$700 Billion, yes Billion dollars will be earmarked for companies who, at best, "suffered" from mismanagement of funds. I don't know about you, but somehow I don't think that these CEOs should be bailed out with no repercussions. If I messed up that badly at my job, I don't think I'd still have it.
I've read articles from economists and others regarding both sides of this issue. http://en.wikipedia.org/wiki/Proposed_bailout_of_United_States_financial_system Wikipedia has a pretty comprehensive overview of the plan and is interesting reading.
We all know that loan officers sometimes tell borrowers what they want to hear -- "Don't worry about the ARM, we'll refinance you in a year or two." Meanwhile, later in the package is the RESPA Servcing Disclosure stating the originator sells 75 - 100% of the loans it originated over the past 3 years. Then there's the form stating the loan is being sold to XYZ company effective immediately.
Some of the responsibility must lie with the homeowner. If you're being told one thing verbally, from someone you've never met who is clear across the country and that is different from what you're putting pen to paper about, which will stand the test of time? What do you think? Months or years from when you signed, will what you recall being told (with no record of the actual conversation) or what you signed in black & white be the binding agreement?
The bigger picture, though, is these companies who invested in high-risk mortgages that are now crying because they've lost their investment due to borrowers who cannot repay the debt. These companies invested aggressively, understood the risk and are now crying poverty.
Maybe they listened to those same loan officers as the borrowers.
Melissa S Haley A Connecticut Mobile Notary Public
Wednesday, October 8, 2008
Tuesday, June 24, 2008
Advertising on the Move
I saw a really neat idea today, while checking out another notary's site. Why would I check out another notary's site? It's a good idea to check out the competition from time to time. I like it because it inspires me to think outside the proverbial box. But, that's a topic for another post.
What I saw today, though, has to do with advertising. I've seen these occasionally, but they're usually on buses or other commercial vehicles. I'd never thought about using the same idea on my own vehicle, although I had contemplated utilizing a magnetic sign or two.
The advertising I'm impressed with is a vehicle wrap.
Check it out: http://www.wrapvehicles.com/
What I saw today, though, has to do with advertising. I've seen these occasionally, but they're usually on buses or other commercial vehicles. I'd never thought about using the same idea on my own vehicle, although I had contemplated utilizing a magnetic sign or two.
The advertising I'm impressed with is a vehicle wrap.
Check it out: http://www.wrapvehicles.com/
Monday, June 11, 2007
Attention Homeowners: You got in, you get out
Surprise! Homeowners who got in over their heads will have to get out on their own, no help from Uncle Sam this year.
No major mortgage reform coming this year --
Lawmakers, regulators take wait-and-see approach to subprime fallout
http://www.msnbc.msn.com/id/19099192/
A little common sense goes a long way. With the exception of those who involuntarily lost jobs or became medically ill to the point where it skewed their finances, those who just overspend are stuck in the canoe they built, no paddle.
People, if it sounds too good to be true, it is. No matter what the stranger at the other end of the phone tells you. Do your homework, educate yourselves.
If you can't afford it (whatever it is), don't buy it. Not on credit...that just postpones the expense. Save for what you want and purchase with cash. If you must use credit, do so like a debit card. Every charge should result in an equal amount of earnings being put aside to fund the purchase.
I think the regulators are making the right choice. The best rates are reserved for those with good credit scores & histories. They have a proven track record of timely payments. Those with payment problems or limited credit history will pay more to balance the added risk they bring to a transaction. No one forced "sub-prime" borrowers to take a loan for anything they can't afford.
Adjustable-rate mortgages have oodles of disclosures attached which state that the loan is subject to adjust in x period of time. Common sense tells you that rates go up, very rarely do they go down. When entering into this type of loan, you have to figure that the rate will go up...and should always look at the worst case scenario.
Although this is another very complex issue, I don't feel government intervention is the answer here. Perhaps lenders should just say "no".
Melissa S Haley A Connecticut Mobile Notary Public
No major mortgage reform coming this year --
Lawmakers, regulators take wait-and-see approach to subprime fallout
http://www.msnbc.msn.com/id/19099192/
A little common sense goes a long way. With the exception of those who involuntarily lost jobs or became medically ill to the point where it skewed their finances, those who just overspend are stuck in the canoe they built, no paddle.
People, if it sounds too good to be true, it is. No matter what the stranger at the other end of the phone tells you. Do your homework, educate yourselves.
If you can't afford it (whatever it is), don't buy it. Not on credit...that just postpones the expense. Save for what you want and purchase with cash. If you must use credit, do so like a debit card. Every charge should result in an equal amount of earnings being put aside to fund the purchase.
I think the regulators are making the right choice. The best rates are reserved for those with good credit scores & histories. They have a proven track record of timely payments. Those with payment problems or limited credit history will pay more to balance the added risk they bring to a transaction. No one forced "sub-prime" borrowers to take a loan for anything they can't afford.
Adjustable-rate mortgages have oodles of disclosures attached which state that the loan is subject to adjust in x period of time. Common sense tells you that rates go up, very rarely do they go down. When entering into this type of loan, you have to figure that the rate will go up...and should always look at the worst case scenario.
Although this is another very complex issue, I don't feel government intervention is the answer here. Perhaps lenders should just say "no".
Melissa S Haley A Connecticut Mobile Notary Public
Friday, May 18, 2007
Who's to Blame for Increased Forclosures?
I saw an interesting article today on a forum I frequent. See the post here: http://tinyurl.com/2t3c3b It discussed the author's view about why some homeowners are drowning in their mortgages and who is really to blame.
Well, this got me thinking about the dynamics of this current trend, as it is a complex issue. Here are my thoughts on the subject:
Some of the "creative mortgages" are used improperly.
For example, I personally know someone who was laid off after being with a company for 20 years. He was out of work for 2 years & lived on severance, unemployment, savings & finally, credit cards. He opted for an interest-only mortgage before the credit card bills got out of hand. He ended up being hired for his dream job with a company that ironically he started working for after college -- back in the day (many moons ago). He makes a comfortable living now & was able to refi into a conventional loan.
For HIM, the interest-only loan was a great program. I feel that's what it was designed for -- or for those at the end of their loan, where they're not getting much of a tax break on interest anymore who are planning to sell in a few years. THEN, that type of loan makes sense.
The trouble is, just because a loan program is out there, doesn't mean it's the best fit for all situations, nor should it be used as a band-aid on a hemmorage.
I don't know that the blame lies squarely on the homeowner, because often they are being sold on an idea of "saving $XX per month" -- but, they are already (in their head) spending that savings elsewhere (i.e., vacation, new car, computer, whatever) and continuing the spending cycle that put them in the particular situation they're trying to get out of in the first place.
I believe the solution is that the programs currently available are designed for a particular purpose or circumstance and should only be used for borrowers that fit that purpose or circumstance. I also think that borrowers who have marginal credit or are over-extended should be required to attend credit councelling as part of the approval process.
Melissa S Haley, http://ctnotary.home.att.net A Connecticut Mobile Notary Public
Well, this got me thinking about the dynamics of this current trend, as it is a complex issue. Here are my thoughts on the subject:
Some of the "creative mortgages" are used improperly.
For example, I personally know someone who was laid off after being with a company for 20 years. He was out of work for 2 years & lived on severance, unemployment, savings & finally, credit cards. He opted for an interest-only mortgage before the credit card bills got out of hand. He ended up being hired for his dream job with a company that ironically he started working for after college -- back in the day (many moons ago). He makes a comfortable living now & was able to refi into a conventional loan.
For HIM, the interest-only loan was a great program. I feel that's what it was designed for -- or for those at the end of their loan, where they're not getting much of a tax break on interest anymore who are planning to sell in a few years. THEN, that type of loan makes sense.
The trouble is, just because a loan program is out there, doesn't mean it's the best fit for all situations, nor should it be used as a band-aid on a hemmorage.
I don't know that the blame lies squarely on the homeowner, because often they are being sold on an idea of "saving $XX per month" -- but, they are already (in their head) spending that savings elsewhere (i.e., vacation, new car, computer, whatever) and continuing the spending cycle that put them in the particular situation they're trying to get out of in the first place.
I believe the solution is that the programs currently available are designed for a particular purpose or circumstance and should only be used for borrowers that fit that purpose or circumstance. I also think that borrowers who have marginal credit or are over-extended should be required to attend credit councelling as part of the approval process.
Melissa S Haley, http://ctnotary.home.att.net A Connecticut Mobile Notary Public
Tuesday, December 5, 2006
Diversification is Key
Looking at successful "brick and mortar" businesses, one can see that diversification is catamount to growth.
Locally, Stew Leonard's (originally a dairy farmer) has grown to a chain of supermarkets, with multiple locations in several states. Dunkin' Donuts has expanded their product line to include latte's, soup and muffins, bagels and even sandwiches. Even McDonald's has diversified from just hamburgers.
The same is true for Notary Publics. Many have become mobilized, available for shift workers, homebound persons and others that cannot go to a traditional "brick and mortar" business.
Much like a visiting nurse, notaries are taking the job "on the road".
Opportunities are available for the mobile notary at motor vehicles departments, car dealerships, doctor's offices, homes, and nursing homes to name a few locations.
Locally, Stew Leonard's (originally a dairy farmer) has grown to a chain of supermarkets, with multiple locations in several states. Dunkin' Donuts has expanded their product line to include latte's, soup and muffins, bagels and even sandwiches. Even McDonald's has diversified from just hamburgers.
The same is true for Notary Publics. Many have become mobilized, available for shift workers, homebound persons and others that cannot go to a traditional "brick and mortar" business.
Much like a visiting nurse, notaries are taking the job "on the road".
Opportunities are available for the mobile notary at motor vehicles departments, car dealerships, doctor's offices, homes, and nursing homes to name a few locations.
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