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Cash Sales On Track To Decline To Pre-Crisis Levels By 2017


Cash Sales On Track To Decline To Pre-Crisis Levels By 2017

Peoples Home Equity shares a recent article from Corelogic regarding the share of cash sales recorded in October 2014 and what it means going forward.

Lenders like Peoples Home Equity has a high expectation of more active home buyers this spring and summer

Chicago, IL (PRWEB) February 16, 2015

Peoples Home Equity was intrigued by a recent January 14th Corelogic article titled “At Current Rate of Decline, Cash Sales Share Should Reach Pre-Crisis Levels in 2017.”

Corelogic begins its article by highlighting the fact that “Cash sales made up 35.5 percent of total home sales in October 2014, down from 38.7 percent in October 2013. In addition, this decline marks the 22nd consecutive month of year-over-year price declines since January 2013.

In terms of monthly performance Corelogic stated “Month over month, the cash sales share ticked up by half of a percentage point, as is typical for the fall and winter months. Due to seasonality in the housing market, cash sales share comparisons should be made on a year-over-year basis. The peak occurred in January 2011 when cash transactions made up 46.4 percent of total home sales. Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25 percent. At the current rate of year-over-year decrease, the cash sales share should be back to pre-crisis levels in 2017.”

Peoples Home Equity thinks a pre-crisis level of cash sales will create a great environment for first-time home buyers to thrive. While cash sales have been on the decline since the great recession, the few number of first-time home buyers approved for a home loan have had to compete with cash buyers. Now that the number of cash sales are drying up, and more American’s have jobs, a larger number of credit worthy pre-approved first-time home buyers are set to spark a surge of financed home sales this spring and summer. Lenders like Peoples Home Equity has a high expectation of more active home buyers this spring and summer since Corelogic’s map (picture attached) showed that both East and Midwest states had the highest number of total home sales being cash. To name a few; Indiana 41% of total sales were cash sales, Kentucky 41%, Tennessee 41%, Michigan 43%, New York 44%, Alabama 51%, and Florida 51%. To be more specific, “Miami-Miami Beach-Kendall, Fla. had the highest share of cash sales at 56.6 percent.”

The area with the lowest share of cash sales was “Washington-Arlington-Alexandria, D.C.-Va.-Md at just 16%. Maryland was the only state to have the total share of cash sales be under 20%, at just 15%.

If in need of a mortgage, contact a Peoples Home Equity loan officer today at: 262-563-4026


RBA's stance actually not very stimulatory

WITH all the talk about the record low cash rate, you could be excused for thinking monetary policy is giving the economy a massive boost.

BUT it isn’t.

While the current cash rate is the lowest on record, interest rates generally are not. By the time the RBA’s board meets again next month, the cash rate will have been at 2.5 per cent for two days shy of a year. The statement from RBA governor Glenn Stevens after the meeting on Tuesday made it clear it’s not budging. “On present indications, the most prudent course is likely to be a period of stability in interest rates,” the RBA said. In 55 years covered by records going back to 1959, the cash rate has never been much below three per cent on a sustained basis. So the current sub-three per cent stretch, beginning with a cut from 3.00 per cent to 2.75 per cent in May 2013, is unique. But so was the global financial crisis. It changed the way banks fund their loans and price risk, and prompted new rules making funding more expensive, widening the gap between the cash rate and lending rates. In the decade before money markets went haywire in mid-2007, the gap between the cash rate and banks’ standard variable rate home loan rates averaged 1.8 percentage points. It’s now nearly 3.5. For businesses loans it’s even worse. Before the crisis, the gap between cash and the small business unsecured overdraft rate averaged 3.3 percentage points, according to RBA data. It’s now close to 6.5 points. So, while the cash rate is now 2.7 percentage points below its pre-crisis average, the standard home loan is only about one percentage point below and the small business overdraft is actually higher by nearly half a percentage point. Sure, monetary policy “remains accommodative”, as the RBA’s statement reassured us. But the accelerator is not pressed all the way to the floor. And, considering the fading mining investment boom, tight budget policy, slow wages growth and the high Australian dollar, the chances are that the RBA’s “period of stability” will last quite a few months yet. In fact, the risk that these negatives will not only delay the economy’s eventual return to normal growth but depress it further has not been lost on the futures market. The market has priced the cash rate at slightly less – that’s right, less – than 2.5 per cent right through until mid-2015. That’s not to say the market expects a cut. But it is an acknowledgement that if there is a move in the cash rate over the coming few months, it is more likely to be a cut than a hike, as the RBA fears its policy stance is not doing enough to lift the economy out of its rut.

Originally published as RBA’s stance actually not very stimulatory […]

National Payday Loans Can Get You Out of Tight Spots Quickly


National payday loans

, just as the name implies, are short-term loans which are available all across the United States. These loans are designed to be lent out quickly to help people just like you solve emergency situations that only money can fix.

Short term loans

can get you back on the road quickly when your car breaks down during rush hour, and they come in very handy if you need to make a trip to the ER when you do not have any healthcare coverage. Many people use national payday loans to pay for prescription medications they need which are not covered by their health insurance.

National payday loans can be applied for in person at a

payday loan store

or they can be applied for over the internet which is becoming a very popular option. Take a quick look around online and you will see that there are hundreds (if not more) of lenders working online that specialize in nothing but national payday loans. As you probably know, the economy in the United States is in a rough state right now. Many people are being forced to take on second jobs just to keep up with the bills and to fill their cupboards with food. When an unexpected emergency pops up out of nowhere, many of these struggling consumers are faced with a situation wherein they have no money to solve the crisis confronting them.

National payday loans are the financial answer for many people who are having trouble coming up with much-needed money at the last minute. These loans are routinely being used to pay off late utility bills and to take care of medical issues as well as car troubles. When money is tight and there is nowhere to turn for help, national payday loans are there to help thousands of people throughout the US each and every day.

One of the most attractive aspects of national payday loans is the fact that the money is most often directly deposited straight into your bank account within hours, or sometimes within just a few minutes of applying. This means that the typical, annoying money-related emergency that rears its ugly head at the worst time possible will be quelled quickly.

Many employers today do not offer cash advances to their employees which really is quite a shame. But at least these employees know that when things get really tight that there are always national payday loans to turn to. Many people do not want to ask friends or family members for money. It is embarrassing to do so and one of the last things anyone wants to be forced to do.

National payday loans are quick, convenient and easy to get. Most banks flat out refuse to lend small amounts of money, so that is never an option when you just need a few hundred dollars. These short-term loans save a countless number of people a whole lot of stress and anxiety that is associated with being acutely short on money.


With International Home Buyers Flocking to the U.S., Mortgage Brokers Use Mortgage Elements to Locate Wholesale …


Foreign National Loan Programs

Finding Foreign National Mortgage Programs is easy at Mortgage Elements

Chicago, IL (PRWEB) October 30, 2013

Businessweek recently reported that international buyers have become a significant and growing segment in today’s Real Estate market accounting for as much as 19% of all transactions in Florida in June 2012. The majority of international buyers are concentrated in 5 states: Florida, California, Texas, Arizona, and New York. Origination News reported that most of these transactions – 83% – are also cash deals requiring no mortgage. This may be beneficial to the property seller since they don’t have to wait for their buyer to be approved for a mortgage. This is not good news to Mortgage Brokers that make a living by providing mortgages. However, if 83% of the deals are cash, this leaves 17% of Foreign National buyers that need a mortgage, but finding Wholesale Lenders that offer a Foreign National Mortgage Program can be difficult – until now.

Mortgage Elements Inc. maintains a database that tracks Wholesale Lenders who offer Foreign National Loan programs in different states. Mortgage Brokers can access the database without charge at and find Wholesale Foreign National Lenders. The loan terms, underwriting guidelines, and allowable LTV (Loan to Value) ratios vary between lenders. Researching the best program for each borrower can be time consuming, but this task can be greatly reduced with the Mortgage Elements interface. With just a few mouse clicks, Mortgage Brokers can view and compare the different lenders, loan terms, and guidelines.

Why don’t more lenders have Foreign National mortgage programs? There are several reasons that contribute to the scarcity. One reason is that most mortgages are sold to one of the Government Sponsored Enterprises (GSE) – Fannie Mae, Freddie Mac, FHA, or VA. All these GSE’s have underwriting guidelines which incorporate residency requirements that Foreign National buyers can’t meet. Many of these buyers pay cash because they want to, but others use cash because they can’t qualify for Conventional or FHA financing.

Although many international buyers would be excellent borrowers and a good credit risk, Foreign National lending does carry a higher risk than lending to US residents. Most of these properties will be vacation homes or investment properties. Investment and vacation homes have a higher default risk than a primary residence. The rationale being that if a borrower runs into financial distress, they will pay the mortgage on their primary residence and let the investment or vacation home go into default. Other reasons include tightened credit standards imposed by regulators since the Financial Crisis and simply a lack of lenders who are experienced with Foreign National borrowers.

Using can help quickly locate and research the few Wholesale Lenders that are active in Foreign National mortgage lending. The website is also optimized for use with Touch Screen technology. Brokers can easily find and research lenders from an iPad or tablet computer with just a few taps on the screen, just as easily as from their desktop computer.

About Mortgage Elements Inc.
Mortgage Elements Inc. is an internet marketing company that provides marketing, database, search, and consulting solutions for the mortgage industry through its website The company uses a unique website design optimized for touch screen technology and use on mobile devices, desktop, and laptop computers. Mortgage Elements is a B2B company for the mortgage industry and not a lender.


Securitybuddha | Do you need payday loans

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Pay day loans are the best loans to go for ever. Regardless whether you are employed, a student, unemployed or a member of the private sector, payday loans are the ultimate solutions to your financial problems. Payday loans uk can link you to these loans. Even though payday loans offer different interest rates, they are always monitored by different legal institutions thus limiting them from charging exorbitant interest rates. The question then is why these kinds of loans go when there are other financial institutions offering loans? The following are the outright answers to such questions;

They are unsecured loans.

If you have ever gone for a loan then the terminology is not new to you. It simply means they are the kinds of loans which do not require financial guaranties or any form of insurance policy. They are the best loans for everyone in need of urgent cash.

Negotiable repayment period.

Because there are many money lenders who give out these kinds of loans, you can definitely negotiate for repayment period of your choice. This means that they are very convenient. Additionally the loans are flexible and save in times of crisis.

This entry was tagged . […]

Payday lenders hit pay dirt, analysis shows | Money | The Guardian

Image Pound-notes-010.jpg

Pound notes. Although short-term loans can sometimes be cheaper than loans from conventional lenders, annual interest rates are often in excess of 5,000% APR. Photograph: Sarah Lee for the Guardian

Nine of the 10 biggest payday lenders in the UK have seen their turnover double in the last three years, while one has recorded a 32-fold increase in profits since the start of the recession.

The payday lending industry has boomed in recent years as cash-strapped households have sought alternative ways to borrow following the withdrawal of mainstream banks from lending and the removal of government assistance such as the crisis fund. Although short-term loans can sometimes be cheaper than those from conventional lenders, annual interest rates are often in excess of 5,000% APR and costs can quickly spiral if a debt is extended or a payment missed.

A year-long review by the Office of Fair Trading found that half of lenders’ revenues was the result of rolled over loans. On Tuesday, the UK’s largest lender, Wonga, reported a 36% increase in profits to £62m on a turnover of £309m in 2012. The Bureau of Investigative Journalism, which analysed the lending, said this had contributed to total turnover among the top 10 firms of almost £800m, against just over £300m three years previously.

The BIJ looked at data in company accounts which sometimes included revenue and profits from other activities such as cheque cashing and pawnbroking. Where a company has a US parent, for example Quick Quid which is part of Dollar Financial, only the UK operations were included. It said there had been a rush of firms into the short-term, high-cost credit industry, with at least 24 new ventures launched since 2008. But, it said, “far from feeling squeezed by the increased competition, all but one of the 10 largest lenders specifically offering payday loans saw their turnover more than double in just three years”.

It found that while at the start of the recession in 2008 just five of these companies were large enough to publish full accounts and only had a turnover of more than £50m, now four companies have turnovers substantially over £100m.

One firm, Lending Stream, which offers loans of up to £1,500 for up to six months at an interest rate of 4,071.5% APR, has increased its turnover by 42 times in three years, while Wage Day Advance, which quotes an APR of 7,069.3%, has increased its profits 32-fold to £20m since 2008.

But Lending Stream was the only one of the 10 which did not record a profit in its latest accounts, for 2011, having paid £5.2m in royalties and other expenses to a related US company. The entire sector is under the scrutiny of the Competition Commission, which is examining how easy it is for customers to shop around and compare costs and whether it is easy for new firms to enter the market. In April 2014 the firms will come under the Financial Conduct Authority, and a consultation on the rulebook for lenders is expected this month.

Paul Blomfield, Labour MP for Sheffield Central, who is calling for more regulation of the sector in a private member’s bill currently before parliament, said: “Payday lenders are taking advantage of the UK’s uniquely unregulated market to grow their business by picking the pockets of the poorest … if ministers let the status quo continue, payday lenders will continue to grow by exploiting increasing numbers of cash-strapped people.”


5 Ways to Make Quick Cash

Most of us will face a cash crunch at some point in our lives. An unexpected bill or loss of income puts us into a position where we need a quick cash infusion.

When you face one of those times, try one or more of these quick cash solutions:

1. The first solution is the obvious one: Sell something.

Think beyond the simple yardsale. Websites such as Craigslist and eBay make it possible to get good prices for quality items. The trick is to find things you own that are worth more than a few dollars. Pretend you’re going to be on the “Antiques Roadshow.” Do a little Internet research on items that you think might have value.

When it’s time to sell, remember that collectibles will do better in a virtual auction, since more buyers will compete for your item. Heavy furniture or other items that are difficult to ship should be sold locally.

And don’t limit yourself to Internet sales. Consider specialty stores for some items. Electronics and tools might do well at a pawn shop. Your local jeweler might be interested in the broach you inherited from Aunt Agatha.

2. Look for money that’s due to you or you can borrow.

You were probably asked for a deposit when you began utility service on your home. If you’ve been consistently on-time with your bills, a company may give your deposit back early. Call the utility to find out.

Also check for unclaimed property. We live fast-paced lives and move often. Because of that we can unintentionally leave behind deposits, small accounts and refunds. The National Association of Unclaimed Property Administrators says 2.5 million claims for more than $2 billion was recently returned in just one year, and the average check was $892. Look for unclaimed funds at

3. Evaluate your tax deductions and 401(k) plan.

If your cash crisis is likely to be short term, consider changing your deductions to reduce income tax withholding. You will have to pay back the loan when your taxes are due in April, but it will increase your take-home pay until then. Ask your human resources department how it works.

If the problem is longer term, you might want to consider borrowing from your 401(k) plan. The law and most plans allow you to take a loan and repay it over time. Interest rates are governed by law but generally aren’t very high. The biggest drawback is that the whole loan must be paid if you leave or lose your job.

4. Add an additional source of income.

If the crisis is big, this may be your only choice. Your best option might be to take on a part-time job. Even if the pay is low, you’ll have a steady, predictable income source.

A less certain option, but one with more upside, is to offer a skill you have to friends and family. Whether it’s sewing or carpentry, letting people know you’re available for hire should generate some work for you. You won’t know from week to week how much you’ll make – and you will need to check with your local government to see what licences are needed – but if you can find enough work, you might make more working for yourself.

5. Offer a room for rent.

This cash source doesn’t require an additional job – just a little sacrifice. Taking in a roommate is a serious step that will change your lifestyle, but it can be a good regular source of income. Depending on where you live and your home, you could score hundreds of dollars each month.

Whatever your cash crunch, try these tips to bring a little extra into your account this month.

Gary Foreman is a former financial planner who founded The Dollar Stretcher website and newsletters. The site features thousands of articles on how to save your valuable time and money, including an article onwhen you’re desperate for cash.


Bank of Spain urges Spanish lenders to curb cash dividends


Bank of Spain urges Spanish lenders to curb cash dividends

Friday, 28 June 2013 17:23

Posted by Muhammad Iqbal 19

MADRID: The Bank of Spain on Thursday urged Spanish lenders to limit 2013 cash dividends to the equivalent of 25 percent of annual profit in a move that may force the country’s two largest banks to revise policies.

A central bank spokesman said the recommendation did not apply to scrip dividends, but lenders were asked to take into account the evolution of results and make reasonable adjustments to dividends paid in shares.

In a letter sent to all Spanish lenders, the central bank said they should limit dividends to maintain high levels of capital in an uncertain economic environment.

Last week, in its annual review of the Spanish economy, the International Monetary Fund had already called on Spanish lenders to reinforce the quantity and quality of their capital by being very prudent on cash dividends while cleaning up loan books and quickly selling distressed assets.

The new guidelines will have no impact on most of the banking sector as most lenders stopped paying dividends when Spain sought a 42-billion-euro ($54.6 billion) bailout for its banks, brought low by the bursting of a decade-long property bubble.

However, Spain’s two biggest banks, Santander and BBVA, last year maintained high levels of cash payouts despite taking a massive hit on profit after booking billions of euros in provisions to cover potential losses on real estate investments.

BBVA’s cash dividend was worth about 80 percent of annual profit in 2012, up from about 30 percent in 2011.

Santander’s cash dividend was worth about 50 percent of annual profit in 2012, also up from 20 percent in 2011.

A spokesman for BBVA said it was too early to know if the recommendation would impact the bank’s dividend policy and it would have more visibility as the year progresses.

BBVA’s next cash payment to shareholders is planned to take place in January 2014.

Santander declined to comment. Popular, Sabadell, Caixabank and Bankia have not made any dividend payment so far in 2013.

While Bankia has a ban on dividend payments until 2014 under its EU-agreed restructuring plan, Popular has said it would look at restarting dividend payments in 2013.

Caixabank and Sabadell said they are likely to maintain the same level of payouts to shareholders as in 2012, with the option to choose between cash or shares.

The Bank of Italy issued a recommendation in the first quarter, saying banks that had posted a loss or had a low capital base should not distribute dividends.

As a result, Italian regional lender Banca Carige had to withdraw its dividend plan.

In addition, the European Commission limits dividend payments of bailed-out banks in Europe. In Ireland all lenders suspended dividends at the start of the crisis and have not stated plans to resume them.

Copyright Reuters, 2013Share […]

Payday Loans: Financial Weapons of Individual Destruction « CU …

During the Financial Crisis of 2008, Warren Buffet, the Chairman and CEO of Berkshire Hathaway Inc. characterized derivatives as “financial weapons of mass destruction” or financial W.M.D.s. These instruments turned out to be enormous bets placed on worthless subprime home loans that were made without regard to the borrower’s income or creditworthiness and later sold to investors. As homeowners continued to default on their mortgage payments, the holders of these financial W.M.D.s (e.g., big banks and large insurance companies) mounted huge losses causing massive economic fallout. Now, let us fast forward to the present. Payday loans are just another form of subprime lending. According to the U.S. Office of the Comptroller of the Currency, payday loans “often fail to consider the customer’s ability to repay the loan while still meeting other financial obligations.” Moreover, “the combined impact of an expensive credit product coupled with short repayment periods increases the risk that borrowers could be caught in a cycle of high- cost borrowing over an extended period of time.” Simply put, payday loans are financial “weapons of individual destruction” (W.I.D.s).

The federal regulator for credit unions, the National Credit Union Administration (NCUA), defines payday loans or financial W.I.D.s as small, short term, high interest loans that borrowers promise to repay from their next paycheck or direct deposit salary account. These W.I.D.s require the borrower to either: 1) write a check to the lender that is held until repayment or 2) authorize an automatic electronic debit from the borrower’s account when payment is due. Generally, the funds issued to the debtor are minus a flat fee. For example, if the borrower desires a $100 loan, he/she will have to borrow $115 to receive the $100 from the lender.

In addition, the Truth in Fair Lending Act requires the lender to disclose the annual percentage rate of interest on the loan. Therefore, a $15 fee on a $100 loan although seemingly small has an excessively high A.P.R. of 391%. When payment is due, the debtor then must choose to either pay the $115 or roll it over to the next payday and pay an additional $15 fee. With three or four roll-overs, the borrower will incur fees of $60 – $75 in a matter of weeks for a paltry $100 borrowed. This type of lending places the borrower in a never-ending cycle of debt because of other financial obligations becoming due at the same time, making the roll-over as the convenient option of choice.

Payday loans victimize people from all walks of life. From lawyers to marketing professionals, senior citizens to postal workers, many have found themselves trapped within the clutches of payday lending. Major banks are now engaged in it. A study conducted by the Center for Responsible Lending reported that over one quarter of bank payday loans are issued to Social Security recipients. Bank federal regulators have gone on the record stating that they are “deeply concerned” about the practice, it being “unsafe, unsound and unfair to consumers.”

Plain and simple payday loans or W.I.D.s are predatory lending at its best. It is legal loansharking! Currently, in New York they are illegal and it should remain so. Credit unions are reasonable alternatives for short term lending at modest rates. As a matter of fact, the Municipal Credit Union (MCU) was chartered to combat this type of predatory lending. Soon, under the direction of our President/CEO Kam Wong, MCU will be rolling out its short-term emergency loan program to assist members in making ends meet. Say no to payday W.I.D.s and protect yourself from these financial weapons of individual destruction. Join a credit union today!


UK banks accused of irresponsible lending – RT

‘Dinosaurs of financial services’: UK banks accused of irresponsible lending

Get short URL Published time: April 27, 2013 09:47 Share on Tumblr











British banks have been accused of turning their backs on some of the country’s poorest people. The Citizens Advice service, the UK’s largest advice provider, claims that banks have been shutting people in need out of mainstream banking.

“Banks risk becoming the dinosaurs of financial services, outstripped by new lenders who are quick to meet the demand for immediate credit,” Citizens Advice Chief Executive Gillian Guy has warned.

She says in the past four years, the number of debt problems taken to the bureaux involving payday lenders has grown tenfold, as some of the UK’s poorest were left “at the mercy of predatory payday lenders.”

Evidence gathered by Citizens Advice service has revealed a range of problems with the current payday loans industry, including excessive interest rates and charges, lack of clarity on how much the loan will actually cost, rolling over loans without permission, pressure to take out more loans as well as irresponsible lending of loans to people who can’t afford to pay them back.

During 2010 and 2011, the charity – which helps resolve legal and financial difficulties – advised clients on some 2.2 million debt problems.

Citizens Advice maintains that banks should take the responsibility for the growth of the payday loan market and come up with an alternative by offering a low-interest solution to those who need short-term credit.

In March of this year, the 50 leading payday lenders, which account for 90 percent of the UK’s payday loans market, were given 12 weeks to change their business practices after the Office of Fair Trading uncovered evidence of

“widespread irresponsible lending and failure to comply with the standards required.” The lenders failed to conduct adequate assessments of affordability before lending, to explain adequately how payments will be collected, used aggressive debt collection practices and were not allowing borrowers in financial difficulty to go into forbearance.

The 50 leading lenders must now take rapid action to must demonstrate they are fully compliant, or risk losing their licenses to operate in the £2 billion industry.

According to the OFT, irresponsible lending may have its roots in the nature of competition. Lenders were found to compete by emphasizing the speed and easy access to loans, rather than the price. When borrowers are granted loans they cannot afford to repay, payday lenders’ revenues become heavily reliant on those customers.

Despite payday loans being described as one-off short term loans, costing an average of £25 per £100 for 30 days, up to half of payday lenders’ revenue comes from loans that last longer and cost more that are rolled over or refinanced, the OFT has found.

“We have found fundamental problems with the way the payday market works and widespread breaches of the law and regulations, causing misery and hardship for many borrowers,” OFT Chief Executive Clive Maxwell said.

One-third of UK residents only have enough money to pay rent one month at a time. A recent YouGov poll has found that up to 35 percent of poll respondents, 8.6 million Britons, would be unable to pay rent from savings. The study, which was published earlier this month, polled 2,000 UK residents. If these statistics are extrapolated to the entire UK population, 3.9 million British families could be just one paycheck away from losing their family home.

Britain’s economy re-entered recession in 2012, its first double-dip recession since 1975, and has been much slower to recover from the global financial crisis than most large economies, such as the US, Canada and Germany. UK unemployment rose to 2.56 million in April, the Office for National Statistics said. Some 70,000 lost their jobs and ‘went on the dole’ between December and February 2013.