Categories

A sample text widget

Etiam pulvinar consectetur dolor sed malesuada. Ut convallis euismod dolor nec pretium. Nunc ut tristique massa.

Nam sodales mi vitae dolor ullamcorper et vulputate enim accumsan. Morbi orci magna, tincidunt vitae molestie nec, molestie at mi. Nulla nulla lorem, suscipit in posuere in, interdum non magna.

Fitch Affirms Sr and Upgrades Sub Notes of Nelnet Student Loan Trust 2012-6

NEW YORK–(BUSINESS WIRE)–

Fitch Ratings affirms the senior student loan notes at ‘AAAsf’ and upgrades the subordinate notes to ‘AAsf’ from ‘A+sf’ issued by Nelnet Student Loan Trust 2012-6. The Rating Outlook on all the notes, which is tied to the sovereign rating of the U.S. government, is Stable.

KEY RATING DRIVERS

High Collateral Quality: The trust collateral is comprised of 100% of Federal Family Education Loan Program (FFELP) loans including about 21% of rehabilitated FFELP loans. The credit quality of the trust collateral is high, in Fitch’s opinion, based on the guarantees provided by the transaction’s eligible guarantors and at least 97% reinsurance of principal and accrued interest provided by the U.S. Department of Education (ED).

Sufficient Credit Enhancement: Cash flows scenarios for the class A and B notes were satisfactory under Fitch’s stresses. Total parity is 101.01% and senior parity is 104.16%. Total credit enhancement (CE) is provided by overcollateralization (OC), excess spread and, for the class A notes, subordination provided by the class B notes. Excess cash may be released from the trust as long as CE OF 1% of the adjusted pool balance or $2 million is maintained.

Liquidity Support: Liquidity support is provided by a reserve account (0.65% of outstanding notes).

Acceptable Servicing Capabilities: Nelnet, Pennsylvania Higher Education Assistance Agency (PHEAA) and EFS are servicers of this trust. In Fitch’s opinion, all servicers are acceptable servicers of FFELP student loans.

RATING SENSITIVITIES

Since FFELP student loan ABS rely on the U.S. government to reimburse defaults, ‘AAAsf’ FFELP ABS ratings will likely move in tandem with the ‘AAA’ U.S. sovereign rating. Aside from the U.S. sovereign rating, defaults and basis risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults and basis shock beyond Fitch’s published stresses could result in future downgrades. Likewise, a buildup of credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

Fitch has taken the following rating actions:

Nelnet Student Loan Trust 2012-6:

–Class A affirmed at ‘AAAsf’; Outlook Stable;

–Class B upgraded to ‘AAsf’ from ‘A+sf’; Outlook Stable.

Additional information is available at ‘www.fitchratings.com

Applicable Criteria and Related Research:

–‘Global Structured Finance Rating Criteria’ dated Aug. 4, 2014;

–‘Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria’ dated June 23, 2014.

–‘Nelnet Student Loan Trust 2012-6 (US ABS)’, dated Nov. 30, 2012.

A comparison of the transaction’s RW&Es to those of typical RW&Es for student loans is available by accessing the reports and links below:

‘Nelnet Student Loan Trust 2012-6 — Appendix’, dated Nov. 30, 2012.

‘Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions’, dated Oct. 31, 2014.

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=750530

Nelnet Student Loan Trust 2012-6 (US ABS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=695748

Nelnet Student Loan Trust 2012-6 — Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=695791

Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=799248

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=913574

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM‘. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Security Upgrades & DowngradesFinanceFitch RatingsNelnetstudent loanFFELP Contact:

Fitch Ratings

Primary Analyst

Victoria Ohorodnyk

Associate Director

+1-212-908-0866

Fitch Ratings, Inc.

33 Whitehall Street

New York, NY 10004

or

Committee Chairperson

Tracy Wan

Senior Director

+1-212-908-9171

or

Media Relations

Sandro Scenga, +1 212-908-0278

sandro.scenga@fitchratings.com […]

Banks get generous to hook clients

Thumbnail

Advisers warn mortgage deals offering electronics, cash, furniture may cost people more in long run

Banks are offering cash, TVs and furniture vouchers to entice customers into taking out home loan. Photo / Thinkstock

Banks are offering cash, TVs and furniture vouchers to entice customers into taking out home loans – but experts warn consumers not to be taken in, or it could cost them tens of thousands of dollars.

ASB is offering potential customers a Sony 48-inch TV and PlayStation 4 with new loans of $250,000 or more, while Kiwibank recently offered $2000 cash or a $2500 Freedom Furniture gift card for those willing to transfer their everyday banking and loan to the bank.

ANZ is offering between $1500 and $2000 cash, depending on the loan amount, while Westpac is offering a “healthy cash bonus” with loans worked out with customers “on a case-by-case basis”.

But Karen Tatterson of the Professional Advisers Association said consumers should be wary because there was “no such thing as a free lunch”.

Some people could be tempted by gimmicks and inadvertently sign away tens of thousands of dollars refinancing their loan for a bit of extra cash, she said.

“You have to be very careful your loan isn’t going back to a term that’s longer than you’ve currently got. Banks always write a loan over 30 years, so if you refinance to another bank and you’re 22 years into your home loan, make sure you keep it at the current loan term.

“If you go from a 22 to a 30-year term it could add $20,000 or $30,000 interest to the cost of your loan.”

David Chaston of finance website interest.co.nz said the value of loan incentives depended on how they were used.

“If you’re able to negotiate a good deal with the bank, ignoring the incentive, and then you add the incentive as a bonus you have a very good deal,” he said.

“And you have an even better deal if you can use the cash incentives to pay down your loan.”

Real Estate Institute head Helen O’Sullivan said an increase in marketing activity from banks usually coincided with the spring property uplift, but also warned consumers to be wary of temptation.

“You’ve got to weigh up the value of it with the overall package that is being offered …

“Don’t get blinded to the downside of the financial cost of something because of the excitement of getting a new PlayStation.”

ASB’s head of home lending and small business Vince Clark said the bank’s spring package was in reaction to it being a typically busier season for house sales activity.

Kiwibank spokesman Bruce Thompson said its promotion was designed to keep the bank on mortgage shoppers’ radars.

“It’s a very competitive market and Kiwibank has never taken the approach of sitting back and waiting for the phone to ring.”

ANZ head of mortgages Sarah Berry said the bank had offered cash with home lending since 2012 and the home loan market in New Zealand was very competitive.

Westpac said every customer’s situation was different and the bank worked with them on a case-by-case basis to ensure they have the right solution for their circumstances.

NZ Herald

[…]

Shop RTO Website Releases Tips On The Retail Consumer Option Of '90 Days Same As Cash'

Thumbnail

Use ’90 Days Same As Cash’ wisely

Rent to own avoids the legal obligation of debt as credit is never extended.

Austin, TX (PRWEB) October 31, 2014

Affordable home living website, Shop RTO, explores the different aspects of the ’90 Days Same as Cash’ promotions many retail stores offer. They offer the following explanations and tips to make sure consumers use the option wisely.

Many retailers, rent to own furniture stores and short-term loans offer ’90 days same as cash’. Each are different in the their terms and obligations so consumers must pay close attention to the details of the offer.

If used wisely and for certain circumstances, ’90 days same as cash’ can offer consumers the ability to buy home furnishings or for a loan but experts say to use the option with fiduciary responsibility to maximize its benefits.

The advertised special states if the customer can pay off the item or loan within 90 days then no interest is charged or additional fees. Rent to own furniture stores are one of most popular retailers to offer the special and makes the most sense if shopping under uncertain circumstances.

Most rent to own stores offer the ’90 days’ option and many go even further up to 180 days. If consecutive payments are made within the 90 days then the home furnishing is purchased at the same cost as the cash price.

The rent to own transaction differs greatly from traditional retail because rent to own avoids the legal obligation of debt as credit is never extended in a rent to own agreement. With rent to own, the customer can return the product at any time for any reason without penalty and legal obligation.

If the customer cannot fulfill the payments within the 90 days then rent to own payments are changed according to the customer. The customer can choose lesser amount of payments, lesser number of payments or a combination. Experts always stress with any payment plan that the less payments, the more money is saved.

The fact that payments have already been made guarantees a reasonable final price. Consumer experts advise shoppers make sure the original cash price advertised aligns with the cash price on the market. And, to shop around as cash prices can vary widely amongst different rent to own companies.

The ’90 days same as cash’ retail option is the same premise as rent to own but it is a legally obligated debt the customer must pay. If the customer cannot make the payments within the 90 days then interest is charged and many times higher interest than a credit card, sometimes up to 20-24%. Experts urge consumers to ask what the fees, interest or costs will occur if the ’90 days same as cash’ is not fulfilled.

In retail the ’90 days same as cash’ price is a good deal but are counting on you to not be able to complete the payments which triggers additional fees, penalties and interest. Experts warn consumers to be fully explained each of these factors prior to signing the contract.

’90 days same as cash’ specials are also loans. Those offers are good if the customer is in a bind and is confident the loan will be paid off. Experts warn against the 90 days loans for loans more than $1000. And to ask in full detail and disclosure the terms and fees that are incurred if the loan cannot be paid within those 90 days.

Shop RTO stresses that any ’90 days same as cash’ can be a good option but only with discipline and a financially calculated plan to pay the amount within the 90 days.

About Shop RTO:
ShopRTO.com provides consumers home living and decorating tips and rent to own as a shopping option for affordable home furniture and more.


[…]

Pocket Money Loans, An Art Installation Offering Payday Loans to …

Read More: Pocket Money Loans, An Art Installation Offering Payday Loans to …

var addthis_config = {“data_track_clickback”:true,”ui_atversion”:300,”ignore_server_config”:true}; var addthis_share = {}; var addthis_product = “wpp-5.2.3”; var wp_product_version = “wpp-5.2.3”; var wp_blog_version = “4.4.12”; var addthis_plugin_info = {“info_status”:”enabled”,”cms_name”:”WordPress”,”cms_version”:”4.4.12″,”plugin_name”:”Share Buttons by AddThis”,”plugin_version”:”5.2.3″,”anonymous_profile_id”:”wp-72f4d022a5cfba74944423bbf45e508d”,”plugin_mode”:”WordPress”,”select_prefs”:{“addthis_per_post_enabled”:true,”addthis_above_enabled”:false,”addthis_below_enabled”:false,”addthis_sidebar_enabled”:false,”addthis_above_showon_home”:true,”addthis_above_showon_posts”:true,”addthis_above_showon_pages”:true,”addthis_above_showon_archives”:true,”addthis_above_showon_categories”:true,”addthis_above_showon_excerpts”:true,”addthis_below_showon_home”:true,”addthis_below_showon_posts”:true,”addthis_below_showon_pages”:true,”addthis_below_showon_archives”:true,”addthis_below_showon_categories”:true,”addthis_below_showon_excerpts”:true,”addthis_sidebar_showon_home”:true,”addthis_sidebar_showon_posts”:true,”addthis_sidebar_showon_pages”:true,”addthis_sidebar_showon_archives”:true,”addthis_sidebar_showon_categories”:true,”sharing_enabled_on_post_via_metabox”:true},”page_info”:{“template”:”archives”,”post_type”:””}}; if (typeof(addthis_config) == “undefined”) { var addthis_config = {“data_track_clickback”:true,”ui_atversion”:300,”ignore_server_config”:true}; } if (typeof(addthis_share) == “undefined”) {
var addthis_share = {};
}
if (typeof(addthis_layers) == “undefined”) {
var addthis_layers = {};
}

(function() {
var at_interval = setInterval(function () {
if(window.addthis) {
clearInterval(at_interval);
addthis.layers(addthis_layers);
}
},1000)
}());

Fitch Rates Sound Harbor Loan Fund 2014-1 Ltd./LLC

CHICAGO–(BUSINESS WIRE)–

Fitch Ratings assigns the following ratings to Sound Harbor Loan Fund 2014-1 Ltd./LLC (SHLF 2014-1):

–$281,200,000 class A-1 notes ‘AAAsf’; Outlook Stable.

Fitch does not rate the class A-2, B, C, D or subordinated notes.

TRANSACTION SUMMARY

Sound Harbor Loan Fund 2014-1 Ltd. (the issuer) and Sound Harbor Loan Fund 2014-1 LLC (the co-issuer) together comprise an arbitrage cash flow collateralized loan obligation (CLO) that will be managed by Sound Harbor Partners LLC (Sound Harbor). Net proceeds from the issuance of the secured and subordinated notes will be used to purchase a portfolio of approximately $450 million of primarily senior secured leveraged loans. The CLO will have a four-year reinvestment period and a two-year noncall period.

KEY RATING DRIVERS

Sufficient Credit Enhancement: Credit enhancement (CE) of 37.5% for the class A-1 notes, in addition to excess spread, is sufficient to protect against portfolio default and recovery rate projections in an ‘AAAsf’ stress scenario. The degree of CE available to the class A-1 notes is slightly above the average CE of recent CLO issuances.

‘B’ Asset Quality: The average credit quality of the indicative portfolio is ‘B’, which is comparable to recent CLOs. Issuers rated in the ‘B’ rating category denote relatively weak credit quality; however, in Fitch’s opinion, class A-1 notes are unlikely to be affected by the foreseeable level of defaults. Class A-1 notes are projected to be able to withstand default rates of up to 63.2%.

Strong Recovery Expectations: The indicative portfolio consists of 98.6% first lien senior-secured loans. Approximately 93.9% of the indicative portfolio has either strong recovery prospects or a Fitch-assigned recovery rating of ‘RR2’ or higher, resulting in a base case recovery assumption of 77.6%. In determining the class A-1 note rating, Fitch stressed the indicative portfolio by assuming a higher portfolio concentration of assets with lower recovery prospects and further reduced recovery assumptions for higher rating stress assumptions. The analysis of the class A-1 notes assumed a 36.1% recovery rate in Fitch’s ‘AAAsf’ scenario.

RATING SENSITIVITIES

In addition to Fitch’s stated criteria, the agency analyzed the structure’s sensitivity to the potential variability of key model assumptions including decreases in weighted average spread or recovery rates and increases in default rates or correlation. Fitch expects the class A-1 notes to remain investment grade even under the most extreme sensitivity scenarios. Results under these sensitivity scenarios ranged between ‘A+sf’ and ‘AAAsf’ for the class A-1 notes.

The sources of information used to assess these ratings were provided by the arranger, J.P. Morgan Securities LLC, and the public domain.

Key Rating Drivers and Rating Sensitivities are further described in the accompanying new issue report, which will be available shortly to investors on Fitch’s website at ‘www.fitchratings.com‘.

For more information about Fitch’s comprehensive subscription service FitchResearch, which includes all presale reports, surveillance and credit reports on more than 20 asset classes, contact product sales at +1-212-908-0800 or at ‘webmaster@fitchratings.com‘.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria & Related Research:

–‘Global Structured Finance Rating Criteria’ (Aug. 4, 2014);

–‘Global Rating Criteria for Corporate CDOs’ (July 25, 2014);

–‘Criteria for Interest Rate Stresses in Structured Finance Transactions and Covered Bonds’ (Jan. 23, 2014);

–‘Counterparty Criteria for Structured Finance and Covered Bonds’ (May 14, 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Global Rating Criteria for Corporate CDOs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=753057

Criteria for Interest Rate Stresses in Structured Finance Transactions and Covered Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=725537

Counterparty Criteria for Structured Finance and Covered Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=911575

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM‘. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Security Upgrades & DowngradesInvestment & Company InformationFitch Ratings Contact:

Fitch Ratings

Primary Analyst

Aaron Hughes

Director

+1-312-368-2074

Fitch Ratings, Inc.

70 West Madison Street

Chicago, IL 60602

or

Secondary Analyst

Bradley Howe, CFA

Associate Director

+1-312-368-2081

or

Committee Chairperson
Derek Miller
Senior Director
+1-312-368-2076
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com

[…]

Payday loan firm for children turns out to be satirist's art stunt …

Image pocket-money-loans.jpg

Pocket Money Loans, in Stroud Green Road, Finsbury Park, claimed to offer loans to kids who do not want to save up their pocket money and want to buy new toys right away.

The shop sparked complaints from people who didn’t realise it was a satirical art work designed by Darren Cullen.

Mr Cullen set up the fake shop and accompanying website to mimic payday loan firms who he said are “built upon the backs of the poorest, most vulnerable members of society”.

He will be sat behind a counter in the shop for two weeks talking about the quick and cheap loans on offer for kids over three – but at a rate of 5,000 per cent. There is also a trampoline at the counter so children are able to read the small print, balloons and toys which are handed out if users find themselves in debt.

Fast cash: the Pocket Money Loans website (Picture: pocketmoneyloans.com) His website features posts from children thanking Pocket Money Loans for money to help pay off bullies and gives tips on how to apply for a bouncy castle mortgage.

Mr Cullen said most visitors to his shop have come to check it is not real, but one man did not believe him even when he explained it was fake.

He said: “If someone comes in and they think it is real, I will go along with it it. If they ask if it is a joke I will tell them, I am not powering through pretending it is real.”

The artist said the project aims to highlight how the whole payday loan industry targets children.

He added: “Almost all payday loan companies have cartoon mascots, animated characters or sing-along jingles in their adverts to target children and to make adults think they they are using them to be good parents.”

Related stories

Wonga wipes debt slate clean for 330,000 customers

City Spy: Backed by Wonga? It’ll go wronger

Wonga to write off debt of 330,000 customers

Community banks should be created to stop problem debts, says CSJ report

“Their high street shops often have play areas full of toys and some of them hand out balloons and sweets to kids at the counter.

“It’s a clear fact they target children, as both a means of persuading their parents, but also as a way to groom the next generation of indebted customers.”

The shop, which is usually home to the Atom Gallery, also features prints satirising cash for gold pawn shops and an advert for Nivea Pro-aging Cream.

It will be open until November 7.

[…]

RAIT Financial Trust Announces Third Quarter 2014 Financial Results

PHILADELPHIA–(BUSINESS WIRE)–

RAIT Financial Trust (“RAIT”) (RAS) today announced third quarter 2014 financial results.

Financial Performance

Total revenues grew 20.7% to $75.3 million for the quarter ended September 30, 2014 from $62.4 million for the quarter ended September 30, 2013. Cash Available for Distribution (“CAD”) per share was $0.00 for the quarter ended September 30, 2014 as a result of the previously announced SEC settlement charge pertaining to Taberna Capital Management of $21.5 million or $0.26 per share.

Dividends

On September 15, 2014, RAIT declared a third quarter 2014 common dividend of $0.18 per share, representing a 20% increase from the third quarter 2013 common dividend of $0.15 per common share. The third quarter common dividend record date was October 7, 2014 and will be paid on October 31, 2014. RAIT’s board expects to declare a fourth quarter dividend of at least $0.18 per common share.

CRE Loan Portfolio

Investments in mortgages and loans increased 22.0% to $1.37 billion at September 30, 2014 from $1.12 billion at December 31, 2013. RAIT originated $255.8 million of loans during the quarter ended September 30, 2014 consisting of $102.1 million bridge loans and $153.7 million conduit loans. RAIT originated $726.5 million of loans for the nine-month period ended September 30, 2014. RAIT sold $119.6 million of conduit loans during the quarter ended September 30, 2014 which generated $3.5 million of fee income.

CRE Property Portfolio

Average effective rent per unit per month in RAIT’s multifamily portfolio increased 6.6% to $811 for the quarter ended September 30, 2014 from $761 for the quarter ended September 30, 2013. As of September 30, 2014, RAIT’s investments in real estate increased 39% to $1.4 billion from $1.0 billion at December 31, 2013. Rental income increased 43% to $41.8 million during the quarter ended September 30, 2014 from $29.2 million for the quarter ended September 30, 2013 driven largely by the acquisition of 20 properties subsequent to September 30, 2013 which generated $11.0 million of rental income during the quarter ended September 30, 2014.

Assets Under Management

Assets under management increased 52% to $5.4 billion at September 30, 2014 from $3.6 billion at December 31, 2013 due primarily to inclusion of third party retail properties managed by RAIT’s retail-focused property manager beginning in 2014.

Liquidity

In August 2014, RAIT issued $71.9 million aggregate principal amount of its 7.125% Senior Notes due 2019 (RFTA) in an underwritten public offering. RAIT received approximately $69.2 million of net proceeds.

Scott Schaeffer, RAIT’s Chairman and CEO, said, “We continue executing on our multi-strategy approach to investing in commercial real-estate. During the third quarter, gross loan originations increased 53% to $255.8 million when compared to the third quarter of 2013. Our property portfolio grew through acquisitions and increasing rents which led to a 43% increase in rental income and a 53% increase in net operating income since September 30, 2013. As previously announced, we are undertaking to exit the legacy Taberna business with a goal of completing the process by December 31, 2014.”

Financial Results

RAIT reported CAD, a non-GAAP financial measure, for the three-month period ended September 30, 2014 of $(0.4) million, or $0.00 per share – diluted based on 82.0 million weighted-average shares outstanding – diluted, as compared to CAD for the three-month period ended September 30, 2013 of $15.9 million, or $0.23 per share – diluted based on 70.2 million weighted-average shares outstanding – diluted. RAIT reported a net loss allocable to common shares for the three-month period ended September 30, 2014 of $23.3 million, or $0.28 total loss per share – diluted based on 82.0 million weighted-average shares outstanding – diluted, as compared to net loss allocable to common shares for the three-month period ended September 30, 2013 of $17.1 million, or $0.24 total loss per share – diluted based on 70.2 million weighted-average shares outstanding – diluted. The third quarter 2014 net loss includes $10.2 million of unrealized losses relating primarily to non-cash mark-to-market adjustments in RAIT’s legacy Taberna portfolios and the associated hedges and the $21.5 million SEC settlement charge pertaining to Taberna Capital Management. Non-cash mark-to-market gains and losses are excluded from CAD.

RAIT reported CAD for the nine-month period ended September 30, 2014 of $36.6 million, or $0.45 per share – diluted based on 81.1 million weighted-average shares outstanding – diluted, as compared to CAD for the nine-month period ended September 30, 2013 of $38.7 million, or $0.58 per share – diluted based on 66.8 million weighted-average shares outstanding – diluted. RAIT reported a net loss allocable to common shares for the nine-month period ended September 30, 2014 of $63.5 million, or $0.78 total loss per share – diluted based on 81.1 million weighted-average shares outstanding – diluted, as compared to net loss allocable to common shares for the nine-month period ended September 30, 2013 of $173.5 million, or $2.60 total loss per share – diluted based on 66.8 million weighted-average shares outstanding – diluted. The nine-month period ended September 30, 2014 net loss includes $59.4 million of unrealized losses relating primarily to non-cash mark-to-market adjustments in RAIT’s legacy Taberna portfolios and the associated hedges. Non-cash mark-to-market gains and losses are excluded from CAD.

A reconciliation of RAIT’s reported net income (loss) allocable to common shares to its CAD is included as Schedule I to this release. A reconciliation of RAIT’s total shareholders’ equity to its adjusted book value, a non-GAAP financial measure, is included as Schedule II to this release. A reconciliation of RAIT’s net income (loss) allocable to common shares to its funds from operations (“FFO)”, a non-GAAP financial measure, and adjusted funds from operations (“AFFO”), a non-GAAP financial measure, is included as Schedule III to this release. These Schedules also include management’s respective rationales for the usefulness of each of these non-GAAP financial measures.

Key Statistics

(Unaudited and dollars in thousands, except per share information)

As of or For the Three-Month Periods Ended

September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 September 30, 2013 Financial Statistics: Total revenue $75,293 $73,256 $67,308 $67,607 $62,395 Earnings (loss) per share – diluted $(0.28) $(0.31) $(0.18) $(1.90) $(0.24) CAD per share, diluted $0.00(5) $0.24 $0.22 $0.27 $0.23 Common dividend declared per share $0.18 $0.18 $0.17 $0.16 $0.15 Assets under management $5,417,579 $5,266,296 $5,119,805 $3,595,530 $3,567,675 FFO per share, diluted $(0.17) $(0.20) $(0.07) $(1.74) $(0.12)

Commercial Real Estate (“CRE”) Loan Portfolio:

CRE loans– unpaid principal $1,369,138 $1,325,748 $1,228,452 $1,115,949 $1,103,272 Non-accrual loans — unpaid principal $40,741 $30,269 $28,019 $37,073 $45,337 Non-accrual loans as a % of reported loans 3.0% 2.3% 2.3% 3.3% 4.1% Reserve for losses $15,662 $15,336 $14,279 $22,955 $23,317 Reserves as a % of non-accrual loans

38.4%

50.7% 51.0% 61.9% 51.4% Provision for losses $1,500 $1,000 $1,000 $1,500 $500 CRE Property Portfolio: Reported investments in real estate(1) $1,400,715 $1,268,769 $1,205,995 $1,004,186 $986,296 Net operating income(1) $20,932 $19,524 $17,093 $13,919 $13,712 Number of properties owned(1) 80 74 71 62 61 Multifamily units owned(1) 13,516 12,388 12,014 9,372 8,940 Office square feet owned 2,286,284 2,248,321 2,097,022 2,009,852 2,015,524 Retail square feet owned 1,790,969 1,420,909 1,420,909 1,421,059 1,421,059 Land (acres owned) 21.92 21.92 21.92 21.92 21.92 Average occupancy data: Multifamily(1) 92.7% 92.8% 93.3% 92.2% 92.5% Office 75.0% 74.3% 74.8% 75.6% 74.1% Retail 73.3% 67.5% 66.6% 69.0% 68.9% Average Effective Rent per Unit/Square Foot (2): Multifamily (1)(3) $811 $799 $767 $763 $761 Office (4) $19.64 $20.10 $18.70 $18.40 $19.45 Retail (4) $12.68 $12.50 $12.44 $12.11 $12.05 (1) Includes 22 apartment properties owned by RAIT’s consolidated subsidiary, Independence Realty Trust, Inc. (“IRT”) (NYSE MKT: IRT), with 6,470 units and a book value of $423.2 million as of September 30, 2014. At September 30, 2014, RAIT owned 28% of IRT’s outstanding common stock. (2) Based on properties owned as of September 30, 2014. (3) Average effective rent is rent per unit per month. (4) Average effective rent is rent per square foot per year. (5) Includes $0.26 SEC settlement charge pertaining to Taberna Capital Management. Excluding this one-time item CAD per share would have been $0.26 per common share.

Conference Call

All interested parties can listen to the live conference call webcast at 9:00 AM ET on Thursday, October 30, 2014 from the home page of the RAIT Financial Trust website at www.rait.com or by dialing 877.703.6109, access code 80662508. For those who are not available to listen to the live call, the replay will be available shortly following the live call on RAIT’s website and telephonically until Thursday, November 6, 2014, by dialing 888.286.8010, access code 88214660.

About RAIT Financial Trust

RAIT Financial Trust is an internally-managed real estate investment trust that provides debt financing options to owners of commercial real estate and invests directly into commercial real estate properties located throughout the United States. In addition, RAIT is an asset and property manager of real estate-related assets. For more information, please visit www.rait.com or call Investor Relations at 215.243.9000.

Forward-Looking Statements

This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “trend”, “will,” “continue,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “look forward” or other similar words or terms. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the current uncertainty in the global financial markets and the global economy; the risk that the settlement with the SEC will not be finalized and/or approved or that any final settlement will have different or additional material terms, the risk that RAIT will not be able to commit to or complete exiting the Taberna business, whether RAIT’s actual business performance, developments and ability to access the capital markets and economic conditions affecting commercial real estate will affect RAIT’s ability to realize its ability to pay the fourth quarter 2014 dividend and those disclosed in RAIT’s filings with the Securities and Exchange Commission. RAIT undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

RAIT Financial Trust Consolidated Statements of Operations (Dollars in thousands, except share and per share information) (unaudited) For the Three-Month For the Nine-Month Periods Ended Periods Ended September 30, September 30, Revenues: 2014 2013 2014 2013 Net interest margin: Investment Interest income $ 33,273 $ 32,730 $ 102,882 $ 95,266 Investment Interest expense (7,636) (8,235) (22,342) (22,996) Net interest margin 25,637 24,495 80,540 72,270 Rental income 41,814 29,233 116,204 84,260 Fee and other income 7,842 8,667 19,113 22,738 Total revenue 75,293 62,395 215,857 179,268 Expenses: Interest expense 13,910 10,052 38,756 29,696 Real estate operating expense 20,882 15,521 58,655 44,842 Compensation expense 7,187 6,565 23,118 19,849 General and administrative expense 4,756 3,046 13,239 10,384 Acquisition expense 816 199 1,408 199 Provision for losses 1,500 500 3,500 1,500 Depreciation and amortization expense 13,236 8,784 38,719 25,972 Total expenses 62,287 44,667 177,395 132,442 Operating income 13,006 17,728 38,462 46,826 Other income (expense) (21,464) (3,849) (21,449) (3,704) Gains (losses) on assets 25 (191) (5,350) 30 Gains (losses) on extinguishment of debt – – 2,421 – Change in fair value of financial instruments (10,223) (24,659) (59,433) (200,436) Income (loss) before taxes and discontinued operations (18,656) (10,971) (45,349) (157,284) Income tax benefit (provision) 2,194 (164) 2,454 470 Net income (loss) (16,462) (11,135) (42,895) (156,814) (Income) loss allocated to preferred shares (7,407) (6,024) (20,628) (16,831) (Income) loss allocated to noncontrolling interests 603 53 20 130 Net income (loss) allocable to common shares $ (23,266) $ (17,106) $ (63,503) $ (173,515) Earnings (loss) per share—Basic: Total earnings (loss) per share—Basic $ (0.28) $ (0.24) $ (0.78) $ (2.60) Weighted-average shares outstanding—Basic 81,967,806 70,192,918 81,111,796 66,807,299 Earnings (loss) per share—Diluted: Total earnings (loss) per share—Diluted $ (0.28) $ (0.24) $ (0.78) $ (2.60) Weighted-average shares outstanding—Diluted 81,967,806 70,192,918 81,111,796 66,807,299 RAIT Financial Trust Consolidated Balance Sheets (Dollars in thousands, except share and per share information) (unaudited) As of As of September 30, December 31, 2014 2013 Assets Investments in mortgages and loans, at amortized cost: Commercial mortgages, mezzanine loans, other loans and preferred equity interests $ 1,369,782 $ 1,122,377 Allowance for losses (15,662) (22,955) Total investments in mortgages and loans 1,354,120 1,099,422 Investments in real estate, net of accumulated depreciation of $155,815 and $127,745, respectively 1,400,715 1,004,186 Investments in securities and security-related receivables, at fair value 568,279 567,302 Cash and cash equivalents 116,767 88,847 Restricted cash 133,374 121,589 Accrued interest receivable 54,929 48,324 Other assets 78,948 57,081 Deferred financing costs, net of accumulated amortization of $23,830 and $17,768, respectively 25,141 18,932

Intangible assets, net of accumulated amortization of $10,940 and $4,564, respectively

23,944 21,554 Total assets $ 3,756,217 $ 3,027,237 Liabilities and Equity Indebtedness: Recourse indebtedness $ 501,273 $ 235,011 Non-recourse indebtedness 2,112,044 1,851,390 Total indebtedness 2,613,317 2,086,401 Accrued interest payable 34,164 26,936 Accounts payable and accrued expenses 58,579 32,447 Derivative liabilities 81,998 113,331 Deferred taxes, borrowers’ escrows and other liabilities 132,200 79,462 Total liabilities 2,920,258 2,338,577 Series D Preferred Shares, 4,000,000 shares authorized, 4,000,000 and 2,600,000 shares issued and outstanding

76,176

52,970

Equity: Preferred shares, $0.01 par value per share, 25,000,000 shares authorized:

7.75% Series A cumulative redeemable preferred shares, liquidation preference $25.00 per share, 8,069,288 and 4,760,000 shares authorized, 4,075,569 and 4,069,288 shares issued and outstanding

41 41 8.375% Series B cumulative redeemable preferred shares, liquidation preference $25.00 per share, 4,300,000 shares authorized, 2,288,465 shares issued and outstanding

23

23

8.875% Series C cumulative redeemable preferred shares, liquidation preference $25.00 per share, 3,600,000 shares authorized, 1,640,100 shares issued and outstanding

17

17

Series E cumulative redeemable preferred shares, liquidation preference $25.00 per share, 4,000,000 shares authorized

Common shares, $0.03 par value per share, 200,000,000 shares authorized, 82,509,635 and 71,447,437 issued and outstanding, including 541,575 and 369,500 unvested restricted common share awards

2,474

2,143

Additional paid in capital 2,008,814 1,920,455 Accumulated other comprehensive income (loss) (43,039) (63,810) Retained earnings (deficit) (1,364,168) (1,257,306) Total shareholders’ equity 604,162 601,563 Noncontrolling interests 155,621 34,127 Total equity 759,783 635,690 Total liabilities and equity $ 3,756,217 $ 3,027,237 Schedule I RAIT Financial Trust Reconciliation of Net income (loss) Allocable to Common Shares and Cash Available for Distribution (1) (Dollars in thousands, except share and per share amounts) (unaudited)

For the Three-Month Period
Ended September 30,

For the Nine-Month Period Ended
September 30,

2014 2013 2014 2013

Amount

Per Share (2)

Amount

Per Share (3)

Amount

Per Share (2)

Amount

Per Share (3)

Cash Available for Distribution: Net income (loss) allocable to common shares $(23,266) $ (0.28) $(17,106) $(0.24) $(63,503) $ (0.77) $(173,515) $(2.60) Adjustments: Depreciation and amortization expense 13,236 0.16 8,784 0.13 38,719 0.47 25,972 0.39 Change in fair value of financial instruments 10,223 0.13 24,659 0.35 59,433 0.73 200,436 3.00 (Gains) losses on assets (25) 0.00 191 0.00 5,350 0.07 (30) 0.00 (Gains) losses on extinguishment of debt – – – – (2,421) (0.03) – – Taberna VIII and Taberna IX securitizations, net effect (6,975) (0.09) (8,176) (0.12) (21,063) (0.26) (26,178) (0.39) Straight-line rental adjustments (238) 0.00 (428) (0.01) (329) 0.00 (1,394) (0.02) Share-based compensation 1,148 0.01 1,096 0.02 3,777 0.05 2,562 0.04 Origination fees and other deferred items 5,718 0.07 6,807 0.10 15,450 0.18 9,785 0.15 Provision for losses 1,500 0.02 500 0.01 3,500 0.04 1,500 0.02 Noncontrolling interest effect from certain adjustments (1,716) (0.02) (405) (0.01) (2,351) (0.03) (414) (0.01) Cash Available for Distribution $(395) $0.00 $15,922 $0.23 $36,562 $0.45 $38,724 $0.58 (1) Cash available for distribution, or CAD, is a non-GAAP financial measure. We believe that CAD provides investors and management with a meaningful indicator of operating performance. Management also uses CAD, among other measures, to evaluate profitability and our board of trustees considers CAD in determining our quarterly cash dividends. We also believe that CAD is useful because it adjusts for a variety of noncash items (such as depreciation and amortization, equity-based compensation, realized gain (loss) on assets, provision for loan losses and non-cash interest income and expense items). Furthermore, CAD removes the effect from our consolidation of the legacy Taberna securitizations. We calculate CAD by subtracting from or adding to net income (loss) attributable to common shareholders the following items: depreciation and amortization items including, depreciation and amortization, straight-line rental income or expense, amortization of in place leases, amortization of deferred financing costs, amortization of discount on financings and equity-based compensation; changes in the fair value of our financial instruments, including such changes reflected in our consolidated Taberna securitizations; net interest income from consolidated Taberna securitizations; realized gain (loss) on assets and other; provision for loan losses; impairment on depreciable property; acquisition gains or losses and transaction costs; certain fee income eliminated in consolidation that is attributable to third parties and one-time events pursuant to changes in U.S. GAAP and certain other non-recurring items. CAD should not be considered as an alternative to net income (loss), determined in accordance with U.S. GAAP, as an indicator of operating performance. In addition, our methodology for calculating CAD may differ from the methodologies used by other comparable companies, including other REITs, when calculating the same or similar supplemental financial measures and may not be comparable with these companies. In these Schedules, references to “we”, “us”, and “our” refer to RAIT Financial Trust and its subsidiaries. (2) Based on 81,967,806 and 81,111,796 weighted-average shares outstanding-diluted for the three-month period and nine-month period ended September 30, 2014. (3) Based on 70,192,918 and 66,807,299 weighted-average shares outstanding-diluted for the three-month period and nine-month period ended September 30, 2013. Schedule II RAIT Financial Trust Reconciliation of Shareholders’ Equity to Adjusted Book Value (1) (Dollars in thousands, except share and per share amounts) (unaudited) As of September 30, 2014 Amount Per Share (2) Total shareholders’ equity $ 604,162 $ 7.32 Liquidation value of preferred shares characterized as equity(3) (200,103) (2.42) Book value 404,059 4.90 Adjustments: Taberna VIII and Taberna IX securitizations, net effect (214,101) (2.59) RAIT I and RAIT II derivative liabilities 25,127 0.30 Change in fair value for warrants and investor SARs 6,766 0.08 Accumulated depreciation and amortization 198,901 2.41 Valuation of recurring collateral, property management fees and other items (4) 88,827 1.08 Total adjustments $ 105,520 $ 1.28 Adjusted book value $ 509,579 $ 6.18 (1) Management views adjusted book value as a useful and appropriate supplement to shareholders’ equity and book value per share. The measure serves as an additional measure of our value because it facilitates evaluation of us without the effects of various items that we are required to record in accordance with GAAP but which have limited economic impact on our business. Those adjustments primarily reflect the effect of consolidated securitizations where we do not currently receive cash flows on our retained interests, accumulated depreciation and amortization, the valuation of long-term derivative instruments and a valuation of our recurring collateral and property management fees. Adjusted book value is a non-GAAP financial measurement, and does not purport to be an alternative to reported shareholders’ equity, determined in accordance with GAAP, as a measure of book value. Adjusted book value should be reviewed in connection with shareholders’ equity as set forth in our consolidated balance sheets, to help analyze our value to investors. Adjusted book value may be defined in various ways throughout the REIT industry. Investors should consider these differences when comparing our adjusted book value to that of other REITs. (2) Based on 82,509,635 common shares outstanding as of September 30, 2014. (3) Based on 4,075,569 Series A preferred shares, 2,288,465 Series B preferred shares, and 1,640,100 Series C preferred shares outstanding as of September 30, 2014, all of which have a liquidation preference of $25.00 per share. (4) Includes the estimated value of the (1) property management and collateral management fees to be received by RAIT as of September 30, 2014 from RAIT Residential and Urban Retail, and the Taberna I, Taberna VIII, Taberna IX, RAIT I and RAIT II securitizations and (2) advisory fees to be received by RAIT from IRT as of September 30, 2014 assuming the full deployment of IRT’s July 2014 common stock offering. The other item included is the incremental market value of RAIT’s ownership of 7.3 million shares of IRT common stock over RAIT’s book value for these shares at September 30, 2014. Schedule III RAIT Financial Trust Reconciliation of Net income (loss) Allocable to Common Shares and Funds From Operations (“FFO”) and Adjusted Funds From Operations (“AFFO”) (1) (Dollars in thousands, except share and per share amounts) (unaudited)

For the Three-Month Period
Ended September 30,

For the Nine-Month Period Ended
September 30,

2014 2013 2014 2013

Amount

Per Share (2)

Amount

Per Share (3)

Amount

Per Share (2)

Amount

Per Share (3)

Funds From Operations: Net income (loss) allocable to common shares $(23,266) $ (0.28) $(17,106) $ (0.24) $(63,503) $ (0.78) $(173,515) $ (2.60) Adjustments: Real estate depreciation and amortization 9,116 0.11 8,517 0.12 27,250 0.34 24,540 0.37 (Gains) losses on the sale of real estate (2) 0.00 191 0.00 319 0.00 1,517 0.02 Funds From Operations $(14,152) $(0.17) $(8,398) $(0.12) $(35,934) $(0.44) $(147,458) $(2.21) Adjusted Funds From Operations: Funds From Operations $(14,152) $(0.17) $(8,398) $(0.12) $(35,934) $(0.44) $(147,458) $(2.21) Adjustments: Change in fair value of financial instruments 10,223 0.12 24,659 0.35 59,433 0.73 200,436 3.00 (Gains) losses on debt extinguishment – – – – (2,421) (0.03) – – Capital expenditures, net of direct financing (1,754) (0.02) (889) (0.01) (3,696) (0.05) (1,858) (0.03) Straight-line rental adjustments (238) 0.00 (428) (0.01) (329) 0.00 (1,394) (0.02) Amortization of deferred items and intangible assets 7,394 0.09 6,912 0.10 21,225 0.26 11,312 0.17 Share-based compensation 1,148 0.01 1,096 0.02 3,777 0.05 2,562 0.04 Adjusted Funds From Operations $2,621 $0.03 $22,952 $0.33 $42,055 $0.52 $63,600 $0.95 (1) We believe that funds from operations, or FFO, and adjusted funds from operations, or AFFO, each of which are non-GAAP measures, are additional appropriate measures of the operating performance of a REIT and us in particular. We compute FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts, or NAREIT, as net income or loss allocated to common shares (computed in accordance with GAAP), excluding real estate-related depreciation and amortization expense, gains or losses on sales of real estate and the cumulative effect of changes in accounting principles. AFFO is a computation made by analysts and investors to measure a real estate company’s cash flow generated by operations. We calculate AFFO by adding to or subtracting from FFO: change in fair value of financial instruments; gains or losses on debt extinguishment; capital expenditures, net of any direct financing associated with those capital expenditures; straight-line rental effects; amortization of various deferred items and intangible assets; and share-based compensation. Our calculation of AFFO differs from the methodology used for calculating AFFO by certain other REITs and, accordingly, our AFFO may not be comparable to AFFO reported by other REITs. Our management utilizes FFO and AFFO as measures of our operating performance, and believes they are also useful to investors, because they facilitate an understanding of our operating performance after adjustment for certain non-cash items, such as real estate depreciation, share-based compensation and various other items required by GAAP that may not necessarily be indicative of current operating performance and that may not accurately compare our operating performance between periods. Furthermore, although FFO, AFFO and other supplemental performance measures are defined in various ways throughout the REIT industry, we also believe that FFO and AFFO may provide us and our investors with an additional useful measure to compare our financial performance to certain other REITs. Neither FFO nor AFFO is equivalent to net income or cash generated from operating activities determined in accordance with U.S. GAAP. Furthermore, FFO and AFFO do not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. Neither FFO nor AFFO should be considered as an alternative to net income as an indicator of our operating performance or as an alternative to cash flow from operating activities as a measure of our liquidity. (2) Based on 81,967,806 and 81,111,796 weighted-average shares outstanding-diluted for the three-month period and nine-month period ended September 30, 2014. (3) Based on 70,192,918 and 66,807,299 weighted-average shares outstanding-diluted for the three-month period and nine-month period ended September 30, 2013. FinanceInvestment & Company Information Contact: RAIT Financial Trust

Andres Viroslav, 215-243-9000

aviroslav@rait.com […]

Loan sharks 'no longer just men threatening violence'

Thumbnail

They could be friends down the pub or a mum at a school gate – the truth is more subtle than most people think

Muscle-bound, male, and prone to threats of violence, is the public image of a loan shark.

The truth is more subtle.

Laura Derbyshire, money advice coordinator for Salix Homes, which manages Salford’s 8,000 council homes, says the extent of illegal money lending across the city is ‘huge’.

She said: “It is one of those taboo subjects that people don’t like to talk about. People might not realise they have taken a loan from a loan shark. it could be the mum you talk to at the school gates.

“The biggest impact is on people’s health. They are worrying about the knock on the door. It is so intimidating to not feel safe in your own home.”

“It could be a grandad, the friend down the pub you have known for five years.”

In March this year foster mum, Sandra Dawn Lowe, of Hulme, Manchester, was jailed for three years after being convicted of 16 counts of illegal money lending.

One victim ended up paying back £125,000 over seven years after borrowing £30,000.

Laura Derbyshire from Salix Homes

Special report: Loan sharks poised to strike in run up to Christmas

Alec McFadden of Salford Credit Union, said: “It is often a middle-aged woman – she will have back up – but she will be the one knocking on the door – offering the loan. There will be no advertising – just word of mouth on who to go to for a loan.”

Ms Derbyshire said: “Loan sharks will threaten to take a victim’s car, take their bank cards and demand the pin number, so when cash is paid into an account they get it first.

“They will say ‘I know where your kids go to school. I know the way they walk home’.

“Because historically people in Salford don’t like to grass, they could be shouldering the burden of a loan shark on their own for a long time.

“A lot of it goes unreported. I think the two recent court cases in 2010 and 2013 involving Salford loan sharks were just the tip of the iceberg.

“The biggest impact is on people’s health. They are worrying about the knock on the door. It is so intimidating to not feel safe in your own home.

“It is a growing industry and more needs to be done to educate people that it is criminal behaviour. We need to start educating people at high school level of the dangers of falling into this cycle.

“The most important thing is to ask for help. If speaking out is going to risk putting one of our tenant’s at harm we would look at moving them.

“We have a specialist money advice team so we can help our tenants find a way out.”

Case Study: Loan shark victim left on brink of suicide

Matthew faced a stark choice after two years where his life had been ruled by an illegal money lender.

He sat in his living room with enough painkillers on the arm of his chair to kill himself.

In his hand, was the phone.

“I am so glad I made that call. Without the Illegal Money Lending Team I would not be here today.”

“It was a choice between ending my life and calling for help,” said Matthew.

“I decided I couldn’t leave my family so I called the Illegal Money Lending Team.”

The loan shark who had led him to the brink of suicide was arrested and prosecuted.

Matthew’s slide into despair started with a £20 loan to buy his family food.

It got out of control until he was borrowing £200 every fortnight and paying back £300 – most of his benefits.

The spiral of debt ended with him borrowing £900 and being told he owed £3,000.

In an attempt to shake off the loan shark, he sold his car, went without food, and borrowed £2,000 from family.

The lender turned up at his home after midnight, banging on his door demanding cash, and threatened to put in his windows.

Then he made him sit petrified in the back of a car with ex-boxers either side while he threatened him.

Matthew called the lender ‘Dr Jekyll’ as he seemed helpful at first, having befriended his disabled wife. But he turned vicious when challenged about the payments.

He said: “I am so glad I made that call. Without the Illegal Money Lending Team I would not be here today.

“They never judged me. It was like getting an extra family who looked after me. They were in touch all the time to check I was OK and helped me set my finances straight.

“I cannot stress enough how important it is that anyone in the same situation as me makes the call. It’s best thing I ever did.”

Case Study: Elderly disabled couple were ripped off by loan shark

PENSIONERS Bob and Doris turned to a ‘friend’ when they hit severe financial trouble.

They had known Jody since she was 14, and trusted both her and her husband.

Living on disability living allowance benefits, they were struggling to pay bills and other debts.

They borrowed £18,000 from Jody’s husband. He told the couple, from Manchester, that the money was a bank loan he had secured.

But they never saw any paper work, despite asking for it.

The loan went up to £23,000, then £32,000.

Jody’s husband – a loan shark – just told them the bank added interest every April.

Doris went to the post office every Monday and drew out £250 to pay him.

Struggling emotionally with the trap she was in, Doris finally got help and the Illegal Money Lending Team stepped in.

Tragically, Doris was so used to paying out cash she asked her liaison officer how much it would cost for help, and was told it was free.

The loan shark had told Bob – who was very ill – that it didn’t matter who died first, he still wanted his money from the other one.

Investigators found that Doris and Bob had paid the loan shark £27,000 from their benefits over two years.

They visited the loan shark and his wife, and told them if they continued to collect money from the couple they would be arrested.

In 2013, the Birmingham-based Illegal Money Lending Team in England made 100 arrests, which led to 50 prosecutiuons.

It has 30 specialist investigators who move to an area once a suspected illegal money lender is identified.

An estimated 310,000 households in the country are borrowing from illegal money lenders.

The highest interest charged was calculated at 131,000 per cent APR.

Cash obtained by IMLT from loan sharks through Proceeds of Crime Act is ploughed back into campaigns to raise awareness of the issue.

In Salford, a music project was funded with cash confiscated from illegal lenders.

Salford Music Foundation’s song writing competition was one of five projects to receive funding.

The winning song ‘Bite The Hand That Feeds’ by singer/songwriter Dominic Williams was turned into a video to reflect the desperation of victims.

[…]

Fitch Affirms Ratings on Two SLM Student Loan Trusts

NEW YORK–(BUSINESS WIRE)–

Fitch Ratings affirms both the senior note at ‘AAAsf’ and subordinate note at ‘Asf’ issued by SLM Student Loan Trust 2010-1 and affirms both the senior notes at ‘AAAsf’ and subordinate note at ‘A+sf’ issued by SLM Student Loan Trust 2013-6. The Rating Outlook remains Stable for all classes of both trusts.

KEY RATING DRIVERS

High Collateral Quality: Both trusts’ collateral consists of 100% of Federal Family Education Loan Program (FFELP) loans. The credit quality of the trust collateral is high, in Fitch’s opinion, based on the guarantees provided by the transaction’s eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest. Fitch currently rates the U.S. sovereign ‘AAA’ with a Stable Outlook.

Sufficient Credit Enhancement (CE): The CE is provided by overcollateralization (OC) and future excess spread. Additionally, the senior notes also benefits from subordination provided by the subordinate note. For SLM 2010-1, total parity is 100.58% (0.57% CE) and senior parity is 108.24% (7.61% CE) as of September 2014. Cash is being released from the trust given that the $3 million OC amount is maintained. For SLM 2013-6, total parity is 101.01% (1% CE) and senior parity is 104.28% (4.10% CE) as of September 2014. Cash is being released from the trust given that the targeted CE (greater of 1.00% of the adjusted pool balance, or $1.25 million) is maintained.

Adequate Liquidity Support: Liquidity support is provided by a reserve account for SLM 2010-1 sized equal to the greater of 0.25% of the pool balance and $1,211,252. SLM 2013-6 is supported by a reserve account sized equal to the greater of 0.25% of the pool balance and $998,463.

Acceptable Servicing Capabilities: Navient Solutions, Inc. (formerly known as Sallie Mae, Inc.), as servicer, will be responsible for servicing both trusts. Fitch has reviewed the servicing operations of Navient Solutions and believes it to be an acceptable servicer of FFELP student loans.

RATING SENSITIVITIES

Since FFELP student loan ABS rely on the U.S. government to reimburse defaults, ‘AAAsf’ FFELP ABS ratings will likely move in tandem with the ‘AAA’ U.S. sovereign rating. Aside from the U.S. sovereign rating, defaults and basis risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults and basis shock beyond Fitch’s published stresses could result in future downgrades. Likewise, a buildup of CE driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

A comparison of the SLM 2013-6’s representations, warranties, and enforcement mechanisms (RW&Es) to those of typical RW&Es for FFELP asset-backed securities is available in the presale appendix. This presale appendix and Fitch’s special report on ‘Representations, Warranties, and Enforcement Mechanisms on Global Structured Finance Transactions,’ may be accessed via the links provided below.

Fitch has affirmed the following:

SLM Student Loan Trust 2010-1:

— Class A at ‘AAAsf’; Outlook Stable;

— Class B at ‘Asf’; Outlook Stable.

SLM Student Loan Trust 2013-6:

–Class A1 at ‘AAAsf’; Outlook Stable;

–Class A2 at ‘AAAsf’; Outlook Stable;

–Class A3 at ‘AAAsf’; Outlook Stable;

–Class B at ‘A+sf’; Outlook Stable.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research:

–‘Global Structured Finance Rating Criteria’ (May 20, 2014);

–‘Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria’ (June 23, 2014).

–‘SLM Student Loan Trust 2013-6 — Appendix’ dated Nov. 4, 2013;

–‘Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions – Amended’ dated April 17, 2012.

Applicable Criteria and Related Research:

Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496

SLM Student Loan Trust 2013-6 — Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=722749

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=910954

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM‘. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Security Upgrades & DowngradesFinanceFitch RatingsFFELP Contact:

Fitch Ratings

Primary Analyst

Paul Jiang

Analyst

+1-212-908-9120

Fitch Ratings, Inc.

33 Whitehall St.

New York, NY 10004

or

Committee Chairperson

Tracy Wan

Senior Director

+1-212-908-9171

or

Media Relations

Sandro Scenga, +1 212-908-0278

sandro.scenga@fitchratings.com […]

Payday loan brokers help themselves to UK savers' accounts – RT.com

View article: Payday loan brokers help themselves to UK savers' accounts – RT.com