Breaking News: Dodd-Frank regulations over new mortgages loans in July 2013 will be a high impact event for the consumer..... Sources in the banking industry are saying an announcement was made today in relation to the implementation of the next phase of Dodd-Frank on the mortgage origination. The biggest impact of the next phase of regulatory gluttony is to the consumer. A consumer will not longer have the ability to purchase life insurance to payoff strictly the outstanding mortgage on their home. The new law will be implemented in 5 months, and this impacts the consumer in choice of life insurance options to payoff the mortgage upon the mortgage customer's untimely death. Thewiseme.com will be verifying these sources for further details, and will report later today on the exact details of the new law when we obtain the copy..... Related articles QM, QRM to Have Huge Impact on Originations (broadcastarchives.net) Reflection: From the Fed to Dodd-Frank, a legacy of corporate … [Read more...]
Breaking News: Mortgage lending will be hit hard under regulations announced today under Dodd-Frank
Consumer recourse on debt collectors bad behavior
Debt Collectors are supposed to be aggressive and persuasive in attempting to collect money on a debt owed. When the debt collector makes threats of legal action and authority only granted to the law enforcement and judicial system, this is an act of impersonating a law enforcement official and it is against the law. In addition, a debt collector making threats on debts that are the responsibility of another owner is further acts of illegality under the law. A consumer should not be scared into paying any monies because a threat of arrest or legal ramifications because it cannot happen unless actions have been taking through the court system where the sheriff and a court date is involved. A friend in California did discuss his recent incident with a debt collector's bad behavior. The reality is what can the consumer do to avoid a potentially embarrassing situation. This is not legal advice, but actions can be taken to handle on of these disturbing calls. First, a third … [Read more...]
The Personal Finance Revolution: All Americans are in this situation together
The financial literacy crisis is a negative impact in American society, and impacts all socio-economic groups from the wealthiest to the poorest in society. Personal finance has a high impact in an American's life from the day of birth until the end of life on this Earth. The current personal finance integration in society is basically tribal knowledge being passed down from one generation to the next. The attitude on personal finance in our society is a major catalyst to many problems faced in our nation. No matter conservative or liberal, the following statements are true about the impact of the financial literacy crisis in American society. The following issues are a direct result of financially illiteracy and the negative impact in society. ...Consumer Weakness and Demand is weak in the economy: The widespread financial health of a community impacts the economic health of the nation. The financial health of the consumer is unhealthy and the impact is consumer weakness and … [Read more...]
The losing battle of credit unions and consumer protection as election looms
Washington, DC- The Credit Union National Association (CUNA) it the association in the forefront of the Membership Business Lending legislation in Congress. The 2012 Election season is fast approaching a finality. The credit unions and CUNA are squandering an opportunity to shape the dialogue in this campaign to pressure a deadlock Congress to pass legislation to raise the caps of business loans in relation to total assets up to 27.9%. This increase would be a influx of competition, and serve a market being under served by the commercial banking industry. What are the issues behind the complacency? The Consumer Financial Protection Bureau has shed the mantle of being the unique bureaucratic structure in Washington. A mountain of papers are sitting on the desk for review to change customer disclosures. A former banker of 13 years do not allow the clarity to full grasp all the proposed changes. In addition, the bureau made a decision that home mortgages going through the … [Read more...]
Politics is personal finance for Election 2012
The foundation for any discussion this Political Season is Personal Finance. The talking points in politics of creating jobs, regulation redundancy in financial reform, education funding for our nation is worthless with an underclass of one in three Americans being out of using mainstream financial services in America. First, small business and innovation is the job creators in the US economy, and a young poor person with a marvelous business idea is less likely to find a sponsor or bank to grant that opportunity as my father was granted thirty years ago. Second, consumer centric financial model in the area of financial services with some 1970's localism and 2012 technology to make the system around each consumer needs and tailored experience. Third, our education system does educate about safe sex before graduation of high school, but we fail to integrate our children in personal finance, credit, and how to save or start a small business. The financial health of the consumer … [Read more...]
The Financial Cold War: Banks vs Consumer
THE CREDIT CRISIS COLD WAR: BANKS VS CONSUMER-THE COLLAPSE OF A CORE RELATIONSHIP- PART ONE: THE CONSEQUENCE TO THE REAL ECONOMY. Economic Downturns are not uncommon in a free market economy, and the United States in the post war era have experienced downturns and economic stagnation that threaten to permanently damage our system. Previous recessions were followed by a statistical and realized recovery. Our current situation differs because this recession was a result of the credit collapse that involved a factor of trust. Removing other variables, the factor of trust was a primary component to our previous recoveries because banks had confidence in the consumer, and the consumer had faith in the banking system. Since the Great Depression, the core belief in our system allowed the consumer and banks to conduct business with continued faith in each other, and the foundation for recovery was a given in the past due to this shared confidence. Banks would respond to the central banks … [Read more...]
Personal Financial Literacy in America: Shackles
In a consumption society, the 2008 credit failure has altered the spending habits of all Americans including the death of mega consumption economy, which accounts for 70% of Gross Domestic Product (GDP). The collapse in property prices, job market collapse, and the collapse in the stock market were catastrophic to the finances of the consumer. The banks are being an advocate of immediate profits in lieu of the moral responsibility to the economic literacy and health of the community. Banks provided easy money, no win loan products, and services to rake in fee income. Banks are regrouping from credit losses and the tightening of existing credit in closing or reduction on credit cards, equity lines, and business credit lines and issuance of new credit to all borrowers including creditworthy business and consumers. The tide of easy money is not available in the post crisis world. The consequence of a post debt gorge is consumer whose are debt rich and savings poor. The attitude on finance … [Read more...]
Banks face uncertain times in lieu capital liquidity requirements, Congressional inaction, and IMF warning
Bad news in banking was the real story in the same day at the markets surge on positive economic data. Federal Reserve new capital requirements, totally defunct Congress leaving for recess with no extension of the payroll tax cut or unemployment benefits, and the IMF warning on world economy were a combination of news stories via the Drudge Report with major impact for the banking industry. The surge in stocks were followed by Monday's routing of bank stocks due to uncertainty in Europe. The commonality of all these issues for the banks is uncertainty. The new capital requirements will place additional strain on Bank of America. The bank has taken a beating in stock price, foreclosure practices, and consumer satisfaction to question the viability of the bank to survive the ongoing challenges. Second, a tax increase and unemployment benefits ending for many Americans in lieu of a deadweight Congress will be a tipping point for consumers who were able to keep up payments on … [Read more...]
Synopsis: The negative impact of financial reform to the consumer
A synopsis of financial reform exposes the reality of the present and future negative impact to the consumer, and the elements of reform missing that directly affect the consumer. First, the recent debacle over the bank’s proposed debit card fee is a direct result of financial reform. The transparent system of Visa/MasterCard paying banks for every consumer transaction made using Visa/MasterCard was not a contributor or factor in the financial crisis. The financial reform bill cap these exchange fees for banks. The loss of revenue for the banks is a negative for the consumer. The loss of benefit for the consumer include free checking, debit and credit card rewards, and waiver for annual fees for credit/account fees waivers on debit cards are no more in lieu of financial reform. Second, … [Read more...]
Donnywise.com: Financial literacy opponents, DC community banks, Companies secret hiring policies exposed
December 12-16 will feature content to bring attention to consumer issues in personal finance including financial literacy and employment. The two most important tools are financial literacy and employment to achieve financial health and stability in personal finance. Both issues are at the forefront in determining the future America will be in our principles, character, integrity, and our values in a freedom and prosperity. First, personal financial literacy faces a challenging future in obtaining the recognition in importance as a legitimate problem in society. Opponents argue the fallacy or insignificance in providing financial literacy education because the results are negligible in the positive impact to the financial illiteracy problem in America. Opponents show statistical data of short-term literacy programs as proof of the ineffective nature of literacy education. Donnywise.com will discuss about short term education investment is not the solution to financial … [Read more...]
