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The year in business: Payday loan debate heats up in Baton Rouge …

Lobbyists for the payday loan industry stormed Baton Rouge over the summer as state lawmakers deliberated tighter controls on short-term, high-interest loans.

Proponents for stricter rules argued payday loans prey on the working class and trap them in a cycle of debt that can ruin their credit.

But payday lenders said restrictions would put them out of business and stymie a much-needed source of lending for the poor.

By the end of the 2014 legislative session, the payday loan industry had beaten back several proposals to limits its activity. But the fight isn’t over.

What happened: The Legislature considered several proposals putting limits on payday loans during the 2014 session.

Initial bills, sponsored by Rep. Ted James, D – Baton Rouge and Sen. Ben Nevers, D – Bogalusa, proposed capping payday loan interest rates at 36 percent annually.

A later draft abandoned the 36 percent cap and instead proposed limiting borrowers to 10 payday loans per year. It also required payday lenders to enter transaction into a database reviewed by the Office of Financial Institutions.

The bill failed on the Senate floor in late April, despite the support of consumer advocates, including AARP Louisiana and Louisiana Together, a statewide network of religious and civic organizations.

Senators who voted against the bill were wary of placing limits on lending, which they said could damage the industry and hurt consumers.

What’s next: AARP Louisiana, Louisiana Together and other groups that led the initial charge for limits have vowed to continue their push in the 2015 session.

Payday lenders are likely to face heightened scrutiny in coming years, even if Louisiana rules do not change.

Federal regulators have already cracked down on banks that offer short-term products.

In July, the Consumer Financial Protection Bureau reached a $10 million settlement with payday lender ACE Cash Express over illegal debt collection tactics. The agency, which became the first to oversee payday loans in 2012, is in the process of drafting rules for the entire industry.

In the meantime, traditional lenders, including Liberty Bank & Trust in New Orleans, are experimenting with ways to offer small loans and other products tailored for low-income borrowers.

[…]

IRRRB Loan Guaranty program gets cash infusion

EVELETH — The Iron Range Resources & Rehabilitation Board’s Loan Guaranty program for local businesses has received a $350,000 infusion from the agency’s Business Development Project Fund.

The program, which is an initiative of outgoing Commissioner Tony Sertich to provide more financial help for existing Iron Range small businesses, provides loan guarantees of up to $75,000 under certain guidelines.

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[…]

Reward offered for robber of cash advance store who bound clerk


Home for the holidays, Detroit woman shot to death on Christmas morning

Home for the holidays, Detroit woman shot to death on Christmas morning

Updated: Wednesday, December 31 2014 12:32 AM EST2014-12-31 05:32:29 GMT

A bright young woman with a promising future had her life cut short on Christmas morning on Detroit’s east side. Christina Samuel was sitting in her car when she was killed.

A bright young woman with a promising future had her life cut short on Christmas morning on Detroit’s east side. Christina Samuel was sitting in her car when she was killed.

Former Motown musician wants stolen instruments back

Former Motown musician wants stolen instruments back

Updated: Tuesday, December 30 2014 11:18 PM EST2014-12-31 04:18:23 GMT

A West Bloomfield woman who played on some of Motown’s biggest hits is asking for the public’s help.

A West Bloomfield woman who played on some of Motown’s biggest hits is asking for the public’s help.

Stretch of road renamed for fallen Westland firefighter

Stretch of road renamed for fallen Westland firefighter

Updated: Tuesday, December 30 2014 10:21 PM EST2014-12-31 03:21:56 GMT

A one-mile stretch of Ford Road has been re-named The Brian Woehlke Memorial Highway. And for those who fought fires alongside of him, it’s a good way to keep his memory alive, they said.

A one-mile stretch of Ford Road has been re-named The Brian Woehlke Memorial Highway. And for those who fought fires alongside of him, it’s a good way to keep his memory alive, they said.

Reward offered for robber of cash advance store who bound clerk

Reward offered for robber of cash advance store who bound clerk

Updated: Tuesday, December 30 2014 9:33 PM EST2014-12-31 02:33:25 GMT

Waterford Township police are looking for an armed suspect who robbed an Advance America Cash Advance on Dec. 23.

Waterford Township police are looking for an armed suspect who robbed an Advance America Cash Advance on Dec. 23.

Police look for killer of Inkster boy found shot to death in street

Police look for killer of Inkster boy found shot to death in street

Updated: Tuesday, December 30 2014 8:56 PM EST2014-12-31 01:56:41 GMT

Inkster police are looking for a killer after a 17-year-old boy was gunned down, his body left in the street Monday night.

Inkster police are looking for a killer after a 17-year-old boy was gunned down, his body left in the street Monday night.

Boaters, off-road drivers to face stricter drunk driving laws

Boaters, off-road drivers to face stricter drunk driving laws

Updated: Tuesday, December 30 2014 8:14 PM EST2014-12-31 01:14:18 GMT

Michigan now has stricter drunk driving laws for boaters, snowmobiles and off-road vehicles. Gov. Rick Snyder said that the new legislation will improve public safety but some people are wondering what the real intent of the law is.

Michigan now has stricter drunk driving laws for boaters, snowmobiles and off-road vehicles. Gov. Rick Snyder said that the new legislation will improve public safety but some people are wondering what the real intent of the law is.

Graffiti of angel holding police officer at gunpoint spurs outrage

Graffiti of angel holding police officer at gunpoint spurs outrage

Updated: Tuesday, December 30 2014 7:42 PM EST2014-12-31 00:42:22 GMT

Both police and the director of a youth center in Detroit call a recent graffiti painting “hurtful.”

Both police and the director of a youth center in Detroit call a recent graffiti painting “hurtful.”

Ndamukong Suh wins appeal, will play vs Dallas

Ndamukong Suh wins appeal, will play vs Dallas

Updated: Tuesday, December 30 2014 7:07 PM EST2014-12-31 00:07:24 GMT

The Lions learned Tuesday that defensive tackle Ndamukong Suh will, in fact, play in the wild card game against the Dallas Cowboys.

The Lions learned Tuesday that defensive tackle Ndamukong Suh will, in fact, play in the wild card game against the Dallas Cowboys.

Detroit Weather Authority Forecast: A Chilly End To 2014

Detroit Weather Authority Forecast: A Chilly End To 2014

Updated: Tuesday, December 30 2014 5:55 PM EST2014-12-30 22:55:07 GMT

Weather Authority Rich Luterman: Colder and colder through the New Year.

Weather Authority Rich Luterman: Colder and colder through the New Year.

Warren teacher charged with battery of 67-year-old woman

Warren teacher charged with battery of 67-year-old woman

Updated: Tuesday, December 30 2014 5:39 PM EST2014-12-30 22:39:59 GMT

A Warren Mott High School teacher spent part of her Christmas break in jail after being arrested in the Florida keys.

A Warren Mott High School teacher spent part of her Christmas break in jail after being arrested in the Florida keys.

[…]

Police Looking for Suspect in Cash Store Armed Robbery

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CORPUS CHRISTI (Kiii News) –

Corpus Christi police are on the lookout for a man that allegedly robbed a cash loan business on South Staples Street Monday afternoon.

The robbery took place at around 3 p.m. at the cash store located in the 4200 block of South Staples Street. The suspect told employees that he had a gun, but never displayed the weapon. He got away with an undetermined amount of cash.

The suspect is described as a Hispanic male in his mid-30s. If you have any information about this crime, please call Crime Stoppers at 361-888-8477.

[…]

Fitch: Loan Mod Loss Reporting Not Uniform among U.S. RMBS Servicers

NEW YORK–(BUSINESS WIRE)–

U.S. RMBS servicers are not uniformly reporting losses associated with principal forbearance loan modifications, according to Fitch Ratings in its latest ‘US RMBS Servicer Snapshot’ report.

Fitch found that the timing of realized loss reporting can vary for loan modifications (mods) with principal forbearance. The forborne amount is often reported as a loss at the time of the mod. However, this is not always the case. The loss realization can also be delayed until the loan is liquidated.

Principal forbearance loan mods are important tools in the suite of options available to mortgage loan servicers for working with borrowers through challenging situations. Under a principal forbearance mod, the borrower’s interest-bearing principal balance is reduced, thus lowering the monthly payment. The forborne amount is not forgiven; the borrower is still obligated to repay the full principal amount when the property is sold or the loan is refinanced. If the loan reaches maturity, the forborne amount is required to be repaid as a balloon payment.

Mortgage loans are generally modified under either the federal Home Affordable Modification Program (HAMP) program, or under a ‘proprietary’ mod program outside of HAMP. Fitch estimates that roughly 1.5 million private label RMBS loans were modified between June 2009 and June 2014. Of that amount, approximately one-third received a HAMP mod, with the remaining two-thirds falling under a proprietary program.

The Treasury Department’s guidance for HAMP mods is for servicers to report to the trustee or securities administrator any forborne principal as a realized loss at the time of the loan modification. Fitch has found that servicers generally follow this reporting guidance for HAMP mods, as well as for many proprietary principal forbearance mod programs.

However, servicers may take a different reporting approach with proprietary mods. Instead of reporting the non-interest bearing deferred amounts as a loss at the time of the mod, the loss may be reported at the time the loan is liquidated. Servicers that report forborne loss amounts in this manner for proprietary mods indicated to Fitch that their approach is guided by the pooling and servicing agreement. If the borrower is eventually able to pay off the loan in full (including the forborne principal), a loss may never be reported.

Fitch’s rating analysis of seasoned transactions is governed by several factors. Among them include observed performance, cash flow analysis, deal structure, servicer practices and loss timing. The impact of delayed reporting of forborne principal losses on RMBS is that subordinate bonds do not incur a principal writedown at the time of the mod. This may allow subordinate bonds to remain outstanding longer than if the loss were realized at the time of the mod. However, Fitch believes that the high percentage of distressed ratings on legacy transactions reflect conservative cash flow assumptions and therefore delayed loss recognition will have minimal ratings pressure.

Fitch will continue to monitor servicer approaches to reporting losses related to principal forbearance on proprietary loan modifications and its impact to RMBS transactions.

‘US RMBS Servicer Snapshot’ is available at ‘www.fitchratings.com‘ or by clicking on the link.

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

Applicable Criteria and Related Research:

Monthly RMBS Servicer Snapshot

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=846948

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.

FinanceInvestment & Company Information Contact:

Fitch Ratings

Natasha Aikins

Director

+1-212-908-0272

Fitch Ratings

33 Whitehall Street

New York, NY 10004

or

Roelof Slump

Managing Director

+1-212-908-0705

or

Media Relations

Elizabeth Fogerty

+1-212-908-0526

New York

elizabeth.fogerty@fitchratings.com

or

Media Relations

Sandro Scenga

+1-212-908-0278

New York

sandro.scenga@fitchratings.com […]

Texas Is Throwing People In Jail For Failing To Pay Back Predatory …

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At least six people have been jailed in Texas over the past two years for owing money on payday loans, according to a damning new analysis of public court records.

The economic advocacy group Texas Appleseed found that more than 1,500 debtors have been hit with criminal charges in the state — even though Texas enacted a law in 2012 explicitly prohibiting lenders from using criminal charges to collect debts.

According to Appleseed’s review, 1,576 criminal complaints were issued against debtors in eight Texas counties between 2012 and 2014. These complaints were often filed by courts with minimal review and based solely on the payday lender’s word and frequently flimsy evidence. As a result, borrowers have been forced to repay at least $166,000, the group found.

Appleseed included this analysis in a Dec. 17 letter sent to the Consumer Financial Protection Bureau, the Texas attorney general’s office and several other government entities.

It wasn’t supposed to be this way. Using criminal courts as debt collection agencies is against federal law, the Texas constitution and the state’s penal code. To clarify the state law, in 2012 the Texas legislature passed legislation that explicitly describes the circumstances under which lenders are prohibited from pursuing criminal charges against borrowers.

It’s quite simple: In Texas, failure to repay a loan is a civil, not a criminal, matter. Payday lenders cannot pursue criminal charges against borrowers unless fraud or another crime is clearly established.

In 2013, a devastating Texas Observer investigation documented widespread use of criminal charges against borrowers before the clarification to state law was passed.

Nevertheless, Texas Appleseed’s new analysis shows that payday lenders continue to routinely press dubious criminal charges against borrowers.

Ms. Jones, a 71-year-old who asked that her first name not be published in order to protect her privacy, was one of those 1,576 cases. (The Huffington Post reviewed and confirmed the court records associated with her case.) On March 3, 2012, Jones borrowed $250 from an Austin franchise of Cash Plus, a payday lender, after losing her job as a receptionist.

Four months later, she owed almost $1,000 and faced the possibility of jail time if she didn’t pay up.

The issue for Ms. Jones — and most other payday borrowers who face criminal charges — came down to a check. It’s standard practice at payday lenders for borrowers to leave either a check or a bank account number to obtain a loan. These checks and debit authorizations are the backbone of the payday lending system. They’re also the backbone of most criminal charges against payday borrowers.

Ms. Jones initially obtained her loan by writing Cash Plus a check for $271.91 — the full amount of the loan plus interest and fees — with the understanding that the check was not to be cashed unless she failed to make her payments. The next month, when the loan came due, Jones didn’t have the money to pay in full. She made a partial payment, rolling over the loan for another month and asking if she could create a payment plan to pay back the remainder. But Jones told HuffPost that CashPlus rejected her request and instead deposited her initial check.

Jones’ check to Cash Plus was returned with a notice that her bank account had been closed. She was then criminally charged with bad check writing. Thanks to county fines, Jones now owed $918.91 — just four months after she had borrowed $250.

In Texas, bad check writing and “theft by check” are Class B misdemeanors, punishable by up to 180 days in jail as well as potential fines and additional consequences. In the typical “hot check” case, a person writes a check that they know will bounce in order to buy something.

But Texas law is clear that checks written to secure a payday loan, like Jones’, are not “hot checks.” If the lender cashes the check when the loan is due and it bounces, the assumption isn’t that the borrower stole money by writing a hot check –- it’s just that they can’t repay their loan.

That doesn’t mean that loan transactions are exempt from Texas criminal law. However, the intent of the 2012 clarification to state law is that a bounced check written to a payday lender alone cannot justify criminal charges.

Yet in Texas, criminal charges are frequently substantiated by little more than the lender’s word and evidence that is often inadequate. For instance, the criminal complaint against Jones simply includes a photocopy of her bounced check.

Making matters worse, Texas Justice of the Peace courts, which handle claims under $10,000, appear to be rubber-stamping bad check affidavits as they receive them and indiscriminately filing criminal charges. Once the charges are filed, the borrower must enter a plea or face an arrest warrant. If the borrower pleads guilty, they must pay a fine on top of the amount owed to the lender.

Jones moved after she borrowing from Cash Plus, so she did not get notice of the charges by mail. Instead, a county constable showed up at her new address. Jones said she was terrified and embarrassed by the charges. She had to enter a plea in the case or else face an arrest warrant and possible jail time. In addition to the fines, Jones was unable to renew her driver’s license until the case was resolved.

Craig Wells, the president and CEO of Cash Plus, which is based in California but has about 100 franchises in 13 states, told HuffPost that “this was the first I’ve heard of this case.” He said that the company instructs its franchises to adhere to all state laws and regulations. On the company’s website, Wells says his goal is for Cash Plus to be “as-close-to-perfect-a-business-as-one-can-get,” adding that the company’s “top-notch customer experience keeps them coming back over and over again. ”

Emilio Herrera, the Cash Plus franchisee who submitted the affidavit against Jones, told HuffPost that he does not remember her case. But he added that he tries to work out payment plans with all his customers, and that it is common for his customers to pay back loans in very small increments.

In response to a request for comment from HuffPost about Appleseed’s letter, Consumer Financial Protection Bureau spokesman Sam Gilford said, “Consumers should not be subjected to illegal threats when they are struggling to pay their bills, and lenders should not expect to break the law without consequences.”

One reason that lenders’ predatory behavior continues is simple administrative overload. Travis County Justice of the Peace Susan Steeg, who approved the charges against Jones, told HuffPost that due to the volume of bad check affidavits her court receives, her office has been instructed by the county attorney to file charges as affidavits are submitted. The charges are then passed along to the county attorney’s office. It is up to the county attorney to review the cases and decide whether to prosecute or dismiss them.

But Travis County Attorney David Escamilla told HuffPost that his office had never instructed the Justice of the Peace courts to approve all bad check complaints, and said he did not know why or where Steeg would have gotten that understanding. “We don’t do it,” Escamilla said, referring to the usage of the criminal hot checks process to enforce the terms of lending agreements.

When cases are wrongfully filed by payday lenders, how quickly they are dismissed depends on prosecutors’ workload and judgment. Often, it is not clear that theft by check cases are payday loans, since the name of the payday lender is not immediately distinguishable from that of an ordinary merchant.

District attorneys may also receive these complaints and have the ability to file criminal charges. According to Ann Baddour, a policy analyst at Appleseed, the DAs seem to operate with more discretion than the county attorneys, but the outcomes were arguably as perverse. Baddour said one DA told her that of the hot check complaints he had received, none had led to criminal charges or prosecutions. Instead, he said, his office sent letters threatening criminal charges unless the initial loan amounts plus fees were repaid.

The DA, who seemed to think he was showing evidence of his proper conduct, was instead admitting that his office functioned as a debt collector.

With the help of free legal aid, Jones’ case was eventually dismissed, and she said the court waived her outstanding payment to Cash Plus. But not all debtors are as fortunate.

Despite being against state law, the data show that criminal complaints are an effective way for payday lenders to get borrowers to pay. Of the 1,576 criminal complaints Appleseed analyzed, 385 resulted in the borrower making a repayment on their loan. In Collin County alone, 204 of the 700 criminal complaints based on payday lenders’ affidavits ended in payments totaling $131,836.

This success in using criminal charges to coerce money from borrowers means that payday lenders have a financial incentive to file criminal charges against debtors with alarming regularity — even if those charges are eventually rightfully dismissed.

Because Appleseed’s study only covered eight of Texas’ 254 counties, there are likely more cases statewide. And Texas is not alone. In 2011, The Wall Street Journal found that more than a third of states allow borrowers to be jailed, even though federal law mandates that loan repayment be treated as a civil issue rather than a criminal one.

“There’s a lot more to learn about the practice itself, how widely it’s used, and its effect on consumers,” Mary Spector, a law professor at Southern Methodist University who specializes in debt collection issues, told HuffPost. “I think they’ve uncovered the tip of the iceberg.”

[…]

Can HELOC unlock door to second home?

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Dear Dr. Don,
I’m wondering whether my husband and I should refinance our home. The current mortgage is $212,000 at 3.75 percent. We would like a cash-out refinancing, using $50,000 to buy a small house in Mexico. The interest rate on the new mortgage will be at 4.75 percent. We’d pay a higher rate because of our credit scores. The bank’s appraisal of our current home is $345,000. I don’t want to sign the paperwork if this is a bad decision.

Thanks,
— Lucy Loans

Dear Lucy,
I can’t speak directly regarding an investment in Mexican real estate, but I don’t like the idea of using a cash-out refinancing to fund the home purchase.

Instead, you should look into a home equity line of credit or home equity loan to raise the money.

The reason for this approach is twofold. First, why pay extra interest on your $212,000 first mortgage balance to borrow an additional $50,000?

The table below illustrates why you should stick with your current mortgage and use a home equity line or loan to borrow the $50,000. I’m assuming a rate of 6.15 percent for a home equity loan. The rate of 4.81 percent (recently the national average) for a home equity line of credit, or HELOC, would increase savings.

Cost of equity loan vs. cash-out refi

Existing first mortgage$212,0003.75%$7,950Home equity loan$50,0006.15%$3,075Combined$262,000 $11,025 Cash-out first mortgage$262,0004.75%$12,445Amount saved with equity loan $1,420

Secondly, a new cash-out first mortgage will have much higher closing costs than a home equity line or loan. Bankrate’s recent national average for closing costs on a new first mortgage is $2,539. Closing costs on a HELOC should be minimal. The closing costs on a home equity loan should be somewhere between the cash-out refinancing and the HELOC.

A HELOC is an adjustable-rate loan, with interest-only payments during the draw period, usually the first 10 years of the loan. At the end of the draw period, the loan typically becomes an amortized loan, meaning the monthly payment is increased to a level that covers the repayment of the loan balance over the remaining loan term.

A home equity loan is a fixed-rate loan, with amortized payments over the loan term. I’d lean toward the HELOC, but I suggest you work at paying down principal during the draw period.

[…]

Fundation Advances Small Business Education Agenda With Release of “Simple Interest Loan Calculator”

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Fundation Advances Small Business Education Agenda With Release of “Simple Interest Loan Calculator”

Fundation Group LLC, a leader in online small business loans, recently launched a simple interest loan calculator, a comparison tool on its website http://www.fundation.com that educates small business borrowers on the critical differences between simple interest business loans and fixed payment contracts, such as merchant cash advances and other daily payment financing arrangements.

Fundation is often mistakenly compared to credit providers that offer ‘cents on the dollar’ payment contracts that are marketed as loans.

(PRWEB) December 29, 2014

Fundation Group LLC, a leader in online small business loans, recently launched a simple interest loan calculator, a comparison tool on its website http://www.fundation.com that educates small business borrowers on the critical differences between simple interest business loans and fixed payment contracts, such as merchant cash advances and other daily payment financing arrangements.

“In addition to offering technology-based business loan solutions, we strive to educate small business borrowers on the fundamentals of business finance and financial management,” said Fundation CEO Sam Graziano. “Alternative lending is a broad catch phrase for a wide and varied set of credit providers to small businesses, however, the differences amongst them are incredibly important to understand.” Graziano added, “Fundation is often mistakenly compared to credit providers that offer ‘cents on the dollar’ payment contracts that are marketed as loans. While these products serve a limited purpose as a liquidity tool for short-term cash flow needs, business owners are unaware of the actual economic implications of these products which carry materially higher effective financing rates than are advertised. Our new interactive tool allows business owners to easily compare how a true simple interest business loan works versus these fixed payment contracts.”

This simple interest loan calculator allows business owners to enter the terms of their “cents-on-the-dollar” offer and see how much more they will be paying than if they utilized a simple interest loan. In addition, this tool illustrates the effective Annual Percentage Rates (APRs) of a simple interest loan and a “cents-on-the-dollar” contract over the life of the contract and if the loan is repaid after one month.

“Moreover,” Graziano said, “at Fundation, we often find ourselves having to explain how much more attractive our products are than offers received from a ‘cents-on-the-dollar’ credit provider. Interest on our products are just like fixed rate mortgages, they are calculated based on the outstanding balance of the loan. These other payment contracts calculate interest on the original principal balance, then lock the borrower into the full contractual payments, even if the funds are paid back in their entirety the very next day. We hope that this simple tool can help business owners make better decisions going forward.”

Fundation’s simple interest loan calculator can be found on Fundation’s website in its “Become and Expert” section at http://fundation.com/become-an-expert/.

Fundation Group LLC is a technology-empowered direct lender that delivers small balance online commercial loans. The firm provides fixed rate loans up to $500,000 using its own capital. Fundation fills a void in the small balance commercial loan market by offering loans to businesses that banks are unwilling or unable to lend to, and those that desire a simplified process, with capital on terms that will enable them to grow. Fundation’s technology streamlines the loan application process by collecting third party data and automating the majority of the credit review process.
###


[…]

DJ WCM Beteiligungs- und Grundbesitz-AG: Cash share capital increase fully placed



DJ WCM Beteiligungs- und Grundbesitz-AG: Cash share capital increase fully placed

(DGAP-Media / 29.12.2014 / 10:10)

WCM Beteiligungs- und Grundbesitz-AG places all shares in cash capital
increase

– Gross issue proceeds total EUR 18.8 million

– Management Board member Stavros Efremidis acquires 523,656 shares

Frankfurt, 29 December 2014 – WCM Beteiligungs- und Grundbesitz-AG (WCM AG,
ISIN: DE000A1X3X33) today announced the placing of all of the shares in its
cash capital increase. As a result, the company will receive proceeds of
approx. EUR 18.8 million. The issue of 14,441,269 new shares and the
simultaneously completed non-cash capital increase increased the number of
shares to 33,782,538, with each share having a notional value of one euro.
A total of 13,617,613 shares issued under the cash capital increase were
acquired by existing shareholders who executed their pre-emptive and over
pre-emptive rights. The 823,656 shares not subscribed for were sold in a
private placement, also at a price of EUR 1.30 per share. Stavros
Efremidis, member of the Management Board of WCM AG, acquired 523,656
shares in this context. Due to the great demand Mr. Efremidis could not
acquire more new shares. The new shares are expected to be included in the
existing trading of WCM shares on 30 December 2014.

Together with the agreed bank loan and the non-cash capital increase, the
inflow of funds has been earmarked for the previously announced acquisition
of a property portfolio. WCM AG acquired four commercial properties with a
total lettable space of around 90,100 square metres. The properties are
located in Bonn, Düsseldorf, Frankfurt am Main and Bremerhaven. The total
price is EUR 80.9 million.

Press contact:
edicto GmbH
Axel Mühlhaus/ Dr. Sönke Knop
069-905505-51
wcm@edicto.de

Disclaimer

This publication represents neither an offer to sell nor an invitation to
purchase or subscribe to securities. Such offer will take place solely
through, and on the basis of, the securities prospectus as approved by the
German Federal Financial Supervisory Authority (Bundesanstalt für
Finanzdienstleistungsaufsicht – “BaFin”). Only the securities prospectus
will contain the information to investors required by law. The securities
prospectus is available on the issuer’s website [www.wcm.de] and will be
available free of charge from the issuer during normal business hours.

This publication is not destined for distribution or dissemination in the
United States of America, either directly or indirectly, or within the
United States of America and may not be distributed or passed to “U.S.
persons” (as defined in Regulation S of the U.S. Securities Act of 1993, as
amended from time to time (the “Securities Act”)), or to publications with
a general distribution in the United States of America. This publication
represents neither an offer nor an invitation to make an offer to purchase
securities in the United States of America, neither is it part of such
offer or invitation. The securities are not, and will not be, registered in
accordance with the provisions of the Securities Act and may only be sold
or offered for purchase in the United States of America subject to prior
registration in accordance with the provisions of the Securities Act, as
amended, or on the basis of an exemption if they have not previously been
registered. The issuer does not intend to register the offer of shares – in
full or in part – in the United States of America, or to carry out a public
offer in the United States of America.

No prospectus was published or will be published in the United Kingdom for
the securities to which this publication relates. Therefore, this
publication exclusively addresses, and may only be distributed to
“qualified investors”. Qualified investors are those who have (i)
professional experience in investment transactions as defined in Article 19
(5) of the Financial Services and Markets Act 2000 (Financial Promotion)
Order 2005 (the “Order”); (ii) are high net worth entities as defined in
Article 49(2)(a) to (d) of the Order; or (iii) whose circumstances
correspond to other persons to whom the document may be legally transmitted
(all these persons are identified collectively as “relevant persons”).
Furthermore, this publication is exclusively destined for those persons in
EEA member states outside Germany who are qualified investors as defined by
Article 2 (1) (e) of the Prospectus Directive (Directive 2003/71/EC, as
amended) (“qualified investors”). Any investment or investment activity in
connection with this publication is only accessible to, and will only be
entered into with (i) relevant persons in the United Kingdom or (ii)
qualified investors in EEA member states outside Germany. Any other persons
who receive this publication within a member state of the EEA other than
Germany should not refer to this publication, or act on the basis of it.

This publication is not an offer to purchase securities in Canada, Japan or
Australia.

End of Media Release

=——————————————————————–

Issuer: WCM Beteiligungs- und Grundbesitz-AG
Key word(s): Real estate

29.12.2014 Dissemination of a Press Release, transmitted by DGAP – a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

=——————————————————————–

Language: English
Company: WCM Beteiligungsund Grundbesitz-AG
Friedrich-Ebert-Anlage 36
60325 Frankfurt am Main
Germany
Phone: +49 (0)69 244 333 199
Fax: +49 (0)3212/4243 773
E-mail: info@wcm.de
Internet: www.wcm.de
ISIN: DE000A1X3X33
WKN: A1X3X33
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt
(General Standard), Hamburg, Stuttgart; Freiverkehr in
München

End of News DGAP-Media
=——————————————————————–
308893 29.12.2014

(END) Dow Jones Newswires

December 29, 2014 04:10 ET (09:10 GMT)

Alle Aktien des Tages Aktienanalysen News Kolumnen Videos […]

Alabama Payday Loan Database Still on Hold – WTVY

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MONTGOMERY, Ala. (AP) — A database to track payday loans in Alabama remains on hold because of a court fight.

The Montgomery Advertiser reports the system isn’t being implemented while the loan industry tries to block it.

The database is aimed at improving enforcement of a $500 limit on the amount of payday loans a person can have. But payday lenders sued Alabama’s Banking Department to block creation of the system last year.

A judge in Montgomery ruled against the industry in August and the industry appealed.

Banking Department attorney Elizabeth Bressler says the state hopes to have a final decision soon.

The state signed a contract with a Florida company to build the database, and legislators approve the deal earlier this month. But the work remains on hold because of the litigation.

[…]