By Matt Phillips Published 3:14 pm PDT, Monday, October 22, 2018 A financial assembly line that went haywire a decade ago and contributed to an economic crisis is gearing up again on Wall Street. Back then, one of the products the banks churned out — bondlike investments based on thousands of mortgages — proved far riskier than most had understood when it turned out that the borrowers couldn’t pay. The banking system froze, a financial panic ensued, and the country experienced its worst recession in decades. This time around, a similar kind of investment, called CLOs, is at the heart of the boom. And that’s not the only parallel: The loans are being made to risky borrowers, lending standards are dropping fast, and regulators are easing the rules. While it isn’t necessarily destined to end in a 2008-style collapse, the situation is eerily familiar. Even top Federal Reserve policymakers cited the surging growth of this market as a reason to … [Read more...] about Danger signs as company loans get riskier
Homeowner secured loans
Sections SEARCH Skip to content Skip to site index Economy Subscribe Log In Log In Today’s Paper Advertisement Supported by The C.L.O., a cousin of the mortgage-related product that malfunctioned a decade ago, has become one of ByMatt Phillips Oct. 19, 2018 A financial assembly line that went haywire a decade ago and contributed to an economic crisis is gearing up again on Wall Street. Back then, one of the products the banks This time around, a similar kind of investment, called C.L.O.s, are at the heart of the boom. And that’s not the only parallel: The loans are being made to risky borrowers, lending standards are dropping fast, and regulators are easing the rules. While it isn’t necessarily destined to end in a 2008-style collapse, the situation today is eerily familiar. Even top Federal Reserve policymakers cited the surging growth of this market as a reason to “remain mindful of … [Read more...] about Wall Street Loves These Risky Loans. The Rest of Us Should Be Wary.
Digging into the details of a loan you never have to repay By Michael Taylor September 7, 2018 Many readers reached to sing the praises — or criticize — their experience with reverse mortgages, a kind of loan I wrote about recently. I figured we could all use some further details about the reverse mortgage, which is only available to homeowners over age 62. Express Newsletters Get the latest news, sports and food features sent directly to your inbox. Sign up Print subscribers get a password for your existing account here Most Popular 1 The surgeon’s dilemma: Save the mother or the baby first 2 Review: Grace, grease and greatness at Garcia’s Mexican Food 3 Rules flouted by local Dems 4 Unique job titles that actually exist in San Antonio 5 Fire union clutches victory 6 ‘It’s a wake-up call.’ Sen. Ted Cruz backers react to Beto O’Rourke challenge 7 Council moves forward on Frost building … [Read more...] about Digging into the details of a loan you never have to repay
The letter was not from the county; it was from an alarm company that was trying to sign-up new customers. “If someone's trying to scare you into buying something right away, you should slow down, because panic can affect your thinking,” said Sheryl Harris, director of the Cuyahoga County Dept. of Consumer Affairs. “If you decide you are interested in a service, check out the seller's reputation and get quotes from competitors.” Remember: It’s public information when you buy a house or refinance a loan, so expect to get solicitations from home security companies. Deception 2: Lies, lies and more lies Don’t think you’re safe, just because you already have an alarm system. Door-to-door con artists will try to convince you that they represent (or are working with) your current alarm company to “upgrade” your system. Sometimes, they claim your monitoring service has gone out of business and they have acquired their customers. Fall for … [Read more...] about Complaints about fraudulent security alarm sales are on the rise
Although there is no certainty that a rise in Base Rate will come before the summer is out, there is little doubt that mortgage rates will not get any lower. At a time of heightened economic uncertainty, JEFF PRESTRIDGE looks at the steps that can be taken to control what is for many people their biggest household expense. CHECK YOUR DEAL Low interest rates, which have prevailed for the past ten years, breed complacency among many homeowners. This results in some people paying more for their home loan than they need to. David Hollingworth is a director of mortgage broker London & Country. He says: ‘If you are worried about rising mortgage costs after a Base Rate rise, then you should be questioning whether you are paying too much already. ‘If you have not shopped around for a home loan for some time then there is a danger that you might have slipped on to your lender’s standard variable rate, a mortgage interest rate way higher than the best deals … [Read more...] about Follow our six-step home loan health check for savings