Borrowing

Many people might believe that to get a good credit score, they need a checking account. For households conducting most of their financial transactions with money orders and prepaid cards, it might seem essential. But financial expert Jeff Richardson says that having a checking account isn’t necessary. Talking about the myth, Richardson said, “It’s probably
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Recent research shows that as banks step back from offering risky loans, non-banking lenders have stepped in to fill the breach. Though banks once ruled the mortgage sector in the U.S, they now have less than a 50 percent share. According to the latest figures, the amount of mortgage dollars offered by traditional banking institutions
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A study shows that several people are unaware or unprepared for the reset that will be applied to home equity lines of credit (HELOC) in coming years. Of the 800 homeowners questioned, 43 percent will be affected by the change, with 23 percent admitting that they have no financial plans for handling the reset. Conducting
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The past few years have been tough for prospective homebuyers, with many finding it almost impossible to qualify for mortgages. However, several new programs have come into effect, helping creditworthy borrowers get on the property ladder. Over recent months, things have begun to ease. For example, some new terms now include a down payment of
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In May, after calls for tighter payday loan regulations and fines levied against companies for deceptive practices, Google banned all payday loans from its search results. The ban went into effect on July 20, but more than two months later, the ban appears to have had little effect. Ads for payday loans and other high-interest
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The Fitch Group has recently released its U.S. RMBS Servicer Handbook for the most recent quarter. The handbook shows that many banks offering mortgages have halved the number of staff in their mortgage servicing departments during the last two years. The decision to downsize these departments is primarily the result of these lenders seeing their
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It sounds like a Hollywood script. Thousands of employees at a major financial institution create false accounts in their customers’ names and shuttle money around temporarily to cover their tracks, all to gain larger bonuses and meet sales goals. These employees even go so far as to create fake PINs and contact information for these
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Freddie Mac announced on Monday, September 26, that it would launch a new program to help reduce the risk it takes on various mortgages. The program will transfer backing to several private mortgage insurance companies. The loans included in this pilot program are those that were acquired by Freddie Mac starting September 1, 2016, and
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Five loan companies in Arizona have been sued by the Consumer Financial Protection Bureau (CFPB) for failing to follow disclosure guidelines in online advertisements. Guidelines state that lenders must follow specific formats for disclosing any interest rate changes in online marketing. The five lenders, which make loans secured by the borrower’s car title, did not
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According to a statement made on Monday, by the Consumer Financial Protection Bureau (CFPB), a large number of mortgage lenders are now following the new regulations implemented last year by the Dodd-Frank Act. These new regulations govern mortgage originations and the dispersal of information to borrowers, among other things. Other rules apply to a borrower’s
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A recent survey revealed that the average consumer is unable to fully understand the terms and conditions outlined in their cardholder agreement. The survey looked at a number of different credit card user agreements and rated their reading level using the Flesch-Kincaid readability test. The average reading level for these agreements equates to that of
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As the qualifications for small business loans become more difficult to meet, many small business owners are looking for alternatives. Many have found that going with an online lender has advantages over banks and other traditional lenders, although there are some disadvantages as well. One of the reasons small business owners are looking at online
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When applying for a loan, most small business owners assume they will be evaluated only on the information they supplied on their application, but that’s not always the case. In fact, when applying for a loan from an online lender, that lender often takes into account things such as the social media profile of the
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The U.S. Securities and Exchange Commission oversees cases involving mortgages, but the Federal Trade Commission (FTC) has recently stepped in to ban several companies from operating in the mortgage industry after finding them guilty of making false claims to homeowners. The companies, Redstone Law Group and Surety Law Group, voluntarily agreed to the ban in
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Much of Wall Street was pleased in June when all but two of the largest U.S. banks passed the so-called “stress test” applied by the Federal Reserve. What is this stress test, where does it come from, and why do the results matter to Wall Street? The stress tests come from the Dodd-Frank legislation that
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When travelers use credit cards in other countries, they are generally charged a foreign transaction fee. This covers the extra costs of transferring money from a U.S. credit card company to the business in the other country, including the exchange fee. Many different credit card companies are now dropping this fee. According to a 2016
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There have been lots of not-so-nice adjectives directed at the payday loan industry. Add “sinful” to the list, according to a 2016 survey from LifeWay Research sponsored by Faith for Just Lending. The study included 1,000 respondents across thirty states who indicated a Christian religious preference. The majority of the states were chosen based on
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Many businesses make use of credit cards for daily purchases, and some new small business owners even finance their entire business on credit cards in the beginning. A business can make use of various reward points and other perks to save money and build up its credit score, but there are some downsides to using
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According to a survey by the Pepperdine Private Capital Access Index, small businesses are planning to expand this year. The survey found that 83% of respondents said they believe their small business will expand in 2016. Many added that they expect their total annual revenue to increase by an average of nine percent over the
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Americans who have a down payment of around 20 percent or less may have to get mortgage insurance to qualify for the loan. However, some lenders do not explain what this is, and some borrowers walk away because they don’t believe they should buy mortgage insurance. Mortgage insurance provides lenders with a guarantee if the
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Jumbo mortgages made at the six largest U.S. banks accounted for 24 percent of all mortgages in 2015. That’s an increase from 21 percent in 2014. All of these jumbo mortgages were larger than $417,000. Since 2008, they have become more popular with the larger banks, including Bank of America, J.P. Morgan Chase, Citigroup, PNC
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One of the consequences of the foreclosure crisis is that mortgage companies were told they needed to be more proactive in contacting and helping delinquent borrowers. However, this comes into conflict with another mandate from the administration: reducing the number of calls that consumers receive on their cellphones. With the two mandates in conflict, the
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