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No on SB 5899: Payday loans don't solve crisis, they create one …

EDITORIAL


(March 13, 2015) – Remember two years ago, when the Republican-controlled Washington State Senate brought our state to the brink of a government shutdown?

The Senate had a list of ideological policy bills upon which they demanded House action before they would agree to an operating budget. After two overtime sessions, cooler heads finally prevailed and Gov. Jay Inslee signed a deal just hours before the budget cycle ended on July 1, prompting The (Everett) Herald to editorialize, “Ideology and partisanship, especially in the Senate, supplanted pragmatism.”

Good times… good times.

One of those 2013 ideological policy bills is back in 2015, and the more solidly Republican-controlled Senate just sent it to the House. It’s SB 5899, which would relax consumer protections against short-term high-interest payday loans that push low-income working families deeper and deeper into debt. The bill would replace the state’s limited payday loans with “installment loans” that would allow up to a year’s worth of interest and fees.

Washington’s current law limits payday loans to $700 per loan and no more than eight loans per year. Borrowers are charged a $95 fee and typically must pay it off in two weeks. Under SB 5899, a $700 loan would cost borrowers up to a total of $1,195 in principal, interest and fees if paid off in six months, and up to a total of $1,579 if it took a full year.

Organized labor and other advocates for low-income working families have joined anti-poverty and consumer groups in opposing SB 5899. Why? Because payday loans don’t solve a financial crisis, they create one. Borrowers often must take a second loan to pay off the first, and so on, leading to a spiral of debt that sucks them dry.

It also harms the economy.

A 2013 study by the Insight Center for Community Economic Development found that the national burden of repaying payday loans in 2011 led to $774 million in lost consumer spending, the loss of more than 14,000 jobs, and an increase in Chapter 13 bankruptcies. The study found that each dollar of interest paid to payday lenders subtracted $1.94 from the economy due to reduced household spending, while only adding $1.70 to payday lending establishments. It’s an anti-multiplier effect. For every dollar of interest paid in payday loan interest, the economy lost a quarter.

Remember last fall’s election, when voters were demanding greater access to short-term high-interest loans? Neither do we.

The 2015 legislative session was supposed to focus on last fall’s big campaign issues: funding basic education and transportation, addressing income inequality, and making sure our tax dollars (and tax incentives) are efficiently spent. How did promoting payday lending get in there again?

It began last fall, all right. But it didn’t come from the public, it came from Seattle-based payday lender MoneyTree.

Jim Brunner of The Seattle Times wrote an explosive story last week outing Moneytree as leading the full-court lobbying press to relax payday lending laws. He reports that the effort began last fall when the company and its executives, who traditionally direct their political contributions to Republicans, “sought to strengthen ties with Democrats, boosting donations to Democratic legislator campaigns in last fall’s elections, and quietly employing a well-connected Seattle public-affairs firm that includes the political fundraiser for Gov. Jay Inslee and other top Democrats.”

On Tuesday, a heroic effort was made by most of the Senate’s Democratic minority caucus to stop SB 5899 or amend it to lower the interest and fees payday lenders can charge. But those efforts were thwarted, and after a passionate debate that lasted more than two hours, the bill passed the Senate, 30-18, with Democratic Sens. Brian Hatfield, Steve Hobbs, Karen Keiser, Marko Liias, and Kevin Ranker joining all Republicans (except Sen. Kirk Pearson) in voting “yes.”

Now it heads over to the House, where its companion bill died without a floor vote after Wednesday’s cutoff deadline. The question is, given Moneytree’s… outreach… to Democrats, will it again die in their House? Will it again become embroiled in end-game budget negotiations to try to force its passage?

We hope not.

We agree with state Attorney General Bob Ferguson, who sent a letter to legislators opposing the bill, saying our state’s payday-lending system includes important safeguards for consumers “and does not need to be overhauled.”

We also agree with The (Tacoma) News Tribune, which wrote that payday lenders’ efforts to pass SB 5899 “have nothing to do with helping poor people and everything to do with their bottom line. Lawmakers should see this legislation for what it is and reject it. If it passes, Gov. Jay Inslee should veto it.”


The Stand is the news service of the Washington State Labor Council, AFL-CIO.

[…]

The Payday Loan Rule Changes That Only Payday Lenders Want …

Image 1425592858-shutterstock_220081786.jpg

Follow the money: payday lenders gave significant campaign money to legislators who are now trying to undo Washington State’s landmark payday lending reforms.dcwcreations / Shutterstock.com

Washington State passed some of the strongest payday lending reforms in the nation in 2009. But now a group of lawmakers want to scrap those reforms in favor of a proposal backed by Moneytree, a local payday lender.

The rule changes they’re going after limit the size and frequency of payday loans and provide a free installment plan option to help borrowers who can’t pay back their loan when it’s due.

According to data from the Department of Financial Institutions, these reforms hit payday lenders hard. In fact, before the reforms took effect, payday loans were available at 603 locations across Washington and lenders were making more than $1.3 billion in loans per year. Last year, there were only 173 locations and it was a $331 million industry.

Now, a proposal, sponsored by Rep. Larry Springer, D-Kirkland, and Sen. Marko Liias, D-Lynnwood, would replace the payday loan system in Washington with a “small consumer installment loan” system that would clear the way for lenders like Moneytree to start offering 6-month to 12-month loans with effective interest rates up to 213 percent.

The proposed law would also increase the maximum size of a loan from $700 to $1,000 and remove the current eight-loan cap, effectively removing the circuit breaker keeping borrowers from getting trapped in a debt cycle.

What’s more, instead of the easy-to-understand fee payday loans we have now, the new loans would have a much more complex fee structure consisting of an amortized 15 percent origination fee, a 7.5 percent monthly maintenance fee, and a 36 percent annual interest rate.

It is incomprehensible, after years of working on payday reforms that finally worked in Washington, that lawmakers would throw out that law and replace it with one created by Moneytree.” says Bruce Neas, an attorney with Columbia Legal Services, a group that provides legal assistance to low-income clients.

Proponents say the new system could save borrowers money. And they’re right, technically, since interest and fees accrue over the life of the loan. However, a loan would need to be paid off in around five weeks or less for that to pencil out—and that seems highly unlikely. In Colorado, which has a similar installment loan product, the average loan is carried for 99 days. What’s more, according the National Consumer Law Center, “loan flipping” in Colorado has led to borrowers averaging 333 days in debt per year, or about 10.9 months.

While numerous consumer advocates have spoken out against the proposal—along with payday loan reform hawks like Sen. Sharon Nelson, D-Maury Island, and even the state’s Attorney General—few have voiced support for it. In fact, in recent committee hearings on the proposal, only four people testified in favor of it:

Dennis Bassford, CEO of Moneytree;

Dennis Schaul, CEO of the payday lending trade organization known as the Consumer Financial Services Association of America;

Rep. Larry Springer, prime House sponsor of the proposal and recipient of $2,850 in campaign contributions from Moneytree executives;

Sen. Marko Liias, prime Senate sponsor of the proposal and recipient of $3,800 in campaign contributions from Moneytree executives.

Springer and Liias aren’t the only state legislators Moneytree executives backed with campaign contributions, though. In the past two years, executives with Moneytree have contributed $95,100 to Washington State Legislature races.

At least 65 percent of the money went to Republicans and the Majority Coalition Caucus. Which is expected, since Republicans have been loyal supporters of Moneytree in the past. When a similar proposal was brought to the Senate floor two years ago, only one Republican voted against it.

More telling is where the remaining money went. Of the $33,150 Moneytree gave to Democrats, $20,500 went to 11 of the 16 Democratic House sponsors of the proposal and $5,700 went to two of the four Democratic Senate sponsors.

Both the Senate and House versions of the proposal have cleared their first major hurdles by moving out of the policy committees. The bills are now up for consideration in their respective chamber’s Rules Committee. The Senate version appears to be the one most likely to move to a floor vote first, since the Republican Majority Coalition Caucus controls the Senate.

Regardless of which bill moves first, payday lenders undoubtedly want to see it happen soon.

The Consumer Financial Protection Bureau, established by Congress in response to the Great Recession, is poised to release their initial draft of regulations for payday lenders. Although the agency’s deliberations are private, it is widely believed the rules will crack down on the number and size of loans payday lenders can make.

Those rules may well affect Moneytree and other payday lenders Washington.

In the likely chance they do, payday lenders could see their profits shrink. Unless, that is, Washington scraps its current system in favor of one carefully crafted by payday lenders looking to avoid federal regulators.

[…]

Greece to seek loan extension from Euro zone

By Lefteris Papadimas and Jan Strupczewski

ATHENS/BRUSSELS (Reuters) – Greece is expected to ask on Thursday for an extension to its “loan agreement” with the euro zone as it faces running out of cash within weeks, but it must overcome resistance from sceptical partners led by Germany.

With Greece’s bailout programme due to expire in little more than a week, the government of leftist Prime Minister Alexis Tsipras urgently needs to secure a financial lifeline to keep the country afloat beyond late next month.

Financial markets rallied after Athens said on Wednesday it would submit a request to extend the loan agreement for up to six months, hoping this signalled a last minute compromise to avert a Greek bankruptcy and exit from the euro zone.

EU paymaster Germany and fellow euro zone governments have insisted that no such deal is on the table and Athens must seek an extension to its full bailout, the very programme that Tsipras promised to ditch when he was elected last month.

German Finance Minister Wolfgang Schaeuble has poured scorn on suggestions that Athens could negotiate an extension of euro zone funding without making any promises to push on with budget cuts and economic reforms.

But on Wednesday he indicated there may be some possibility of a compromise. “Our room for manoeuvre is limited,” he said during a debate in Berlin, adding, “We must keep in mind that we have a huge responsibility to keep Europe stable.”

Greek Finance Minister Yanis Varoufakis expressed confidence on Wednesday that euro zone finance ministers would approve the Athens government proposal in a teleconference on Friday. “The application will be written in such a way so that it will satisfy both the Greek side and the president of the Eurogroup,” he said.

FINANCES IN PERIL

Greece’s finances are in peril. It is burning through its cash reserves and could run out of money by the end of March without fresh funds, a person familiar with the figures said. The person said Athens had enough to repay a 1.5 billion euro instalment to the International Monetary Fund next month but would struggle to pay public sector salaries and pensions in April.

Likewise its banks are dependent on emergency funding controlled by the European Central Bank. The ECB agreed on Wednesday to raise a cap on funding available under the Emergency Liquidity Assistance scheme to 68.3 billion euros (£50.4 billion), a person familiar with the ECB talks said.

View gallery

Greek Prime Minister Alexis Tsipras meets with former Greek Interior Minister and former New Democra …

That was a rise of just 3.3 billion euros, below what Greece had requested. “The increase in the cap was a bit below what was requested, about 5 billion more, and expected,” one senior banker said. “Assuming the present outflow trends persist, it is enough to carry us over for another week.”

This modest increase keeps Greece’s banks, and thereby the government, on a tight leash and raises the pressure for a compromise at the Eurogroup.

Whether finance ministers of the 19-nation currency bloc, who rejected such Greece’s ideas at a meeting on Monday, accept its request as a basis to resume negotiations will depend on how it is formulated, an EU source said. The wording has to match EU legal texts to win approval in several euro zone parliaments.

Tsipras said talks were at a crucial stage and his demands for an end to austerity were winning backing. “We have managed for the first time through contacts with foreign leaders to create a positive stance on our requests,” he said at a meeting with President Karolos Papoulias.

In a sign of concern in Washington at the financial risks to a strategically located NATO ally, U.S. Treasury Secretary Jack Lew telephoned Varoufakis to urge Greece to strike a deal with the euro zone and IMF, warning that failure would lead to immediate hardship.

Lew said the United States would continue to prod all parties in the talks to make concrete progress, noting that uncertainty was “not good for Europe.”

The Athens government released documents on Wednesday indicating that it was taking a more flexible line to placate euro zone creditors than its anti-bailout rhetoric at home has suggested. They showed Varoufakis had offered to accept conditions on an extension to its loan agreements and even an inspection by the European Commission at a fraught meeting in Brussels on Monday.

German Chancellor Angela Merkel signalled on Wednesday that Greece would have to give as well as take in negotiations.

“If countries are in trouble, we show solidarity,” she said in a speech to conservative supporters, naming Greece and other euro zone countries that had to take bailouts during the debt crisis. But she added, “Solidarity is not a one-way street. Solidarity and efforts by the countries themselves are two sides of the same coin. And this won’t change.”

(Additional reporting by George Georgiopoulos, Lefteris Papadimas and Deepa Babington in Athens, Jan Strupczewski in Brussels, Gernot Heller, Michael Nienaber and Caroline Copley in Berlin, Jason Lange in Washington and Paul Carrel in Frankfurt; Writing by David Stamp; Editing by Toni Reinhold)

Politics & GovernmentBudget, Tax & EconomyAlexis Tsiprasloan agreement […]

Greece expected to seek loan extension from sceptical euro zone

By Lefteris Papadimas and Jan Strupczewski

ATHENS/BRUSSELS (Reuters) – Greece is expected to ask on Thursday for an extension to its “loan agreement” with the euro zone as it faces running out of cash within weeks, but it must overcome resistance from sceptical partners led by Germany.

With Greece’s bailout programme due to expire in little more than a week, the government of leftist Prime Minister Alexis Tsipras urgently needs to secure a financial lifeline to keep the country afloat beyond late next month.

Financial markets rallied after Athens said on Wednesday it would submit a request to extend the loan agreement for up to six months, hoping this signalled a last minute compromise to avert a Greek bankruptcy and exit from the euro zone.

EU paymaster Germany and fellow euro zone governments have insisted that no such deal is on the table and Athens must seek an extension to its full bailout, the very programme that Tsipras promised to ditch when he was elected last month.

German Finance Minister Wolfgang Schaeuble has poured scorn on suggestions that Athens could negotiate an extension of euro zone funding without making any promises to push on with budget cuts and economic reforms.

But on Wednesday he indicated there may be some possibility of a compromise. “Our room for manoeuvre is limited,” he said during a debate in Berlin, adding, “We must keep in mind that we have a huge responsibility to keep Europe stable.”

Greek Finance Minister Yanis Varoufakis expressed confidence on Wednesday that euro zone finance ministers would approve the Athens government proposal in a teleconference on Friday. “The application will be written in such a way so that it will satisfy both the Greek side and the president of the Eurogroup,” he said.

FINANCES IN PERIL

Greece’s finances are in peril. It is burning through its cash reserves and could run out of money by the end of March without fresh funds, a person familiar with the figures said. The person said Athens had enough to repay a 1.5 billion euro instalment to the International Monetary Fund next month but would struggle to pay public sector salaries and pensions in April.

Likewise its banks are dependent on emergency funding controlled by the European Central Bank. The ECB agreed on Wednesday to raise a cap on funding available under the Emergency Liquidity Assistance scheme to 68.3 billion euros (US$78 billion), a person familiar with the ECB talks said.

That was a rise of just 3.3 billion euros, below what Greece had requested. “The increase in the cap was a bit below what was requested, about 5 billion more, and expected,” one senior banker said. “Assuming the present outflow trends persist, it is enough to carry us over for another week.”

This modest increase keeps Greece’s banks, and thereby the government, on a tight leash and raises the pressure for a compromise at the Eurogroup.

Whether finance ministers of the 19-nation currency bloc, who rejected such Greece’s ideas at a meeting on Monday, accept its request as a basis to resume negotiations will depend on how it is formulated, an EU source said. The wording has to match EU legal texts to win approval in several euro zone parliaments.

Tsipras said talks were at a crucial stage and his demands for an end to austerity were winning backing. “We have managed for the first time through contacts with foreign leaders to create a positive stance on our requests,” he said at a meeting with President Karolos Papoulias.

In a sign of concern in Washington at the financial risks to a strategically located NATO ally, U.S. Treasury Secretary Jack Lew telephoned Varoufakis to urge Greece to strike a deal with the euro zone and IMF, warning that failure would lead to immediate hardship.

Lew said the United States would continue to prod all parties in the talks to make concrete progress, noting that uncertainty was “not good for Europe.”

The Athens government released documents on Wednesday indicating that it was taking a more flexible line to placate euro zone creditors than its anti-bailout rhetoric at home has suggested. They showed Varoufakis had offered to accept conditions on an extension to its loan agreements and even an inspection by the European Commission at a fraught meeting in Brussels on Monday.

German Chancellor Angela Merkel signalled on Wednesday that Greece would have to give as well as take in negotiations.

“If countries are in trouble, we show solidarity,” she said in a speech to conservative supporters, naming Greece and other euro zone countries that had to take bailouts during the debt crisis. But she added, “Solidarity is not a one-way street. Solidarity and efforts by the countries themselves are two sides of the same coin. And this won’t change.”

(Additional reporting by George Georgiopoulos, Lefteris Papadimas and Deepa Babington in Athens, Jan Strupczewski in Brussels, Gernot Heller, Michael Nienaber and Caroline Copley in Berlin, Jason Lange in Washington and Paul Carrel in Frankfurt; Writing by David Stamp; Editing by Toni Reinhold)

Politics & GovernmentBudget, Tax & EconomyAlexis Tsiprasloan agreement […]

How Yahoo Might Sell Billions in Alibaba Stock and Pay No Taxes

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Yahoo! Inc. (YHOO) on Tuesday is expected to reveal something most companies usually try to keep secret: how it plans to avoid a multibillion-dollar tax bill.

The Web portal has spent more than a year figuring out how to cash out a chunk of its $40 billion stake in China-based Alibaba Group Holding Ltd. (BABA) Typically, a U.S. company faces a federal tax bill of about 35 percent when it sells stock in another enterprise for cash.

Yahoo took a $3 billion tax hit last year when it sold about $10 billion in Alibaba shares. This time around, activist investors are leaning on the Sunnyvale, California-based company to be more savvy.

Alibaba: China’s E-Commerce Giant

Marissa Mayer, Yahoo’s chief executive officer, probably will maintain at least part of the Alibaba holding to keep a finger in China’s fast-growing Web market. Were Yahoo to sell the entire stake, it could face a federal tax bill of as much as $14 billion.

Here are some of Yahoo’s options to avoid capital-gains tax, both legal:

Mimicking Malone

Last summer, John Malone’s Liberty Ventures wanted to avoid taxes on selling its stake in travel website TripAdvisor Inc. Liberty did so by transferring that stake, as well as online costume-retailer BuySeasons, to a new unit created specifically for the deal.

Photographer: Andrew Harrer/Bloomberg

Yahoo! is under pressure from activist investors to minimize the costs, especially after triggering a $3 billion bill last year after it sold a $10 billion chunk of Alibaba shares. Close

Yahoo! is under pressure from activist investors to minimize the costs, especially… Read More

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OpenPhotographer: Andrew Harrer/Bloomberg

Yahoo! is under pressure from activist investors to minimize the costs, especially after triggering a $3 billion bill last year after it sold a $10 billion chunk of Alibaba shares.

Under the plan, the new unit took out a $400 million bank loan. Most of that cash was destined for Liberty and the new unit’s stock spun off to Liberty shareholders.

The expectation was that TripAdvisor would acquire the new unit in exchange for the travel site’s own stock. TripAdvisor also agreed to repay the $400 million loan.

When it’s all wrapped up, Liberty Ventures gets cash and exits TripAdvisor — without incurring the tax bill a straight sale would trigger. Liberty’s shareholders get stock in TripAdvisor as though Liberty had distributed its holding in the site to its own investors. Liberty’s investors also don’t face taxes on the deal.

In Yahoo’s case, it would spin off its stake into a new entity, which would borrow money and distribute the cash to the Internet company.

“The tax savings sort of gets carved up between the two parties and they each get a chunk,” said Robert Willens, an independent tax-accounting analyst in New York City.

Channeling Buffett

Another option is to follow Warren Buffett’s lead, with what’s known in tax circles as the cash-rich split.

Berkshire Hathaway Inc. and Graham Holdings Co. (GHC) last March agreed to a deal that lets Buffett’s company unload its stake in the former Washington Post Co. while avoiding capital-gains tax.

That deal called for Graham to transfer cash and a Miami television business — combined, roughly equal to Berkshire Hathaway’s investment — into a new subsidiary. Graham then shifts stock in that new unit to Berkshire Hathaway, while Buffett’s company moves its Graham stake back to the media company.

Economically, it’s as though Berkshire Hathaway sold its Graham stake for cash — and a TV station. But because the deal is structured as an exchange of shares, not a straight-up sale, it gets tax-free treatment.

Were Yahoo to follow this route, it would exchange Alibaba shares for a stake in a new unit that would consist mostly of cash. Alibaba would have to shed some assets for Yahoo to get the advantage of such a deal; a cash-only transaction probably would trigger a tax bill. Accounting experts say it shouldn’t be difficult to find something to throw in the pot.

With assistance from Brian Womack in San Francisco and Alex Sherman in New York.

To contact the reporter on this story: Jesse Drucker in New York at jdrucker4@bloomberg.net

To contact the editors responsible for this story: Tom Giles at tgiles5@bloomberg.net Tony Robinson, Reed Stevenson

Press spacebar to pause and continue. Press esc to stop.

[…]

Kroll Bond Rating Agency Assigns Preliminary Ratings to JPMCC 2014-FL6

NEW YORK–(BUSINESS WIRE)–

Kroll Bond Rating Agency, Inc. (KBRA) is pleased to announce the assignment of preliminary ratings to nine classes of JPMCC 2014-FL6, a $504.0 million large loan floating rate CMBS transaction (see ratings listed below).

The collateral for this transaction consists of thirteen mortgage loans secured by the related borrowers’ interests in forty collateral properties. Ten (72.4%) of the thirteen loans have been divided into a senior pooled component and a subordinate non-pooled component. The aggregate pooled trust balance, which also includes the three non-componentized loans, is $410.0 million and the total non-pooled component balance is $94.0 million. Each non-pooled loan component serves as the sole source of cash flow for a loan-specific class of certificates. Unless otherwise specified, all pool percentage references reflect the aggregate in-trust balance of the pooled and non-pooled components.

Eleven loans (83.2%) are secured by the borrowers’ fee simple interests in the related properties. Two loans, Hyatt Regency DFW (2nd largest, 12.7%) and Hilton Scottsdale Resort & Villas (11th largest, 4.1%), are secured by the borrower’s leasehold interests in the related properties. There are three property type exposures which exceed 10.0% of the pool, which include lodging (47.3%), office (34.8%), and retail (13.4%). The loan collateral is located in twelve states, four of which represent more than 10.0% of the pool balance, Florida (21.9%), Texas (12.7%), Georgia (11.1%), and Washington DC (10.5%).

KBRA’s analysis of the transaction involved a detailed evaluation of the underlying cash flows using our CMBS Property Evaluation Guidelines and the application of our CMBS Single-Borrower & Large Loan Rating Methodology. The results of the analysis yielded KNCF for the underlying collateral properties that was, on average, 2.1% less than issuer cash flow. KBRA applied our stressed capitalization rates to KNCF to arrive at valuations of the underlying properties. The KBRA values were, on average, 34.5% less than the appraiser’s as-is valuation. The resulting KBRA in-trust Loan to Value (KLTV) was 86.6%. All of the loans have additional financing in the form of mezzanine debt. The weighted average all-in KLTV for the loans was 127.6%. As part of our analysis of the transaction, we also reviewed and considered third party engineering and environmental reports, our analysts’ site visits of the collateral properties, and the transaction structure.

For complete details on the analysis, please see our presale report, JPMCC 2014-FL6 published today at www.kbra.com. The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Preliminary Ratings Assigned: JPMCC 2014-FL6

Class Balance Expected Rating A $282,800,000 AAA(sf) X-CP(1) $409,600,000 AAA(sf) X-EXT(1) $409,600,000 AAA(sf) B $40,600,000 AA-(sf) C $31,500,000 A-(sf) D $55,060,000 NR DFW1(2) $12,800,000 NR DFW2(2) $6,900,000 NR MTP1(2) $8,200,000 NR MTP2(2) $13,800,000 NR PHW1(2) $9,400,000 NR PHW2(2) $6,100,000 NR BAT1 (2) $6,400,000 NR BAT2 (2) $1,037,000 NR VINE (2) $3,100,000 BB-(sf) WCP1 (2) $3,300,000 BB-(sf) WCP2 (2) $3,900,000 NR TLAN (2) $2,130,000 NR FMS1 (2) $4,100,000 BB(sf) FMS2 (2) $3,750,000 B-(sf) HSRV (2) $4,700,000 NR BWT1 (2) $2,200,000 NR BWT2 (2) $2,200,000 NR

1 Notional amount.

2 Represents a loan-specific class of certificates and is only entitled to distributions from a subordinate non-pooled component of the related mortgage loan.

Related publications: (available at www.kbra.com)

CMBS: JPMCC 2014-FL6 Presale Report

CMBS: Single Borrower & Large Loan Rating Methodology, published August 8, 2011

CMBS Property Evaluation Guidelines, published June 10, 2011

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

BondsFinanceCMBS Contact: Analytical:

Kroll Bond Rating Agency, Inc.

Sacheen Shah, 646-731-2417

sshah@kbra.com

or

Michael B. Brown, 646-731-2307

mbbrown@kbra.com

or

Robin Regan, 646-731-2358

rregan@kbra.com

or

Follow us on Twitter!
@KrollBondRating […]

Brown took out $500,000 loan from union

Democratic gubernatorial candidate Anthony G. Brown has taken out a $500,000 loan from the Laborers International Union in a move the rival campaign of Republican Larry Hogan called a sign of desperation.

Brown campaign manager Justin Schall said Saturday that the borrowing was simply a matter of cash flow. He said it would be paid in full by Election Day.

“We will not have any debt after the election,” Schall said.

Distortions fly in race for governor Erin Cox, Michael Dresser Surrounded by a dozen other Democrats, Anthony G. Brown summoned the news media Wednesday to once again claim that his opponent wants to cut nearly half a billion dollars in state school construction funding. Surrounded by a dozen other Democrats, Anthony G. Brown summoned the news media Wednesday to once again claim that his opponent wants to cut nearly half a billion dollars in state school construction funding. ( Erin Cox, Michael Dresser )

The loan was listed in the campaign finance report the Brown campaign filed late Friday night. It shows that Brown’s campaign committee took out the loan from the Laborers Political League Education Fund on Oct. 6 at an interest rate of 4.25 percent.

“We took out the loan to give us some flexibility in spending in the final week of the campaign as we raise over $1 million in the next 10 days,” Schall said. He explained that such expenses as TV, mail and payroll need to be paid in advance.

“This is a very common practice in campaigns because you can’t spend money before you have it,” he said.

Hogan’s campaign saw the move in a different light.

lRelated PoliticsCampaigns urge turnout as early voting starts ThursdaySee all related8

“They are up against the ropes. The momentum continues to move in Larry’s direction and they are clearly doing everything they can to eke out a victory,” said Hogan spokesman Adam Dubitsky. “It’s probably too little, too late for Anthony Brown.”

Large loans to Maryland gubernatorial candidates are not unprecedented. In 2006, Martin O’Malley took out a $500,000 loan from Washington lawyer John P. Coale in the final weeks of his campaign against Gov. Robert L. Ehrlich Jr. The victorious O’Malley repaid the loan after the election.

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The Hogan campaign is also carrying $500,000 in loans on its books, but those all came from Hogan himself during the primary campaign.

The watchdog group OpenSecrets.org lists the Laborers union as the 11th-largest donor to political spending groups. Messages left at the union’s Washington headquarters Saturday were not returned.

The disagreement over the meaning of the loan was part of a series of squabbles between the Brown and Hogan camps over which campaign was in better financial shape heading into the home stretch.

The Hogan campaign issued a news release boasting that it, along with the Maryland Republican Party, held an almost $100,000 lead over Brown in cash on hand as of the end of the filing period last Sunday. As of that day, it said it had more than $440,000 to spend.

“People who were on the sideline are now breaking our way, and I think the cash on hand reflects that,” Dubitsky said.

Schall, however, put the combined cash-on-hand figure of Brown and the Democratic Party at about $900,000. He said Hogan’s calculations don’t take into account the two campaigns’ federal accounts.

The Republicans have a little more than $40,000 in their federal account, while the Democrats have more than $480,000. Schall also counts some miscellaneous cash that the Republicans do not.

Brown’s fundraising is going well, Schall said.

“Oh my God, it’s flying in,” he said. “Absolutely, I couldn’t ask for more.”

The fundraising in the governor’s race has fueled a seemingly nonstop barrage of campaign ads. Brown reported media spending of almost $3 million since late August, while Hogan listed almost $2 million.

Brown reported combined fundraising of $4.1 million over the two months since the last reporting period. Schall said that did not include the loan but did include gifts to the federal Democratic account.

The Hogan campaign did not raise funds toward the Nov. 4 election because it is barred from doing so under the law that granted it $2.6 million in public financing. However, the state Republican Party told the Maryland State Board of Elections it has taken in almost $770,000 that it can spend on Hogan’s behalf. A federal filing Oct. 15 showed the GOP raised another $150,000 since the June primary.

michael.dresser@baltsun.com

Copyright © 2014, The Baltimore Sun […]

John Oliver and Sarah Silverman Take On Payday Loan Companies …

Here’s a list of states where predatory payday loan companies are illegal. Why isn’t Washington state on the list? (Yes, Oliver shows that payday loan companies have defeated almost all attempts to regulate or ban them. But Washington state should be on that list regardless—it’s, you know, the principle of the thing.)

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Announcing a New, Flexible Repayment Term, Low Rate Merchant Cash Advance Option Specifically Designed for Retail …

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Low Rate Merchant Cash Advance at BusinessCashAdvanceGURU.com

Small Business Working Capital at Low Rates, Care of Business Cash Advance Guru

Nationwide (PRWEB) July 24, 2014

For small businesses needing working capital, there’s now a low rate merchant cash advance available without hassle. This fast retail business cash advance loan comes with a low cost and flexible repayment terms. It’s an unsecured business loan and is the best poor credit merchant cash advance available on the market today.

Big banks are not lending working capital to small businesses, according to several recent news reports. The reason given is the wave of new federal lending and banking regulations stymieing the commercial loan market. Traditional lending institutions are in a precarious situation. Banks saddled with huge loan default losses, the result of the Great Recession. During the years 2008 through 2010 and even today, the trend of mortgage, auto loan, credit card, and small business loans defaults put banks hundreds of millions of dollars in the red.

Pressured by congressional members to make risky loans to prop-up the economy from 2004 through 2007, banks complied, only to take the devastating financial hit. The introduction of new legislation sought to curtail future risk, but only after the damage was inflicted.

Small businesses are adversely impacted by such events, having to provide years worth of financial documentation and tax returns, along with substantial collateral. Nearly perfect personal and company credit no longer guarantees commercial funding approval. Qualification standards are now out of reach for the majority of small businesses. Business loan application denial rates are near historic highs though banks continue to hoard billions of dollars in their reserves to weather federally mandated stress tests.

Alternative lenders are now stepping up to fill the commercial financing void, offering great and affordable loan products without a credit file review. This low cost, flexible repayment loan options are available by applying online. There are no application fees or hidden costs associated with these products. Companies can apply for and receive between $5,000 and $500,000 and be approved in just 24 hours. Funds are directly deposited in three to five business days and may be used for any purpose.

Current approval rates stand at 98 percent and monthly payments are based on a percentage of the loan amount rather than a fixed sum.

BusinessCashAdvanceGuru.com expanded nationwide services are now available in the following geographical areas:

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin, and Wyoming.

About Business Cash Advance Guru
http://www.BusinessCashAdvanceGuru.com is a division authorized by TieTechnology, LLC. Business Cash Advance Guru’s merchant cash advance division specializes in helping small business owners realize their dreams. That’s why we created our merchant cash advance program in 2003, and continue to be a merchant cash advance leader in the industry, offering the most flexible payment options and the lowest interest rates and in the business.

About TieTechnology, LLC
http://www.tietechnology.com specializes in small business service based solutions for businesses. Services provided by TieTechnology LLC, include: merchant credit card processing, business service telecommunications, and web based visibility marketing. The advantages of doing business with TieTechnology is their commitment to customer service excellence and their offering of one stop solutions to all business to business service product needs for the customers’ convenience. To learn more about their wide assortment of business services and their specialized divisions, see the following links and descriptions.
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Millennials Choose Cash — And Why That's Not So Great

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Some two out of five Millennials—39%—prefer cash as the long-term investment for money they don’t need for at least 10 years, according to a new Bankrate.com report, roughly three times the number who chose the stock market. That’s a perilous pick, considering that cash will actually lose value over time due to inflation, while the S&P 500 has gained 17% in the last 12 months.

“What we are seeing is that Millennials actually get the importance of saving,” says Greg McBride, senior vice president and chief analyst at Bankrate. “They’re just not willing to take risks with it, particularly with regard to long-term savings.”

One thing that may explain the lean toward greenbacks is that Millennials came of age during tumultuous financial times. “When you look at the events of the last 10 to 15 years, with the financial crisis and the tech bust, young adults had a front row seat for one or both of those events,” McBride says. “Even if it didn’t impact them directly, they saw the impact it had on their parents and other family members and friends.”

Millenials prefer cash for long-term savings. (Photo credit: 401(K) 2013)

That’s certainly the case for Alisha Nicole Washington, 22, who recently graduated from Vanderbilt University and started work for an advertising firm in Atlanta. “I prefer to keep my savings in cash,” she says. “Growing up, it seemed like that was the forefront of every media outlet—how poorly the market was doing. The images and reports definitely left a lasting impression.”

Watching the stock market tank and their parents struggle has left many Millennials with a poor appetite for risk—which is ironic, since they’re the age group with the most ability to be risky. Since Millennials have decades to go until retirement, they have plenty of time to recover from market dips. “Even with something as severe as the financial crisis, if you just hung in there and continued contributing throughout, you not only recovered your losses, but you came out well ahead,” McBride says. “That’s not a perspective that someone who’s only been investing for a couple of years necessarily has.”

Among other things, student loan debt may be hampering Millennials’ ability to think long-term. The average student loan debt now tops $29,000 per student, according to the Project on Student Debt, and many are borrowing two and three times that amount. Jenna Kusmierek, 30, manages to fund her Roth IRA in full each year, but the rest of her cash goes to her student loans. “I plan to proceed this way for the next 10 years until my $140,000 student loan bill is paid off,” says Kusmierek, who lives in Denver.

Then there’s convenience. For Jason Fisher, the 27-year-old co-founder of Waterway Financial Group in Myrtle Beach, SC, having quick access to his funds trumps saving money in a retirement account. “The reduced accessibility to cash is not attractive,” says Fisher. “Often, an investment for our age group tends to be much shorter term anyway. I think children, first homes, and other bigger purchases make having cash on hand more feasible.”

Unfortunately, Millennials are the generation that most needs to get aggressive with savings. “Today’s young adults have the biggest retirement savings burden of all time,” McBride says. “Their life expectancies are longer, their healthcare costs are going to be higher, they don’t have the pensions their parents did, and the future of Social Security is more uncertain than it’s been for any of their predecessors.”

In other words, Millennials need a bigger nest egg, and they’re not going to get there with cash in a savings account. “A key part of this is getting people to think long term, getting them to see the power of compounding over those longer periods of time,” McBride says.

Thankfully, not all Millennials are sticking to cash-only savings. “I keep a small emergency fund in cash, but beyond that, I invest everything I can,” says Kali Hawlk, 24, who runs the blog Common Sense Millennial. “The only way I’m going to grow the value of my nest egg is to invest it where it can earn reasonable returns.”

Of course, cash—in an interest-earning savings account—is the best way to save for emergencies and shorter-term needs. But for the long haul, the stock market is the better bet.

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