financial

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Government officials in flood-prone areas are trying to make it cheaper for homeowners to raise their properties in order to help protect them against the threat. Homeowners are also encouraged to take out flood insurance policies.

Flooding is one of the major threats to homes in low-lying coastal areas, and the problem is being compounded by increasing federal flood insurance premiums.

“The seas are rising, the flood maps continue to get updated, and more homes are in coastal high hazard areas,” Brandi Gabbard, a broker associate at Smith and Associates and a city council member for St. Petersburg, Fla., told the Tampa Bay Times. “We need to be forward-thinking. How we can better help our residents access funding to get them out of harm’s way?”

The Tampa Bay Times notes that more than 35,000 homes in Florida are located in “extreme” risk zones for storm surges, as classified by the National Flood Insurance Program.

Insurance premiums for such homes are likely to increase significantly over the coming years as climate changes increases the threat to those properties. Noah Taylor, a floodplain coordinator for the city of St. Petersburg, told the Tampa Bay Times that rather than just pay for insurance, a better solution would be to raise existing homes.

One St. Petersburg resident did just that. David Noah told the Tampa Bay Times that he raised his entire home on steel beams after seeing the property threatened a number of times by flooding. His 1970s-built home now sits 14 feet above the ground.

Officials in St. Petersburg have been encouraging homeowners to apply for financial assistance via a federal program called the Flood Mitigation Assistance Grant, which helps to pay for renovations on homes that have been damaged by flooding in the past. Homeowners can apply for a grant through their local government, which sponsors their application through the state and national processes. The program is known for its generosity, with $160 million in flood mitigation assistance being allocated each year.

St. Petersburg officials have established a policy of only sponsoring grant applications to homeowners who plan to use the money to elevate their homes. The city will no longer back those applying for cash to demolish and renovate their homes, as it believes elevation projects are easier to get approved, and make more sense. Prevention is, after all, better than the cure.

For those unfamiliar with the task of raising a home, the process is actually fairly simple and can be completed in a single day in most cases. First, the contractor digs around the home and separates it from its foundation – then, steel I-beams are placed underneath the home, which is raised by four hydraulic jacks. The bottom of the home can then be enclosed or converted into a garage space.

The only problem is the cost, which averages around $217,000, though this caan vary quite a bit depending on how big the home is.

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
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Source: realtybiznews.com

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Senators Tina Smith (D-Minn.) and Mike Rounds (R-S.D.) introduced this week new legislation that aims to address a shortage of affordable housing in rural communities. The lawmakers say the bill would represent “the most significant Rural Housing Service reforms [in] years.”

If passed, the bill, known as Rural Housing Service Reform Act of 2023, would “improve federal rural housing programs, cut red tape, and strengthen the supply of affordable housing” and would “improve and build upon a number of U.S. Department of Agriculture (USDA) rural housing programs,” according to a press release from Sen. Smith’s office about the bill.

“This legislation makes important improvements and updates to the Rural Housing Service that will create and preserve affordable housing opportunities in South Dakota,” said Sen. Rounds. “As we face an affordable housing crisis across the nation, I look forward to working with my colleagues to get these important, bipartisan updates signed into law.”

In particular, the bill aims to fix what the senators describe as a “longstanding problem for [515] properties that were financed by the USDA decades ago and now have maturing mortgages, by making it easier for non-profits to acquire those properties and by decoupling rental assistance so that assistance doesn’t disappear when those mortgages mature.”

Otherwise known as “rural renting housing loans,” USDA Section 515 loans are “direct, competitive mortgage loans made to provide affordable multifamily rental housing for very low-, low-, and moderate-income families, elderly persons, and persons with disabilities.”

The bill would make it easier for non-profits to acquire properties with Section 515 loans. It would also decouple the related rental assistance so that the assistance doesn’t disappear when the mortgages mature.

In addition, the bill would make permanent a USDA pilot program that provides mortgages to Native American communities through partnerships with community development financial institutions (CDFIs).

Technology is also a focus of the bill. In addition to the other priorities, the bill would allow the USDA to make better investments in its information technology infrastructure. The senators contend that this would allow the USDA to “process loans more quickly and with less staff time wasted on paperwork or manual data entry.”

Another area of focus are the USDA’s methods of measuring incomes, which are “outdated,” according to language in the bill. If passed, the bill bring those methods in line with the way incomes are measured by HUD.

The bill would also “modernize” the USDA’s foreclosure practices to better ensure affordability, the senators said.

Smith and Rounds have been heavily focused on affordable rural housing issues recently, with both senators spearheading hearings on the topic in order to develop a plan.

“Without a safe, affordable place to live, nothing else in your life works. Not your job, not your education, not your health,” Sen. Smith said in a statement. “We know that the housing crisis is hurting communities across the country, and the problem is particularly acute in rural places. This legislation is the direct result of bipartisan hearings and conversations with stakeholders who helped identify ways we can make federal rural housing programs work better for people struggling to find a safe, affordable place to live.”

Natalie Maxwell, managing attorney for the National Housing Law Project, recently told The Hill that approximately 560,000 renters who live in apartments financed by Section 515 are under threat due to the mortgages maturing or due to a loss of eligibility related to other reasons.

“In rural communities, the Section 515 program has been a critical source of affordable housing especially for low-income seniors and people with disabilities,” Maxwell told The Hill. “Congress can and must do more to preserve these properties for families living in poverty.”

The U.S. Department of Housing and Urban Development has also turned its attention toward the needs of rural areas recently, including through proposals that seek to expand broadband internet access to a greater number of rural communities.

Source: housingwire.com

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[Note from editor: The “Mastermind Showcase” highlights companies and news from members of the GEM. Today’s showcase: Flyhomes.]

Flyhomes is a tech-enabled real estate brokerage that boosts the financing power for its clients with products such as Cash Offers and Guaranteed Offers, as well as Trade Up. The company operates in Greater Seattle, Portland, San Francisco Bay, Southern California, and Boston areas, its W2 business model enables greater control over the consumer experience and more strategic flexibility compared to traditional agents.

Founded in 2015, the company has since raised $160 million, in 4 different funding rounds.

Represented in the GEM: Tushar Garg & Steve Lane

Why I wake up excited in the morning:

I am thrilled I get to spend every day helping people with one of the most significant purchases they’ll ever make. We hear over and over that customers find their experience with us to be completely different from any they’ve had — and that they can’t imagine buying a home any other way. I can’t imagine a better job!

What we like: As one of the best capitalized companies, Flyhomes is positioned well to emerge from the ashes of cutthroat competition with a first mover advantage and its steadfast devotion to the consumer. Not to mention, they have a cool brand name that originated as a lifestyle brokerage for millennial travelers.

Learn More

Source: geekestateblog.com

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It’s true that power is a slippery commodity, hard to measure precisely, because it comes in so many different forms. That makes identifying the most influential individuals in the world a daunting task. Metrics and standards can range from political to economic, cultural, or social influence. Nevertheless, we have compiled a list of some individuals who are widely considered to be among the most powerful people in the world.

1. Mohammed Bin Salman

Photo Credit: Shutterstock.

Mohammed bin Salman, also known as MBS, is the Crown Prince of Saudi Arabia and has been a key player in the Middle East in recent years. He became the country’s defense minister in 2015 and has since led efforts to modernize and diversify the Saudi economy, as well as promote social liberalization. MBS has been responsible for implementing economic initiatives such as the “Vision 2030” plan, aimed at reducing the country’s dependence on oil. However, he has faced criticism for his handling of certain issues, such as the conflict in Yemen and his alleged involvement in the murder of journalist Jamal Khashoggi. Despite these controversies, MBS remains a powerful figure in Saudi Arabia and the region; and his leadership shapes the future of the country and the wider Middle East.

2. Pope Francis 

Photo Credit: Shutterstock.

Pope Francis, also known as Jorge Mario Bergoglio, is the leader of the Vatican City State and the Leader of the Catholic Church. He was elected as the 266th Pope in March 2013 and is renowned for his liberal perspectives on social problems like immigration, poverty, and climate change. Pope Francis has stressed the significance of supporting interfaith discourse, assisting the poor and marginalized, and addressing the problem of sexual abuse within the Catholic Church. Additionally, he has been a strong supporter of natural preservation and has traveled to several nations on historic occasions as a pope. He continues to enjoy widespread regard and influence both inside the Church and internationally, despite criticism from some conservative Church factions.

3. Mark Zuckerberg

Photo Credit: Shutterstock.

Mark Zuckerberg, a renowned American entrepreneur and the co-founder of Facebook, has been at the helm of the company’s meteoric rise into a multi-billion dollar platform with billions of users worldwide. Despite being acknowledged as one of the most influential people globally, Zuckerberg has also faced criticism for his involvement in various controversies, including the infamous Cambridge Analytica scandal. In recent years, he has dedicated himself to philanthropic endeavors through the Chan Zuckerberg Initiative, which seeks to advance human potential and foster equality.

4. Bill Gates

Photo Credit: Shutterstock.

Bill Gates, an American entrepreneur and philanthropist, co-founded Microsoft, one of the world’s largest software companies with his childhood friend, Paul Allen, in 1975. As CEO of Microsoft he played a vital role in shaping the personal computer industry, which made him one of the wealthiest people globally. However, Gates has since shifted his focus to philanthropy through the Bill and Melinda Gates Foundation, which is among the world’s largest philanthropic organizations that support global health, education, and climate change initiatives. Gates has received numerous awards for his philanthropic work and is recognized as one of the world’s most influential people. Despite his success, he has faced criticism for his business practices and views on intellectual property rights and technology’s role in society. Nevertheless, his impact on the technology industry and philanthropic efforts have established him as one of the most significant figures of the modern era.

5. Elon Musk

Photo Credit: Shutterstock.

Elon Musk, an entrepreneur born in South Africa and based in the United States, has played a pivotal role in a number of cutting-edge companies, including PayPal, Tesla, SpaceX, Neuralink, Twitter, and the Boring Company. By spearheading these ventures, Musk has spurred transformative advances in areas such as transportation, space exploration, social media, and renewable energy. Though he has faced criticism for his management style and controversial social media commentary, Musk’s forward-thinking mindset has earned him recognition as one of the most influential figures in the world. Along with his dedication to technology and innovation, Musk has demonstrated a commitment to philanthropy by contributing to charitable initiatives, such as COVID-19 relief efforts and renewable energy research. As the most followed individual on Twitter, Musk’s funny yet controversial comments have garnered widespread attention. Nevertheless, his steadfast focus on building a sustainable future remains unwavering.

6. Jeff Bezos

Photo Credit: Shutterstock.

Jeff Bezos is an American entrepreneur and founder of Amazon, the world’s largest online retailer. He has expanded Amazon’s offerings beyond books to include a vast range of products and services. Bezos also founded Blue Origin, a space exploration company, and owns The Washington Post. Despite his success, Bezos has faced criticism for Amazon’s impact on workers, competition, and the environment. In 2021, he stepped down as Amazon’s CEO but remains involved with the company as its executive chairman. He has also engaged in philanthropic efforts, including the Bezos Day One Fund that supports education and homelessness initiatives.

7. Angela Merkel

Photo Credit: Shutterstock.

Angela Merkel is a German politician who served as the Chancellor of Germany for 16 years, making her the longest-serving democratically elected head of government in the European Union. She is known for her pragmatic approach to governance and commitment to European integration and international cooperation. Merkel played a key role in shaping Germany’s response to the global financial crisis, the European migrant crisis, and the Covid19 pandemic. She has been recognized for her leadership on issues such as climate change and gender equality. She stepped down in 2021, leaving a significant legacy as a leader in Germany and the European Union.

8. Vladimir Putin

Photo Credit: Shutterstock.

Vladimir Putin is a former intelligence officer and Russian politician who has served as the President of Russia twice, from 1999 to 2008; he took on the presidency again in 2012 and is still serving. He has also held the position of Prime Minister of Russia twice. Putin has been credited with stabilizing the Russian economy and expanding its global influence but criticized for his authoritarian style of governance, suppression of opposition, and handling of conflicts such as the Chechen war, annexation of Crimea, and currently the Ukrainian war. Putin is known for his strongman image, sports interest, and promotion of traditional Russian values, and remains a controversial figure both domestically and internationally.

9. Joe Biden

Photo Credit: Shutterstock.

As the President of the United States, Joe Biden holds a position of significant global influence and is widely considered to be one of the most powerful people in the world. His decisions and policies have far-reaching implications not just for the United States, but for other nations as well. As the overseer of the world’s largest economy and military, He addresses pressing global issues such as climate change, trade, and international relations. Therefore, it is safe to say that Joe Biden’s actions and decisions have had and will continue to have a major impact on the course of world events as long as his president.

10. Xi Jinping

Photo Credit: Shutterstock.

Xi Jinping is one of the most powerful men in the world, having consolidated his power and reshaped China’s political and economic landscape since becoming General Secretary of the Communist Party of China in 2012. He has centralized power and cracked down on corruption, while also taking a more assertive stance on the global stage with his “Chinese Dream” policy. His leadership style, emphasizing nationalism and loyalty to the Communist Party, has made him popular with many Chinese citizens but has raised concerns about human rights abuses and political repression. Despite these concerns, Xi’s power remains strong, with no sign of weakness since the Chinese Communist Party abolished term limits in 2018.

These individuals are just a few among the many who hold significant influence over the world today. Their actions and decisions shape politics, economics, culture, and society, and their impact will continue to be felt for years to come.

Image Credit: Shutterstock – Denis Makarenko

Who is one actress you can never stand watching, no matter their role?  After polling the internet, these were the top-voted actresses that people couldn’t stand watching.

10 Actresses People Despise Watching Regardless of Their Role

These 7 Celebrities are Genuinely Good People

Photo Credit: Shutterstock.

We’ve all heard the famous adage that “no publicity is bad publicity,” and while it tends to be accurate, there are certainly exceptions. But what about those few stars who stay out of the limelight and get along without a hint of trouble? 

These 7 Celebrities are Genuinely Good People

Photo Credit: Shutterstock

Have you ever known someone and thought you liked them—until you learned about their hobbies? Then you get to know them and then you’re like, “Wow, red flag.” Well, you’re not alone.

These 10 Activities Are an Immediate Red Flag

Photo Credit: Shutterstock.

Some celebrities definitely seem to enjoy the limelight and keep working to stay in the public eye. While others quickly move out of the spotlight. Many of these actors and actresses stepped out of the spotlight to live a more private life without constant media pressures.

10 Celebrities That Made the Big Times Then Disappeared Off The Face of the Earth

Image Credit: Troma Entertainment

We’ve all been there – sitting through a movie that we can’t help but cringe at, but somehow it still manages to hold a special place in our hearts.

These 10 Terrible Movies Are Still People’s Favorites



About the Author



Source: financequickfix.com

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M

ortgage interest rates are at the highest levels that Britain has seen for years, since August 2008 and the financial crisis.

The average two-year mortgage rates hit a 15-year high of 6.66% today, surpassing the peak hit in the wake of last year’s mini-budget.

rate on a two-year deal is up from 6.63% yesterday, according to data from Moneyfacts.

Additionally, lenders, brokers and property experts are warning high mortgage rates could keep rising.

Last month, the Bank of England raised the base rate to 5 per cent last month – the most it has been for 15 years – which caused concern across the country.

Analysts have warned that many households will feel the “intense pain” of crippling costs. The increase has led to the average cost of fixed-term mortgages rising to levels Brits had not seen since November 2022, when then-Prime Minister Liz Truss tried to push through her tax cuts, which spooked the markets and caused rates to rise.

Labour and said that, not including the latest hikes, Brits were already paying much more than their neighbours. It said a UK mortgage for a typical household costs £2,000 more a year than in France.

The European Central Bank showed that interest rates on average were 2.91 per cent in France, 3.61 per cent in Belgium and 3.89 per cent in Germany.

Labour said this means that for a £200,000 loan paid back over 25 years, annual UK mortgage payments are around £1,100 higher than in Belgium and Ireland, and about £800 more than in Germany and the Netherlands.

Chancellor Jeremy Hunt last week agreed measures with banks to help abate the panic being felt by homeowners, including giving people struggling with repayments a 12-month grace period before repossessions begin.

In recent weeks, mortgage lenders have increased rates and withdrawn offers rapidly, raising expenses for homeowners looking for new agreements.

Since the majority of households have fixed rate agreements, this won’t instantly have an impact on everyone. However, as these agreements end, homeowners will face an increase in borrowing prices of an average of £2,900, predicted think tank the Resolution Foundation.

Between July and September, over 400,000 people will see their current fixed packages expire. Many will have to plan their finances to accommodate monthly repayments that are several hundred pounds more expensive than they are used to.

Why are mortgage rates rising?

The Bank of England base rate is the key factor in setting mortgage rates.

Recent high inflation and pay increases indicate that interest rates will probably rise more than anticipated, increasing borrowing expenses.

How are mortgage rates linked to interest rates?

Only some mortgage rates are affected by interest rates. How much these will affect your mortgage depends on what type you have. Take a look at our guide to mortgage types for first-time buyers for more information.

If you are on a fixed-rate mortgage, you don’t need to be immediately concerned about an increase in interest rates. Regardless of whether interest rates increase or decrease over the agreed-upon time frame, whether that’s two years, three years, five years or more, your mortgage rate and monthly payments will not change.

You will, however, automatically switch to your mortgage lender’s standard variable rate (SVR), which is determined by the Bank of England base rate, after your fixed term expires. You’ll probably pay a higher interest rate on your mortgage if this has increased and your monthly payments will go up.

Discounted, tracker or SVR mortgages are usually affected by interest rates, therefore, if you are on one of these mortgages you can expect increases.

What is the next interest rate decision?

The Bank of England’s Monetary Policy Committee will next convene on Thursday, August 3, 2023, to determine the appropriate level for interest rates.

The current bank rate is 5 per cent. It is expected that this will increase even further in 2023.

When might mortgage rates go down?

Mortgage rates decreased after reaching their peak in the autumn of last year, but due to inflation that has remained close to a record high, they have recently increased once again.

As a result, some experts now predict that the Bank of England will keep raising interest rates in 2023, and several lenders such as Natwest are preparing for this by raising mortgage rates.

In a sign that even higher rates could be on the way, the number of products on the market fell by 300 in the space of a day, to the lowest since February.

Top lenders such as Halifax, Nationwide and NatWest have all repeatedly pulled mortgages from the market this year in order to reprice them at higher rates.

Today, representatives from some of the UK’s top banks and building societies said the Bank of England’s base rate was likely to keep rising for the rest of the year, meaning little sign of a let-up for mortgage holders in the short term.

Henry Jordan, home commercial director at Nationwide said: “The market-implied view is that the base rate is to rise to 6.5% and then they might be reduced to about 4% over the next couple of years.”

What is the government doing about it?

Former Bank of England deputy governor Sir Charlie Bean said earlier this month that it would be “risky” for the government to intervene in order to protect mortgage holders from increasing interest rates.

Instead of discussing new ways to help, Rishi Sunak pointed to existing support for first-time buyers that has been introduced to help get them on the property ladder.

The prime minister said: “There is also support available for people – we have the mortgage guarantee scheme for first-time buyers, we have the support for mortgage interest scheme to help people as well. That’s why one of my first priorities is to halve inflation.”

The best person to speak to about your mortgage is your lender or a mortgage broker to find out the rates at which you can remortgage.

Source: standard.co.uk

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Backlash as banking boss branded ‘out of touch’ for saying mortgage rates should be even HIGHER and insisting lenders have not acted badly amid interest increases

  • Bank boss said he rejected idea that biggest banks were ripping off customers 
  • Lenders are criticised for making measly increases in rates offered to savers
  • Bank of England Governor Andrew Bailey backed calls to offer better returns 

By Luke Barr Senior Business Reporter

Published: 19:23 EDT, 14 July 2023 | Updated: 19:32 EDT, 14 July 2023

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The boss of a banking group has been accused of being ‘out of touch with reality’ for suggesting mortgage rates should be even higher.

David Postings, chief executive of UK Finance, said he rejected the idea that the biggest banks were ripping off customers – and claimed individuals could still find attractive rates if they ‘put some thought into it’.

His comments come despite a number of senior public officials saying savers should receive better rates. Lenders have been criticised for making measly increases in rates offered to savers while ramping up borrowing costs for mortgage holders.

Chancellor Jeremy Hunt and Bank of England Governor Andrew Bailey have backed calls for banks to offer better returns.

Mr Bailey said on Wednesday it was ‘important that rates get passed through’. But Mr Postings, who leads Britain’s banking and finance lobby group, told the Mail that lenders have not acted badly.

Robin Bulloch, chief executive of TSB (left), and David Postings, chief executive of UK Finance, leave the offices of the Financial Conduct Authority (FCA) in London

David Postings, chief executive of UK Finance, said he rejected the idea that the biggest banks were ripping off customers

He said banks’ net interest margins – the gap between borrowing and saving rates – were not ‘egregious at all’. That is despite the biggest lenders raking in £44billion last year by raising borrowing rates by more than they pay savers. Mr Postings said: ‘I don’t think that banks are profiteering.

‘Net interest margins have improved a bit, but if you go back to pre-pandemic, they are not much higher than they were then. The market is ok.’

Mr Postings suggested banks could actually be earning more on mortgage rates, which have spiked since the Bank increased its benchmark from 0.1 in December 2021 to 5 per cent today. The average rate on a two-year fixed-term mortgage deal rose to 6.78 per cent yesterday, according to financial website Moneyfacts. Despite this, Mr Postings said banks’ mortgage margins have been ‘compressed significantly’.

‘Mortgages should be priced higher than they currently are. Obviously, nobody wants that,’ he said.

A backlash over his comments was led by Labour’s Dame Angela Eagle, a member of the Commons Treasury committee, who said they were ‘self-serving’ and ‘out of touch with reality’.

She added: ‘The system is geared to build profits for banks. What they’ve made on the difference between what they pay borrowers and savers, there are billions of pounds of extra profits.’ Dame Angela also criticised Mr Postings’ remark that savers could find better rates ‘if prepared to put some thought into it and move money around’. She said families should not be expected to ‘spend all their spare time’ looking at rates.

Smaller banks have also criticised rivals for profiteering. There has been some progress since the FCA summit with signs that savings rates have started to improve

There has been a growing chorus for the main lenders, including Barclays and HSBC, to do better for millions of customers who are seeing the value of their savings eroded by high inflation. MPs on the Treasury committee have been questioning banks on the issue since earlier this year but complained last week that rates still seemed too low.

They noted that the rates on easy-access savings accounts at the big four banks were between 0.9 per cent and 1.7 per cent. The MPs questioned whether customers were being offered fair value or instead being ‘exploited’ because of their loyalty. Mr Hunt last month accused banks of dragging their feet on the issue and pledged to take action to get a better deal for savers.

This was followed by a meeting between bank bosses and the Financial Conduct Authority earlier this month when the regulator urged lenders to raise rates for savers.

Smaller banks have also criticised rivals for profiteering. There has been some progress since the FCA summit with signs that savings rates have started to improve.

Atom Bank chief executive Mark Mullen told this newspaper it drove him ‘bloody bananas’ when ‘hand-wringing bankers talk about supporting customers but are not passing on interest rate rises to savers’.

Jenny Ross, editor of Which? Money, said: ‘The FCA must continue to monitor the situation to ensure banks do the right thing and pass on higher interest rates to savers – and take tough action should firms continue to drag their heels.’

Source: dailymail.co.uk

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The Consumer Financial Protection Bureau (CFPB) this week filed an amicus brief in a Maine Supreme Judicial Court in a case involving a married couple’s loan, joining with state officials including the attorney general, its Bureau of Financial Institutions and Bureau of Consumer Credit Protection.

The Maine state agencies filed the lawsuit, Franklin Savings Bank v. Bordick, under the federal Truth in Lending Act (TILA) on behalf of a couple that took out a mortgage in 2008 in order to purchase land for the construction of a new home. While they sold the home in 2014, the sale proceeds were not enough to cover the debt since the home lost value during the 2008 financial crisis.

In an effort to cover the deficit, the couple took out a new loan and made regular payments for nearly four years. The dispute emerged at the end of the loan’s term, the CFPB explained.

“[A]t the end of the loan’s term, the couple was unable to make the balloon payment that was due,” CFPB said. “When they failed to pay the whole amount, the bank sued, and the couple tried to present evidence that the bank had not provided them with disclosures required by [TILA] or determined that they could repay the loan. The bank has argued that because the loan documents stated that the loan had a commercial purpose, the law does not apply.”

However, the brief filed by the CFPB explains the Bureau’s firm belief that “why the consumer borrowed the money – not the label that the company sticks on the loan – determines whether the loan is covered by the law,” the agency said.

“[L]enders can’t escape coverage under [TILA] by labeling their loans as ‘commercial,’” the Bureau said. “As many courts have held, and as the law clearly states, the borrower’s purpose for taking out the loan determines whether the law applies.”

The CFPB goes on to cite U.S. Supreme Court case law which previously noted that TILA’s language “evinces the awareness of Congress that some creditors would attempt to characterize their transactions so as to fall one step outside whatever boundary Congress attempted to establish.”

Letting lenders “escape coverage just by sticking a particular label on their loans” would also be inconsistent with the intention of TILA, the CFPB added.

Source: housingwire.com

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Depending on the loan amount you need and where you’re buying a home in Vermont, you may find it difficult to find financing beyond the conforming loan limits. If this is the case, you may need a jumbo loan.

What is a jumbo loan?

So, what exactly is a jumbo loan in Vermont? A jumbo loan is a mortgage loan that allows borrowers to finance a property that exceeds the conforming loan limit (CLL) set by the FHFA. In simpler terms, a jumbo loan is a specialized mortgage that enables you to borrow more money than you would be able to with a conventional loan. These loans are typically used to finance high-end or luxury properties in areas with high home prices.

If you’re considering purchasing a home that requires financing beyond the conforming loan limit, then you’ll need to go for a jumbo loan. It’s important for homebuyers to understand the requirements and implications of obtaining a jumbo loan in Vermont. For instance, borrowers typically need a higher credit score and a larger down payment to qualify for a jumbo loan.

What is the jumbo loan limit in Vermont?

In Vermont, the conforming loan limit is $726,200 across all counties. For example, if you’re buying a home in Windsor County, where the median sale price is $393,000, a loan limit exceeding $726,200 would be considered a jumbo loan.

Keep in mind that the amount being borrowed is what determines whether or not you’ll need a jumbo loan, not the price of the home. So, if you were to put $100,000 down on a $780,000 home in Windsor County, the mortgage would be $680,000, which is under the CLL for this area. In this case, your loan wouldn’t be considered a jumbo loan.

For more information on the conforming loan limit in your county, use the FHFA map.

What are the requirements for a jumbo loan in Vermont?

To qualify for a jumbo loan in Vermont, borrowers must meet stricter requirements than they would for a conforming loan. Each lender may have different requirements or processes, but below are the typical requirements for borrowers seeking a jumbo loan.

Higher credit score: To qualify for a jumbo mortgage, borrowers typically need to have a credit score of at least 720. However, some lenders may be willing to accept scores as low as 660, although less frequently. A higher credit score demonstrates a borrower’s ability to manage credit responsibly and is an important factor that lenders evaluate when reviewing jumbo loan applications.

Larger down payment: Jumbo loans typically require larger down payments than conventional mortgages. While the exact amount varies depending on the lender and the borrower’s financial situation, down payment requirements for jumbo loans can be as high as 20% or more. That said, some lenders may offer jumbo loans with down payments as low as 10%, provided the borrower meets certain credit and income requirements.

More assets: Jumbo loan borrowers are typically required to have additional assets. In particular, lenders may require borrowers to demonstrate sufficient liquid assets or savings to cover one year’s worth of loan payments.

Lower debt-to-income ratio (DTI): Lenders look at a borrower’s DTI (debt-to-income ratio) to assess their creditworthiness and spending habits. For a conforming loan, a DTI as high as 50% may be acceptable to some lenders. However, jumbo loan applicants are required to have a lower DTI, ideally under 43% and closer to 36%. This is because jumbo loans are riskier for lenders due to the larger loan amounts. Borrowers with a higher DTI may still qualify for a jumbo loan, but it could result in a higher interest rate or a stricter approval process.

Additional home appraisals: A home appraisal is required whenever a homebuyer receives financing for their home purchase. However, for jumbo loans, your mortgage lender may require an additional appraisal. In areas with limited comparable property sales, this appraisal can be more expensive than in places with higher sales rates.

Source: redfin.com