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America’s Fundamental Change in Money, Finance, and Value: Student Debt and Paycheck to Paycheck for 100k Wage Earners

May 21, 2013 By Leave a Comment
Smithsonian in Washington, DC courtesy of donny-wise.com

BB&T Building in Atlanta The guide for America to restore fiscal sanity is recognizing the challenges of the present and future to establish a plan whether it's at an individual level or governmental level.  The government may not act in the manner to restore fiscal sanity or attempt radical policy changes to allow a a financial system flexibility that benefits the people usage of the system. Therefore, the resolution must be individual, and the freedom of the country allows individuals to manage their own approach and attitude to interaction as a part of the financial system. However, the collapse of the government would make individuals have contingent plans more radical than any other time in modern history. Our financial marketplace, regulatory system, and societal competence in personal and business finance is currently unsustainable for the power of America to remain intact. America's fundamental change in money, finance, and value is a map to restore fiscal sanity. … [Read more...]

Filed Under: Donny Wise Live in Personal Finance, PERSONAL FINANCE NEWS, Real Time News Tagged With: , , , , , , , , , , , ,

Banks return to Subprime under a must win scenario

May 12, 2013 By Leave a Comment
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The banking system may not be ready to return to the world of subprime lending, but the time may come for the banks to ease credit standards to afford more people the access to homeownership with a risk based pricing and provisions set in the loan. In the 2008 crisis, these loans were a no win situation for the borrower and eventually the bank. A few tweaks should be considered to make subprime lending a tool for people to rebuild credit and obtain homeownership. The 2008 Subprime loans were never a winning scenario for the client with imperfect credit. The banks can use Subprime lending with a much different scenario than in 2008. The first scenario would be affordability of the borrower on the residential property. Second, the pricing matrix to price in risk for the bank but not price out the borrower. Third, a rewards program would benefit borrowers in rate reductions for making monthly payments on time. This would benefit the banks in providing a second chance to be leaders of … [Read more...]

Filed Under: PERSONAL FINANCE NEWS, Real Time News Tagged With: , , , , , , , ,

The bridge of student loan debt leads to second bubble

May 11, 2013 By 1 Comment
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  USA Today is reporting that a group of bankers are warning the Federal Reserve of the $1 trillion student loan debt crisis having parallels to the housing fiasco of 2007-2008. The student loan debt is larger than the nation's outstanding credit card debt. This poses another problem for the Federal Reserve, but our mentality is debt our way to prosperity. Our children are being sold debt as a way to pay for college when savings and some financing should be a mixture to insure the yolk of debt will not destroy a generation. As a fortunate, college was paid in full and student loans were not as common 20 years ago as today. It is a hard concept to grasp the college graduates of this era with the burdensome yolk of debt as the option to pay for college. If we as a nation change our attitude, schools, parents, and the financial system could work to instruct financial literacy for our children to teach them to save and understand debt. In our free society, the concept of the status … [Read more...]

Filed Under: Donny Wise Live in Personal Finance, PERSONAL FINANCE NEWS, Real Time News Tagged With: , , , , , , , , ,

Why are smaller banks going the way of the dinosaur ?

February 28, 2013 By Leave a Comment
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The end of the road for smaller banks in America. Seeking Alpha was reporting the decline in the number of banks with assets under $100 million dollars in the 4th Quarter of 2012 from 100 in September to 80 in January 2013. Remember, around 1000 small banks control only 2% of the deposits, but originate 40% of the small business loans in the United States. The reasons are a set of challenges that smaller banks are being consolidated, and the executives are looking at consolidations as the ticket out of the new normal in the banking world. First, the Consumer Financial Protection Bureau (CFPB) has come to life with plenty of juicy regulation to run the gambit from small credit loans to mortgage lending. Smaller banks are unable (under $1 Billion) to handle the new regulatory environment with new administrative costs and capital requirements. Many bankers are not looking to the success of their credit union brethren for collaborator as a key to their success, but consolidation is … [Read more...]

Filed Under: Donny Wise Live in Personal Finance Tagged With: , , , , , , , , , , , , ,

Why are smaller banks going the way of the dinosaur ?

February 28, 2013 By Leave a Comment

The end of the road for smaller banks in America. Seeking Alpha was reporting the decline in the number of banks with assets under $100 million dollars in the 4th Quarter of 2012 from 100 in September to 80 in January 2013. Remember, around 1000 small banks control only 2% of the deposits, but originate 40% of the small business loans in the United States. The reasons are a set of challenges that smaller banks are being consolidated, and the executives are looking at consolidations as the ticket out of the new normal in the banking world. First, the Consumer Financial Protection Bureau (CFPB) has come to life with plenty of juicy regulation to run the gambit from small credit loans to mortgage lending. Smaller banks are unable (under $1 Billion) to handle the new regulatory environment with new administrative costs and capital requirements. Many bankers are not looking to the success of their credit union brethren for collaborator as a key to their success, but consolidation is the … [Read more...]

Filed Under: Donny Wise Live in Personal Finance Tagged With: , , , , , , , , , , , , ,

Mortgage, Home Equity, Savings rates via BankRate.com and Treasury rates for Monday

September 10, 2012 By Leave a Comment

  KEY RATES MORTGAGE HOME EQUITY SAVINGS See today's average mortgage rates across the country. TYPE TODAY 1 MO 30-Year Fixed 3.51% 3.61% 15-Year Fixed 2.88% 2.97% 10-Year Fixed 2.99% 3.11% 5/1-Year ARM 2.89% 2.97% 30-Year Fixed Refi 3.58% 3.57% 15-Year Fixed Refi 2.97% 2.93% 5/1 ARM Refi 2.95% 2.81% 30-Year Fixed Jumbo 4.19% 4.22% Rates may include points. SOURCE: BANKRATE.COM SEE MORE KEY RATE DATA KEY RATES MORTGAGE HOME EQUITY SAVINGS See today's average home equity rates across the country. TYPE  HOME EQUITY TODAY 1 MO $30K HELOC 4.58% 4.57% $50K HELOC 4.21% 4.21% $75K HELOC 4.23% 4.22% $100K HELOC 4.08% 4.08% $30K Home Equity Loan 5.68% 5.63% $50K Home Equity Loan 5.35% 5.41% $75K Home Equity Loan 5.33% 5.39% $100K Home Equity Loan 5.30% 5.37% SOURCE: BANKRATE.COM SEE MORE KEY RATE … [Read more...]

Filed Under: PERSONAL FINANCE NEWS Tagged With: , , , , , , ,

Credit union faces lost opportunity as election nears

September 9, 2012 By Leave a Comment
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  The credit union industry has legislation in Congress to increase the lending caps on business loans up to 27.5% of assets. The credit union is not a perfect entity, but they would be flexible via the increase in the lending caps to be a competitor to the commercial banking market who has a new core business model that does not include making consumer or business loans in the communities. The credit union could fill the gap to provide the necessary credit for small business owners to obtain the financing needed to expand and create jobs, but the uncertainty in the political arena and confidence in the banking system is killing the organic growth needed to help restore a real recovery to the economy.   A full disclosure, my professional experience has been in commercial banking and the credit union industry. My forte is commercial and consumer lending, and I realize the current needs in the marketplace. I am in shock the leadership of the credit union … [Read more...]

Filed Under: PERSONAL FINANCE NEWS Tagged With: , , , , , , ,

Economic recovery is not salvation for the banking industry

March 18, 2012 By Leave a Comment

The recovery is taking hold in America, and recovery equals more savings, more lending, and more business start ups. The positive in a recovery is sugar coating of the negative in a recessionary period. A consumer/business owner must have a relationship with a financial company from Wells Fargo  to Ace Cash Express.  A prospective client is embarking on a new banking relationship should commit to research in relation to financial needs, but a character check is an equal qualifier on the determination of  bank in a search. The bank may be a perfect match on products and services, but the CEO is mediocre with some questionable leadership judgements to impact the bank or respective clients.  The CEO is mediocre in leadership; the bank is mediocre in performance irrelevant of the portfolio of products and services.What litmus test  is appropriate in the determination of a great leader. The following article was written for the Consumer Banking Examiner column in early 2010. The CEO of … [Read more...]

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