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The Fed hiked its policy rate yesterday and now today, mortgage rates jumped quite a bit higher.  While there are already headlines drawing a connection between these two events, they are actually unrelated.  As we discussed yesterday, the Fed’s rate hike was already baked into yesterday’s rate levels.  Mortgage rates actually moved lower in the afternoon!

Today was a new day, and it brought another chance for rates to exhibit their “data dependent” nature.  Fed Chair Powell reminded the market that rates would depend on data, but that dependency doesn’t carry a directional connotation in and of itself.  In other words, it didn’t mean rates were destined to rise today.  They just as easily could have fallen if the data had been weaker than expected.

But the data wasn’t weaker, and rates didn’t fall.  All 4 of this morning’s scheduled economic reports came out stronger than expected.  In general, stronger econ data puts upward pressure on rates.  That’s especially true in recent weeks/months and today was no exception. 

The average mortgage lender was able to move back below 7% yesterday, but today’s jump was more than enough to erase that progress.  Lenders are now closer to 7.125%–a number very much at odds with the 6.81% reported this morning in Freddie Mac’s weekly rate survey.

As always, keep in mind that Freddie’s weekly rate number is a lagging indicator.  It presents a 5 day average through Wednesday and doesn’t report it until Thursday. That’s no big deal with rates are generally flat, but it’s a very big deal when there’s a big swing in rates on Thursday itself (just like today!).  

From here, data dependence continues.  If the economy continues showing excess strength, traders will increasingly expect more hikes from the Fed (or at least a longer amount of time spent at the ceiling).  Those expectations would translate to higher long-term rates such as those for mortgages).  To make matters worse, if the data is weaker, the market will probably be relatively more skeptical at first, simply because the recent trend has been toward upside surprises.  Traders would need to see some consistency in downbeat economic surprises before allowing data to exert too much downward pressure on rates.

Source: mortgagenewsdaily.com

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Home Equity, DPA, Servicing, Database Mining, Warehouse Products; Underwriting Best Practices

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Home Equity, DPA, Servicing, Database Mining, Warehouse Products; Underwriting Best Practices

By:
Rob Chrisman

Fri, Jul 28 2023, 10:56 AM

Mortgages are only part of our lives, right? I only know what I read online, although Abraham Lincoln once said, “Don’t believe everything you read on the internet.” Before you fly down the freeway on a summer vacation, I also know that I have received my fair share of speeding tickets. (For those of you who haven’t, it’s a “punch in the gut” feeling to see that red light in the rear-view mirror. I’ve been able to talk them out of… none.) In something that smacks of Big Brother watching all the data, apparently 9 percent of drivers had a speeding ticket in 2022. Those drivers probably knew the speed limits, but in case you’d like a map of worldwide speed limits, here you go. (Thank you to Carol K.!) The official FHFA 2024 loan limits won’t be out until around Thanksgiving, of course, but in terms of inventions there is no limit on innovation. Face it: there isn’t a lot of innovation in lending. Sure there are tweaks when it comes to programs and pricing, but in the builder world, printed homes continue to progress. Do you have a program for them, or are they no big deal? (Today’s podcast can be found here and sponsored by ReadyPrice, offering the industry’s most powerful universal delivery portal that gives brokers the edge they need. Shop, lock and deliver with multiple lenders, all in one place, for free! Hear an interview with Polunsky Beitel Green’s Marty Green on the latest Fed rate hike and what it means for mortgage rates and affordability going forward.)

Lender and Broker Products, Services, and Software

Making an impact with social media can be daunting. To succeed, you’ll need to narrow your scope. Your clients and prospects need information from you about changes in the market and tips about getting mortgages. Your Realtors need steady advice on what’s going on in the industry. Position yourself as a thought leader. By and large, you’ll find people who need what you offer on Facebook and LinkedIn. Then, as in Marketing 101, you need enough frequency and ongoing regularity when posting. At Usherpa, they know social media can become a full-time job. Which is why Usherpa has automated 100% of the writing of compelling content and posting regularly for you. Usherpa is designed to help you create social media impact automatically. Check it out here. Download 3 Tips for Social Media Success.

Are you a broker or lender seeking to help customers realize the dream of homeownership and grow your business? Partner with Ameris Bank for your warehouse lending needs, and we’ll ensure you receive the resources, support, and service you need to close loans and grow your business. In fact, our warehouse customers have one-on-one access to specialty treasury management professionals who offer tailored financial solutions for their business. With Warehouse lines of credit ranging from $1.5 million to $150 million, we offer competitive interest rates, low fees, and industry-leading technology to our customers. Contact Jill Gainer or Jessica Lapresi to learn why their clients trust Ameris Bank for their Warehouse lending needs and how we can help your business grow in today’s market.

Last week, a Kentucky man discovered $1 million in Civil War-era gold coins buried in his cornfield. With TrustEngine’s Borrower Intelligence Platform, mortgage lenders can unearth hordes of buried loans from their databases. To give the industry insight into where lenders have been able to strike gold over the last quarter, TrustEngine has released its highly anticipated Q2 Mortgage Market Opportunities report. One striking report highlight is that New Listing Alerts, which signal when a contact has put their home on the market, were up 26.23% over Q1. Read TrustEngine’s Q2 MMO Report for more insights.

Servicing-Related Products

As lenders adapt to volatile mortgage rates, many are stopping to reconsider their servicing strategy. Do inconsistent mortgage origination volumes have you questioning what makes more sense: retaining servicing or selling servicing released? Seth Sprague, CMB, Richey May’s Director of Mortgage Banking Consulting Services (aka, resident servicing expert), outlines the 13 key trends and strategies in servicing including recommendations on how to make the right decisions for your business. Want more help defining the optimal strategy? You know where to find us: [email protected].

Is the size of your servicing portfolio or worries about your counterparty risk getting in the way of getting the best bulk MSR execution & pricing? With investor buyback demands increasing, Blue Water clients could benefit from additional protection that supports the purchase, sale, and onboarding of 1000’s of loans a month through our SuperTransfer™ platform. Reduce potential buybacks and solve issues around asset quality in purchase and or sale with an all-digital, all loan file solution! Our post close QC platform allows sellers or investors in bulk MSR and/or loans to review 100% of every loan file in a bulk package. It’s an all-digital solution that is efficient. Finally, our process is insured1! Connect with our Veteran Sales Team today and see how Blue Water can save you time, money, and headaches. (1)Policy Summary & pricing available on request. BWFTS is not an insurance provider, broker, or underwriter. The RWI policy is sold and underwritten by unaffiliated, licensed third party insurance providers for the benefit of Subscriber and all premiums are passed through to such licensed third-party insurance providers.

TPO Products

California! Announcing the NEW Golden Opportunities Down Payment Assistance Program, now available from Golden State Finance Authority (GSFA). Featuring assistance up to 5% of the First Mortgage Loan to be used towards down payment and/or closing costs on a 30-year fixed-rate FHA, VA, or USDA mortgage in California. Borrowers don’t have to have perfect credit (FICOs as low as 620 are eligible) and DTIs up to 55% can qualify. Best of all, there is no first-time homebuyer requirement. Join us for a Lender Training on Golden Opportunities and start helping more homebuyers Achieve the Dream. For more info visit the website and follow us on Facebook, LinkedIn or our YouTube channel.

Looking for great Home Equity Loan options for your clients? Rocket Pro TPO’s Home Equity Summer Sizzle provides significant savings for a limited time by waiving the $795 origination fee through August 6th! With home values still at historic highs, this limited-time offer can help your clients meet their financial goals without refinancing. Whether they’re looking to pay down expenses, consolidate debt or pay for home renovations, the choice is theirs. The best part about it? They can do it while maintaining the lower interest rate on their current mortgage. See the promotion disclaimer for more information here. Also, Rocket Pro TPO wants to see you at the biggest industry event of the year: Originator Connect in Las Vegas! EVP, Fawaz, will deliver an important keynote and you’ll hear from other industry pros. Register for free by using code ROCKETFREE. Interested in learning more about a Broker or Non-Delegated Correspondent partnership? Contact Rocket Pro TPO to learn more.

Lender and Investor News

Sometimes lender news doesn’t fall into buckets of conventional conforming, government, or non-Agency news. Let’s take a random look at who’s doing what.

SoFi was named “Best Lender for Saving Money” by CNBC Select in 2023, apparently in part due to its low down payment options, as little as 3-5 percent, but also its guaranteed “Close on time” program via a dedicated Mortgage Loan Officer. “Homebuyers can earn a $1,000 cash bonus, dropped into your SoFi Checking and Savings or SoFi Money® account to help with the housewarming party. Life is better when you’ve got a $1,000 cash bonus¹ to burn, contact SoFi for details.”

loanDepot, Inc. has delivered more than $1 million in cash-back rebates to customers through its mellohome Grand Slam program. The Grand Slam package was designed to simplify the home buying and selling experience, giving customers access to a suite of home transaction products in a single package that includes real estate and mortgage, all while making home ownership more affordable through a cash-back incentive. Grand Slam customers receive access to the dedicated mellohome concierge service team, who help customers navigate each step of the home buying or selling process, connecting customers with loanDepot loan officers for mortgage loan pre-approvals and reliable real estate agents to find a new home, sell their existing home, or both.

Citizens Correspondent National Bulletin 2023-14 provides information on Top Underwriting and Documentation Errors.

PHH released Announcement 2023-151: Underwriting Best Practices. “To reduce the Underwriting time frame and ensure a smooth process on your non-Delegated submissions, Sellers should review the Best Practices outlined below. Following these tips will lower the number of conditions on your loan and shorten the overall turn time. Ensure the required documents are included in your initial credit file: Loan registration reflects the correct property type and attachment type o Initial and signed URLA, most updated AUS findings, tri-merged credit report o FHA Case Number assignment (FHA only), income documentation as identified in the AUS, asset documentation as identified in the AUS – including all pages of statements or gift documentation, credit inquiry letter if the credit report shows inquiries within last 90 days, documentation of housing payment on any retained properties, and processor cert or explanation of any unique situation on the loan.

“Communicate your closing date or commitment/contingency date to your dedicated Correspondent Specialist. When submitting conditions or trailing documents, upload the documentation to the specific condition. Do not provide one PDF with all conditions. Allow sufficient time for conditions to be reviewed, at least 5 days prior to CTC (when possible). Review the comments from the Underwriter on Rejected conditions. Prior to purchase conditions should be sent within the Closed Loan file. Underwriters will not review Prior to Purchase conditions. As a reminder, the Non-Delegated Submission checklist can be found in the Resources section of the PHH Correspondent Lending Website under Tools and Forms.”

Capital Markets

We had a big day of selling in the bond markets yesterday after a much better than expected advance GDP report for Q2 (actual 2.4 percent, expected 1.6 percent), which gives the Fed another argument to hold rates in restrictive territory for longer. On Wednesday, the Federal Open Market Committee (FOMC) raised its target range for the fed funds rate by 25 basis points to the highest level since 2001, as expected, and left the door open to additional increases. Accordingly, investors have once again wagered that the Fed has reached the end of its tightening campaign and market participants are once again calling the Fed’s bluff, unwinding bets that the FOMC will tighten further in 2023. The official inflation rate of 3 percent is artificially low because when omitting volatile food and fuel costs, the true rate remains closer to 5 percent.

Can the Fed continue to cool inflation without a big increase in unemployment? Supply chain snarls have eased, and the strong labor market, which helped drive up prices, seems to be cooling. Fed Chair Powell, in his post-hike press conference, remained tight-lipped, admitting that higher borrowing costs are starting to chip away at inflation, while reminding markets that core-inflation remains too high and that the Fed’s policy moving forward would continue to be data dependent. It’s a tough balancing act: the tight labor market has drawn more low- and moderate-income earners into work and helped them earn livings/raises, but inflation has had an outsized impact on their finances, making it relatively harder for them to purchase goods and services than upper class individuals. Persistently high spending could be a reason for future rate increases.

Yesterday’s batch of data, including the above-consensus Q2 GDP that showed the U.S. economy was a long way from a recession in the second quarter, also showed that June Durable Orders (actual 4.7 percent, expected 1.0 percent) increased beyond expectations, and there was an unexpected decrease in weekly jobless claims to 221k, the lowest level since February. The solid batch of data kept Treasuries under selling pressure throughout the day, while a soft $35 billion 7-year note offering provided some additional encouragement for the selling. We also learned that, per the National Association of Realtors, pending home sales increased 0.3 percent in June versus May, as contract signings increased in the Northeast and Midwest but decreased in the South and West.

Today’s economic calendar includes June personal income and spending (+.3 percent and +.5 percent, respectively) as well as Q2 employment costs (+1.0 percent). Expectations were for income and spending to increase 0.4 percent and 0.1 percent month-over-month, respectively, versus 0.4 percent and 0.1 percent previously. The Core PCE Price Index was +4.1 percent versus expectations of +4.2. Later this morning brings final July Michigan sentiment. We begin the day with Agency MBS prices better about .125, the 10-year yielding 3.95 after closing yesterday at 4.01 percent, and the 2-year at 4.85: not a big reaction to the numbers.

Jobs

“Keith McKay, CEO of Prime Choice Funding, invites you to participate in reshaping the mortgage industry. Our mission for 2023 is to become the top mortgage broker in the nation. Join our team and expand your professional horizon with our diverse loan programs, flexible compensation plans, and a unique opportunity to earn extra by offering solar solutions to your clients. Backed by comprehensive marketing resources, cutting-edge platform, and robust operations support, your potential for growth is limitless. With a history dating back to 2007, Prime Choice represents stability and innovation in finance and sustainability. Register for our webinar today and explore these rewarding opportunities.”

“’One of the most exciting parts of my day as an LO was getting ‘CTC’, especially when it happens well before it is needed or expected,’ stated Randell Gillespie, EVP, National Sales Manager for Thrive Mortgage. ‘Why Thrive’ centers on the client experience, and it starts with delivering for our clients… ALWAYS! In tough markets, this also means you need additional options for your clients and referral sources, or as we say, “Always Options,” which is our way of delivering value through tailoring our offerings based on client needs. Recently we rolled out four new product options, including additional zero-down programs, payment-lowering options, and a ‘trigger lead eliminator.’ Our team will get through these tough times with more CTCs! At Thrive, CTC also means Communication, Transparency, and Collaboration as we Thrive together. If you want to THRIVE in these times, visit us here. Let’s keep making this industry better than we found it!”

“At Fairway Independent Mortgage Corporation, customer service is a way of life. #FairwayNation mortgage loan officers are dedicated to finding great rates and loan options for our customers while offering some of the fastest turn times in the industry. Our goal is to act as a trusted mortgage advisor, providing highly personalized service and helping you through every step of the loan process, from application to closing and beyond.”

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

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On Thursday, attorneys for the former employees, Sprout’s affiliated company Recovco Mortgage Management and Michael Strauss, an industry veteran who founded the lender, requested that the court to continue its review of the settlement. 

“The bankruptcy proceeding was commenced only against Sprout, so consistent with the approach adopted by some cases under similar circumstances as those presented here, the parties request that the automatic stay only applies to the action against Sprout, not Recovco or Strauss,” an attorney for the former employees wrote in court filings. 

In addition, the parties requested that the judge allow the distribution of funds currently escrowed under the settlement reached before the involuntary bankruptcy petition. They claim that the escrowed funds are not the property of Sprout’s estate for bankruptcy. 

According to the document, Sprout has “nearly fully complied with the terms of the class settlement agreement, but for the last $300,000 payment.”

The document states that Recovco and Strauss are not admitting any liability but believe that under the circumstances present, it is in the interest of all parties for the settlement process to continue. 

Scott Simpson, one of the attorneys for the former employees at Menken Simpson & Rozger LLP, said he had no comment.

“Our clients still have no comment,” Marc Wenger, an attorney for the defendants Sprout, Recovco and Strauss at Jackson Lewis P.C., said.

Also due to the involuntary bankruptcy petition, Sprout’s attorneys moved to adjourn “without date” a pending motion and a hearing scheduled for August 3 on a lawsuit filed by Merchants Bank of Indiana.

Sprout’s lawyers mentioned in court filings Section 362 of the Bankruptcy Code, which gives debtor protection from creditors, among other things, from “the commencement or continuation of any judicial, administrative, or other action or proceeding” that was or could have been commenced before the bankruptcy court case.

Merchants Bank of Indiana claims in its lawsuit that it purchased a mortgage loan from Sprout, and the underlying borrowers subsequently tendered a full payoff of the mortgage loan to Sprout. Still, the company failed to remit it to Merchants as the parties’ written agreement required. The total value was $1.2 million.  

A representative for Merchants said the company had no comment. 

Long Island-based Sprout informed hundreds of workers and business partners it was closing its doors on July 6, 2022, when a sharp rise in rates saddled the company with loans it could not sell to investors in the secondary market at par. 

Ex-employees alleged the company did not pay their last paychecks and severance package. The company also canceled health insurance coverage retroactively to May 1, resulting in several lawsuits against the lender. The lender is also the target of lawsuits from former business partners. 

Strauss is reportedly trying to sell a property at 610 Park Avenue in New York for $19.9 million and has started a new mortgage company. But Strauss and his new company, Smart Rate Mortgage, appealed in April a decision from an Illinois regulator to suspend their licenses to operate in the state. Meanwhile, the licenses remain active.  

Source: housingwire.com

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Three years ago, I decided to get out of debt. I hit the books, reading one personal finance title after another, searching for answers. Two books — Your Money or Your Life and The Total Money Makeover — were perfect for my situation. They gave me the tools I needed to tackle my problems. Now I’ve found a third book that would have been useful at the start of my journey to financial freedom.

All Your Worth: The Ultimate Lifetime Money Plan, published in 2005, was written by the mother-daughter team of Elizabeth Warren and Amelia Warren Tyagi. These women don’t get bogged down in the details of frugality and investing. They’re more interested in changing behavior, in fixing the big stuff. They offer a framework around which the reader can build lasting financial success.

A Balanced Budget

Though Warren and Tyagi would have you believe that their system is different from anything that’s ever been published, it’s not. It puts a different spin on things sometimes, but ultimately their advice is similar to that found in most other solid personal finance books. All Your Worth is about creating a budget.

So what is the secret to riches? Why do some people get ahead, while others constantly struggle? Our research led us to a very simple and incredibly powerful financial principle that you won’t hear anywhere else — balance…When your money is in balance, you always have enough to pay your bills, have some fun, and save for your dreams.

When the authors write about balance, they’re writing about budgets. In order to succeed financially, Warren and Tyagi believe you need keep three broad areas of your finances “in balance”. They say to:

  • Allocate 50% to Needs (which the authors call Must-Haves). Needs include housing, transportation, groceries, insurance, and clothes you really need.
  • Spend 30% on Wants. Wants include cable television, clothing beyond the basics, restaurant meals, concert tickets, comic books, knitting supplies, etc.
  • Set aside 20% for Savings, including debt repayment.

Warren and Tyagi want you to save a lot and have fun. To achieve this, they encourage you to reduce your Needs. In fact, this is the cornerstone of their advice.

Needs: Count the Dollars, Not the Pennies

Unlike many personal finance authors, Warren and Tyagi tend to be anti-frugality. They don’t believe that is pays to skimp on the things that bring you pleasure. They advocate saving money on the most expensive things so that you can still afford your morning coffee.

Here’s a little secret that other financial books won’t tell you: Savvy money managers don’t spend a lot of time looking for ways to save a few pennies. They charge right ahead to the big-ticket items, looking to make high-impact changes in the shortest period of time. They don’t sweat the small stuff. And neither will we.

Warren and Tyagi believe that most people get the big stuff wrong, and that if this can be corrected, then quick and drastic improvements can be made. They don’t think you should shop for generic toothpaste, rinse out your ziploc bags, or make your own laundry detergent — they think you should focus your attentions on getting the most favorable mortgage possible (on a house you can actually afford), ditch long-term contracts, and look for ways to save on other big-ticket items.

If you can get the big stuff right, if you can cut your costs on your Needs, then you should be able to reduce spending in this area to below 50% of your take-home pay. If you blow your budget here, though, it makes everything else more difficult. Suddenly you don’t have enough money to save or to purchase the things you want.

Wants: If You Can’t Afford Fun, You Can’t Afford Your Life

If you’re practicing balanced spending for your Needs, the All Your Worth plan allows you to spend 30% of your take-home pay on whatever you want. Do you want to eat out ever night? Do you want to buy comic books? Do you like to have a closet full of shoes? Have you been wanting to take a trip to Italy? Do you long for a deluxe widescreen high-def plasma television with 250 channels? Whatever you want, you can have, as long as you don’t spend more than 30% of your money on it.

Warren and Tyagi say that you shouldn’t worry about what you buy with your Wants money — you should worry about how you spend it. People get into trouble when they pursue their Wants without regard to the other aspects of a balanced financial life. To keep from danger, the authors suggest:

  • Set clear limits. Stick to your budget. Know how much you can afford to spend on your Wants and do not exceed this amount.
  • Use cash. Cash will prevent you from overspending, and will safeguard against problems with credit cards. One way to make this work is to withdraw your 30% Wants budget in cash at the start of every month. When the cash runs out, you’re done with your Wants.
  • Beware of emotional spending. I wrote about compulsive spending a couple weeks ago. Warren and Tyagi warn that this sort of behavior can throw things out of balance.

In many ways, allocating 30% to Wants is revolutionary. I’ve looked at a number of suggested budgets lately, and none of them allocates this much for fun. So long as you keep other aspects of the All Your Worth plan in balance, you really can have this much to spend as you please.

Savings: Build Your Dreams a Little at a Time

The final step in the All Your Worth plan is to save and invest 20% of the money you earn. Despite the authors’ claim that they couldn’t find any other good personal finance books, they seem to have cribbed this portion of their plan directly from Dave Ramsey. They recommend the following steps for your saving and investing budget:

  1. Save a $1,000 emergency fund.
  2. Repay your debt, starting with the debt that bothers you most.
  3. Bolster your emergency fund to cover six months of Needs.
  4. Begin saving and investing for wealth.

Once your debt is repaid and you have set aside money for emergencies, you should begin investing for your future. The authors divide the 20% Savings budget as follows:

  • Save for retirement by investing in index funds. (10%)
  • Pay down your mortgage (or save for a home). (5%)
  • Save for other goals, such as purchasing a car or taking a vacation. (5%)

I like this idea, and intend to use it myself, but with some modifications. For example, in 2008, Roth IRA contribution limits rise to $5,000. That’ll be more than 10% of my monthly take-home pay, so my retirement contribution percentage will be higher than the All Your Worth plan.

Conclusion

The book fleshes out each of these ideas in greater detail, and includes chapters on buying a home, relationships and money, and “financial CPR” — how to handle things when times get rough.

I like All Your Worth. Its advice is solid. It does a great job of looking at the Big Picture, allowing each reader to fill in the details. But the book does have some flaws:

  • I don’t like the repeated condemnation of frugality and thrift. I think they’re important.
  • The authors claim their advice is different from other personal finance books, but it’s not. Their advice is excellent but it is not new.
  • Warren and Tyagi sometimes make wild assumptions, such as a 12% annual stock market return.

These problems aren’t severe — just annoying.

If you’re struggling with debt and looking for a plan to get things right, then borrow this book from your public library. For those who complain that most financial advice — including that at Get Rich Slowly — is geared too much at the middle-class, and isn’t appropriate for those who earn less and who are struggling, All Your Worth may offer some answers.

Source: getrichslowly.org

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Jeff Yeager calls himself the Ultimate Cheapskate. He’s serious about saving money. He’s the sort of guy who soft-boils his morning eggs by putting them in the dishwasher while it runs. In a package he sent me recently, he included his business card, which is simply a rubber stamp printed on a piece of a brown paper bag. His wife calls him the cheapest man in America, and he’s proud of it.

The road map to true riches
Yeager has a new book called The Ultimate Cheapskate’s Road Map to True Riches, in which he preaches the virtues of frugality and the dangers of mass consumption. Before the first chapter, he offers a statement of purpose:

Living on less is a good thing to do. It’s the only financial advice that will work for almost everyone. It’s about a quality of life that you cannot buy, a sense of satisfaction you cannot fake, and an appreciation for others that gives life value. It’s also about helping save the planet and sharing with those in need. Living on less can be funny, but it’s no joke.

That short paragraph summarizes Yeager’s approach to personal finance. He may be cheap, but he has fun with it. In fact, this is the first personal finance book I’ve read that is truly funny. Andrew Tobias has moments of humor, but this book is funny throughout. (Some of Yeager’s humor is rated PG-13, though. If mild swearing and occasional orgasm references bother you, be warned.)

Six golden rules to ruling your gold
Yeager believes that most Americans are caught in a vicious cycle: They earn money to spend money to buy what they want. They never have enough. The key, he says, is to “slay your enoughasauraus“, that nasty monster inside each of us that makes us want just a little more.

His first step is to practice a “fiscal fast”. Live for a week without spending money. Take notes on what it’s like to go seven days without spending: what were you tempted to buy and how did it make you feel? From there, you can move on to his “six golden rules for ruling your gold”:

  1. Live within your means at thirty, and stay there. I’ve often wished that I had maintained the standard of living I had at 25. Instead, I got caught up in lifestyle inflation. If I’d had the willpower early, I could have a lot saved by now!
  2. Never underestimate the power of not spending. In The Wealthy Barber, David Chilton notes that a penny saved is worth more than a penny earned. An after-tax penny is actually worth about a penny-and-a-half of income. It’s worth even more when you consider the returns you miss by not investing it.
  3. Discretion is the better part of shopping. You know all those money hacks I share to trick yourself while shopping? Here’s where they come into play. Establish a 30-day waiting period before making big purchases. Always ask, “Is this a want or a need?” I like one of Yeager’s suggestions: Carry a “what the hell was I thinking?” list in your wallet or purse on which you’ve written all the stupid things you’ve purchased over the years. (Mine would be too big for my wallet!)
  4. Do for yourself what you could have others do for you. Grow your own food. Change your own oil. Do your own home maintenance. By taking on a few chores you usually pay others to do, you can save money.
  5. Anyone can negotiate anything. Daiko recently wrote that we should ask for a better financial future, requesting better deals when we deal with big companies. Bartering can save you money, too.
  6. Pinch the dollars, and the pennies will pinch themselves. This is the message that Elizabeth Warren preaches: limit your spending on the big things (like your mortgage), and you won’t have to worry so much about saving money on groceries. It’s best to be frugal in all aspects of your life, but pay particular attention to the big stuff.

There’s a lot more to The Ultimate Cheapskate’s Road Map to True Riches. Yeager covers topics like:

  • Eating well for cheap. (Yeager tries to buy food that costs less than a dollar per pound.)
  • Buying a sensible home and then repaying the mortgage as soon as possible.
  • Commuting without a car.
  • Cheap entertainment. Yeager encourages readers to make the most of their hobbies.

Ultimately, the message of this book is that stuff will not make you happy. Happiness comes from knowing when you have enough. In his final chapter, Yeager stresses the importance of amassing a quality of life over a quantity of stuff. “Many choices you must make [involve] the trade-off between money and time,” he writes. “By being cheap…you’re valuing time and the things you can do with it more than money and the things you can buy with it.”

Conclusion
This book was actually less about frugality and thrift than I expected. When I started reading, I thought there would be practical tips along the lines of The Tightwad Gazette and Your Money or Your Life. Yeager does share frugal ideas in sidebars scattered throughout the book’s 225 pages, but most of the information here is straight-up personal finance advice with an emphasis on pinching pennies. (That’s not a bad thing — it’s just not what I was expecting.)

I admire the way Yeager draws together a wide variety of sources. Too often, personal finance writers seem to live in a vacuum. You can read an entire Suze Orman book and never see a reference to work from anyone else. Yeager’s not afraid to recommend other reading, including some of my favorites: Stumbling on Happiness, The Not So Big House, and Your Money or Your Life. He draws on the ideas of Warren Buffet, Dave Ramsey, and Elizabeth Warren.

This is an excellent book for anyone just beginning to wrestle with personal finance. It’s especially good for those trying to escape the chains of consumerism. In a recent e-mail discussion Yeager told me, “I’m trying to reach a new audience, including folks who have never and probably will never pick up a typical PF book.” With its casual blend of humor and good advice, The Ultimate Cheapskate’s Road Map to True Riches has a solid chance to meet this goal.

Addendum: Trent at The Simple Dollar has posted his review of the book. He likes it, too!

Source: getrichslowly.org

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Small-business grants can provide funding for your business that you won’t need to repay, which can be especially appealing when starting or growing your business in Florida. Business grants are available for a wide range of purposes, from covering administrative costs and business expenses to funding research projects and beautifying the exterior of your storefront.

Our list of small-business grants for Florida businesses includes both state-specific and national options.

Florida small-business grants

These Florida-specific grants set aside for small businesses could be statewide, regional or city-specific, so be sure to read the requirements before devoting time to the application.

Florida High Tech Corridor grant

If your Florida startup is a high-tech company, you might be eligible for a Florida High Tech Corridor grant. These grants are designed for research and development projects and partner businesses with researchers at the University of Central Florida and the University of South Florida. Opportunities are available in 23 Florida counties.

Eligible businesses work with university researchers to create a project plan and budget, as well as to submit the application. Applications are accepted throughout the year. If approved, funds of up to $150,000 are distributed directly to the university research team.

Prospera small-business grants

Prospera has been helping Hispanic entrepreneurs start new businesses in Florida since 1991. This nonprofit economic development organization works with new and existing Hispanic business owners to help ensure they have the tools and resources needed to succeed.

Prospera grants are awarded on an individual basis and provide for professional services related to legal and accounting assessments, business plans, QuickBooks consulting, marketing plans and brand kits at no cost to the business owner.

Enterprise Florida trade grants

Florida export businesses can apply for a variety of business grants through the Florida Export Diversification and Expansion Program. Grants are offered for marketing plans, website localization, market development and trade shows.

Some basic eligibility requirements for an Enterprise Florida trade grant are that the business be located in Florida, be in operation for a minimum of two years, employ between three and 500 workers and have annual sales of $250,000 or more. Each individual grant has additional eligibility requirements.

Florida Small Business Development Center (SBDC) Network

Through the Florida SBDC State Trade Expansion Program, eligible export businesses can be reimbursed for export credit insurance, marketing plan costs and certain expenses related to trade shows and U.S. Department of Commerce promotional events. Limits for reimbursement depend on the expense, but there’s a maximum of $15,000 per funding period. To be eligible for the grant, a business needs to be new to exporting or plan to use exporting to expand their business, among other requirements.

Floridians also have access to professional business consulting services through the SBDC at no cost. Certified consultants can help you with business planning, management, marketing, financial analysis, funding, international trade, cybersecurity and disaster preparedness. Also available are on-demand videos as well as live workshops and seminars, which may require a nominal fee to attend.

City of Orlando Business Assistance Program

The Business Assistance Program (BAP) is a matching grant administered through the Economic Development Department (EDD) with the goal of promoting small-business development and expansion in Orlando, Florida. Business owners will be responsible for 50% of eligible development fees, while the EDD will pay the remaining 50% — up to $20,000.

BAP can be used to help with transportation impact fees, permits and other development fees, as well as improvements such as sidewalk repairs, water line construction, street improvements, landscaping, street lighting, curb improvements and electric vehicle charging infrastructure.

Small-business owners must get city approval and the proper permits for their project before they can receive financing. Businesses must be located or relocating to the city of Orlando and be a small business as defined by the U.S. Small Business Administration.

North Miami Community Redevelopment Agency grants

North Miami CRA, an independent government agency, offers a number of commercial grant programs, including the Business Attraction Grant, Beautification and Enhancement Grant, Rehabilitation Grant and Capacity Building/Retention Grant. Grant maximum amounts range from $7,500 to $150,000, depending on the program.

Each program has specific requirements, but general eligibility requirements include that the business be within (or moving to a building within) the designated North Miami geographic boundary and the projects must show benefits to the community. The Business Attraction Grant and the Rehabilitation Grant require a 50% match by the business.

National grants available to Florida small businesses

You may also want to consider these national business grants to help fund your Florida small business.

WomensNet grants

Women entrepreneurs and small-business owners in Florida should be aware of the grants offered by WomensNet. This includes Amber Grant awards of $10,000 or $1,000 each month and a year-end Amber Grant worth $25,000. Other grants include the $10,000 Startup Grant awarded quarterly, $10,000 Business Category Grant awarded monthly and the annual Marketing Grant for marketing planning support.

To be eligible, a business needs to be at least 50% woman-owned and based in the U.S. or Canada. By completing one application, you’ll be considered for all the available grants. In addition to contact information, the application will ask you to explain your business and how you would spend the grant money. There is an application fee of $15.

National Association for the Self-Employed (NASE) grant

NASE offers business development grants of up to $4,000 to small businesses and startups based in the U.S. It has awarded almost $1 million in small-business grants since the program began in 2006.

To be eligible for a NASE Growth Grant, you must be an active member of the organization for at least 90 days. In addition, you must demonstrate financial need, provide details on how your business will use the grant money, describe how receiving this grant will help your business thrive and provide a copy of your company’s business plan. You can join NASE for $11.95 a month.

FedEx Small Business Grant Contest

The FedEx Small Business Grant Contest awards grants to small businesses across the U.S. each year. Typically, FedEx reserves this grant money for small businesses with innovative ideas and those demonstrating the greatest financial need. In 2023, FedEx named 10 grand prize winners to receive $30,000 and $1,000 in print services through this program.

Your business must be for-profit and have fewer than 99 employees to be eligible for the grant. Also, you’ll need to open and use a FedEx business shipping account. Additional eligibility requirements may apply.

America’s Seed Fund

Through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, America’s Seed Fund offers grants designed to help U.S. small businesses in the technology sector.

For your business to be eligible for this grant, it must be U.S.-owned, for-profit and focused on research and development. You also must have fewer than 500 employees. To apply, you’ll submit a proposal that will be reviewed and may receive feedback to further refine your concept. Award amounts can range from $50,000 to nearly $2 million, depending on the phase of development.

Tips to find the right Florida small-business grant for you

The process of applying for small business grants may seem challenging, particularly as you’re trying to get your business off the ground. Here are some tips to keep in mind as you explore grant opportunities.

Schedule time for grant applications

Because starting a new business is often extremely time-consuming, it can be helpful to schedule time once a week or more to search for and apply to eligible grant opportunities. Be sure to thoroughly research eligibility requirements to ensure your company fits all of the grant’s criteria before allocating time to the application process.

Expand your search efforts

Look into local small-business grants in your area as well as explore demographic-specific searches that may apply to you or your business, such as:

Weigh grant application fees

Another important factor in applying for small-business grants in Florida is considering application fees. When you research eligible grants, consider the cost of applying versus the benefits you’ll receive. Keeping track of all possible grants you’ve researched, as well as their fees, can help you prioritize your application for affordable or no-cost grants.

Keep alternative funding in mind

Applying for small-business grants in Florida does not guarantee you’ll receive assistance or the amount you wanted. Grants are especially competitive because they provide debt-free funding. If you don’t receive grant money for your Florida business, there are other funding options to explore. Consider small-business loans, such as SBA loans. Your local Florida small-business bank may also be able to connect you to opportunities. Additionally, you may want to consider business credit cards or crowdfunding options to help fund your business.

Courtney Johnston, a freelance writer, contributed to this article.

A version of this article originally appeared on Fundera, a subsidiary of NerdWallet.

Source: nerdwallet.com

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Do you need life insurance at age 55?

At this age, if you aren’t already thinking about life insurance, you should be. Term life insurance often comes up when speaking of life insurance for people of this age. This is because it not only offers a large number of benefits, but it comes at little cost to the policyholder.

With as many options as there are available in this day, it is often hard to sort through them all and find one that is most suitable for your needs. Every individual is different in his needs both financially and personally so it is hard to apply a one-size-fits-all policy pertaining to life insurance. Many may find that life insurance without exam is the best for their needs at this time in their life.

Fortunately, the Internet proves to be a vast resource for shopping and comparing rates on life insurance. There are plenty of tools online that make it easy to compare rates and benefits of life insurance. The amount of life insurance companies present online is extraordinary so comparing between multiple companies comes with ease.

Life Insurance and Your Financial Future

Perhaps one of the most popular forms of life insurance for someone of age 55 is term life insurance. Cheap term life insurance will financially cover your survivors in the event of death by taking care of basically all of your debts and bills.

Additionally, term life insurance can also cover funeral expenses as well as any leftover medicals debts. With all of these benefits, it is not difficult to think that these types of life insurance policies may come at a high price. The fact of the matter is that term life insurance for those of the age 55 is surprisingly inexpensive given all of the benefits.

A 55 year old male can obtain a $250,000 policy for as little as $19.69. A $200,000 policy will run a 55 year old male $45.56 a month.

Sex 10 Year 20 Year 30 Year
Male Protective – $38.97/month SBLI – $66.56/month Banner – $136.06/month

Female Protective – $30.04/month SBLI – $51.11/month Banner – $98.00/month

As you can see, this rate is surprisingly affordable. Of course these rates are quoted for an average male who is considered healthy with no pre-existing conditions. Regardless, the benefits that come with these affordable rates are boundless. For as little as a couple of dollars a day, you can live with the peace of mind knowing your family is financially protect in the event of your absence.

It is okay to not comfortable searching for life insurance policies on the Internet, you can always look locally for advice from an insurance agent who specializes in life insurance. Life insurance is fairly simple to obtain but sometimes a little guidance may be necessary, especially if you have special conditions that need to be considered.

Having pre-existing conditions or something of the like that can affect your rates negatively, do not give up hope.

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Finding the Best Rates for 55 Year Olds

The best thing you can do to make sure you are getting the lowest price on your life insurance premiums is to work with an independent agent that knows the over 50 life insurance market. 

What we do is work with all the companies that will view your individual case in the best light.  That way you get to choose which plan works best for you and the needs of your family. 

There are plenty of options still available for you and having someone who is knowledgeable in life insurance is always helpful.

Source: goodfinancialcents.com

Apache is functioning normally

Two things compelled Randy Wells, an industry veteran with an extensive furniture background, to accept the job of president of Park Hill in June: its reputation as a well-run family business that put its customers first, and the opportunity to expand the brand in new directions.

Park Hill President Randy Wells

Plus, there is what Wells considers Park Hill’s signature strength: its ability to portray a design aesthetic so well that customers can go to market, immediately understand a story and work with a salesperson to apply that aesthetic to their store in a way that’s right for their customers.

“We are extremely good at that,” said Wells, who sat down with Home Accents Today during the recent Atlanta Market to talk about his new role at the home décor company, which was acquired by The Gerson Company in February.

Wells started his career in home furnishings at Bassett Furniture in the mid 90’s. He later worked at Century Furniture in its outdoor division; led product and creative design for Stanley Furniture; ran Valtekz, a synthetic leather company; served as vice president of Las Vegas Design Center; and most recently served as senior vice president and creative director at Casa Ispirata, a brand of Italian-designed furniture scaled for American Homes that he helped build and introduce to a U.S. audience.

“When we launched our search for a new president after our recent acquisition of Park Hill, we aligned that we were looking for an individual who had a proven track record in brand strategy, product development and sales,” said Gerson VP Jacob Gerson at the time of Wells’ appointment. “Randy checks all of those boxes and we can’t wait to see this new chapter of Park Hill’s future unfold under his leadership.”

Wells said he was impressed with what he called Park Hill’s “extraordinary heritage of Americana,” on which its farmhouse aesthetic is built. “But the team and their competencies run much deeper than that,” said Wells. He envisions the brand harnessing that in-house talent to stretch in new style directions.

The company’s three biggest product categories in terms of volume are furniture; home décor and accessories by the container; and holiday décor, a category that is new to Wells.

Park Hill Christmas tree

Wells relocated from his home in Florida to Little Rock, Ark., for what he called the “unbelievable people” and strong values at Park Hill and at parent company Gerson.

Park Hill is known for being customer-first, according to Wells. “That’s a hard thing to teach. Our company already has that.”

Naturally those customers have questions, Wells said, about Park Hill’s new ownership and its new president. When asked what he has been hearing from retail customers, Wells replied, “They want to see us take a leadership position in design — for that next big thing that would be unique to their area. I think they want to see us put an emphasis on home furnishings —namely, furniture. Our customers have an affinity for Park Hill and want to know how the new company [ownership] will impact business, and how to continue growth in a slowing economy.

“They want to see us focus on service — we have a strong reputation for taking care of our customers — so the service part is a big deal.”

Facing what many experts believe will be a slower economy in the near future, Wells had a simple response for long-term success: “We can’t control the economy, so that doesn’t keep me up at night. It’s a matter of being a good manager.”

See also:

Source: homeaccentstoday.com

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In this week’s founder interview, we’re bringing you Len Dugow from DASH.

Without further ado…

Who are you and what do you do?

I am the founder and CEO of DASH. I’ve had a 30-plus-year career leading branding and marketing campaigns for some of the nation’s most prominent luxury residential real estate developers and brokerage firms. With the launch of DASH, I am now focused on giving agents access to the most comprehensive database of new development inventory to help them focus on what they do best – sell real estate.

What problem does your product/service solve?

DASH is an online platform created exclusively for licensed residential agents. It gives them access to verified and current development marketing materials, data and insights in a single user-friendly platform for a low monthly fee. It provides a universally desired solution to the universally acknowledged problem of property discovery and identifying accurate developer content, giving our subscribers a  competitive advantage by dramatically reducing research and discovery time, allowing them to realize greater sales at a faster pace.

We are looking to become the “go-to source”  for new development updates and information. DASH provides perfectly formatted marketing materials (photos, renderings, floorplans, brochures, graphics) that can be efficiently accessed and shared anywhere, anytime, under the agents’ personal branding.

Our platform breaks down the barriers and silos that currently disconnect developers from brokerage firms and agents. We’ve created a user-friendly platform that helps sales teams work more efficiently and effectively than ever before.

What are you most excited about right now?

I’m really excited to finally go to market. DASH has been in development for three years now, and it has been a true collaboration with our network of top real estate developers, brokerages and agents. It’s great to see it all come together.

What’s next for you?

We launched the platform’s pilot market in the South Florida tri-county area. Our plans now are to expand into the nation’s top 10 markets within the next 30 months.

What’s a cause you’re passionate about and why?

The most underserved residential category is workforce housing. Local governments and developers need to join forces to figure out how to provide an easy path for all stakeholders. Continuing to kick the can down the road will ultimately create a greater divide that can only lead to further chaos and deterioration of our urban landscape.

Thanks to Len for sharing his story. If you’d like to connect, find him on LinkedIn.

We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop us a line ([email protected]).

Source: geekestateblog.com