end buyers like me and pushed up house prices as they overpaid, knowing the income potential of properties when used for vacation purposes.

Barricaded single family home sitting empty.

Image source: Getty Images.

Vacant homes held off-market

Data from a recent census revealed that there are currently over 16 million vacant homes in the United States. This includes holiday homes with low owner occupancy, vacant properties offered for sale and properties vacant because the owner has died or the home is uninhabitable or at some stage of the legal process, such as a vacant foreclosure or a real estate owned (REO) property.

The percentage share of homes held off-market — which are vacant properties not offered for sale or rent or used as seasonal homes — is at its highest level since 1995, with about two million homes across the country simply vacant. States like Vermont, Alaska and Maine have up to 20% of their housing stock vacant. Other states, like Florida – home to the hot real estate markets of Miami, Tampa and Orlando – have about 17.1% of their housing stock vacant.

Vacant housing is not alarming. Every market will naturally have a period during which one or more homes will remain vacant as the property goes through probate or is renovated, seized or prepared for listing or rental. The biggest problem is that there is no clear solution to turn these two million off-market homes into available housing. Lengthy legal processes, the need to track down owners to buy or list a property, the time it takes to complete renovations, and the lack of value of homes based on their condition can all contribute to a home sitting unused. .

There is no single cause for today’s housing shortage. It is a combination of factors which, in turn, require a combination of solutions to resolve them. Fortunately, slowing demand should help alleviate some of that need as homebuilders try to fill the housing gap. However, too much momentum in home deliveries could lead to another real estate crash. Finding the balance between a stable market and an oversupplied or undersupplied market has proven to be tricky.

The Nasdaq is down 27%: Time to buy these 3 stocks


A the bear market is cemented when an asset or index falls by 20% or more; by this definition, the Nasdaq-100 The technology index is indeed there with a loss of 27% compared to its all-time high. Some individual tech stocks have fallen much more than that, which can be daunting for investors, but it’s not all bad news.

A new tech bull market is a matter of when, not if. So while you can’t control when the bottoming occurs, you can control what stocks you buy right now – and given the steep discounts on offer, there are plenty of potential opportunities. Three Motley Fool contributors are eyeing Duolingo (NASDAQ: DUOL), Confluent (NASDAQ: CFLT)and DocuSign (NASDAQ: DOCU) thanks to their blockbuster earnings reports recently, which could pave the way for long-term growth.

Image source: Getty Images.

A leader in digital education

Anthony Di Pizio (Duolingo): According to Duolingo, an estimated 1.8 billion people are learning a foreign language worldwide. The company’s flagship mobile app has amassed 500 million downloads since its inception, and while that’s a staggering number, its addressable opportunity clearly suggests there’s plenty of growth potential ahead.

The company’s success so far is attributable to its playful approach to digital language education. Its application incorporates interactive features with a competitive component, combined with a social aspect that allows users to share their progress with their friends. Duolingo began monetizing with subscriptions in 2018, and it skyrocketed in the rankings to become the top-grossing mobile app in the education category across Applethe App Store and Alphabetfrom Google Play Store.

While many companies experienced slower growth in early 2022 due to tightening economic conditions, Duolingo’s Q1 2022 results swept away all expectations. The app operates on a partially monetized “freemium” model with advertising for free users and paid monthly subscriptions for users who want a more comprehensive feature set. In the first quarter, the number of people who paid for a premium subscription soared 61% year-over-year to 2.9 million. They now represent a record 6.8% of Duolingo’s 49.2 million monthly active users, up from 4.8% a year ago.

This led to a 55% increase in bookings – which should convert to revenue in the future – to $102 million for the quarter. The result was so strong that management opted to increase its full-year 2022 revenue forecast, now anticipating up to $358 million, which would represent 43% growth over 2021. .

But there is also a long-term game here. Duolingo is constantly improving the educational experience and recently started leveraging artificial intelligence to help users learn from their mistakes faster. In 2021, it also developed brand new lessons for languages ​​with non-Roman writing systems like Japanese and Hebrew to help expand its user base.

With Duolingo shares down 62% amid the tech selloff, now might be the time to start forging a position in this fast-growing company.

A person looking at server hardware while holding a laptop computer.

Image source: Getty Images.

Enable real-time scanning

Jamie Louko (Confluent): The traditional standard for processing data is for a company to send it to a data warehouse, where it is processed daily in batches. However, many businesses need to analyze their data immediately, such as a bank needing to ensure that transactions are not fraudulent. Real-time data analytics has been underserved in a market where data is growing rapidly, but Confluent is making real-time data analytics more mainstream so businesses operate faster, more accurately, and more efficiently.

Confluent has seen stellar adoption. The company’s customer base soared 62% year-over-year to 4,120 in the first quarter of 2022, helping it hit $126 million in quarterly revenue. Its remaining performance obligations — which are contractual future earnings — also rose 96% year-over-year to $551 million. This shows that the idea of ​​real-time data analytics is becoming more popular, and Confluent is having the lion’s share of this adoption.

Where the company shines is with Confluent Cloud. It is cloud-native and fully managed by Confluent, while its on-premises software is managed by the customer. Confluent Cloud’s revenue skyrocketed 180% year-over-year to $39 million, and retention on its cloud product is far stronger than its core solution. Cloud net retention rate was over 150% in the first quarter, well above the overall retention rate of 130%, and cloud customers accounted for more than 50% of the annual contract value of new bookings. Both of these platforms, however, are incredibly sticky, and the company is seeing customers using Confluent more at a much faster rate than customers are leaving.

Confluent’s weak points are its unprofitability and its cash flow. In the first quarter, the company lost $113 million and it burned $58.4 million in free cash flow. The company has nearly $2 billion in cash and securities on the balance sheet to fund these losses for an extended period, but if a long-term recession were to hit the company and these losses accelerated for several years, Confluent could be caught between a rock and a hard place.

That being said, Confluent looks like a great company to own right now. The stock has fallen nearly 80% from its all-time high, and it now trades at 12 times sales, a reasonable valuation for a company growing as quickly as Confluent. With digitalization trends in the business world, Confluent is well positioned for long-term success.

A lawyer signing a digital tablet with a statue of a lady of justice on the desk.

Image source: Getty Images.

Streamline Agreement Workflows

Trevor Jennewine (DocuSign): Agreements are the cornerstone of any business. But the manual, paper-based processes typically used to prepare, manage, and act on agreements are time-consuming, expensive, and prone to human error. Fortunately, DocuSign can help.

Its platform, aptly named the Accord Cloud, includes a suite of software built around DocuSign eSignature, a tool that enables organizations to capture legally valid electronic signatures on virtually any device, from any Where in the world. The Accord Cloud also includes solutions for automated contract generation, artificial intelligence-based risk scoring and electronic notarization. Together, these products accelerate agreement workflows, helping customers work more efficiently.

DocuSign faces competition from a software giant Adobe, but the breadth of the Cloud Accord gives the company a significant advantage. In fact, DocuSign has about 70% of the e-signature software market, and the company has also positioned itself as a leader in agreement analytics and contract lifecycle management. This translated into strong financial results.

In fiscal year 2022 (ended Jan. 31), DocuSign grew its customer base by 31% to 1.2 million, and the average customer spent 19% more, demonstrating the effectiveness of the strategy management’s growth in location and expansion. In turn, revenue soared 45% to $2.1 billion and free cash flow soared 107% to $445 million.

Shareholders have good reason to believe that this dynamic will continue. DocuSign estimates its market opportunity at $50 billion, half of which is attributed to its core electronic signature product. Given its strong position in this market, DocuSign should have no problem growing its business as more and more organizations invest in digital transformation. And with a price-to-sales ratio of 7.3, the stock is bouncing back to its cheapest valuation in three years. That’s why now is the time to buy some stocks.

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Suzanne Frey, an executive at Alphabet, is a board member of The Motley Fool. Anthony Di Pizio has no position in the stocks mentioned. Jamie Louko holds positions at Apple and Confluent, Inc. Trevor Jennewine holds positions at DocuSign. The Motley Fool owns and recommends Alphabet (A shares), Alphabet (C shares), Apple, Confluent, Inc. and DocuSign. The Motley Fool recommends the following options: $60 Long Calls in January 2024 on DocuSign, $120 Long Calls in March 2023 on Apple, and $130 Short Calls in March 2023 on Apple. 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.

Bitcoin Derivatives Market Status


The following is an excerpt from a recent edition of Bitcoin Magazine Pro, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive this information and other on-chain bitcoin market analysis straight to your inbox, Subscribe now.

While it is clear today that the dominant driver of the bitcoin market is its correlation with stock markets, we believe that a real decoupling will take place eventually, and the seeds of this decoupling could probably be sown in the stock market. derivative products.

First, a major development over the past two years has been the “dollarization” of the type of collateral in the derivatives market, eliminating much of the downward convexity that accompanies the majority of collateral being bitcoin itself. -same.

The bitcoin derivatives landscape plays a major role in the price of bitcoin in the short term.  We have yet to see any signs of a bitcoin macro bottom.

Open Interest Percentages on Bitcoin Collateralized Futures Contracts

While a large liquidation event in the bitcoin market is less likely than in March 2020 solely based on the collateral mix in the market today as well as contract positioning (shown below), it It is clear that global equity and credit markets are in freefall. With this in mind, and the reality that spot markets have absorbed huge selling pressure in recent weeksit would be wise to keep a close eye on the derivatives market in the future.

The bitcoin derivatives landscape plays a major role in the price of bitcoin in the short term.  We have yet to see any signs of a bitcoin macro bottom.

Bitcoin price weighted by perps funding rate

Final remark

The Federal Reserve is on a mission to reverse engineer the infamous wealth effect, with the idea that falling asset prices will dampen consumer confidence and spending and slow the unprecedented inflation seen around the world.

If global markets are heading towards a breaking point, you can expect bitcoin to come under heavy pressure as well. What is not known is how many bitcoin investors/speculators are still in the market, left to panic, and whether the selling that would occur would be through spot markets or more primarily through short selling via bitcoin derivatives.

In either scenario, it’s likely that a horde of lower shorts will pile in to try and drive bitcoin into the dirt (this can be seen via a deeply negative perpetual term funding rate).

This will eventually lead to a significant rebound in the price of bitcoin and likely a decoupling/outperformance of other risky assets that have been so closely correlated with bitcoin in recent months.

The opportunity is before us.

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China cuts borrowing rate more than expected to revive housing sector


SHANGHAI, May 20 (Reuters) – China cut its benchmark mortgage rate by a surprisingly wide margin on Friday, its second cut this year as Beijing seeks to revive the ailing housing sector to support the economy. .

Senior officials have promised new measures to tackle the slowdown in the world’s second-largest economy, hit by COVID-19 outbreaks that have led to stringent measures and mobility restrictions and caused huge disruptions to business.

Many market participants believe Friday’s move was also a response to Chinese Premier Li Keqiang’s call to decisively step up policy adjustments and let the economy quickly return to normal.

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“Today’s reduction in the five-year prime rate should help revive home sales, which have gone from bad to worse recently,” Julian Evans-Pritchard of Capital Economics said in a note.

“But the absence of any one-year LPR reduction suggests that the PBOC is trying to maintain targeted easing and that we should not expect a full-scale stimulus of the kind we saw in 2020.”

China, in a monthly fix, cut the five-year loan prime rate (LPR) by 15 basis points to 4.45%, the biggest cut since China revamped the interest rate mechanism in 2019 and more than the five or 10 basis points slanted by most in a Reuters poll. The one-year LPR remained unchanged at 3.70%.

The country’s benchmark stock index, Shanghai Composite Index (.SSEC), rose about 1% in early trading after Friday’s rate cut. The move failed to spur mainland-listed property stocks, which were flat, although Hong Kong-listed developers edged higher.

Many private sector economists expect China’s economy to contract this quarter from a year earlier, down from 4.8% growth in the first quarter. Indicators for credit loans, industrial production and retail sales showed that strict COVID-related measures and mobility restrictions have taken their toll. Read more

One of the biggest drags on growth has been the real estate sector, which policymakers are looking to turn around. Real estate and related industries such as construction account for more than a quarter of the economy.

China’s property sales in April fell at their fastest pace in about 16 years, while new home prices fell for the first month-on-month since December, hurt by weak demand amid broad COVID-19 lockdowns.

“Policymakers may have reached a consensus on whether to revive the real estate sector,” said Xing Zhaopeng, senior China strategist at ANZ, predicting further easing measures.


The central bank has pledged to step up its support for the slowing economy, but analysts say room to ease policy could be limited by concerns over capital outflows as the Federal Reserve raises interest rates. interest rate.

Capital Economics believes that the lack of a one-year LPR cut suggests the central bank may be concerned about the potential impact on capital outflows and the yuan .

The LPR is a benchmark lending rate set monthly by 18 banks and announced by the People’s Bank of China. Banks use the five-year LPR to price mortgages, while most other loans are based on the one-year rate. Both rates were lowered in January to support the economy.

Friday’s decline suggests that “China’s economic growth was facing increasing resistance this year,” said Marco Sun, chief financial markets analyst at MUFG Bank.

Eighteen of 28 traders and analysts in a Reuters poll had forecast a cut in either rate, including 12 who expected a 5 basis point cut for each tenor. Read more

A campaign by the authorities to reduce high debt levels turned into a liquidity crunch last year among some big developers, leading to bond defaults and abandoned projects, rattling global financial markets.

Since late last year, Beijing has taken steps to help revive the property sector. These include making fundraising easier for large developers and public developers, relaxing rules on escrow accounts for presale funds, and allowing some local governments to reduce mortgage rates and debt ratios. ‘deposit.

This week, financial authorities lowered the floor on mortgage rates for some homebuyers. But this measure and Friday’s cut alone will not ease funding constraints for developers, many of whom are struggling to refinance debt. Read more .

Goldman Sachs estimates that the mortgage rate floor for the first home would be lowered further to 4.25% from 4.4% previously.

Property stocks have rebounded recently, but Friday’s muted reaction to the drop suggests some investors believe that may not be enough to revive the struggling sector.

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(Reporting by Winni Zhou, Andrew Galbraith and Kevin Yao, Editing by William Mallard and Sam Holmes)

Our standards: The Thomson Reuters Trust Principles.

SEC investigates cellphones of Wall Street bankers and WhatsApp

Stock photo of a man in a suit texting

Wednesday, a Bloomberg report revealed that the Securities and Exchange Commission is asking for more than 100 personal cell phones from Wall Street executives and employees. The telephone turnover is part of an ongoing investigation into record dress and communication in the big banks. And people don’t take it well, according to three unnamed sources that Business Insider would have spoken to.

“I think that’s complete bullshit,” an anonymous senior banker in New York would have said Initiated. “You trust me to sign billion dollar credit agreements, but you don’t trust me to communicate properly. Leave me alone.”

Another said: “If you’re investigating something big like insider trading, fine. But if you go over every text with my boss, I have no idea what might come up, and that’s scary,” according to Insider. “Going through every text, every group chat, you might find something you don’t want to see in the logs.”

A third unidentified banker told the outlet: ‘People are livid’ and further called the investigation an ‘invasion of privacy’.

On the one hand, anger is very understandable. If the writers at Gizmodo suddenly had to turn over all their texts to the federal government, we’d probably be upset, annoyed, and worried. It sounds like something that shouldn’t generally be allowed. On the other hand, extremely wealthy and powerful bank executives are hard to find and there’s probably a lot worth investigating in their text and chat history. This is both a wide and disturbing use of federal power and a small violin moment.

The SEC probe spans multiple banks. Most recently on Thursday, Deutsche Bank AG admitted to being one of the banks under investigation at the bank’s annual meeting, as reported by Bloomberg. Other banks subject to SEC scrutiny include Goldman Sachs Group Inc., Morgan Stanley, Citigroup Inc., HSBC Holdings Plc and Credit Suisse Group AG which have all revealed they are in the midst of investigations by federal regulators.

The SEC did not immediately respond to Gizmodo’s request for comment or for the commission to confirm the banks involved.

The aim of the survey is to gauge how often Wall Street users use unauthorized chat platforms like Whatsapp to discuss business with each other and with clients, which then results in lost records. Communication. And this isn’t the first time the SEC has looked into the issue.

In December 2021, an SEC review and Commodity Futures Trading Commission investigation into JPMorgan revealed the company did not monitor company-related communications via text and other external channels. This revelation led to official charges, $200 million in total regulatory fines, and the shooting of several frames.

And, even earlier, in October 2021, the SEC opened a sweeping investigation into how Wall Street tracked employees’ digital communications, according to to a report by Reuters.

“Since the 1930s, record keeping and book and record obligations have been an essential part of market integrity and a fundamental part of the SEC’s ability to be an effective cop on the beat. As technology evolves, it is even more important for registrants to ensure that their communications are recorded appropriately and are not conducted outside of official channels to avoid market surveillance,” said the Chairman. of the SEC, Gary Gensler, in a Declaration 2021 on JPMorgan’s charges.

“Record-keeping requirements are at the heart of the Commission’s enforcement and review programs and when companies fail to comply with them, as JPMorgan has done, they directly undermine our ability to protect investors and preserve market integrity,” SEC Chief Enforcement Officer Gurbir Grewal said in the same press release.

As the new investigation progresses, the banks are trying to save their executives from at least some embarrassment. To try to maintain the illusion of privacy surrounding personal texts and “office chatter,” banks are bringing in external reviewers, according to Bloomberg. The examining lawyers were instructed to search for “case-related messages” and focus on the total number of messages from each source rather than the content of the messages.

Which is bad news for Gizmodo, because an article titled “Top 10 Worst Wall Street Bro WhatsApp Messages,” would likely make a big number on the site.

Nativ Hotel in LoDo to go up for auction next month after bankruptcy filing – The Denver Post


LoDo’s Nativ Hotel will be auctioned next month and its main creditor wants nothing less than $7.9 million, according to court records.

That might be tough, since the 16,800-square-foot hotel and nightclub at 1612 Wazee St. in LoDo went on the market last year for a lower price of $7 million.

An online auction for the four-story, 18-bedroom property is set to begin June 6 through Ten-X Commercial and close two days later, according to reports on LoopNet. Bidders must qualify in advance.

The auction is the result of the Chapter 11 bankruptcy filing last September by Nativ hotel owner KDA Properties.

Courtesy of Marcus & Millichap

The Nativ Hotel will be auctioned off next month.

“The auction was my suggestion very early on before we went the legal route with our lender,” Nativ co-owner Amin Suliaman told BusinessDen. “If you do it on the right platform, it opens up a national and international market for us. You know there are 10 guys in Denver who will want property because they understand what it is, but hometown guys aren’t going to pay what you want out of property.

KDA Properties said in its September filing that it owed $9.6 million to four creditors. Most of the money, $8 million, was owed to Chicago-based Pangea Mortgage Capital. Pangea started the process of foreclosure of the hotel building in December 2020.

Suliaman owns 49% of KDA Properties. Kenneth Ware, listing a Centennial address, owns the remaining 51%. Ware is also the entity’s second-largest creditor, which owed $1.2 million for the “capital investment,” according to the filing.

Pangea, which did not respond to a request for comment, and KDA Properties reached a stipulation agreement last month detailing the planned auction. The Chicago firm said in the stipulation that this auction must generate a minimum bid of $7.9 million, and $7.2 million from this sale will go to Pangea.

The 18-room hotel has already been put on the market for $7 million.

Courtesy of Marcus & Millichap

The 18-room hotel has already been put on the market for $7 million.

If not, the court will dismiss the bankruptcy case and Pangea may pursue the foreclosure sale, according to filings.

“In such event, Pangea shall be free to immediately proceed with its Public Trustee Foreclosure Sale of the Property, the UCC Sale of the Personal Property, and to pursue any other legal and equitable remedy to collect all amounts due against the debtor, Nativ Hotel, LLC, Amin Suliaman, Kenneth C. Ware and any other security securing the debt due to Pangea,” according to the stipulation.

KDA Properties is also responsible for paying overdue property taxes, auctioneer transaction fees, brokers commission of 3% of the gross purchase price and other fees, according to the filing.

KDA Properties bought Nativ Hotel and its real estate for $6 million in 2018 after the previous owners pulled out, Suliaman told BusinessDen at the time.

Hotel operations have been halted since the pandemic began, but Suliaman said he recently let a local club promotion company hold events at the property. He was the one Suliaman said was responsible two weekends ago when two individuals were shot inside the building early on a Sunday morning.

“It’s just an asset. I’m not emotionally connected to that,” Suliaman said. “I’m upset that my customers and employees are losing something magical, but a building is a building.”

This story was reported by our partner BusinessDen.

SBP and IFC to Promote Agriculture Finance Through Warehouse Receipts – Eurasia Review


The Deputy Governor of the State Bank of Pakistan (SBP), Ms. Sima Kamil, during a two-day specialized training workshop on Electronic Warehouse Receipt Financing (EWRF) for Banks, observed that the training program will be instrumental in supporting the recent initiative of SBP to promote EWRF in the country and banks will be able to gain knowledge on EWRF product development, understanding of risk analysis, pricing mechanism and international best practices. She encouraged the senior bankers to use the relevant EWRF knowledge acquired during the session and disseminate it to the industry for its smooth implementation.

The EWRF is a mechanism through which farmers can avail finance facility from banks by placing their agricultural commodities and commodities. By doing so, farmers can avoid selling their produce at unfavorable prices just to ensure cash flow to meet the input needs of the next harvest. This will also help reduce Pakistan’s high post-harvest losses.

The adoption of the EWRF by banks and its increased adoption will not only enable banks to achieve higher levels of agricultural credit disbursement, but will also help them to improve credit outreach.

Ms. Kamil noted that agriculture contributes almost a quarter of our GDP and employs half of the workforce. However, she regretted that those associated with the agricultural sector face difficulties in accessing finance and upgrading infrastructure that could help them store or dispose of their agricultural products in a timely manner.

She added that the SBP took the lead on the EWRF given the role of the warehousing regime in increasing food security, reducing post-harvest losses and providing bank financing to farmers. against commodities as collateral. She hopes this will help traders and processors buy the inputs they need, including seeds, fuel and fertilizer, before and during harvest, when their seasonal financing needs are high.

At the same time, it will encourage investment in agricultural infrastructure in terms of building new, modern and commercially viable storage infrastructure. Initially, 25 banks signed System User Agreements (SUAs) with Naymat Collateral Management Company and SBP assigned indicative funding targets to these banks for the 2021-22 and 2022-23 fiscal years. Now, these banks have started financing maize crop in various districts of Punjab under the EWRF scheme.

The Deputy Governor acknowledged IFC’s support in terms of technical assistance to the Government of Pakistan and other key stakeholders to form the building blocks of the EWRF in Pakistan.

She expressed her gratitude to the IFC team led by its country director for Afghanistan and Pakistan, Zeeshan Ahmed Sheikh and Ms. Nouma who coordinated a project in collaboration with IFC for the promotion of EWRF in Pakistan. She also encouraged senior bankers to utilize relevant knowledge from EWRF and disseminate it to the industry for its smooth implementation.

Speaking on the occasion, Zeeshan observed that innovative financing models, such as electronic warehouse receipts, are extremely important as they can unlock a massive amount of capital, strengthen the agricultural sector and, in the long term, support job creation and economic growth. He also thanked the Government of Japan for supporting the work of the EWR.

SBP organized the two-day training workshop in accordance with the EWRF adoption action plan in collaboration with IFC. During the workshop, global experts from IFC and Pakistan shared their knowledge and experiences with senior bank officials regarding different modalities of secured commodity finance and EWRF. The program has given banks a better understanding of the EWRF, which will help them provide finance to farmers against agricultural commodities as an alternative collateral.

Decentralized finance is changing the way we borrow or lend: Explained


Decentralized finance (DeFi) is changing the way we borrow or lend: Explained

Traditionally, borrowing and lending has required an intermediary such as a bank or other financial institution.

The bank facilitates the transaction and reduces risk by performing background checks using Know Your Customer (KYC) and credit scores.

Here, a borrower pledges goods, jewelry, etc., as collateral, and the lender makes loans and earns interest. The crypto industry is about to change the way this is done. How? It will do so through decentralized finance (DeFi).

The rapid rise of the $2 trillion industry has opened floodgates for innovation in the underlying blockchain technology.

This technology promises to cut out any middlemen like banks and allow the borrower to deal directly with the lender through smart contracts in a decentralized manner.

Simply put, smart contracts are self-executing electronic codes embedded in the rules of transactions.

These rules, for example, can be the amount of the loan, the fixed interest rates and the expiration date of the contract. These rules run on their own when the conditions assigned to them are met. There is therefore no need for the intervention of a third party.

People can get a loan by pledging crypto assets on a DeFi platform.

Similarly, users can deposit their crypto assets in a DeFi protocol smart contract and become lenders.

After depositing the crypto assets, the platform can offer them their redeemable native tokens to represent principal and interest.

But how can users identify the right platform to do this trade in the decentralized world?

One way to do this is to study the performance of the protocol by understanding its total latched value (TVL).

As the name suggests, TVL is an indicator of the value of assets staked in smart contracts on this platform. The higher the TVL, the more secure the platform.

Crypto users are rapidly moving to accept smart contract platforms, making them an important part of the crypto ecosystem.

Benefits include lower transaction cost, higher execution speed, and greater efficiency. It is also a transparent system.

Biology and Earth and Environmental Sciences departments unite around diversity and engagement initiatives


In 1948, Professor James Hope Birnie became the first African-American biology faculty member at Syracuse University, teaching here until 1951. He was also one of the first biology faculty members to be supported by the National Institutes of Health (NIH). Throughout his career in academia and industry, he has remained committed to creating opportunities for underrepresented students in science.

Today, departments such as Biology and Earth and Environmental Sciences (EES) carry on the important legacy of A&S pioneers like Birnie, seeking innovative ways to ensure their classrooms class and their areas are welcoming to all. Over the past 18 months, biology and SEE faculty, graduate and undergraduate students have introduced new approaches to encourage diversity and equity and promote engagement with aspiring scientists from around the world. the community.

The SEEDS SPUR scholarship

Eliza Hurst, a graduate student in Earth and Environmental Sciences, demonstrates hydrology to students at the North Side Learning Center in Syracuse.

Strategies for education on ecology, diversity and sustainability (The SEEDS program) was established by the Ecological Society of America (ESA) nearly three decades ago with the goal of working to increase minority representation by introducing students to environmentalists from diverse backgrounds and giving them a practical experience of the field and its real world. apps. The program’s SPUR (Partnership for Undergraduate Research) Fellowship is its highest honor and matches selected undergraduate students with institutions carrying out work that matches their interests and research goals. This is an opportunity open to all undergraduate students, but underrepresented minority, low-income, first-generation, and veteran students are especially encouraged to apply.

Biology professor Katie Becklin had been involved with SEEDS as a mentor in the past, and in early 2021 worked with fellow biology professor Jason Fridley to have Syracuse listed as a SPUR partner institution. Last summer, the first undergraduate student came to work at Syracuse University as an SPUR intern.

“We are committed to funding one SEEDS scholarship each summer,” says Becklin. The scholarship (which is paid and provides fully funded travel and research costs) is nationally advertised and open also to current Syracuse students; applications are posted in late fall each year and due in early March. Since the program is supported by the biology department as a whole, the selected fellow will be paired with one of several biology labs that best suits their interests. “It’s a little different from typical summer research,” says Becklin, “[in that SEEDS] also offers professional development and networking opportunities throughout the year.

head shot

Katie Becklin, assistant professor of biology

Currently, the department is reviewing approximately 15 applications for this year’s fellowship. “I’m very excited about the level of interest in this program from students across the country,” says Becklin, who hopes more Scholars positions will be offered at Syracuse University in the future. “Not only is this program a tool to increase diversity within the ecology, but it’s also a way to show students from other areas just how great Syracuse is. [Our first intern] was fantastic in the lab – hope they come here for graduate school in the future.

Natural Science Explorers Program

This spring, eight graduate students in biology and ESE launched the Natural Science Explorers program, a weekly outreach program for elementary school students at the North Side Learning Center (NSLC). Eliza Hurst of the Department of Earth and Environmental Sciences led the program with support from Becklin, whose class, Science Outreach in Biology, inspired the initiative.

Working with students in grades three through five, Hurst and his colleagues collaborate to create lessons that meet students’ interests, from basic education (“What is science?” “Clouds​ are they real?”) to hands-on demonstrations of how science affects their daily lives. She specializes in hydrology, for example, so she created an urban hydrology model using rubber tubs, sponges and a camp shower, to show how water flows and moves, how altering the landscape with roads and buildings changes that, how contaminants move and soon.

These types of lessons, incorporating inquiry-based learning as well as culturally appropriate teaching (incorporating students’ experiences and perspectives into teaching) help make science real and tangible in students’ minds. budding of all kinds, allowing them to see themselves as scientists. . Hurst and his colleagues hope that students’ scientific curiosity will stay with them in school and in life.

Based on the initial success of the program, graduate students—with support from Becklin and EES Professor Chris Junium—were able to secure an Engaged Communities Grant through A&S’s Engaged Humanities (EHN) Network, which will provide funding to maintain the program. To go.

“We’re especially excited about the potential of a summer program to provide time to delve into topics and incorporate field trips to explore our central New York ecosystems,” says Hurst. “We are in the process of reflecting and planning for the next school year where we will continue our regular extracurricular science programs.”

For more information on community engagement opportunities, visit the EHN and Office of Community Engagement websites.

Diversity in E4 Seminar Series (Ecology, Evolution, Earth and Environment)

Over the past two years, a group of graduate students from the departments of Biology and Earth and Environmental Sciences have led the charge to create, with the help of faculty, this series of virtual seminars in the fields of ecology, evolution, Earth and the environment, designed to increase the visibility of scientists with diverse identities. Sixteen speakers have participated so far.

Graduate student Alex Ebert led the effort on the biology side and worked with Hurst, who was the first graduate student member of her department’s DEI committee, among other things, to bring in speakers. “Our two main goals were to amplify the diverse voices in our field and provide a platform for their research ideas,” says Ebert, “and also to include at least some discussion [of] the intersection of race and environmental science such as historical underrepresentation and ways to begin to address these disparities.

person kneeling in front of flowers

Biology graduate student Alex Ebert

In addition to presenting the latest research and work by scientists, each event also offers opportunities for interaction and networking, via “virtual lunches” for students and speakers. “There have been so many wonderful conversations during [that informal time] about what led these scientists to where they are today in their various careers,” says Ebert. “But I was also pleasantly surprised by the number of people who took the time during their seminars to discuss their journey and to talk about the importance of mentors and role models. And [now] these lecturers become the same mentors and role models for many students who may have never really “seen themselves” in the areas that most interest them.

The events are open to everyone, but “we promote them particularly to undergraduate classes – to show them the full range of scientists behind the work they are studying,” says Hurst. Some of these students, including those in Becklin’s Ecology and Evolution class, can earn credit by attending seminars and writing summaries of what they learn.

The series will continue next year, and a new group of graduate students, including Thomas Johnson and Julia Zeh in Ecology and Evolutionary Biology, and Claire Rubbelke in Earth and Environmental Sciences, will take over. A timetable is not yet available, but those seeking more information can contact Johnson or Rubbelke directly.

Story of Laura Wallis

Feel stuck? TGoogle Behaviorist says you may have fallen into an “identity trap”


We’ve all been there, in a position where we can’t stop skating. No matter how much effort and energy we put into something, we don’t seem to get anywhere. It’s disheartening and, in some cases, even devastating.

To get out, we need change. But change is hard, especially when you feel like you’ve tried everything, from every angle. Or so we have come to believe.

According to Google’s Director of Behavioral Economics Maya Shankar, what can keep you from changing is not the difficulty associated with the act of change. But rather, the lack of a simple thing. It’s not a lack of confidence. Nor is it a lack of connections, charisma, or even money.

Rather, it’s a disconnect between how we see ourselves and who we really are that holds us back. In other words, what holds people back is their own limited perception of who they want to be or believe they are. It’s perhaps no surprise that entrepreneurs are among the biggest offenders.

The identity trap

During an interview on the Rich Roll Podcast, Shankar explained how we as humans can settle into a personal identity early and close ourselves to change. In turn, this identity trap creates an attachment to who you want to be, which could kill your ability to succeed as the person you really are.

Almost everyone has been there at one time or another. It is human nature and part of our development.

For example, Shankar became a very accomplished violinist at a very young age. Consumed by her love of playing, she grew up with the assumed identity of being a violinist. It wasn’t until she broke her finger while studying at Yale University that she was forced to treat life like anything else.

But even something as prestigious as being a professional violinist is a limiting belief. After all, that was just one aspect of what made Shankar what she is, not the whole picture.

You are more than a buzzword

If you ask a Silicon Valley founder who he is, chances are he’ll say he’s an entrepreneur. Maybe they’ll even spice it all up with the added qualification of “serial entrepreneur” to let you know they’ve been in this business for a while and are something of a seasoned veteran.

But even the most successful entrepreneurs aren’t just entrepreneurs. First and foremost, they are always something else. Something bigger. The title of entrepreneur is only one aspect of their identity, not all of it. For example, Steve Jobs was not just an entrepreneur or a designer, but a brilliant minimalist whose love of simplicity fueled a design revolution. Elon Musk is not just a founder or a serial entrepreneur, but a genius innovator, a lifelong learner and an extremely dedicated worker who has found the trick to working superhuman hours.

Chances are your “direct line”, as Shankar calls it, is far bigger than the label you’ve stuck on yourself. Holding on to this label can hold you back from reaching your greatest potential. In other words, you’re probably more than you like to see yourself. Most people are.

In Shankar’s case, she was not just an amazing violinist, she was someone who loved to connect with others on a deeper level, which made her love playing music. Once that became clear, she became much more than a violinist, but a highly regarded violinist and cognitive neuroscientist, White House adviser, and the director of behavioral economics at Google.

As a culture, we have largely fallen into the trap of labels, with an obsession with brands and personal identities. The problem, Shankar says, is that most aren’t actually empowered by the labels they choose, but held back by them. In a conscious effort to be something, there is a tendency to subconsciously forget who we really are. Let go of the labels that limit you and chances are you will notice that you are becoming much more. Much more you — and more success.

The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.

Traditional finance is getting richer. DeFi can provide a fairer world


Traditional finance rejoices as cryptocurrencies plummet. But there is so much more to cryptocurrencies and decentralized finance than just lows and highs. Here’s why blockchain has the potential to change the world.

Salaries are inflated. The banks are getting bigger. And the gap between rich and poor is widening year after year. What do these things have to do with DeFi, banks and the Internet of Things?

Traditional finance: the current situation

For several years, you may have been working on your goal of finally buying a home. From year to year, you can afford less as goods become more expensive. Inflation, banks and our current financial system can be a thorn in your side. But then you learn about cryptocurrencies and Decentralized Finance (DeFi)!

This situation is symbolic of all workers who work hard and who can afford less and less “luxury” with their salary.

Source: Statista.com

The chart shows the distribution of wealth in the United States, where the richest 10% of all people (blue and black lines) own more than 70% of total wealth. This becomes even more curious when we use global figures:

Traditional finance rejoices as cryptocurrencies plummet.  But there is so much more to cryptocurrencies and decentralized finance than just lows and highs.  Here's why blockchain has the potential to change the world.

According to Credit Suisse, 1.1% of the world’s population owns 45.8% of assets. But how can DeFi or the Internet of Things replace this system?

Traditional finance: banks and governments invented the game

In our financial system managed by intermediaries (banks), everything is based on the transformation of debt into more debt. This can be seen, among other things, in the annual inflation rates, which signify an excess of demand over supply.

Let’s take Europe as an example. Money printed during the corona pandemic is now seeping into the economy and is now driving inflation of 7.5% in the eurozone (April 2022). Year after year, the money Europeans save for their homes is now worth 7.5% less.

In the European reserve holding system, a common commercial bank can create €100,000 out of thin air from a deposit of €1,000 at a reserve rate of 1%. The demand for credit is controlled solely by the key interest rate, which can make borrowed money more expensive by the interest it bears. At a current policy rate of 0%, demand for loans is very high.

However, as individuals, we need to post collateral to get a loan in the first place. Suppose your house costs $500,000 and you have $100,000 in your bank balance. So you could borrow €400,000 – but as collateral you could pledge your house to the bank. Usually, however, the people who can post collateral are those who are already wealthy. Therefore, they can continue to increase their wealth. This point of view is also shared by Kevin OwockiGitcoin CEO:

“Traditional finance is getting richer and richer!


If you already own a home, you can post it as collateral, take out a loan, and continue investing with it. Moreover, the whole system relies on the fact that this asset – the house – increases in value, since the goods become more expensive due to annual inflation. In the case of real estate, this effect is of course even more pronounced.

States have become the biggest beneficiaries of the banking monopoly in recent years. They benefit directly from monetary creation. Since the 2008 financial crisis, commercial banks have increasingly purchased government bonds from over-indebted eurozone countries. It is with money created out of nothing and therefore it finances the national debt. The States become the first beneficiaries of the freshly printed money.

Not everyone has access to the banking system

According to Owocki, blockchain offers a way to completely bypass intermediaries, i.e. banks:

“Blockchain creates trust through its protocol. We no longer need the banks. Blockchain is for the average person.

If we look at where blockchain is already used everywhere, this goal has already been partially achieved. About 2 billion people in the world do not have access to banking services. Transactions from foreign family members often arrive a few days late. And, they lose about 20% in commission fees.

The workaround is to instead use cryptocurrencies to send funds directly from one wallet to another.

In the real world, using blockchain INSTEAD of traditional finance has direct benefits that profoundly affect people’s lives. This is seen particularly well in the high blockchain adoption rate in Nigeria.

Traditional finance rejoices as cryptocurrencies plummet.  But there is so much more to cryptocurrencies and decentralized finance than just lows and highs.  Here's why blockchain has the potential to change the world.
Source: Chain Analysis – Global Crypto Adoption Index 2021

It’s no wonder that using blockchain technology works well for them. 55% of Nigerians do not have a bank account. However, almost all of them have a mobile phone, which makes the adaptation even easier. In other countries, citizens have almost no choice but to use crypto assets, as inflation reduces the value of money by 50% within a year. The best-known examples are Argentina and Venezuela, where hyperinflation has prevailed for years.

DeFi and the Blockchain – An exit

Do you remember the stories of grandfather and grandmother, how they were finally able to buy a house after 20 years of work? What normal worker can claim that today without having to take out a life loan?

For the first time, DeFi gives us the opportunity to turn blockchain into banking. While today’s DeFi is not yet in its final form, there are many indications that the potential is huge. One possibility today is to lend or invest your money on the many platforms and at least escape the annual inflation rate. The second, much more interesting option will probably only develop in the future.

Example: Instead of spending your savings on an entire house, you decide to invest in real estate. You buy a share of a house as an NFT in a decentralized market – with this investment you officially own a tenth of the house. You don’t know the other 9 investors. As is already customary with real estate investors, you rent the entire house and each receive a tenth of the rental profit. At the same time, you also benefit from the increase in value. This was not possible before blockchain technology. If you no longer feel like it, you simply resell your tenth on a decentralized market.

You can also deposit your share of the house in a decentralized market as collateral and take out a Bitcoin loan. If you become insolvent, the trading platform can automatically monetize your security (the house).

From the Internet of Things to Web 3.0

“Everything in financial institutions is done to increase our confidence. People walk around in costumes; the floor is made of expensive marble and nobody understands their technical terms. Blockchain is trust. We need the internet of value.

Owicki sees the Internet of Value (Web 3.0), rather than the Internet of Things, as a way to give something back to the masses. “Web 3.0 creates trust through protocol and allows us to own the assets we use,” he says. Overall, this means more self-determination and possibilities for all users. Wouldn’t it be very profitable to get a loan in exchange for your NFT painting?

Additionally, he discusses how blockchain can help us in other ways. During Covid, several stimulus payments flowed through the US government to US citizens. Owicki estimates that millions of dollars have been burned for the bureaucratic effort to bring that money to the citizenry. Money that you could have used for your house, for example.

“With a blockchain-based digital currency, the responsible authority could have simply transferred money to all citizens at the touch of a button. The distribution of wealth becomes easier.

The extent to which decentralization and blockchain will change our world will ultimately depend on us humans. Are we adopting this technology? Or miss the boat?

Are you new to decentralized finance? Here are some tips to help you get started.


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Center flags off-budget state government arms borrowing


The Centre’s late approval of Kerala’s proposal to raise Rs 5,000 crore in the market has reignited controversy over accounting for off-budget borrowing by public sector enterprises, corporations and special purpose vehicles under the state government.

He had not liked these borrowings from the Kerala Infrastructure Investment Fund Board (KIIFB), which was set up by the state government as an incorporated financial institution to raise funds for infrastructure development outside from the budget.

Net borrowing limit

The Expenditure Department of the Ministry of Finance has observed that off-budget government borrowing has the effect of circumventing the net borrowing ceiling by channeling loans through state-owned enterprises/statutory bodies despite being responsible for repaying these loans.

“These borrowings have an impact on the revenue gap and the budget deficit and therefore have the effect of exceeding the targets set for the fiscal indicators under the state FRBM law,” the finance ministry said in a statement. recent report. The CAG also directed the state government to include off-budget borrowing in the budget and accounts. The growing tendency to resort to off-budget avenues could lead the state into a debt trap, he noted.

Delays approval to borrow

The cash-strapped state protested the “undue delay” in granting permission to borrow from the market, even in the second month of the first quarter of 2022-23. But the Center has stuck to its position that off-budget borrowing from the state’s public sector weapons should be counted against the state’s borrowing limit.

Call for guarantees

State Assembly documents show that the KIIFB has cleared 962 projects worth ₹70,762.05 crore till March this year. Jose Sebastian, a public finance expert, says the Center is absolutely right to include all debts in the state’s public debt. “This is so because reimbursement is off-budget income. And if the guarantees are invoked, the State will have to honor them from its budgetary resources,” he explained to Activity area.

The argument that the Center itself resorted to off-budget borrowing that is not included in its budget is also not entirely correct, Sebastian said. “The Center controls vast resources and can print money or borrow from abroad. It too is bound by the same FRBM law and should include these funds in its debt. The fact that it did not do so does not justify the State making the error.

Published on

May 16, 2022

Mortgage or equity loan: what are the differences and which is better?


AAfter meeting certain requirements, any bank will offer you several options for applying for a loan depending on the value of a home.

A mortgage comes before you have an equity interest in the house and helps you buy it, but once bank liabilities are acquired, they also become equity, allowing you to borrow more money through a home equity loan.

Now, the most common type of mortgage is a 30 year mortgage, but there are also other options such as 15 year fixed rate mortgages and adjustable rate mortgages.

Mortgage Eligibility Requirements

  • Achieve a minimum credit score that demonstrates a responsible payment history.
  • Proof that you make enough money to cover other expenses, such as a car loan or credit card
  • Achieve a minimum down payment
  • Have enough cash to cover mortgage closing costs

Home Equity Loan

If you are paying off a mortgage or have already paid off your mortgage in full, a home equity loan is available. This is a type of second mortgage that allows you to use the value of your home to borrow more money.

In this regard, depending on your credit profile, the lender you work with and other factors, up to 80 or 85% of your principal can be borrowed.

Mortgage vs. Home Equity Loan

With a mortgage and home equity loan, you borrow money and promise to pay it back. If you break this promise, the lender can keep your house, as this is the collateral for both types of loans.

An important point to consider is that interest rates on home loans are generally higher than those on mortgages. This is because a home equity loan is usually the second mortgage and the first mortgage lender is the first to collect the money if your home is foreclosed.

If you need access to cash, but don’t want to add a second mortgage to your bottom line, cash-out refinancing may be the answer.

Remember that when you need to borrow money, your home can serve as collateral to access the money, but if you miss payments on a mortgage or home equity loan, the lender has the right to take possession of your home.

John Wayne almost went bankrupt while filming a movie that caused the actor’s death | Movies | Entertainment


In 1960, legendary actor John Wayne decided to tell the story of a historic event for the big screen. He chose to tell the story of the Battle of the Alamo, the actual battle that took place in Mexico and was a pivotal event in the Texas Revolution. And he went to great lengths to get The Alamo made. He and producer Robert Fellows formed Batjac, their own production company to bring the film to life.

Wayne acted as both producer and director of The Alamo, but also declined to star in the film. However, his first hurdle came when he began to struggle to secure financial backing for the film.

Adamant that his vision for The Alamo would not suffer, Wayne approached United Artists for financial support for the picture. The company agreed to contribute $2.5 million for its production as well as serve as a distributor – but there was a catch.

United Artists would only give Batjac the money if Wayne also agreed to star in the film, noting that it would be a much more financially sound investment with his face attached to the picture. Wayne agreed and took on the role of Colonel Davy Crockett.

But Wayne still didn’t have enough money to make the movie he wanted. So he had to start dipping into his own pockets.

Years after The Alamo was released, Wayne revealed that he invested over $1.5 million of his own money in the film.

$1.5 million is a lot of money today, but in 1960 it was an extraordinary amount of money (equivalent to about $9 million). But Wayne believed so passionately that the Alamo was a good investment that he would spare no expense.

Eventually, he began to despair.

Before long, he had no choice but to take out second mortgages on his homes to further finance the film. The American star also agreed to use his vehicles as collateral to acquire loans for the film.

In the end, The Alamo had a budget of $12 million, much of which was funded by Wayne himself.

But the star’s problems didn’t end there.

READ MORE: Charlton Heston refused to work with John Wayne on political views

Frankie Avalon was “intimidated” by the many rattlesnakes on set for the film, which was shot in the deserts of Texas.

And one of the actors even broke a bone in front of the camera during filming.

Laurence Harvey, who played Colonel Travis, fired a cannon shot but forgot about the gun’s recoil. The barrel rolled over Harvey’s foot, shattering him completely. But the actor did not shout or make any sudden movements.

It wasn’t until Wayne called “cut” that Harvey fell to the ground and began to writhe in pain. After this heartbreaking event, Wayne praised the professionalism of the star.

Fortunately, after all these financial and logistical difficulties, Wayne’s film was a huge success.

The Alamo earned $20 million at the box office and even earned an impressive Best Picture nomination at the 1961 Oscars.


Here’s what high inflation means for student borrowers


Inflation reached a 40 year record 8.5% in March and fell slightly to 8.3% in April. In times of high inflation, such as now, your dollar is worth less. You may have also heard that there is an upside – that your student debt is now worth less. And while that’s technically true, that’s not the whole story.

The current pause on federal student loan repayments has been extended through August 31, marking the sixth extension since the pandemic began. While this freeze offered temporary relief to borrowers, when repayments begin inflation will play a key role.

What is the exact impact of inflation on your student debt? We sat down with student loan expert Mark Kantrowitz, author of How to Appeal for More College Financial Aid, to discuss the specifics of what inflation means for student loan holders.

What are inflation rates and interest rates?

Inflation rates are a measure of the purchasing power of money. The Federal Reserve, the central banking system of the United States, is responsible for keeping inflation around 2% each year, the standard annual growth rate of the economy. When inflation rises above the 2% mark too quickly, as it has in recent months, the prices of goods and services rise, requiring more money for basic necessities and housing. This indicates a period of high inflation.

For example, in 2018 you could buy about 2 gallons of milk for $6. Today, however, that same amount of money will only buy you about 1.5 gallons of milk.

Interest rates represent the cost of borrowing. An interest rate is the amount a lender charges a borrower, which is a percentage of the total loan amount. For example, if you borrow $1,000 with an annual interest rate of 5% for a four-year term, your total interest costs would be $105.41 over the four-year term.

As inflation rises, the The Fed raises the federal funds rate, which is the rate it costs banks to lend to each other. Banks then react by raising consumer interest rates on loans and other financial products. The Fed does this to contain inflation, which makes it less attractive for consumers to borrow money, which helps balance supply and demand, stabilizes the economy and, theoretically, lowers the interest rate. ‘inflation.

How Inflation Affects Your Student Loans

The rate increases will not affect existing fixed rate student loans, such as federal loans. Private borrowers with adjustable rate mortgages, however, could see their rates increase.

Moreover, in times of high inflation, the value of fixed rate student loans also decreases. “Inflation dictates that a dollar ten years ago is worth more than a dollar today. So as long as your wages increase with inflation, debt from a loan borrowed in the past will be worth less. today,” Kantrowitz said.

Essentially, if your wages rise in line with inflation at the same rate or more, it can make it a little easier to pay off your debt. However, average wage increases are currently not keeping up with inflation. As of March 2022, wages had risen only 5.6% over the past 12 months. This means that most Americans will not currently benefit from devalued student debt.

Here’s a breakdown of the impact inflation could have on you depending on your loan type and whether or not you’re still in school:

If you have federal student loans:

Federal student loans are fixed rate. This means that the interest rate will remain the same throughout the term of the loans.

If you have a federal student loan, inflation could work in your favor if your salary increases in line with the rate of inflation, as this will devalue your debt.

However, if, like most Americans, your wages have not increased at the same rate of inflation and rising prices stretch your budget even furtherthat devalued debt won’t help you – and you might even find it harder to repay your loans.

If you have private student loans:

Private student loans can be variable or fixed rate. For those with fixed rate loans, you don’t have to worry about inflation raising interest rates on your existing student debt. But if you have adjustable rate loans, your interest rates could go up – and may have already.

When inflation rates rise, interest rates generally follow. This means that holders of variable rate private loans could see higher interest rates in the future.

If you are a new borrower in 2022:

Federal student loan interest rates reset annually on July 1, and Kantrowitz noted that federal and private student loan interest rates will be higher for the 2022-23 academic year. The new federal student loan interest rates for the 2022-23 school year were just released this week and are as follows:

  • Undergraduate loans: 4.99%
  • Direct unsubsidized loans to graduates: 6.54%
  • PLUS Loans: 7.54%

This is a big leap for students. For reference, last year a federal undergraduate student loan had an interest rate of 3.73%, about 1.25% lower than the rate for the upcoming academic year.

Will inflation impact loan repayments after federal payment freeze ends?

Kantrowitz said he expects the student loan repayment pause to be extended again, with renewed payments beginning after the 2022 midterms. However, whether or not the repayment freeze is extended may depend on the House’s decision. white on widespread remission of federal student loans (President Joe Biden is expected to make a decision on this in the coming weeks). As anything can happen, it’s best to prepare for repayment now, so you won’t be surprised if loans are due again in September.

For many, paying off student debt in times of high inflation is a real concern. According to the Student Debt Crisis Center, out of 23,532 borrowers, 92% of those working full time fear they will be able to pay in the face of soaring inflation.

“I personally couldn’t save to pay off a student loan, and I don’t think I could have accounted for the growing gap between wages and the national cost of living,” said Jonathan Casson, recently graduated from Cornell University.

If you’re worried about paying off your student debt, here are some tips for planning ahead:

How can you prepare to repay federal loans?

1. Look into income-driven repayment plans

The government offers four income-based repayment plans that can help make monthly payments more affordable for borrowers who need to reduce the size of payments. Each plan caps payments at between 10% and 20% of your discretionary income (income after taxes and necessities paid for) and cancels your loan balance after 20 or 25 years of payment. Eligibility for these plans depends on family size and discretionary income.

2. Refinance private loans now

With many interest rate hikes expected this year, refinancing all the variable rate private student loans you have into fixed rate student loans could help you save hundreds, if not thousands, in interest – and could even reduce your monthly payment. You should refinance as soon as possible, however, if you want to lock in the lowest possible fixed interest rate.

3. Consider your budget carefully

If paying off a student loan isn’t feasible with your current budget, see if there are ways to cut expenses or pay off high-interest debt now to free up cash in September. While adjusting your budget can seem daunting, there are plenty of resources and apps to help you calculate and identify expenses you can reduce or eliminate.

4. Consider secondary agitation

A part-time job outside of your main job can help supplement your income when inflation spikes. Currently, about a third of American adults have a side job, according to a 2021 Harris poll commissioned by Zapier. Another source of income can help fill an income gap in your budget and give you some respite.

Buy now, pay later: Harvard researcher warns of youth problem


A Harvard researcher says if you’re using ‘buy now, pay later’ there’s a problem – and it’s popular with young people.

Buy now, pay later options appear to be cost-effective, convenient and popular with younger consumers.

But it’s those consumers who, according to Harvard researcher Marshall Lux, can’t afford to be hurt.

“Three years ago people were talking about Peloton bikes, now people are buying sneakers, jeans, socks,” said Mr. Lux, a fellow at Harvard Kennedy School’s Mossavar-Rahmani Center for Business and Government. CNBC.

“When people start buying household goods on credit, it signals a problem.”

This week, more than 100 community groups in Australia, led by Financial Counseling Australia, signed an open letter to political parties and independent candidates calling on the next parliament to make the BNPL market safer.

“We are writing about the harms we are seeing from the use of unregulated buy-it-now, pay-later and payday advance credit products,” they wrote.

Organizations involved in the campaign include financial advisory and legal advice groups, as well as major charities like Anglicare and the Salvation Army.

Like Mr Lux, they are “deeply concerned” that people using BNPL are “just getting by” as the cost of living rises.

Customers who miss a payment on BNPL may face penalties, including late fees and deferred interest.

They believe a big problem is that BNPL suppliers are not legally required to assess their customers’ ability to repay their debts.

“As the use of these credit products increases, so does the damage they cause,” the letter read.

“Financial advisers are finding that a large number of clients are struggling to pay their debts from BNPL and payday advances, with many people having become over-committed and some having debts with multiple suppliers.”

They want an independent investigation to inform new regulatory protections, like in the UK.

The UK commissioned an independent review chaired by former Financial Conduct Authority boss Chris Woodward. It was released early last year.

In December, the US Consumer Financial Protection Bureau announced it was investigating Affirm, Afterpay, Klarna, PayPal and Zip.

The financial watchdog said BNPL had seen “astronomical growth” and feared BNPL was encouraging consumers to spend more than they could afford.

“To the buyer, it may seem like they’re getting something for nothing. And that can be appealing because not only is it convenient, but instead of an upfront cost of $100, they pay $25,” the CFPB said in a statement in January, calling for public comment.

“But we are concerned that there may be underlying systemic issues, particularly around debt accumulation, regulatory arbitrage and data collection in an already rapidly changing consumer credit market. with technology.

“To some people, BNPL might look like a standard form of payment when they are actually taking on a new form of debt.”

According to Mr Lux, without much regulatory oversight, the BNPL market currently exists in “a gray legal space”.

“Let’s do a stress test,” he said. “It has the potential to be a pretty big bubble.”

A report by the Reserve Bank of Australia found that the two largest listed Australian BNPL providers had around six million active users as of December 2020.

In a 2021 survey of credit card usage in Australia, 67% of Gen Z respondents said they had used buy-it-now, pay-later services in the past six months, according to Statisticsca.

Texas judges reignite fight against mineral tax over lack of service

By Katie Buehler (May 13, 2022, 6:33 p.m. EDT) — The Texas Supreme Court on Friday revived a lawsuit challenging the validity of a 1999 tax sale, finding that multiple tax entities violated due process rights of a former mineral interest owner by not serving her personally when they initiated foreclosure proceedings against her property.

Judges agreed with the heirs of Elizabeth S. Mitchell, who at one time owned 320 acres of mining interests in Reeves County, Texas, that the 1999 tax sale of her property was invalid because attorneys tax entities had not researched his name. and address, which appeared on eight publicly available warranty deeds and…

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BYU Cougars, Utah State Aggies and collateral damage | Opinion


Not too long ago, phones were mounted on the kitchen wall and BYU, Utah and Utah State were vying for the Beehive Boot.

Phone calls were limited, rarely private, and the device did not involve video games. When it comes to football, state dominance was a top priority. The home team with the best record against each other won the Beehive Boot and bragged about it. There were no realistic dreams of national championships, Rose Bowls or multi-million dollar TV deals.

In 1984, everything changed.

The arrival of the cell phone to American consumers liberated humanity with mobility and eventually provided instant access to just about anything – sports, news, weather, video games, movies, and more.

Additionally, that year BYU won all 13 of its games, including the Holiday Bowl against Michigan, to capture the program’s first national championship. That a Western Athletic Conference team could do such a thing opened the eyes of those less fortunate in college football—those who play outside the walls of the power conferences.

Dreams hatched that there truly was something bigger and better to pursue. When opportunities presented themselves, BYU and Utah were ready to pounce. On June 17, 2010, the Utes left the Mountain West Conference to join the Pac-12. BYU became a football independent in 2011 and will join the Big 12 on July 1, 2023.

Progress, however, does not always come without collateral damage. When the phone was removed from the kitchen wall and placed in everyone’s pockets, parents lost control of the flow of information in and out of their homes. Adults and children have lost control of themselves with video games (and much worse) and basic communication skills have been reduced to text messages devoid of emotion and personal responsibility.

BYU and Utah’s P5 futures show promise as they seek glory and enjoy financial reward. But lost in their forward charge is Logan’s team and their annual football games that once occupied so much of everyone’s attention.

Battle of the Brothers

The Aggies and Utes met on Thanksgiving Day, November 25, 1892, in the first game of both football programs. Utah Agriculture College beat the University of Utah 12-0. The teams went on to play 112 games, including every season between 1944 and 2009. The rivalry has been referred to as a “battle of brothers”.

When the invitation came for the Utes to join the Pac-12, which bolstered their schedule and reduced their availability for non-conference games, Utah State and its entire history with the Utes became, well, the ‘story.

The teams managed to play in 2012 at Logan, where the Aggies won 27-20 in overtime. Utah won close games at home in 2013 and 2015 and that’s it. There are no future matches scheduled between the two.

The old wagon wheel

BYU and the State of Utah meet annually with the winner claiming possession of the Old Wagon Wheel. It’s a trophy made from an old pioneer wagon wheel that’s way too big for a trophy case. The Cougars picked him up from Utah State in 2019 and retained ownership after winning last year at Logan.

The teams first played in 1922, with the Aggies winning 42-3. The programs will meet for the 91st time on September 29 in Provo. After BYU canceled all four games scheduled for 2023-26, no future games are scheduled. The winner of the September game could own the Old Wagon Wheel for a long time.

The greatest piece of history that BYU and the State of Utah share is the late LaVell Edwards. The Hall of Fame Cougars coach played football for the Aggies. It seems only fitting that the last scheduled meeting between the two will take place at LaVell Edwards Stadium.

With the Cougars leading the series 50-37-3, including 21-5 in the last 26 meetings, the rivalry has grown in intensity both on and off the court.

With the invitation to join the Big 12, BYU’s freedom to schedule non-conference games should be limited to three per season, and with the Utes on the schedule from 2024-2028, the Aggies are being pushed out.

Hive Boot

As BYU, Utah and Utah State played regularly in 1971, the Beehive Boot was established as the prize they were fighting for. At one point, the band also included Weber State. Sports Illustrated described the boot as college football’s weirdest trophy. He held his leather until 2016 after the Utes stopped scheduling the Aggies.

The Cougars beat both Utah and Utah State last season and won the boot from the University of Utah, where it remains in possession of BYU.

The future

Utah State is 0-2 against Progress and none of that is their fault. The Aggies are title contenders in the Mountain West Conference and are coming off an 11-3 season. But, in preparation for life in the Big 12, BYU just did to the Aggies what Utah did to them in 2010 when the Utes joined the Pac-12.

They broke.

Oh, while relations seem to be breaking down, the two sporting directors promised on Thursday to keep in touch and maybe even meet somewhere down the road. But it’s a separation that could stick, and in some ways that’s a shame. It’s a fun series that fans enjoy.

Not only is BYU’s new life in the Big 12 a game-changer, it’s also a schedule change, and while uncertainty surrounds how new it all is, one thing is certain, this old phone isn’t coming back on the kitchen wall. and the Beehive Boot is history.

Progress is about moving forward, despite the collateral damage. For BYU, there is no time to look back because there is too much to see ahead.

Dave McCann is a contributor to Deseret News and is the studio host for “After Further Review”, co-host of “Countdown to Kickoff” and the “Postgame Show” and play-by-play announcer for BYUtv.

BYU and Utah State line up for a game in Logan on Friday, Oct. 1, 2021. Both teams will play again this fall in Provo, but with BYU joining the Big 12 in 2023, it will be some time before they do not meet. on the football field.

Jeffrey D. Allred, Deseret News

The dream of KIIFB Kerala is under serious threat. The Center publishes a new off-budget borrowing decree


After more than two years of what looked like an intense showdown, the Center appears to have finally brought states like Kerala to their knees on off-budget borrowing. The Center has been pushing for states like Kerala to include their off-budget borrowing using special purpose vehicles like KIIFB in their annual borrowing limit.

Kerala is still in resistance mode and is paying the price. The Union government has not approved Kerala’s borrowing schedule for the first quarter (April-June) of the financial year 2022-23. By May 10, Kerala is expected to have raised Rs 4,000 crore from the open market. He could not.

This tightening of funds has already led to some Treasury restrictions. If this center-state conflict persists, Kerala’s fiscal situation could become precarious.

Convenience of off-budget loans
Kerala has always objected to the inclusion of the Kerala Infrastructure Investment Fund Board (KIIFB) and other off-budget borrowing in its budget deficit calculations.

In fact, the very reason for creating SPVs like the KIIFB was to circumvent the borrowing limit set for the states. The logic was that most free market borrowing was used to fund committed expenses such as salaries, pensions, and interest, leaving virtually nothing for development spending. Tax-free off-budget loans were the solution.

If loans from KIIFB and other government-funded bodies like Kerala Social Security Pension Limited (KSSPL) had been taken into account, Kerala’s budget deficit would have looked even more inflated. The latest CAG report states that the KIIFB and KSSPL had borrowed Rs 1,930.04 crore and Rs 6,843.65 crore respectively in the financial year 2019-20, neither of which was reflected in the calculations. of the deficit for this financial year.

Closure of a busy ring road
The Center has now moved to permanently close the route that states usually resort to to evade constitutionally mandated tax audits. States are legally entitled to borrow 3% of their GSDP on the open market; from this financial year, it is 3.5% of GDP.

They made full use of it, and on top of that they encouraged their PSUs and SPVs to borrow heavily. According to a CRISIL Ratings study of 11 states, including Kerala, off-balance sheet borrowing by states had reached a ten-year high of 4.5% of state gross domestic product (GSDP), or Rs 7.9 lakh crore, in 2022.

These huge amounts are not reflected in the annual financial statements (budgets) of these states, but are funded by state budgets. The KIIFB, for example, is supported by the annual transfer of 50% of Kerala’s motor vehicle tax revenue and the full tax on petrol.

A double whammy for the States
But from now on, the Center wishes that the loans contracted by the SPV are also included in the ceiling of borrowing of the States. This will lead to a decrease in net annual government borrowing. The KIIFB, for example, will first need to consider routine and more urgent borrowing needs in the open market of Kerala before programming its loans. In such a situation, the very existence of the KIIFB could be called into question as the body was formed to operate outside of these restrictive constitutional and fiscal concerns.

KN Balagopal

Kerala Finance Minister KN Balagopal. Picture file

During this exercise, states will experience additional deprivation. The decision to transfer PSU and SPV borrowings to the budget will be implemented retrospectively, starting in FY 2020-21. This means that excess borrowing incurred by states using off-budget mechanisms in the past two fiscal years – 2020-21 and 2021-22 – would be deducted from their borrowing limit for that fiscal year 2022-23.

Will the payment of wages suffer?
The Center has already requested States to provide revised borrowing figures for the past two fiscal years. Top sources said Onmanorama that Kerala had still not provided these figures. Hence, the Center refused to endorse Kerala’s borrowing schedule.

Kerala was unable to mop up Rs 4000 cr in three auctions scheduled by the RBI: April 19 (Rs 1000 cr), May 2 (Rs 2000 cr), May 10 (Rs 1000 cr). This caused a slight budget squeeze, threatening to derail the payment of salaries and pensions in May.

Finance Minister KN Balagopal, while conceding that the Center had not sanctioned Kerala free market borrowing, said the situation would not affect salaries and pensions. “I hope the Center will not behave vindictively,” he said.

Why the Center and CAG despise the KIIFB
The Centre’s logic was set out in the March Monthly Summary Report issued by the Expenditure Department. “These off-budget borrowings from the states have the effect of circumventing the net state borrowing ceiling by channeling the loans out of the state budget through public or statutory bodies despite being responsible for the repayment of these loans.These borrowings have an impact on fiscal revenues and deficits and thus have the effect of exceeding the targets set for fiscal indicators under the Fiscal Responsibility and Fiscal Management (FRBM) Act.”

The latest report of the Comptroller and Auditor General on Kerala Finances has also flagged the issue. “Even though the repayment of the amount borrowed and its interest (by the KIIFB) are funded from government revenue, the government’s financial records do not reflect these borrowings,” the CAG report said. “KIIFB’s liabilities are a direct charge on the government’s own resources and are therefore a direct responsibility of the state government,” he added.

Flowers grow in the garden of consumer data regulation | Carlton Fields


With the onset of spring, a bunch of different NAIC groups and states are springing up to consider the use of big data and algorithms by insurers, including algorithms based on machine learning. Many are focused on life insurance underwriting and seeking to ensure that any unfair bias is eradicated from the data and algorithms used by insurers. The NAIC’s 2022 activity will be cultivated by the newly formed Innovation, Cybersecurity and Technology (H) Committee (H Committee). States are also bustling with activity, and Colorado planted its bulbs in early 2022 by hosting two stakeholder meetings, as required by Senate Bill 21-169 (as codified in Section 10-3- 1104.9 of the Colorado statutes).


The new H-Committee facilitates all NAIC groups and addresses innovation and technology issues so that information and ideas can be crossed between all regulators and interested individuals. The objectives of Committee H are to:

  • Identify problems related to the use of innovation and technology;
  • Understand how the use of innovation and technology affects the insurance market;
  • Understand how insurers innovate and use technology; and
  • Understand how the use of innovation and technology by these insurers can be regulated.

To further foster collaboration and ensure that no unfair bias takes root, one of Committee H’s first projects is a collaboration forum that will (i) address algorithmic biases by identifying and addressing fundamental issues and (ii) develop a common framework that can inform the specific workflows in each NAIC group. This will bring together the work of:

  • NAIC Accelerated Underwriting Working Group (AU WG)
  • NAIC Big Data & Artificial Intelligence Working Group (Big Data & AI WG)

These working groups also reported on their activities at the NAIC’s Spring 2022 National Meeting.

The AU Task Force Education Report has come into full bloom as it was adopted by the AU Task Force at the National Spring Meeting. The educational report provides broad insight into the use of big data and accelerated underwriting by life insurers, setting the stage for regulators and interested parties. The educational report examines the differences between Accelerated Underwriting, Traditional Underwriting, and Simplified Underwriting, as well as the current prevalence of these practices and anticipated trends for the future. It also examines the use of various types of consumer data, including traditional data, non-traditional data, Fair Credit Reporting Act data, and the issue of the use of biased data.

Some consumer representatives have criticized the education report’s lack of concrete guidance for states and reliance on current unfair trade practices laws. However, the Chair of the AU Task Force noted that the next work product of the AU Task Force would be to create a Regulator’s Guide which builds on the Educational Report and provides specific guidance to Regulators.

Within the Big Data & AI WG, several projects are emerging.

  • Workstream One – Initially, the Big Data & AI working group sought to increase regulatory understanding of the use of artificial intelligence and machine learning in private passenger auto insurance; now the field of work is branching out to conduct similar surveys for homeowners and life insurance.
  • Workstream Two – Seeks to develop tools to help regulators review accelerated underwriting models and help regulators determine if biases are “built in” to the data or models used.
  • Workstream Three – Investigates the industry’s reliance on third-party data and algorithm providers and how to “best regulate these entities”, including through revised review standards.
  • Workstream Four – Seeks to seed a white paper on a regulatory framework that pulls together all of the other workstreams’ news clippings.


Oklahoma sprouted Bill 3186 and Rhode Island spawned Bill 7230, which are substantially similar to Colorado Senate Bill 21-169. As we previously reported, Colorado prohibits insurers from using external consumer data, information sources, algorithms, or predictive models based on that data in a way that unfairly discriminates based on race, color, national or ethnic origin, religion, sex, sexual orientation. , disability, gender identity or gender expression. Colorado hosted two stakeholder meetings focused on life insurance underwriting practices where the key terms “external sources of consumer data and information” and “traditional underwriting practices” and the process of required test were discussed.

Other state activities include:

  • New Jersey Assembly Bill 5651 requires annual reports from auto insurers using an automated or predictive underwriting system, to demonstrate that there is no discriminatory outcome in insurance pricing, and directs the Commissioner of Banking and Insurance to cultivate rules and regulations.
  • A preliminary investigative statement was filed by Washington regarding possible insurance underwriting transparency regulations to address its concern that “insurance consumers are not receiving full disclosure and transparency from insurers for adverse actions, rate changes or factors that insurers consider in determining premiums. The proposal would require insurers “to provide notices to consumers for all factors assessed in any related insurer action, which must include detailed disclosure of all variables considered in underwriting, as well as proportionality or weight at which these factors were assessed”.
  • Connecticut updated its departmental advisory regarding “the use of big data and the prevention of discriminatory practices” to remind insurers of their obligation to ensure that their use of big data complies with federal and state anti-discrimination laws, that the seeds of their data and algorithms come from in-house or from a third-party provider. Insurers are also required to submit annual data certification to the Connecticut Department of Insurance. The notice also affirms the authority of the Connecticut Department of Insurance to require insurance companies and third-party data providers, model developers, and offices to provide the department with access to data used to create models or algorithms included in all subscription rates, forms and filings.

As spring turns into summer, more varietals are sure to emerge as other regulators begin to tend to their gardens. We will continue to monitor NAIC and state activity regarding the use of big data and algorithms by insurers.

TerraUSD crashed. What does this mean for other stablecoins? Here are the potential winners and losers


It’s the third day since TerraUSD, an algorithmic stablecoin designed to trade 1 to 1 against the US dollar, broke down for a long time.

or UST, the 11th-largest cryptocurrency by market capitalization, fell to 23 cents on the dollar on Wednesday, before rebounding to 77 cents on Binance. LUNA, another cryptocurrency that backs the UST, lost more than 90% of its value in the past 24 hours, falling to $0.7 on Wednesday, according to data from CoinDesk.

Although Terra supporters said they approved of a community plan to save the stablecoin, it didn’t bring much comfort. As a sign of alarm, a dedicated forum for Terra-related discussions at Reddit included a post with international suicide prevention hotlines that was pinned by the moderator.

Some crypto industry participants said it was a “dark day” for the entire industry, as one of the most popular blockchains to grow at breakneck speed, saw the value of its coins almost collapse.

Investors are also keeping a close eye on what Terra’s downfall could mean for other stablecoins, which play an important role in the crypto ecosystem and account for around 13% of the crypto market capitalization.

A stablecoin is a type of cryptocurrency whose value is pegged to other assets, usually fiat currencies such as the US dollar. They are designed to maintain a stable price, which makes them popular when it comes to facilitating the trading, lending, and borrowing of other digital assets.

Explain : What is an algorithmic stablecoin? Why is Terra making headlines? Here’s what investors need to know.

Over the past few days, most other major stablecoins, including Tether USDTUSD,
have seen stable prices.

“The events of the past few days cannot be construed as an indictment of all stablecoins,” David Puth, CEO of Center, which provides technology for USD Coin, or USDC, wrote to MarketWatch via email. mail.

In fact, some traders believe that the fall of the UST will boost demand for other stablecoins in the near term, as investors transfer funds from the UST to its counterparts. “There is roughly $10 billion, if not more, of UST capital looking for safer stablecoins to park,” Grayscale research analyst Matt Maximo wrote to MarketWatch in an email.

Still, some investors are concerned that the fall of the UST could spark greater regulatory scrutiny of stablecoins. During a Tuesday hearing before the Senate Banking Committee, Treasury Secretary Janet Yellen said the Terra crash “just illustrates that this is a rapidly growing product and there are risks to financial stability and that we need an appropriate framework”.

Yellen also said it was “very appropriate” to draft stablecoin legislation this year.

Lily: Algorithmic stablecoins can be “inherently unstable”, says Senator Toomey after Terra episode

In November, the Biden administration called on Congress to quickly pass new legislation that would require stablecoins to be issued by insured banks overseen by federal banking regulators.

“Of course, long-term regulation is positive for the crypto space, but if stablecoin issuers are regulated as strictly as banks, it could stifle one of the most innovative, thriving and important sectors of the crypto market. crypto,” Anto Paroian, chief operating officer of crypto hedge fund ARK36 wrote to MarketWatch in email comments.

A Luna Foundation Guard representative did not immediately respond to an email seeking comment.

Winners, losers?

The fall of the UST has also intensified the divergence of views on the different types of stablecoins. Some proponents believe this shows the merits of reserve-backed stablecoins, such as Tether, USD Coin, and Pax Dollar, as they could offer more consumer protection. “There is a constant store of value and much less counterparty risk when using a fully collateralized stablecoin compared to an algorithmic instrument,” said Puth du Center.

Yet the largest stablecoin Tether has long been criticized for hold commercial paperbonds, loans and other digital tokens in its reserve.

Tether’s commercial paper holdings declined quarter over quarter, a company spokesperson wrote to MarketWatch. “Unlike these algorithmic stablecoins, Tether holds a strong, conservative, and liquid wallet comprised of cash and cash equivalents,” the spokesperson wrote. “We don’t think the UST situation means anything to the centralized stablecoin market. They are entirely different types of assets,” the spokesperson said.

Despite Terra’s plunge, some investors remain confident about DAI, another algorithmic stablecoin. Unlike Terra, MakerDAO, which supports DAI, requires 150% guarantee to hit DAI.

“MakerDAO is better protected against a sharp drop in the value of its crypto collateral overnight by having more collateral than DAIs in circulation,” Grayscale analysts wrote in a recent note. “The only caveat is that these are less efficient systems, therefore more difficult to scale,” said Corey Miller, head of growth at decentralized crypto exchange dYdX.

However, some stablecoins that operate similarly to UST have come under pressure.

The perpetual futures funding rate of TRX, a coin that backs the TRON blockchain’s USDD algorithmic stablecoin, has fallen deep into negative territory on Binance. Meanwhile, USDD, which is believed to trade one-to-one against US dollars, fell to 98 cents on crypto exchange Poloniex on Wednesday.

Justin Sun, founder of TRON, said on Twitter that the community will use $2 billion to maintain the price of the stablecoin.

Should you co-sign your adult children’s mortgage?

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Rising home prices and rising mortgage rates are reducing affordability for many first-time homebuyers. Rather than giving up on their dream of buying a home, some people are turning to their parents for help with down payments or co-signing their mortgage. While it’s natural for parents to want to help their adult children become homeowners, it’s not always the best decision to co-sign a loan.

We asked John McCafferty, director of financial planning for Edelman Financial Engines in Alexandria, Va., and Chaim Geller, financial advisor and founder of Help Me Build Credit in Brooklyn, for their advice to parents. Both responded via email and their comments have been edited.

A big concern about co-signing is that as a co-signer, the parent has no rights to the property but takes responsibility for all of the debt, McCafferty wrote.

Q: When should parents consider co-signing a mortgage for their adult children?

McCafferty: Parents step in when an adult child is not in a financial position to qualify for a mortgage on their own. There are pros and cons to being a co-signer. I would only suggest a parent go ahead if it is very clear that their own financial health, like their retirement security, will not be compromised.

Gel: Co-signing is one of the greatest favors a person can give their child. But co-signing isn’t for everyone. To make sure you won’t regret it, you need to understand the seriousness of co-signing. It has to make financial sense and you have to have enough confidence in your child. If you don’t, co-signing can be a devastating mistake, with serious consequences. It can ruin you financially, mess up your credit, and worse, cause a rift in your relationship.

Q: Are there any red flags about when it’s a bad idea to co-sign a mortgage?

McCafferty: Yes, the fact that co-signing is required is a red flag, and it should at least make the parties involved ask themselves: “Why is co-signing necessary?” Although the answer may be obvious, it is important to go through the verification process. Mom and dad can be expected to help out, especially if they’ve taken care of most other financial obligations so far.

But there are many reasons why this important responsibility would not be in their best interest, and they should discuss all the variables. For example, what is the professional trajectory of the borrower? Is he or she married? If yes, what is the professional background of the spouse? Do they have children? The list of questions can be long and the risks are many. Meanwhile, the child takes advantage of the parent’s financial situation to buy something he may not be able to afford. For the parent, this creates a higher debt-to-income ratio (DTI), which could negatively impact their credit rating and future borrowing potential. Relationships could also be affected if difficulties arise during payments.

What to do if you can’t pay your mortgage

Through this lens, I encourage common sense and don’t let the family relationship cloud any thinking. The essential question I ask clients is: would you accept this type of arrangement if your child was not involved?

Gel: Young adults can often have unrealistic dreams, and your kids may dream of buying a house they can’t afford. Before you co-sign for your kids, sit down with them and discuss their finances. What is their income? What are their monthly expenses? How much do they spend on groceries, restaurants, etc.? ? Do they have monthly car payments? This should help you see if you feel comfortable that the mortgage is affordable for them. Leave some financial leeway for unexpected expenses. If you feel like they’re overreacting and you’re concerned that they won’t be able to pay the mortgage payments, politely explain that you’re recommending them to find a more affordable home, or they may kick you out of the co-sign.

Q: How does co-signing work? Do parents have to pay anything at closing?

McCafferty: A cosigner helps a borrower qualify for a mortgage loan by agreeing to repay the loan if the borrower stops making payments. As a co-signer, you have no interest in the house and your name does not appear on the title deed. An ideal co-signer will have abundant income, excellent credit, and a healthy debt-to-income ratio.

Co-signers complete a home loan application as part of the process.

Once the lender’s conditions have been met, the co-signer must agree to all the terms of the loan by signing the final loan agreement documents. As an official loan agreement, the note outlines all of the most important terms of the loan.

If the borrower does not have sufficient funds at closing, the co-signer may be required to cover any down payment, closing costs and related additional costs.

Q: Is it a better option to help with the deposit than to co-sign? Why or why not?

McCafferty: This is a more conservative approach, as long as the parent’s financial health is not compromised. The main reason is that the risk is limited to the amount of money offered and the liquidity of the parent company to provide it. This approach can be a win-win for all parties. Parents satisfy the need to help while the family member becomes the owner.

Gel: In some cases, this will work better because you won’t be tied to the loan for the next 30 years or so. On the other hand, if your child is not eligible for the mortgage without your co-signature, paying part of the deposit will not help them.

Tips to Make the Concurrent Process of Buying and Selling Homes Less Stressful

Q: Are there legal measures that protect parents’ finances and credit?

McCafferty: Generally, the only way the co-signer can get their name on the loan is if the borrower refinances. Remember that a mortgage is a contract. Once it’s signed, it’s hard to undo.

A few precautions to take:

1. Act like a bank. Establish criteria for the borrower you are helping. For example, review their credit report or ask about their employment status, or review their monthly expenses.

2. Review the agreement. It sounds obvious, but make sure you know what you’re signing.

3. Be the primary (not secondary) cardholder. This will give you more control. Statements will be sent to you. You can then collect from the secondary borrower.

4. Collateralize the transaction. Set conditions for missed payments. For example, get the second set of their car keys. Missed payments result in penalties.

5. Create your own contract. Create a promissory note that discusses the obligations, costs, and consequences the borrower will have in the event of default.

6. Consider a trust. Work with a legal professional to protect your personal assets using a trust.

7. Establish an exit strategy. For example, 12 to 24 months may be suitable. At this point, a refinance should take place. Set appropriate expectations at the start.

Gel: There are two things I recommend. One is to sign an agreement with your child where your child agrees to refinance the mortgage as soon as they become eligible for the mortgage and remove you from the co-signer. This will ensure that you are not tied to the loan longer than necessary.

Second, I highly recommend asking the bank to send the mortgage statements to your address as well. Banks usually only send mortgage statements to a co-signer if the co-signer explicitly requests it. For you to be on top of the loan and ensure payments are made on time, be sure to ask for monthly statements and review them monthly.

Q: Any other tips for parents?

McCafferty: It’s understandable when a parent wants to help their children, especially in today’s real estate market. If you’re working with a financial planner or wealth advisor, include them in the process. They can offer relevant experience and an objective perspective. Ultimately, understand the monthly payment obligations and whether they can be comfortably met by the borrower. Most important – use common sense and don’t let any family member get in over his head.

Gel: In some cases, it is better to say “no” to co-signing. I know of a few cases of close family members who are not on good terms because of a co-signing that goes sour. So sometimes the best thing you can do for your relationship with your child is to say “no” to co-signing. It will be better for you and for your child.

Chinese builder Hongkun could lose NJ condo project


Paul Rahimian of Parkview and 1800 Avenue in Port Imperial (Parkview Financial, Handel Architects, Illustration by Kevin Cifuentes for The Real Deal)

A luxury condo project overlooking the Hudson is up for auction in the latest example of a Chinese developer facing distress in the United States amid tighter surveillance at home.

Lender Parkview Financial has launched a UCC foreclosure sale for interests in a 282-unit development in Weehawken, New Jersey, planned by the U.S. subsidiary of the Beijing-based Hongkun Group.

Hongkun USA bought the site for around $75 million in 2019, securing some of its funding through the federal EB-5 program, before receiving a $61 million loan last year from Parkview, a London-based REIT. Los Angeles.

The developer planned to go vertical with an amenity-rich skyscraper, which it would market to Manhattan workers who could have a cheaper cost of living and more space with a short commute. The project was to be one of the final components of a mega-development known as Port Imperial, which is expected to span 2.8 million square feet and include 1,500 condo units and 45,000 square feet of retail. detail on the ground floor.

But Hongkun’s plan ran into trouble as Chinese regulators began to crack down on excessive borrowing and low liquidity ratios by property developers in the country.

Megadevelopers such as Oceanwide Holdings have been forced to sell or abandon real estate projects in the United States in order to comply with new debt controls. China’s property market has also weakened, hurting developers’ incomes.

The demise of Hongkun and its affiliates appears to stem from a combination of factors. In December, the company’s Chinese residential construction subsidiary lacked sufficient liquidity to meet its upcoming debt obligations and had limited access to capital market financing, according to a Fitch Ratings Report.

A federal lawsuit filed in February by another Hongkun USA lender, New Asia International, reveals other possible reasons for the company’s problems.

The lawsuit alleges that a Hongkun representative said the company’s owner was detained in China in connection with a criminal case and that control of the company passed to the owner’s son. The lawsuit also said that Beijing Hongkun Weiye Real Estate Development, the Chinese home-building subsidiary, defaulted on its privately issued debt. The lawsuit ended in April.

Hongkun USA’s parent company, Hongkun Group, has $7.7 billion in assets, according to its website. His projects include the NBA Center in Tianjin, China.

Newmark’s Brock Cannon is spearheading the marketing for the UCC foreclosure sale, which is scheduled for June 29. Matthew Mannion of Mannion Auctions is the auctioneer.

A UCC foreclosure allows a lender to claim the interest in a property while bypassing the legal process. To foreclose, the lender must put the interests up for sale in a “commercially reasonable” auction. Often the lender wins the auction with a credit offer using their existing debt.

Neither Hongkun nor Parkview returned requests for comment.

CoinLoan offers lavish APY rates to mark the introduction of Solana


Amid strong consumer demand, CoinLoan expanded its offering with Solana (SOL), one of the largest cryptocurrencies by market capitalization.

This blockchain is growing rapidly, with SOL widely used as a staking tool and transaction fee. To mark the new offer, CoinLoan, a crypto lending platform, is offering an attractive introductory offer during the first month of use.

Users who maintain interest-bearing accounts with SOL deposits are eligible for a 2% increase in APY for the first month. In addition, current holders of CLTa native token of CoinLoan, will benefit from a 9.2% increase in annual percentage yield.

Solana is now available in all major CoinLoan products:

  • SOL can be used as collateral in instant loans in USDT, USDC, BUSD, TUSD, PAX, EUR, GBP, BTC and WBTC;
  • SOL can be converted to crypto or fiat on the Crypto Exchange;
  • SOL can be held on an interest account with up to 12.3% APY.

Commenting on Solana’s introduction, CoinLoan CEO Alex Faliushin said the company is always listening to private and corporate customers and aims to expand its offering with new digital assets.

He explained CoinLoan’s vision of cryptocurrencies as a widely traded and easy-to-use investment asset, and this vision is achieved through three core products and continuous innovation.

Alex expressed his great pleasure with the introduction of SOL, naming it one of the largest cryptocurrencies in the world by market capitalization that can provide customers with more options and benefits.

SOL is a coin native to Solana, a blockchain that supports smart contracts and enables fast, low-cost transactions. It uses the improved Proof-of-History (PoH) algorithm, taking conventional PoS to a new level.

Currently, there are over 25 digital assets, both cryptocurrencies and fiat, offered at CoinLoan, and this range is constantly being expanded for the benefit of users.

CoinLoan was created by crypto enthusiasts who aim to be an integral part of the modern crypto ecosystem and want to share that desire with like-minded people.

It is arguably an ideal platform for both new and existing users. Continuous improvement of services and products.

From adding new coins to introducing unique features like crypto-fiat lending, paves the way for a bright future for the company and its customers.

About CoinLoan

Launched in 2017, CoinLoan is a licensed crypto project in the European Union. The platform provides instant loans with crypto assets as collateral, interest account in crypto transactions and Crypto Exchange.

Individuals and businesses have access to the full range of services, except as limited by applicable laws.

Ensuring bank-grade security is CoinLoan’s top priority, so businesses and individuals can enjoy the highest level of protection.

Customer loyalty and satisfaction are achieved through great loan and APY rates, transparent pricing, and dedicated 24/7 support.

CoinLoan users can trade and manage a wide range of assets, including platform-native tokens and fiat currencies, with more to be added soon.

CoinLoan places great importance on continuous innovation while using cutting-edge technology and developing partnerships.

In this way, the company introduces constant improvements and offers its customers many opportunities in the field of crypto.

More information is available at our websiteand you can also follow us on our social media platforms:

Twitter | LinkedIn | Facebook | instagram | Reddit


All information contained on our website is published in good faith and for general information purposes only. Any action the reader takes on the information found on our website is strictly at their own risk.

Are you looking for a loan? Know the difference between borrowing from a bank/NBFC and a fintech lender


Taking out a loan on favorable terms is not an easy task. To obtain an unsecured loan at a lower rate, a borrower must have a clean record and a good credit rating.

Another way to reduce the loan rate is to take out a loan against collateral. However, assessing the value of collateral is also a difficult task.

The ease of obtaining loans also differs from a bank to an NBFC (non-bank financial companies) to fintech players.

“It’s 2022. Everything from groceries to food, consumer durables to blood tests are delivered to homes today. In this sense, does not going to a physical agency to obtain a loan become archaic? asks Nitin Misra, co-founder, indiagold.

Commenting on the grueling task of securing a sanctioned loan, Misra said, “When borrowing from banks/NBFC, the client first withdraws all the gold from his almirah, as he is not sure of the amount. he needs for a loan. As a rule, most clients do not borrow all their gold at once. Once they have located the nearest bank branch, there is always the risk “to carry unsecured collateral. Sometimes customers avoid entering a nearby branch and instead go to a distant branch to avoid being seen or followed.”

“Once the gold is handed over, the branch managers analyze and evaluate the principal and the interest rate. If the assessment is insufficient or if the customer does not accept the offer, he must take back his gold and go again to another bank branch. Due to the inconvenience and privacy issues, they end up agreeing to the unfair offer in most cases. Afterwards, they share their bank details and the money is transferred to their account,” he added.

Apart from the difficult processes, there are also fees involved in the loan sanctioning process.

“Now, depending on the lender, customers may also have to pay a processing fee. There is no possibility of keeping their gold in the lender’s locker without taking out a loan (useful for businessmen). So, every time they need a loan, this tedious process repeats itself. Needless to say, they have to go to the agency again to close the loan,” Misra said.

“On the other hand, borrowing from a FinTech means convenience, security and privacy. In addition, loan documents and loan-related processes can be done on smartphones without the need to visit a branch. In a nutshell, FinTechs are making products more affordable, convenient, usable, accessible and transparent, greatly improving the consumer experience,” he added.

Stockton and Winterport to collaborate on broadband


STOCKTON SPRINGS — After meeting with two representatives of the Winterport Broadband Committee, the Stockton Springs Select Board voted unanimously on May 5 to enter into a memorandum of understanding with the city of Winterport to work together to provide high-speed Internet service. to both cities.

Kevin Kelley and Ethan Tremblay of the Winterport Broadband Committee attended the session to discuss the Memorandum of Understanding, which does not currently include any financial obligations. The Prospect Select Board was also invited, but did not participate. The MOU provides that other municipalities in Maine can apply and become parties to it.

A meeting with Searsport City Manager James Gilway, which he had asked to discuss sewerage sharing, has been postponed to an indefinite later date.

The Select Board granted two taxpayer foreclosure applications relating to properties that were recently foreclosed; the owners found enough money to pay the back taxes, interest and penalties.

Council members also discussed a proposed new emergency operations plan and unanimously approved the plan on the condition that the city manager be added wherever the select council is mentioned. In an email to the Republican Journal, City Manager Mac Smith explained the condition was added because council would expect to work as a team with the City Manager in an emergency. Additionally, a security guard and scribe should be assigned to all claims, not just hazmat emergencies.

In other matters, council has decided to continue its discussion with Stockton’s Recycling and Energy Conservation Committee regarding the possible assignment of soon-to-be-installed heat pumps to a deceased community member.

Council members also approved an Eagle Scout project to be carried out by Boy Scout Robert Walker, in which he will clean up the city’s Peterson Park and build two picnic tables for the area.

Smith said he had spoken with representatives of the Mt. Prospect Cemetery Association, who withdrew their request that the city take over the property and care for the Church Street Cemetery. They did this because they felt, after reflection, that they could continue to care for the cemetery.

Smith also said he would give board members an updated copy of the council’s letter for the city’s report.

” Previous

WATCH Trevor Noah tries to understand Elon Musk’s purchase on Twitter and the Stock Market – SAPeople

Trevor Noah tries to understand Elon Musk’s Twitter buy and the stock market. Photo: YouTube screenshot

Daily Show host, South African expat Trevor Noah, has expressed concern to many about the ‘billionaire games’ that the super-rich, like fellow South African expat Elon Musk, are playing with the market scholarship. Look below.

The Daily Show, which has nearly 10 million subscribers on YouTube, said: “Trevor is no expert in finance, but the details of buying Elon Musk on Twitter seem a bit bizarre.”

Trevor described how, to him, certain aspects of the stock market seem a little “scammer”. Speaking to his audience Between scenes, Trevor said he could kind of understand how a businessman worth billions on the stock market can’t pay tax on those billions because the money doesn’t exist. not quite and the value of the shares might drop…but then he said how can someone then be allowed to use those same shares as collateral if that value doesn’t quite exist ?

Thousands agree with Trevor. A YouTube user said, “The scholarship is literally a scam.” Another said: “Trevor is right! I think if billionaires use shares as collateral or in any other transaction, the government should tax the shares based on the value stated in the transaction. It is realized only if the owner does not use it at all.

Many were grateful for Trevor’s insight, with an American saying “well explained by Trevor. Brilliant minds like his always find a way to put complex words into words everyone can understand.

Another added: “Such a brilliant young man! He just broke it down so eloquently and clearly that even a fool could see the games being played at the highest echelons of the economy.

WATCH Elon Musk’s Billionaire Games – Between the Scenes | The daily show

QuickQuid and Pounds to Pocket borrowers receive payment news


Borrowers who were mistakenly sold loans they couldn’t afford by two companies that went bankrupt will receive a little more than they expected.

Around 78,500 QuickQuid and Pounds to Pocket borrowers will be reimbursed some of the interest and fees charged to them at a rate of 53.5p for each pound due over the next two weeks, it has been confirmed.

The joint administrators of Grant Thornton initially told borrowers to expect a payment of between 30 and 50 pence for every £1 of interest, fees and charges paid on their badly sold loans, plus 8% interest. But this week they contacted customers to say they will in fact receive 53.5p per £1 owed, plus interest.

Read more: More families are turning to payday loans as the cost of living crisis rages

The update comes after CashEuroNet, of which payday lenders QuickQuid and Onstride.co.uk (formerly known as Pounds to Pocket) were part, went into administration in 2019 and ceased lending.

The claims portal for those who believed they were mis-sold a loan closed last February, so it’s too late to start a new claim. Customers who claimed before then should have received a decision on their claim by the end of June 2021, and another email this week detailing the amount they will recover. It is also too late to appeal decisions made by Grant Thornton, as borrowers had 21 days from receiving an initial decision on their application in June 2021 to do so.

When you submitted an application, you were required to include contact details, as well as the bank details you used when taking out your loan, and these will be the details that Grant Thornton will use to provide updates on your application. Any payment due will be transferred this week or the next.

It is now too late to update your contact details with Grant Thornton. A check will therefore be sent to the address you indicated during your complaint. If your address is no longer correct, contact CashEuroNet customer service on 0800 0163 250.

Payday loans and other short-term loans have been widely mis-sold and dozens of short-term lenders have gone bankrupt, including former Newcastle United sponsor Wonga, leaving customers with legitimate complaints to get payouts greatly reduced – or even find it’s too late to complain if their lender has gone bankrupt.

If you couldn’t afford to repay the loan, or the lender didn’t properly check your finances, you may be able to get your money back, as lenders need to review your finances to make sure you can pay the loan. loan and fees. If, as was often the case, this was not done correctly and the money was not to be loaned to you, or the costs or repayment schedule were unclear, you were mis-sold .

Citizens Advice has a guide to making a complaint, including a sample letter to send to your lender here.

Read more :

BC money laundering report got extension to June 3 after COVID-19 delays


VANCOUVER — The deadline for the final report of British Columbia’s public inquiry into money laundering has been extended until June 3.

The B.C. government said in a statement that the submission of the report was previously due May 20, but the extension is the result of several members of the Cullen Commission’s investigative team contracting the COVID-19.

Commissioner Austin Cullen said members of his team have since recovered, are in good health and are working on the report.

Cullen himself did not contract COVID-19.

The province announced the investigation in 2019 after a series of reports to the government revealed what the commission called “extraordinary” levels of money laundering in the real estate, casino, racing horses and luxury cars, fueled in part by the drug trade.

The inquiry heard from around 200 witnesses in hearings that began in May 2020.

This report from The Canadian Press was first published on May 6, 2022.

The Canadian Press

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New SDNY Order and Legislative Developments May Impact New York Foreclosure and Debt Collection Proceedings and Judgments | Bryan Cave Leighton Paisner


The Southern District of New York has granted a preliminary injunction restraining state officials from implementing or enforcing the retroactive applicability of recently passed legislation (SB 5724A, 244andLeg. Session, c. 831 (New York 2021)) lowering the statutory annual interest rate on consumer debt judgments in New York. On April 4, 2022, plaintiffs filed a complaint and contemporaneous show cause order seeking a preliminary injunction in Greater Chautauqua Federal Credit Union et al v. Marks et al, 22-cv-02753. The complaint seeks certification of a class of “all dissatisfied judgment holders based on consumer debt (as defined in statute), adjudicated in New York State courts prior to April 30, 2022,” alleging that the retroactive reduction of interest constitutes an unconstitutional act. taking ownership without compensation or due process. the Decision and order, published on April 28, 2022, two days before the effective date of the legislation, appears to agree, stating that “the plaintiffs have demonstrated a likelihood of success on the merits of their claim under the clause of plug”. Finding that the postjudgment interest is a protected property interest for purposes of the Fifth Amendment, the Court granted the injunction and ordered the plaintiffs to immediately serve notice of the order on the sheriffs of New York’s sixty-two counties.

Under a New York law that has been in effect for more than 40 years, a statutory annual interest rate of 9% applies to judgments in state courts. S.5724A, reduces the annual interest rate on judgments resulting from consumer debts to 2%. Under the new law, the 2% rate would apply to unpaid judgments rendered before April 30, 2022 as well as to judgments rendered on or after the effective date of the new law. S.5724A defines “consumer debt” as “any obligation or deemed obligation of a natural person to pay money resulting from a transaction in which the money, goods, insurance or services which make the object of the transaction are primarily intended for personal, family or household purposes, whether or not this obligation has been reduced to judgment, including, but not limited to, a consumer credit transaction, as defined in Subsection (f) of Article One Hundred and Five of this Chapter Section 105(f) defines a “consumer credit transaction” in Section 105(f) as “a transaction in which credit is extended to an individual and the money, good or service that is the subject of the transaction is intended primarily for personal, family or household purposes.

The sponsors of the legislation have expressed their position that a 9% rate is outdated and contributes to unpaid judgments in debt collection suits. Lawmakers say the lower judgment rate will help consumers in the wake of the COVID-19 pandemic. The rationale for the legislation states “[t]its legislation is intended to address the hardship imposed on a significant number of New Yorkers by a statutory judgment interest rate that has long been out of step with market interest rates, and which has been intensified by COVID- 10[sic] pandemic.”

It is unclear whether monetary judgments resulting from foreclosures are “consumer credit transactions” within the meaning of CPLR 105(f). Although the bill’s preamble does not specifically refer to foreclosure judgments, in a New York Law Journal article, Bruce Bergman reports that an official from the Office of Courts Administration sent the text of the new law to foreclosure companies. In the articleargues Mr. Bergman, “the judgment resulting from the equitable action of mortgage foreclosures is not, in law, a financial judgment.”

Applicants in Greater Chautauqua Federal Credit Union et al v. Marks et al. are three Western New York credit unions. Plaintiffs filed an amended complaint on April 21, 2022, adding the New York State Attorney General as a defendant. The amended complaint alleges that the plaintiffs owe millions of dollars on hundreds of outstanding consumer judgments, including interest. Ultimately, the plaintiffs seek an order declaring S.5724A unconstitutional and permanently barring its application, as well as an award of attorneys’ fees and other costs on their own behalf and that of a class. of creditors holding unpaid consumer debt judgments prior to the effective date of the legislation.

You may wish to determine whether your institution may be an alleged class plaintiff with the definition pleaded in the Grand Cahutauqua question. You may also want to follow this case to assess any impact on the definition of money judgments and foreclosure judgments as potentially encompassed in any new legislation.

[View source.]

Drops DAO launches Mainnet to enable borrowing of NFT-backed loans


The launch of the mainnet opens up the crypto ecosystem to instant decentralized lending using non-fungible tokens (NFTs), JPEGs, and metaverse assets as collateral.

DAO drops, a decentralized lending platform, is celebrating the launch of its mainnet, unlocking its ecosystem for users to borrow loans and interact with all that the ecosystem has to offer. Announced on Wednesday, the transition to the mainnet will provide users with secured loans for NFTs, DeFi assets, and metaverse collections.

The launch of the mainnet allows users to lock up their assets as collateral, providing the NFT and DeFi ecosystems with additional liquidity and utility. Now users can easily use their dormant NFT, Metaverse and DeFi assets as collateral to borrow instant loans through its lending tools. This means that users can access capital without depending on centralized entities, which improves growth and increases adoption rates for DeFi and NFT projects.

Drops DAO was founded in early 2021, a time that had seen the NFT and metaverse conversation reach a fever pitch. Still, the idea of ​​using those assets as collateral to borrow loans seemed “unrealistic” to Drops founder Darius Kozlovskis.

“But after major changes in the market and a tireless year of research and development, we have finally arrived at what may become a new financial primitive for NFTs,” Kozlovskis said. “We’re at the dawn of metaverse finance and we’re really excited to be a part of it.”

The project has since raised $1 million in seed capital funding to develop NFT-backed loans from top investors in the crypto space. Investors include Axia8 Ventures, Bitscale Capital and AU21. Additionally, the project is backed by numerous angel investors, including Enjin CEO Maxim Blagov, NFT whale 0xb1, Joseph Delong, Quantstamp CEO Richard Ma, Marc Weinstein and Cooper Turley.

Loans guaranteed by NFT Drops

As mentioned, Drops DAO provides decentralized lending for NFT, metaverse and DeFi assets by leveraging its lending pools. These loan pools allow any type of NFT asset to be used as collateral – from NFT collections and metaverse items to financial NFTs.

The platform sets itself apart from the competition by providing users with a guaranteed rate of up to 60% and a highly scalable network. The collateral ratio is due to a system of isolated pools, in which whitelisted NFT collections are accepted as collateral, with multiple tokens available to borrow or provided as collateral.

On the other hand, the platform also protects lenders and rewards them heavily for granting loans. Riskier collections, or non-whitelisted NFT collections, offer higher utilization and, therefore, higher interest rates for the lender. Finally, it allows any NFT collection to gain broader utility and liquidity through these lending pools, thereby easing selling pressure in secondary markets.

More Student Borrowers Get Relief Under Repayment Defense Rule | Alston and bird


Our education team explores how a new round of repayment waivers – totaling $238 million for 28,000 student borrowers – heralds a return to group waiver use.

  • This action signals that the Ministry of Education continues to focus on for-profit schools
  • The group release had not been used since the Obama administration
  • The department identified the owners and board members of the Marinello Beauty Schools, but did not say it would sue them for payment.

The U.S. Department of Education has once again approved hundreds of millions of dollars in borrower defense against repayment waivers for student borrowers, signaling an ongoing crusade to alleviate student loan debt with what seems focus on the for-profit sector.

On April 28, 2022, the department announced that it would provide relief totaling $238 million to 28,000 student borrowers who attended Marinello Beauty Schools, which closed in February 2016. applies to all borrowers who attended Marinello between 2009 and 2016, including many who did not even seek borrower defense assistance. This class release was based on the department’s findings that Marinello engaged in pervasive and widespread misconduct that negatively affected all borrowers who enrolled with Marinello during the Covered Period.

Marinello’s release “is the first group release for defrauded borrowers to be approved since 2017,” according to the department’s April 28, 2022, press release. Under regulations applicable to the group borrower process, the Secretary to Education can consolidate claims against an institution that allege “common facts and claims” and resolve borrower defense claims as a group. This return to the use of group discharge—a practice that has not been used by the Trump administration—demonstrates the department’s willingness to discharge broad categories of borrowers that the department believes are in the same situation.

The department’s press release identified the owners of Marinello at the relevant time and the identities of some of its directors, but fell short of saying that the department intended to prosecute these individuals for the costs of these rejections. As Alston & Bird previously reported in February, the department approved $415 million in loan discharges for students who attended DeVry University, Westwood College, ITT Technical Institute and Minnesota School of Business. / Globe University. The DeVry student releases marked the first time the department had approved borrower defense claims associated with an operating institution, and the department said in this instance it would “seek to recover the cost of DeVry’s releases.”

The department’s April 28 press release touted that Marinello’s discharges “bring the total amount of relief approved based on borrower defense findings during the Biden-Harris administration to approximately 2.1 billion for 132,000 borrowers” and that, overall, the department has approved more than $18.5 billion in loan releases for more than 750,000 borrowers. The ministry reaffirmed its commitment to “strengthen [its] oversight and enforcement of colleges and vocational schools that have engaged in misconduct” and announced four key hires to the Federal Student Aid Office of Enforcement, including the former director of education policy for the senator American Richard J. Durbin (D-IL) who focused on “providing student loan debt relief for defrauded borrowers.”

Download the PDF of the notice

[View source.]

5 things that will make or break South Africa in the next few years


Credit rating agency Moody’s has predicted that the South African economy will grow by around 1.5% over the period 2022-2023, constrained by a rigid labor market, weakened competitiveness and decaying infrastructure. .

The electricity sector poses the greatest risks to the outlook for economic growth, with generating capacity already insufficient to meet the needs of the economy, the group said in a research note on Wednesday (May 4).

“The current administration, which came to power in 2018, has introduced some measures to address the structural constraints to growth, but these remain a challenge. Socioeconomic pressures and institutional weaknesses also complicate government efforts to introduce reforms. As a result, growth continued to underperform other emerging market economies,” he said.

Moody’s noted that longer-term growth prospects will depend on the extent to which the government is able to advance its sector reforms, particularly those aimed at rehabilitating electricity capacity.

The group identified five main areas of concern and what the government needs to do to address these issues.

Land reform

  • Objective of the reform: Allow restitution and redistribution of land, including through expropriation without compensation, but spare the economy by focusing on unused land or land seized without right.
  • Credit view: Positive, as it supports social cohesion and growth. But until it is fully implemented in such a way as to ensure that economic objectives are met, it is a source of uncertainty.
  • Progress: Initial public consultations closed. Expropriation Bill drafted and promulgated on October 9, 2020, providing for a mandatory and uniform expropriation process, fair and equitable compensation and the possibility of non-compensation in specific cases.


  • Objective of the reform: Increase competition and remove barriers to entry, especially in service sectors (tourism, retail, financial services, network industries).
  • Credit view: Positive, but reform progress is difficult to track, both in terms of implementation and effectiveness.
  • Progress: General measures include a new draft competition law (February 2019), modernization of exchange control regulations (budget 2020), a new industrial master plan and an initiative to reduce the regulatory burden for SMEs and to increase access to finance. Sectoral measures include a relaxation of the visa regime (e-Visas), the allocation of new spectrum licenses and measures to encourage competition in the retail sector.

labor market

  • Objective of the reform: Boost public sector employment and reduce the skills mismatch by adapting education and training programmes.
  • Credit view: Measures disproportionate to the scale of the problem.
  • Progress: The initiatives remain very demand-driven and ambitious in terms of the number of jobs to be created (eg through the creation of a job summit, tax incentives for young senior managers).


  • Objective of the reform: Unbundle Eskom, increase efficiency, switch to greener energies, get additional electrical capacity.
  • Credit view: Positive, as it would support growth and confidence, and reduce the government’s contingent liabilities.
  • Progress: Ongoing process. The transmission should be unbundled in 2022 as a first step. The independent power producer framework is complete.


  • Objective of the reform: New mining charter.
  • Credit view: Neutral, because it provides stability to the mining sector, but does not change the situation.
  • Progress: Legal actions completed, but pending.


  • Objective of the reform: Building trust and improving efficiency in the public sector.
  • Credit view: Positive, although it will take time to show results.
  • Progress: The Zondo Commission (the judicial commission of inquiry into allegations of state capture) was dissolved. The Commission is publishing its findings in a three-part report. No individual has been convicted.

Read: Rating agency issues inflation warning for South Africa

The Day – Bank asks court to set another sale date for Spicer Mansion


Chelsea Groton Bank has asked the Superior Court to schedule another foreclosure sale of Spicer Mansion, Mystic’s boutique hotel that attracted a winning bid of $3.52 million at a public auction conducted in March.

The winning bidder, Ross Weingarten, has since failed to complete the purchase within the court-ordered time limit, the bank said in a filing in New London Superior Court on Tuesday. The bank also requested that Weingarten’s $367,000 deposit be forfeited.

In another filing on Wednesday, Chelsea Groton requested “expedited arbitration” of her claims.

“Plaintiff submits that the interests of justice dictate that a new sale date be assigned promptly and that the deposit be forfeited to interested parties,” wrote bank attorney Brian Rich.

Weingarten, owner of Sawyer Sheds in Plainfield and business associate of current hotel owner Brian Gates, said Wednesday he was still interested in the property.

“I am ready to move forward. Property has tremendous value,” he said. “I don’t want to say anything more right now.”

A New London Superior Court judge approved the outcome of the March 12 foreclosure sale on March 31, marking the start of a 30-day period in which Weingarten must close the case or waive his filing. . The period ended last week.

Gates continued to operate the eight-room hotel at 15 Elm Street on the Groton side of Mystic.

Chelsea Groton filed the foreclosure suit against Gates Realty Holdings in 2019, alleging that she defaulted on a $1.8 million mortgage the bank gave to Gates in 2015. Gates had secured the loan with collateral. second, third and fourth mortgages on his family’s residence at 116 Cove Road in Stonington, valued at $1.2 million, and commercial and residential properties he owns in Plainfield and Putnam.

Foreclosure sales on those properties, on hold pending the outcome of the Spicer Mansion sale, are now set to take place on May 21.

In another lawsuit involving Spicer Mansion, Gates’ attorney this week responded to the City of Groton’s latest request that Gates be disciplined for allegedly violating zoning regulations in his operation of the hotel.

On April 1, the city requested in a court filing that Gates be imprisoned, “as the financial penalty failed to deter the defendant’s repeated and deliberate conduct.” Earlier, a judge ruled the owners of Spicer Mansion could be punished for disregarding an order ordering them to stop operating a public restaurant and stop hosting weddings and other events in outdoors.

Gates’ attorney, Richard Malafronte, says his clients “deny all allegations” made by the city.

“Nowhere on the defendant’s website is it mentioned that the catering is open to the public, or that any use of the premises is open to the public. …”, writes Malafronte. “Mr. Gates will be able to testify that he made every effort not to induce the public to come to the Spicer Mansion for a dining experience, as it is only for Spicer Mansion patrons.”

The court has scheduled a hearing in the case on Tuesday.

[email protected]

Asset Management Technology News | SmartStream Launches Eligibility API for Guarantee Optimization


SmartStream Technologies has launched a new solution for faster optimization of warranty management.

The Eligibility API is a platform for customers to receive eligibility information contained in Collateral Agreements such as Credit Support Schedule, Global Master Repurchase Agreements and Repurchase Agreements. foreign securities lenders, for the optimization of pre-trade and post-trade collateral.

With the Eligibility API solution, SmartStream will provide businesses with a way to publish eligible collateral for each legal agreement, which can then be consumed by their optimization engines.

SmartStream’s new Application Programming Interface (API) allows quick and easy access to warranties, including upgradeability. In addition, the new solution allows the search for information on eligibility in real time.

With the impending implementation of the Uncleared Margin Rules (UMR) Phase 6 regulatory regime in September 2022, margin call volumes are expected to increase and there will be an inevitable compression of pledged assets, says SmartStream.

This will result in an increase in demand for high quality liquid assets (HQLA), he adds.

Additionally, given the expected rise in interest rates, firms are considering pre- and post-trade optimization to drive efficient use of scarce HQLA and cash.

Jason Ang, Program Manager, Warranty Management at SmartStream, says, “We realize that the UMR deadline is fast approaching, and we’ve made it easy to deploy our new solution and manage future releases without the need long implementation projects.

“Having a public API policy reduces the cost of ownership of the collateral solution. Demand for this new API is high and we are having discussions with major banks on how they can use our eligibility to optimize their collateral for the future. »

Hingham Town Meeting approves $8m loan for new swimming pool complex


The Hingham Town Assembly has voted to borrow $8 million for a new swimming pool complex at the town-owned South Shore Country Club – a move that also needs to be approved by vote in the May 14 mayoral election.

On April 30, the city assembly voted 317 to 95 in favor of overriding state-mandated property tax increases to pay for the pool.

Officials said the loan would cost the owner of an average single-family home, valued at about $925,000, or about $46 a year over the 20-year life of the loan.

Hingham has had a public pool since he bought the country club in 1988, but the pool closed in 2019 for safety reasons. The new pool would be designed to accommodate a removable bubble so it could be used in all seasons, and would include a snack bar, changing room, paddling pool, lap lanes and a “zero-entry” pool with a step-in entrance. slope, making it accessible without ladders or stairs.

The swimming pool would be built on the site of the current tennis courts.

The city assembly also approved spending $3.1 million to complete the design of a new Foster Elementary School to replace the 1951 building. The Massachusetts School Building Authority said it would reimburse about one-third of the cost of the project estimated at $105.3 million.

Additionally, the city assembly voted unanimously to spend $1.6 million in preconstruction costs for a new public safety facility on Route 3A near the Hingham Shipyard. Officials estimate the cost of the three-story, 49,000-square-foot building and parking garage at around $40 million.

The large complex would house a fire station and the police department, although the public safety dispatch center would remain at Hingham Town Hall.

Officials said they plan to ask a special town meeting in the fall to vote on funding for the Foster Elementary School and public safety facility projects.

Johanna Seltz can be contacted at [email protected].

Ulster lawmaker calls for finance boss to be furloughed pending investigation – Daily Freeman


KINGSTON, NY – An Ulster County lawmaker has asked that the county’s finance commissioner be placed on administrative leave pending an investigation into the county’s failure to seize local property whose owner owes more than $10 million dollars in back taxes.

Lawmaker Joseph Maloney said placing Finance Commissioner Burt Gulnick on furlough pending an investigation will ‘allay fears about the Finance Commissioner’s performance, if not conduct’ as well as concerns about conflicts of interest potential if Gulnick is tasked with determining what documents can be released as part of this investigation.

“The people of this county have a right to know what happened with this property and a right to know if it happened with other properties in Ulster,” Maloney, D-Saugerties, said in a statement. press release dated April 29. “I suggested it might be due to relationships, but at the very least it appears to be a lack of basic oversight, controls and processes, which is unacceptable.”

Maloney first called for an investigation into the county’s failure to seize 701 Grant Ave. following an April 19 meeting of the County Legislature Ways and Means Committee meeting. Although the property appeared on county foreclosure lists, including in 2020, in each case it was later delisted and no foreclosure proceedings were ever initiated.

At that meeting and again in his statement, Maloney suggested that the pay-to-play policy could be the reason the landlord was allowed to avoid paying property taxes for over a decade, pointing out that the landlord made campaign contributions to former County Executive Michael Hein during a time when Gulnick was Hein’s campaign treasurer.

It was this suggestion that prompted Gulnick to leave the committee meeting.

The office building located at 701 Grant Ave. is owned by Ulster Acquisition I LLC, a real estate company located in New York. According to the County Executive’s Office, $10,104,565 in back taxes are owed on the property.

According to records filed with the county clerk’s office, Ulster Acquisition I LLC has filed numerous challenges to its valuation, dating back to 2013.

Following the April 19 committee meeting, Comptroller March Gallagher announced that her office would expand an audit of the county’s real estate collection process already underway to include property at 701 Grant Ave.

County Executive Pat Ryan declined to comment on Maloney’s appeal for Gulnick to be placed on administrative leave.

In a prepared statement, Deputy County Manager Chris Kelly said the Ryan administration had “from day one” been aggressive in its effort to seize Tech City, a former IBM property he said was the “largest overdue property in the county”. This property belonged to real estate developer Alan Ginsberg and was not affiliated with the property located at 701 Grant Ave.

Kelly said the administration has also developed a “brownfields reclamation program” and has “entered into discussions with members of our legislature to help inform a countywide policy for the disposition of properties. eligible for seizure which will provide us with the tools and processes to deal with this (property) responsibly and expeditiously. »

OBX cooks up a May MBS windfall through jumbo, non-prime deals


Onslow Bay opens May with massive issuances of residential mortgage-backed securities (RMBS) on two separate credit tracks. Its OBX 2022-J1 Trust (OBX 2022-J1) deal will fund approximately $393.3 million in prime jumbo mortgages, while OBX 2022-NQM4 will raise $457.2 million in RMBS to back a tranche not privileged on the credit spectrum.

Investors will get an early chance to access higher credit quality assets first, as the OBX 2022-J1 is expected to close on May 4. real estate loans, according to Moody’s Investors Service, which assigned preliminary ratings ranging from ‘AAA’ on the senior and super senior tranches and ‘Aa3’ and ‘A2’ on the subordinated notes. All these tickets are exchangeable. Moody’s also said it plans to assign “Baa2” to “B2” ratings on subordinated certificates.

OBX purchased the loans from Bank of America, whose affiliate, Bank of America Merrill Lynch, had served as lead manager in structuring the OBX 2021-J3 transaction, which issued approximately $433.2 million of Prime jumbo RMBS.

In addition to issuing the Notes from a senior-subordinated payment structure, the Super Senior Notes will receive an initial credit enhancement of 15.0%, and the Senior Support Bonds will receive an initial support of 5.0%. .0%. In addition, the senior structure offers a senior credit enhancement floor of 1.25%.

Among the credit strengths of the agreement is the typical profile of the borrower. On a weighted average (WA) basis, the prime borrower has a credit score of 776, and WA’s initial cumulative loan-to-value (CLTV) ratio is 65.1%. The collateral pool does not have interest-only loans.

As for the OBX 2022-NQM4 deal, Morgan Stanley & Co., Barclays Capital and BMO Capital Markets are the first purchasers of the notes, according to ratings agency Kroll Bond.

The transaction, which is expected to close on May 10, will issue notes backed by payments on 704 first mortgages. Most home loans, 67.5%, are owner-occupied, while 28.9% are investment properties, KBRA said.

By pool balance, some 41.9% of loans were underwritten on the basis of bank statements as part of the due diligence process, while approximately 21.0% were underwritten using full documentation methods and 18, 8% was subscribed with DSCR, using the expected ownership ratio. rental income to property debts and charges.

On average, the loans have an average balance of $649,553. The top five aggregate balances of the transaction account for 3.3% of the pool balance, according to the KBRA.

Like sister platform OBX’s deal, the NQM4 transaction will repay investors via a sequential structure, with an excess spread and 120-day stop advance providing credit support.

Borrowers’ credit profiles were slightly lower than those of the jumbo loan pool, with a weighted average (WA) credit score of 745 and an initial loan-to-value ratio of 70.0%. Half of the borrowers in the pool are self-employed, with a non-zero WA annual income level of $531,769 and a WA debt-to-income (DTI) ratio of 36.9%.

Mortgages issued on homes in California make up the majority of the pool balance, 52.7%, and Los Angeles represents the metro area with the highest concentration of loans in the pool, 30.1%.

Select Portfolio Servicing will provide 86.4% of the pool balance. KBRA plans to award grades ranging from “AAA” on super senior A-1A grades to “A” on senior sequential A3 grades; ‘BBB’ on the M-1 Mezzanine Notes, and ‘BB-‘ and ‘B-‘ on the B-2 Subordinate Notes.

Luzerne County’s infrastructure borrowing guarantee request not well received


Several members of Luzerne County Council expressed concern last week over a county guarantee request for the loan needed to secure about $55 million for local infrastructure projects.

Under state legislation approved last year, the county’s redevelopment authority will execute the loan to secure the $55 million and will receive $3 million annually from the gaming-funded local sharing account. casino to repay the loan.

Because the redevelopment authority does not have the ability to impose taxes or other revenue-generating measures, it requires the county to guarantee loan repayments in the unexpected event that casino funding is insufficient.

Advisor Gregory Wolovich Jr. said casino revenue is not a sure thing in the future as online gambling has become a “huge thing”. He also considered the possibility of increased competition if the state ever decides to license casinos in more counties.

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“It’s basically taking a big bet on game money,” Wolovich said, referring to the county guarantee. “It’s a very scary proposition.”

Agreeing with Wolovich, Councilor Kevin Lescavage also noted the increase in online gambling and the possibility of something happening in the industry.

“We can never say never, and that’s what makes me nervous about all of this,” Lescavage said.

Lescavage said he would not consider a guarantee until the matter was reviewed by Randy Robertson, who is expected to begin work as the county’s new manager the week of June 13.

“He has a master’s degree in strategic planning. Maybe he can work together with you to look that far into the future,” Lescavage told officials.

Councilman Brian Thornton said he researched casinos and found many had closed across the country.

He did not initially realize that new state legislation required the redevelopment authority to undertake an initial loan in order to receive the $3 million in gambling revenue.

Before that clarification was provided, Thornton proposed waiting each year to see if the $3 million is paid out and, if so, allocating it to infrastructure projects within that cap. . This approach would eliminate borrowing costs and any risk, Thornton said.

Thornton said he would not provide security, which may require county ratepayer funding down the road.

“I’m not ready to do this,” he said.

He likened the borrowing approach to a kid in a candy store, saying he spent all the money in his pocket on candy when he was little because it was his parents’ money.

“We kind of seem to think it’s the best way to tackle these infrastructure projects by borrowing the money up front because we look forward to getting it every year with no interest and no fees.” , Thornton said.

The premise of the new legislation was that the initial borrowing would kick-start large-scale infrastructure projects that are needed but have been postponed by the county and municipalities due to a lack of funds, Sen. John Yudichak said. , I-Swoyersville. In some cases, the funding can be matched with new federal infrastructure funds to accelerate work that would normally take decades to materialize, he said.

Yudichak said he and many others were confident the $3 million was solid because casino credits for county projects averaged $12 million a year. The rest of the funds would continue to flow to municipalities for various community purposes, such as the purchase of municipal equipment and vehicles, officials said.

While the county’s local sharing account has met many pressing public needs, some have criticized its inability to meet more expensive regional projects as originally planned.

Councilman Stephen J. Urban criticized the format of the state legislation.

“I don’t think it’s fair to us and the taxpayers of the county to have us paid for 25 years up to $3 million a year,” Urban said.

It is unclear whether the proposal will be put to a vote at an upcoming board meeting.

A majority of the redevelopment authority’s board recently selected Fidelity Bank from among five financial entities that responded to a request for proposals to provide a loan. Fidelity Bank is partnering with FNCB for the proposed transaction.

Officials said other financial entities that responded to the proposal will also have a similar question about whether a county guarantee is provided.

A higher interest rate may be an option without a county guarantee, but it would reduce the amount of money that can be borrowed and allocated to infrastructure projects, officials said.

The board recently retained Penn’s Northeast to create an online portal that would accept applications for new funding. State legislation authorizing the creation of the county infrastructure fund also allows the money to be used for utility services and flood control projects, officials said.

In advocating a no-borrowing approach not permitted by legislation, Thornton also said he believed the annual $3 million should first be invested in paving all county-owned roads and bridges.

“We all know how bad our roads are in this county. It could go a long way,” Thornton said.

However, the legislation leaves the decision on which infrastructure projects to be funded to the Redevelopment Authority, with final approval of the award by the Commonwealth Finance Authority. This state entity already approves other County Local Sharing Account rewards.

The County Council appoints the five citizens to serve on the Redevelopment Authority’s board of directors, with the seats currently held by Nina DeCosmo, Scott Linde, John Pekarovsky, Stephen E. Phillips and Mark Rabo.

MM News TVNAB responds to Imran Khan over Farah Khan investigation


LAHORE: The National Accountability Bureau (NAB) said on Sunday that Farah Khan’s husband remains chairman of the district council and that an asset investigation may be opened against family members of a former public office holder.

The clarification came after former Prime Minister Imran Khan alleged that Farah Khan did not hold public office and was victimized.

The NAB spokesman said Farah Khan’s husband remained district council chairman from 1997 to 1999 and the anti-graft body reserves the right to investigate former public office holders or members of their family.

According to the NAB, a huge turnover amounting to Rs 847 million had been found in Farah Khan’s account over the past three years which did not match his reported account profile. These credits were received in his personal account and withdrawn immediately after the credit within a short period of time.

The NAB is an independent institution and the investigation against Farah Khan is consistent with the rule of law and the constitution, the spokesperson said.

Earlier, former Prime Minister Imran Khan commenting on the corruption allegations against Farah Khan PTI Chairman said: “My wife is a housewife, they didn’t find anything against her so they booked her friend just in case”.

Imran Khan said that “the real estate sector has generated a lot of money over the past three years. Farah Khan has worked in the real estate industry for 20 years. »

The President of the PTI said that the opening of these cases was aimed at attacking his person, reiterating that Farah is innocent.

“I ask the NAB if a case can even be made against Farah Khan or not?” Imran Khan questioned.

Is Lordstown Motors about to be seized by Foxconn?


It seems that Hon Hai Technology Group (better known as Foxconn, the assemblers of Apple’s iPhones) continues to try to leverage Lordstown Motors Corp. (NASDAQ: RIDE) poor financial standing in a high-stakes poker game that will likely determine whether Lordstown can avoid filing for bankruptcy protection. On April 29, Lordstown announced that the deadline for reaching a final purchase and joint agreement with Foxconn to develop the all-electric Endurance pickup truck created by Lordstown has been extended to May 14, 2022.

The target closing date for the transaction was April 30, 2022.

On November 10, 2021, Lordstown announced an agreement in principle with Foxconn, which was itself an improvement on an initial tentative agreement reached in September 2021. As part of the agreement, Foxconn will buy the production plant and d 6.2 million square foot assembly of Lordstown in Lordstown, Ohio. (excluding hub motor assembly line and module and battery pack lines) for $230 million. Foxconn would pay US$100 million on November 18, 2021 (has been paid); US$50 million on February 1, 2022 (paid on January 28, 2022); US$50 million by April 15, 2022 (paid April 15, 2022); and the balance, US$30 million, at closing.

In addition, Lordstown and Foxconn must negotiate:

  1. A contract manufacturing agreement for Foxconn to manufacture the Endurance™; and
  2. A joint venture agreement to launch the vehicle in North American and international markets.

If Foxconn and Lordstown fail to reach an agreement by May 14 (or possibly later if the deadline is further extended), Lordstown would be required to repay the total of US$200 million in deposits received by Foxconn to this date. Lordstown, of course, does not have the money to make this payment. As a safety net, Foxconn could seize its liens “on almost all of [Lordstown’s] assets to secure the repayment obligation.

Lordstown’s big concern in all of this is that Foxconn hasn’t always honored (at least in spirit) the deals it made in the United States. For example, in May 2017, the company entered into an agreement with the State of Wisconsin to invest US$10 billion in a liquid crystal display (LCD) manufacturing plant project in the state. It would have created 13,000 jobs.

Nothing approaching this scale of investment has ever happened. The city and county where the plant was to be built issued $400 million in bonds to support the development. In turn, a 4,000-acre industrial park was created on which only five little-used structures would have been built. In April 2021, Foxconn renegotiated an agreement with the state which now provides an expected investment of only US$672 million and would create only 1,454 jobs.

On May 9, Lordstown will release its first quarter 2021 results and discuss the status of the Foxconn deal. The details in this release could very well dictate the company’s future direction.

In its Q4 2021 report, Lordstown’s cash balance increased slightly to US$244 million on December 31, 2021 from US$234 million on September 30, 2021, helped by the cash inflow of US$100 million. US dollars from Foxconn in mid-November. Additionally, Lordstown’s quarterly cash burn rate, defined as operating expenses plus capital expenditures, fell to approximately $114 million in Q4 2021 from approximately $180 million in Q3 2021.

(in thousands of US dollars, except for outstanding shares) December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021
Operating result ($84,664) ($99,282) ($110,337) ($106,206)
Operating cash flow ($141,750) ($74,866) ($99,854) ($71,520)
Capital expenditure ($28,986) ($80,264) ($121,000) ($54,264)
Cash – end of period $244,016 $233,831 $365,900 $587,043
Debt – end of period $0 $0 $0 $1,015
Shares outstanding (millions) 196.4 182.1 176.6 176.6

Lordstown Motors Corp. last traded at US$2.18 on the NASDAQ.

Information for this briefing was found via Edgar and the sources mentioned. The author has no security or affiliation related to this organization. Not a buy or sell recommendation. Always do additional research and consult a professional before purchasing a title. The author holds no license.

Borrowers hope for federal student loan forgiveness


BIRMINGHAM, Ala. (WBRC) – High student loan debt is forcing millions of graduates to empty their new paychecks to pay off those loans.

Like many people in debt, it’s at the forefront of Amber Hayes’ mind and wallet. She says it makes her afraid to pay for other basic necessities.

“And the gasoline in my car?” ” she asked. “And my groceries? What about my phone bill? »

For many college graduates with student loan debt, these constant questions are their reality.

“I just want to get to a day where I can stop at Chick-fil-A and buy myself a number one and not have to check my bank account afterwards,” Hayes said.

She graduated from the University of Montevallo in 2020 with a degree in musical theater. She has student loan debt of $68,000, which qualifies her as difficult to manage.

Marshall Clay, partner and senior adviser at Welch Group, says that nationally there is about $1.7 trillion in student loan debt currently owing.

Because so many people owe an incredible amount of money, there are tons of people paying close attention to the discussion surrounding federal student loan forgiveness.

“Help us !” said Hayes. “Come on. We’re going to buy stuff, we’re going to put it back in the country so why not help?

No matter how much debt is forgiven, as Clay says, it doesn’t necessarily go away.

“It’s not eliminated,” he adds. “It’s just transferred from individual borrowers to the US taxpayer.”

Clay says he read this week if $10,000 in student loan debt were forgiven everyone who owes money, it would amount to about $320 billion.

It’s a big number and a big decision to make. Even so, Hayes says it would be a great personal help for anyone awash in debt.

“If that happens, I’m probably jumping, jumping!” She adds.

President Joe Biden is expected to announce his decision on federal student loan relief in the coming weeks.


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Data Protection Commission concludes investigation into Bank of Ireland data breaches


On March 14, 2022, the Data Protection Commission (“CPD”) issued a decision regarding 22 personal data breach notifications that Bank of Ireland Group plc (“BOI”(“CRC”), a mandatory national credit reporting system operated by the Central Bank of Ireland. Violations included unauthorized disclosure of customer personal data to CCR and accidental modification of customer personal data on CCR.

The DPC imposed administrative fines totaling €463,000 and ordered the BOI to modify its technical and organizational measures in order to strengthen the security of its processing. The main highlights of the decision are:

Definition of Personal Data Breaches

The majority of data breach notifications were about inaccurate customer data uploaded to the CCR by the BOI, which gave an erroneous view of customers’ finances and credit history. On a preliminary basis, the DPC determined that 19 of the 22 reported breaches met the definition of “personal data breach” under Article 4(12) of the GDPR, which defines “personal data breach”. as “a breach of security resulting in the accidental or unlawful destruction, loss, alteration, unauthorized disclosure of, or access to, personal data transmitted, stored or otherwise processed”.

The DPC confirmed that the definition of “security measures” under Article 32(1) of the GDPR includes the ability to ensure the continued integrity of processing systems and services, in addition to the ability to restore the availability of personal data in the event of a technical incident. . The DPC has confirmed that a “security breach” is not limited to a technical incident or unauthorized disclosure of personal data and may include internal processing operations that result in accidental and unlawful alteration of personal data.

While this broad view of the definition of a personal data breach is arguably in line with market practice in Ireland, it is likely to give data controllers pause when considering their reporting obligations. In particular, controllers may have previously considered that an unauthorized disclosure caused by a system error did not constitute a personal data breach because it did not result from a breach of security in the more technical sense.

Notification requirements

In 17 cases, the BOI violated Section 33 by failing to report data breaches without undue delay or without sufficient detail. The DPC emphasized that organizations should have measures in place to detect breaches in a timely manner.

In 14 incidents, the BOI breached Article 34 by failing to notify data subjects of the data breach without undue delay in circumstances where it was likely to result in a high risk to the rights and freedoms of data subjects. The DPC noted that, in some cases, the delay in notification may have prevented affected individuals from taking mitigating actions to protect themselves.

The DPC pointed out that although a personal data breach triggers notification obligations under Articles 33 and 34 of the GDPR, the mere existence of a data breach is not conclusive that there has been violation of any of the provisions of the GDPR.

Technical and security measures

The DPC found that the BOI breached Article 32(1) by failing to implement technical and security measures to ensure a level of security appropriate to the risk presented by its actions of transferring customer data to the CCR. Specifically, the BOI did not have an error management procedure in place at the time of the incidents and it did not engage an appropriate level of subject matter experts when designing its technical and organizational measures. .

The decision of the DPC underlines the importance of ensuring both the security and the integrity of personal data. In the context of data transfers between organisations, this imposes an obligation on data controllers to prevent any alteration or corruption of personal data in a manner likely to present a risk to data subjects. The importance of robust technical and organizational measures, as a tool for preventing and repairing data breaches, was again underlined by the DPC.

In the context of credit information providers, it should be borne in mind that there will inevitably be times when an incorrect statement is made to the CCR. However, the DPC’s decision emphasizes that in the event of an incorrect report, it should be determined whether notification is required to the DPC or to the data subject.

Top 5 New York Office Building Sales — March 2022


Source: PropertyShark, a company of Yardi Systems Inc.

  1. 23-15 44th Road, Queens
    Selling price: $176,000,000

Stawski Partners has sold the 1.3 acre development site at Hunters Point along with the adjacent 3,092 square foot office building to 43-16 24th Street. at Carmel Partners. In 2016, the seller planned to build a 66-story residential tower with 921 units, according to CityReal Estate. The buyer also paid $24 million for the site development easement, which secures over 950,000 square feet of total surface development rights, among other things.

  1. 221 W. 41st Street, Manhattan
    Selling price: $161,109,000

Candler Tower. Image via Google Street View

Yellowstone Real Estate Investments has acquired the 24-story Candler Tower totaling 235,300 square feet in the Theater District – Times Square from EPIC. In 2017, the current seller refinanced the property with a $150 million loan issued by M&T Bank. Last November, Yellowstone acquired the note leading to EPIC subsequently providing a deed in lieu of foreclosure after nearly a decade of ownership to avoid foreclosure proceedings.

  1. 615 W. 50th St., Manhattan
    Selling price: $95,000,000

SL Green Realty has sold the three-story office building totaling 18,417 square feet as well as the 103,788 square feet 707 11th ave. in Hell’s Kitchen at Beacon Capital Partners. ACORE Capital provided a $60 million acquisition loan for the ownership of two buildings. The 1940-built complex was last traded in early 2020, when Kenneth Cole Productions Inc. sold it for $90 million.

  1. 348-350 W. 44th St., Manhattan
    Selling price: $14,000,000

Shalimar Management has sold the 5,925 square foot warehouse along with the adjacent three story office building totaling 4,835 square feet to 346 W. 44th St. in Hell’s Kitchen. The buyer, ZHL Group, secured a $7 million acquisition loan issued by Valley National Bank. According to the New York Department of Buildings, permits have already been filed to demolish existing structures originally built in 1940.

  1. 6 W. 20th St. #8, Manhattan
    Selling price: $8,350,000

A private investor has acquired a single unit as part of the 11-story mixed-use building totaling 45,400 square feet in the Flatiron neighborhood. Completed in 1910, the property includes 20,450 square feet of office space, 4,500 square feet of retail space as well as nine residential units with floor plans averaging 2,272 square feet. The unit last traded in mid-2015 for $4.5 million.

Your debt and what it means in your portfolio


Debt is a touching subject, and as we emerge from two years of the pandemic, many South Africans find themselves deeper in debt than ever.

In this article, we unpack different types of debt, how it affects your credit score, effective debt reduction methods, and how to effectively manage your debt.

Secured vs. Unsecured Debt

Broadly speaking, debt can be separated into two types of debt, either (a) secured debt or (b) unsecured debt