Latest Loans News

toy car on hundred dollar bills
Jan, 6, 2014
According to a TransUnion report, 2014 will be a year of increases in both auto loan lending and payment delinquencies. The average automotive debt per borrower is expected to increase from a 2013 figure of $16,942 to a 2014 figure of $17,966. Auto loans that are 60 days or more past due are expected to increase from 1.1 to 1.19 percent. However, this is still below the delinquency peak of 1.59 percent in Q4 2008. The report also highlighted how auto loan lending has been on a positive trend since Q4 2010. Borrowers with subprime credit scores made up 29.8 percent of all auto loans in the third quarter of 2013, while in 2008 borrowers with subprime credit accounted for 34.6 percent in 2008. Peter Turek, Automotive Vice President in...
car dealership lot
Jan, 6, 2014
The CFPB is gearing up to change lending rules for auto loan lenders in 2014. The Bureau alleges that dealer reserve, which is a kickback dealerships receive for charging consumer’s higher interest rates on auto loans, is little more than a ripoff to consumers. In place of this, the CFPB wants to create a flat fee policy that would replace dealer reserve and also prevent lending discrimination. Senator Elizabeth Warren (D-MA) is one of the strongest voices calling for auto loan rule changes, having stated in the past that auto loan borrowers are tricked out of billions of dollars each year. In response to this, the National Automobile Dealers Association (NADA) has countered that the CFPB has not revealed how it even knows that...
mortgage loan hand with keys
Dec, 30, 2013
New mortgage loan rules beginning on Jan. 10, 2014 could limit the current availability and cost of mortgage loans but experts state that the real impact is in the long-term. The new lending rules are an amendment of Regulation Z of the Dodd-Frank Act. According to the Consumer Financial Protection Bureau, lenders must confirm that a borrower’s debt-to-income ratio is less than 43 percent. In addition to the DTI ratios, lenders must also request and verify a borrower’s ability-to-repay via eight different categories: Current income or assets Current employment status Credit history Monthly mortgage payment for current loan Monthly payments for other mortgage loans Monthly payments for mortgage-related expenses Other debts Overall monthly...
Man reviewing documents
Dec, 23, 2013
A newly proposed bill would stop pre-employment credit checks on non-security related jobs. Last week, Senator Elizabeth Warren (D-Mass.) announced The Equal Employment for All Act, which would amend the Fair Credit Reporting Act and thereby stop employers from requiring an applicant’s credit history. The proposed bill would also prohibit employers from disqualifying employees based on a poor credit rating or other information dealing with the applicant’s creditworthiness. The only employment exemption is with positions that require national security clearance. Keith Newcomb, portfolio manager for Full Life Financial, said the bill would strike a blow for fairness in employment practices and would have an “overwhelmingly positive” impact...
hundred dollar bill and columns
Dec, 20, 2013
Freedom Financial Network (FNN), a debt consolidation company, received a massive $125 million investment from Venture Capital, a firm co-founded by Microsoft magnate Paul Allen. The goal of the investment is to create FreedomPlus, a new direct lending platform that will lend personal loans to struggling consumers in need of financing. FNN touts that FreedomPlus will be able to overcome the challenges and benefits of peer-to-peer lending found in rival platforms by offering direct lending to “emerging prime” consumers. Emerging Prime refers to subprime consumers who are not yet qualified for prime credit but in the near future will become prime consumers. Michael Azzano, Spokesperson for FFN said that FreedomPlus has been years in the...
House on cliff edge
Dec, 19, 2013
Major interest rate shifts occurred this week for adjustable mortgages while fixed rates barely changed. Reports provided by loans.org found that for the week ending Dec. 19, 2013, the 30-year fixed-rate mortgage barely changed, only increasing one basis point from 4.33 percent to 4.34 percent. The 15-year FRM meagerly increased from 3.28 percent last week to this week’s average of 3.3 percent. While the fixed interest rates remained extremely calm this week, there was a huge drop in adjustable rates. The 5/1 adjustable-rate mortgage averaged 2.77 percent this week, down from 3.16 percent last week. This rate dropped a staggering 39 basis points. Despite the rapid change in the ARM market, a massive drop like this is uncommon. David McKee...
Boy counting pennies
Dec, 17, 2013
Students from middle-income families face the largest risk of student loan debt, according to a new study. It found that the link between a parent’s income and a student’s college-related debt is nonlinear. The report found that nearly 41 percent of young adults left school with student loan debt. Indebted students from middle-income backgrounds, whose family income ranged between $40,000 and $59,999 annually, left with an average of 60 percent more debt that their lower-income peers with family incomes below $40,000 per year. Even students from higher middle-income backgrounds, with annual incomes ranging between $60,000 and $99,000, had nearly 40 percent more student loan debt than low income students. When compared to higher-income...
New apartment building construction
Dec, 12, 2013
The upcoming holiday season brought minimal changes for mortgage interest rates despite statistical signs of a housing recovery. Mortgage interest rate reports provided by loans.org show very little movement for the week ending Dec. 12, 2013. The 30-year fixed-rate mortgage decreased three basis points from 4.3 percent to 4.27 percent this week. The 15-year FRM shifted downwards from an average of 3.26 percent to 3.24 percent. The 5/1 adjustable-rate mortgage also decreased minimally, dropping from 2.75 percent last week to 2.72 percent this week. The stagnant report is normal for the holiday season according to Greg Cook, a first-time home buyer specialist. The limited amount of economic data available equates to minimal mortgage...
large explosion
Dec, 10, 2013
According to a recent Experian report, the nation’s auto loan balance has reached a new peak of $782.9 billion. This is an increase of $103 billion from 2012. This increase is music to lenders’ ears, but it also shows that dealers have reached new record sales. With consumers once again eager to purchase vehicles, even if they have to borrow car loans to do so, America just may be finally out of the slow recovery that has been burdening the economy since the recession. Gary Miller, Business Head of car loan lender LightStream, said that the car loan market only grew because auto sales were high. “New car sales also create used car inventory, which further adds to the strong demand for financing,” he said. “The latest statistics show that...
Man dark light statistics
Dec, 5, 2013
Fixed mortgage loan interest rates changed considerably this week while adjustable rates barely changed, according to rate reports provided by loans.org. For the week ending Dec. 5, 2013, the 30-year fixed-rate mortgage averaged 4.32, a 14 basis point increase from 4.18 percent set last week. The 15-year FRM averaged 3.29 percent, another large increase from 3.17 reported previously. Adjustable rates changed less this week in comparison to fixed mortgage loan interest rates. The 5/1 adjustable-rate mortgage only increased three basis points from 2.73 to 2.76 percent. Housing permits reached a five year high in October, according to recently released reports from the Commerce Department. New construction applications rose 6.2 percent,...

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