Accounts – Afarin Rahmanifar Sat, 25 Sep 2021 07:58:48 +0000 en-US hourly 1 Accounts – Afarin Rahmanifar 32 32 Public PPP borrowers leverage the portal Sat, 25 Sep 2021 07:21:46 +0000

In the first six weeks of operation, the U.S. Small Business Administration said more than one million paycheck protection program borrowers have requested direct remittance through a new portal.

Agency officials said the step highlights the effectiveness of the more streamlined process, introduced on August 4 to speed up approvals.

“Our innovative direct forgiveness portal is helping our PPP borrowers get back to doing what they do best – creating jobs and fueling our country’s economy,” SBA administrator Isabella Guzman said in a statement.

In Arkansas, the SBA has granted forgiveness on 41,121 loans, reaching nearly $ 3 billion, through June 30, according to agency records. The SBA has approved 77,073 paycheck protection loans in Arkansas for a total of $ 4.7 billion.

Arkansas forgiveness figures, however, do not include approvals that have been granted since the portal opened last month. “We’re on the right track with the national average and, with a straightforward pardon, I think we’re going to see those numbers increase quite significantly,” said Edward Haddock, SBA district director for Arkansas on Friday.

The direct remittance portal allows borrowers to bypass lender certification and enter paycheck protection program loan data and submit a request for approval. The portal uses a proprietary, artificial intelligence-based platform that is able to quickly determine if a loan is approved, Haddock said.

Previously, borrowers had to compile documents, submit them to their lender for review, and the bank would then conduct a more in-depth review before submitting the application to the SBA.

The Forgiveness Portal is simpler and more efficient, according to Haddock. “It has given the banks a great deal of relief from having to create their own PPP review process,” he said. “We automate the process on behalf of the bank so they don’t have to invest money in it.”

Banks must register and authorize their customers to use the direct forgiveness portal. The system is mainly used by small lenders who used a manual approval process or by banks with limited resources to invest in building a fully automated infrastructure.

According to Haddock, large institutions do not participate because they already have effective systems.

Arkansas Capital Corp. of Little Rock opted for its small business borrowers to submit applications directly.

“For us it was really about efficiency,” said Bert King, senior vice president. “SBA handles authentication and submission, which makes our job a lot easier. “

Arkansas Capital issued approximately 1,200 paycheck protection program loans in two rounds of funding in 2020 and this year.

The pardon approval is working well, King said, noting that the lender approved around 750 loans in the first program cycle in 2020 and 720 of them were granted pardons. “Our approval was 95% in the first round,” King said.

Simmons Bank has not opted for the portal, officials said on Friday. The bank already had a well-run system that paycheck protection program borrowers were accustomed to using, CFO Jay Brogdon said.

“It’s great that SBA has launched this portal, but by the time SBA made this portal available, we already had a portal available to our customers,” Brogdon said on Friday. “It’s very efficient and it’s basically the same, it’s just a Simmons portal. Our clients love it and our lenders love it.”

Customers are used to the existing system, Brogdon said. “It would have created a lot of confusion for our customers to replace an already functional portal with a new one,” he said.

Brogdon said Simmons was moving quickly to get approval for the pardon. Statistics up to June 30 show that Simmons issued $ 976 million in the first round of Paycheck Protection Program loans and that all but $ 141 million have been forgiven. Loan information provided by the bank shows a steady improvement in forgiveness approvals – $ 429 million in program loans were released from the first quarter to the second.

“When you extrapolate that to the third quarter, it won’t be much longer,” said Brogdon. Simmons will release new numbers after the current quarter ends on September 30. “I think we are a lot like the industry in terms of forgiveness trends.”

Lenders initially focused on securing forgiveness for the program’s first round of loans, as most are over a year old. The second round of loans was not closed until May 31, the latter part of the second quarter.

The SBA reports that lenders who choose to allow their borrowers to access the new portal have doubled from 600 when the portal opened to more than 1,400 today.

Paycheck Protection Program borrowers can for the first time complete a forgiveness application using a smartphone, the SBA said. The portal is available to eligible borrowers at

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Points vs credits: their impact on your mortgage fees and monthly payments Fri, 24 Sep 2021 16:00:00 +0000


Whether you are shopping for a mortgage or by exploring a refinance, you may have to deal with the point or credit issue. In short, points and credits are levers you can use to change your interest rate and closing costs. When you “take” points, you’ll pay less over the life of your loan, but you’ll pay more up front in closing costs. And when you “take” credit, you’ll pay less at closing in exchange for a higher interest rate and a higher overall loan cost. Bottom Line: If you plan to own the home for an extended period of time, taking mortgage points usually results in greater savings over the life of a loan, although the costs will be higher upfront.

Below, we detail the impact of points and credits on interest rates, monthly payments and the total cost of a loan.

What are mortgage points?

Mortgage points, also called discount points, reduce your interest rate in exchange for fees. Cost of mortgage points 1% of the mortgage amount and save you 0.25% on your interest rate. If you buy or refinance a home with a $ 250,000 mortgage with an interest rate of 3.50%, a point mortgage would cost an additional $ 2,500 in closing costs, but lower your interest rate to 3.25. %. The lower interest rate allows you to benefit from a lower monthly payment and a lower total loan cost. Points can be purchased at closing (the final step in buying a home, marking the transfer of ownership from the property to the buyer), a process called “rate reduction”.

Lenders usually allow you to purchase multiple discount points, but may limit the amount you can buy to lower your rate. If you buy mortgage points, you will find this information in both your loan estimate and your closing statement.


  • Allows you to save money in interest over the life of your loan
  • Results in a lower monthly payment
  • Can lower your tax bill, since mortgage points are tax deductible

The inconvenients

  • Requires a higher upfront cost at a time when you’re already spending a lot of money
  • May not be profitable if you only own the house for a short time

What is a lender credit?

Just like mortgage points, lender credits allow you to adjust your interest rate and upfront costs. But instead of lowering your interest rate, they give you lower closing costs in exchange for a higher interest rate.

Lender credits are less standardized than mortgage points. As a result, the amount of a single loan increases your interest rate and reduces your closing costs will vary from lender to lender. In some cases, you may be able to use lender credits to completely eliminate your closing costs.

Just as lowering your interest rate with mortgage points also lowers your monthly payment, increasing your interest rate with lender credits also increases your monthly payment. Like mortgage points, you can find information about your lender credits in your loan estimate or closing statement.


  • Reduces your closing costs, which can remove a barrier to homeownership
  • Can free up money for a larger down payment, home repairs and more
  • Results in a larger annual tax deduction for your mortgage interest

The inconvenients

  • Results in a higher interest rate and potentially more money paid out in the long run
  • Increase your monthly payment, which will reduce the money left in your budget
  • The higher monthly payment could impact your debt ratio and make it more difficult to approve a loan

Choose between points and credits

Mortgage points and lender credits save you money, but in different ways. Mortgage Points allow you to lower your interest rate by paying more in closing costs. Generally, if you plan to own the home for an extended period of time, mortgage points will save you more.

Lender credits allow you to save money in the short term in exchange for a higher interest rate. This option frees up cash, which can help you put down a larger down payment, pay for home improvements and more.

Mortgage Points are best for borrowers who can afford a higher upfront cost, but want to save money in the long run. Lender credits, on the other hand, are best for borrowers who prefer a lower initial cost, and they can result in greater savings if you plan to own the home for a short period of time. With the high cost of buying a home, between down payment and closing costs, lender credits can help lower the barrier to entry, making home ownership more affordable and accessible. .

In either case, it’s equally important to consider your short-term and long-term financial goals and determine whether the immediate increase in liquidity that lender credits provide or the long-term savings that mortgage points provide are. most important to help you achieve these goals.

If you are wondering what will result in the most savings in the long run, the key is to find your breakeven point. In the case of mortgage points, the breakeven point is the time it would take you to own the home before the higher initial cost pays off and you start saving money. In the case of lender loans, the breakeven point is when your initial savings have been offset by the higher interest rate.

The breakeven point: mortgage points

Suppose you buy a house with a mortgage of $ 300,000 and the lender offers you an interest rate of 3.50%. You wonder if mortgage points could help you save money.

No mortgage points

1 mortgage point

2 mortgage points

Principal of the loan

$ 300,000

$ 300,000

$ 300,000

Interest rate




The initial costs

$ 0

$ 3,000

$ 6,000

Monthly payment

$ 1,347

$ 1,305

$ 1,264

Break even

N / A

5.95 years

6.02 years

Cost increase over 30 years

N / A

$ 14,828.59

$ 29,491.92

Redeeming your rate with one and two point mortgage would allow you to break even and start saving after about six years. As long as you plan to own the home for at least that time, you’ll likely save money.

The difference between buying a one-point lower mortgage rate instead of two is that when you buy two-point mortgage, your savings on your entire 30-year mortgage are roughly twice as much.

The breakeven point: lending loans

Let’s look at a similar example using the same mortgage of $ 300,000 and the same interest rate of 3.50%, but with lender credits instead of mortgage points.

No lender credit

1 lender credit

2 lender credits

Principal of the loan

$ 300,000

$ 300,000

$ 300,000

Interest rate




Closing cost

$ 6,000

$ 3,000

$ 0

Monthly payment

$ 1,347

$ 1,389

$ 1,432

Break even

N / A

5.95 years

5.88 years

Savings over 30 years

N / A

$ 15,265.04

$ 30,685.42

In this scenario, loans from lenders have a similar breakeven point to mortgage points. The difference is that with mortgage points, you start saving after about six years. But in the case of lender loans, you stop saving after about six years.

So, as long as you plan to own your home for less than the break-even period, lender loans can be profitable for you.

Calculate points for credits online

Using an online calculator can help you determine the impact of mortgage points and lender credits on your home buying process and your monthly payment. The information you get from these calculators could help you decide which one is best for you.

For example, Bankrate offers a mortgage payment calculator to help you determine your mortgage payment with and without points so you can compare. This calculator can help you figure out how much you’ll save over the time you plan to own the home. (Disclosure: Bankrate and CNET are both owned by Red Ventures.)

Since lender loans are not as standardized, there are fewer tools online to help you calculate their profitability. That being said, your lender can give you an estimate of the amount of lender credits that will increase your interest rate and lower your closing costs so that you can calculate the long-term effects.

Ultimately, deciding whether to use points or credits is a personal decision and will depend on your financial situation. You can discuss your options with your mortgage lender, who can explain how each option would affect your upfront costs and monthly mortgage payments. You can also consult a mortgage broker for a more unbiased opinion.

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Subprime auto lender Honor Finance put in “house of cards” debt deal that was “doomed to fail,” says SEC Thu, 23 Sep 2021 22:24:00 +0000

Five years ago, a Chicago-area auto lender sold a $ 100 million subprime auto bond contract that the US Securities and Exchange Commission said was now “secretly stuffed” with “credits. irrecoverable “, disguised to look better than they were in reality, according to a complaint filed by the regulator Thursday.

The SEC described the Honor Finance 2016 bond deal, or “HATS” securitization, as “a house of cards that was doomed to fail, and it predictably collapsed when their plan collapsed.” , in his complaint.

About a year after the sale, problems began to emerge, especially when bankers who signed up to the deal returned to ask questions about Honor’s loan modification process, according to the SEC.

A few months later, the bonds were the first securitization of subprime auto-loans being downgraded in the United States by rating agencies since the 2008 financial crisis.

Honor executives “continued to mislead HATS underwriters and others about Honor’s loan modification process,” the complaint said, adding that senior executives at the lender continued to provide “false information and misleading “which were included in monthly bond reports in an attempt to conceal” reckless loan modification and management practices.

The SEC has accused the co-founders of Honor James Collins and Robert DiMeo of securities fraud in connection with the bond sale. He calls for civil penalties, a return of all “ill-gotten gains” and restrictions on their future business activities related to the complaint.

Collins and DiMeo could not immediately be reached for comment.

The Honor agreement stood out in 2016 for having conditioned loans to high-risk borrowers who pay average rates of nearly 36%, despite a booming subprime loan market where privately funded companies often charged double-digit interest rates to borrowers with weak credit.

Investors picked up his riskier bonds rated BB-, or “junk”, at a coupon of 8.05%, according to data from Finsight.

Despite concerns about aggressive lending and collection practices among many used car financiers, Fitch Ratings recently said little downgrade in subprime auto bonds had ever taken place in the wake of the financial crisis in 2008, and that no deterioration was reported during the brief recession of 2020 triggered by the pandemic.

A person with first-hand knowledge of the Honor case said that the subprime auto securitization industry can be based on a “garbage in, garbage out” system, where risky loans are often made because they can. be securitized and sold as bonds to investors, but most Auto subprime deals have been put in place to withstand even 50% of loans that go wrong without causing losses.

The Consumer Financial Protection Bureau has provided consumer relief to many at-risk auto borrowers over the past decade, and large fine extracts from many of the major subprime auto lenders.

According to Finsight, about $ 32 billion of new subprime auto bonds were sold this year by Wall Street, up from $ 27.7 billion for all of last year.

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2 financial stocks to buy for decent returns in a year, says ICICI Direct Thu, 23 Sep 2021 05:30:53 +0000

Why can Bajaj Finance be a good bet?

Bajaj Finance is an important player in the field of consumer credit, but it has also embarked on other credit segments such as housing, financing of SMEs, etc. when the opportunity arises.

ICICI Direct has set a target price of Rs 8,950 on the Bajaj Finance share, against the current market price of Rs 7,780.

Why can Bajaj Finance be a good bet?

ICICI believes it is currently adding 10 lakh portfolios each month, with adequate capital of 28.5%, a focus on technology, and a turnaround in customer acquisition trend, all pointing to further development. From S2FY22, the quality of assets should stabilize, with a faster recovery and a gradual release.

Bajaj Finance’s share price has increased 7.2 times over the past five years, from around 1,100 in September 2016 to around 7,800 in September 2021.

Bajaj Finance price target and valuation

Bajaj Finance price target and valuation

“Bajaj Finance’s share price has risen approximately 7.2 times over the past five years. Taking into account the agility of management for product development and process modification as the situation requires We maintain our PURCHASE rating on the title.

Target price and valuation: We remain positive and taking into account high NIMs with risk adjusted growth, we value the stock at ~ 10x P / ABV on FY23E and revise our target price to Rs 8,950 from Rs 6,900 earlier. Premium valuations remain, ”the brokerage said.

Main triggers for future value for money:

  • To boost values, switch from the status of pure lender to that of fintech.
  • RoE is expected to return to 15% and RoA to around 3%.
  • A lean operational approach and solid growth projections.

Alternative Action Idea: In addition to BAF, we prefer HDFC Ltd in our BFSI coverage.

HDFC Ltd is the largest housing finance company in India, with a loan portfolio of 4.98 lakh crore. Through its subsidiaries, the company is also present in other categories of financial services.

Why can Bajaj Finserv be a good bet?

Why can Bajaj Finserv be a good bet?

Bajaj Finserv is a financial conglomerate with interests in finance (Bajaj Finance), life insurance (Bajaj Life Insurance) and general insurance (Bajaj General Insurance).

ICICI Direct has set a target price of Rs 20,200 on the Bajaj Finserv share, against the current market price of Rs 17,510.

Why Bajaj Finserv Bajaj Finserv can be a good bet?

  • Long-term benefits include traction in insurance and digitization in financing.
  • Bajaj Finance launched its portfolio business in July 2021, and by FY23 it expects to have onboard 2.5 million clients.
  • The growth in premiums of 20% in non-life insurance for April-July21 allows a market share gain of 30 basis points to 7.9%.
  • Life insurance premiums increased 40% year over year in April-July21, overtaking the industry.
  • A foray into the mutual fund industry would add value to the franchisee’s overall operations.

Bajaj Finserv’s share price has risen nearly 6 times over the past five years, from 2,900 in September 2016 to around 18,000 per share today.

Price target and valuation of Bajaj Finserv

Price target and valuation of Bajaj Finserv

“Bajaj Finserv’s share price has risen approximately 6 times over the past five years. We are upgrading our stock rating from HOLD to BUY. Price target and valuation: We value Finserv at approximately 45 times EPS for fiscal 23 to arrive at a revised target price of Rs 20,200 per share against Rs 13,500 earlier.

Main triggers for future value for money:

  • For fiscal years 22E and 23E, expect AUM growth of 20% and 22%, respectively, and PAT growth of 30% and 45%.
  • From S2FY22, the quality of assets will stabilize.
  • In the life and casualty insurance industry, robust premium growth and a carefully chosen product line will drive business growth and earnings.



The above actions are taken from the ICICI Direct brokerage report. Investing in stocks presents a risk of financial loss. Investors should therefore exercise caution. Greynium Information Technologies, the author and the brokerage are not responsible for any losses caused as a result of decisions based on the article.

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Greenlight Distribution hires Erik Elder as new sales manager Wed, 22 Sep 2021 10:00:00 +0000

DENVER, September 22, 2021 / PRNewswire / – Greenlight Distribution, a leading product vendor and direct lender to U.S. commercial cannabis growers, today announced it has hired Erik Elder as the new sales manager. Elder is an 18 year veteran of the cannabis industry. He will report directly to the CEO Dennis O’Carroll and lead the company’s sales team serving growers with over 6,000 products, financing and expert consultation.

Elder will also oversee the launch of DIRECT green light, a new monthly consumables subscription service that automatically ships personalized nutrients and growing media to growers.

“At Greenlight, we are cannabis people for cannabis people,” said CEO Dennis O’Carroll. “Unlike other distributors, we serve exclusively licensed commercial cannabis growers. Erik’s extensive experience and reputation in the industry will help Greenlight grow by helping our growers grow.”

Elder started his career in 2003 selling hydroponic grow boxes for growing medical marijuana. Since then he has led expanding sales teams and helped bring several new cannabis grow products to the market, some of which have become the standard in their category.

“I am thrilled to join Greenlight because of our incredible leadership team, exceptional operations and customer-centric mindset,” said the Director of Sales. Erik Elder. “Greenlight is unique in that we provide both CapX and OpX financing to growers and entrepreneurs, allowing them to retain their equity through debt financing. industry-leading brands and innovative products. We are known as trusted problem solving advisors and our team is committed to 100% total customer satisfaction. ”

Cannabis sales in the United States increased 67% in 2020 and the industry will continue to grow. Greenlight is dedicated to creating innovative ways to help growers, such as the new Greenlight DIRECT service. With Greenlight DIRECT, experts work with growers to customize a detailed consumables plan for the year and eliminate supply chain issues. This ensures that they get a reliable supply of nutrients and growing media at the right time throughout the year. Greenlight is committed to offering great prices, up to 20% off other vendor options.

“We strive to ensure that our customers thrive and optimize their operations, “ said the sales manager Erik Elder, “We cherish their success.”

About the Greenlight distribution
Greenlight Distribution is the single source for licensed commercial cannabis growers in United States. As a Total Growth Partner, Greenlight sells more than 6,000 growth products, provides custom consulting and design services, and offers innovative financing solutions. As a direct lender to industry, Greenlight provides debt capital to finance large purchases, manage cash flow, expand operations, and grow your growing business. Learn more about

Scott Biggs
Riding Tigers Communications
Telephone: 614-378-9889
E-mail: [email protected]

SOURCE Green light Distribution

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ABC’s New Digital Mortgage Will Be Offered Direct Tue, 21 Sep 2021 01:09:21 +0000

The big bank has confirmed that its new digital home loan product, Unloan, will be “focused on digital direct distribution to begin with.”

The Commonwealth Bank of Australia (CBA) has confirmed that its soon to be launched digital home loan Unloan (part of its expansion entity x15ventures) will primarily be launched directly through digital channels.

The upcoming digital direct-to-consumer mortgage offer called Unloan, backed by x15, was first reported last month and is expected to launch “at the end of the year”.

Asked by Mortgage Business about the new product and its distribution, CBA’s head of retail banking, Angus Sullivan, has confirmed that it will be launched as a product aimed directly at consumers.

He said: “This shift to digitalization and the incredible change we are seeing in the way customers interact with us is part of the opportunity for Unloan.

“At the heart of what we’re trying to achieve with it is radically new technology and processing infrastructure that allows us to approve a client for a home loan in an incredibly fast turnaround; targeting that 10-minute space.

“And, if you want to put great value in the hands of the customer, having low cost distribution is extremely important. One of the huge advantages of a digital model is that it is a low cost distribution channel, which means you can put great value in the hands of the customer and you can also create great value. ‘excellent direct digital experiences with the customer.

“So we’re going to focus on digital direct distribution to begin with. It will have some connectivity through CommBank, but we’re very, very excited about what’s being built in this space.

New strategic partnership announced

The news comes after the ABC aannounced that x15 has entered into a new strategic partnership to expand its “end-to-end digital home shopping solution”.

He has announced a new strategic partnership with an Australian property management company:Differentbecause it takes a minority stake in the company.

As part of this strategic partnership, CBA and: Different will collaborate on exclusive offers and benefits to reach homeowners across the country.

It will be made available to customers via the CommBank app later this calendar year, and is currently studying ‘experience[ing] with other distribution channels in the x15 “portfolio such as having referrals / presentations via Home-in and a loan.

Founded in 2017 by Mina Radhakrishnan and Ruwin Perera, ex-leaders of Silicon Valley: Different presents itself as a disruptor of property management that provides management services (such as streamline the process of reporting, quoting and managing maintenance requests) via an app for real estate investors / owners and connects them to a team of real estate partners. It currently serves properties on the east coast of Australia.

The tech provider has also raised $ 25 million in a Series B round (led by CBA and venture capitalist Antler) as it aims to grow nationwide and build its team of property managers and its technological platform.

The partnership comes as the big bank looks to provide more digital solutions to the home buying process, including digital mortgages.

Unveiling the new partnership, Mr Sullivan said: “As the country’s biggest supporter of bringing Australians into homes, we aim to be and be the most trusted partner in the life of our customers. for them in the moments that matter.

“Today’s announcement of our partnership with such a disruptive company differentiates and further expands what we are able to offer our mortgage investor clients.

He added that this partnership is part of the CBA’s decision to carefully [select] a high profile, high growth company focused on technology and presenting them exclusively to ABC customers to provide an enhanced level of service.

We see this partnership as an important part of our overall home buying strategy and one that will be at the heart of how we help our clients manage their homes and grow their wealth, ”he said.

Toby Norton-Smith, Managing Director of x15ventures, who joins the board of directors of :Different, noted that the partnership and investment are based on the group’s home buying solutions.

“[T]he real estate industry is clearly a space where we believe we can develop the next generation of high quality digital services for homebuyers, real estate investors and property managers, ”said Norton-Smith.

“We have significantly expanded the ABC home buying ecosystem with Credit advised, home and now :Different, as good as Unloan, a new type of home loan to come.

“Given the important role ABC plays in the lives of so many Australians, we want to continue to invest and build businesses that deepen this relationship.

Using :Different’The platform to connect our retail and small business customers means we will be able to deliver significant value to tenants and investors. Co-founders of :Different, Mina Radhakrishnan and Ruwin Perera, are industry disruptors and we are excited to help them accelerate their vision.

Mrs. Radhakrishnan said: “We have started :Different take care of homes and the people who live in them. Our mission is to be the complete assistant of the house, and the partnership with CBA brings us one step closer to this goal.

We’re both aligned on the importance of delivering exceptional experiences and value to our customers, and this partnership means that together we will help millions of Australians access an end-to-end digital home buying solution. end.

[Related: Loan deferrals tapering at CBA]

ABC’s New Digital Mortgage Will Be Offered Direct

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Last updated: September 21, 2021

Posted: September 21, 2021

Are you a new broker in the process of growing your business? Then there’s the good news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights on cutting-edge tools, strategies and processes to accelerate success. Don’t miss your chance to attend. To reserve your FREE seat, visit now!

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Annie Kane is the editor-in-chief of The Adviser and Mortgage Business.

In addition to writing about the Australian brokerage industry, mortgage market, financial regulation, fintechs and the broader lending landscape – Annie is also the host of Elite Broker and In Focus podcasts and The Adviser Live webcasts. .

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Brilliant Solutions becomes UTB distribution partner Mon, 20 Sep 2021 05:39:45 +0000

Brilliant Solutions’ Directly Authorized Brokers and its members now have direct access to lenders at United Trust Bank (UTB) and its line of mortgage products.

This is in addition to the existing installation of specialized no-fee mortgage consolidation already in place, as well as the existing offer of secured loans and bridge financing.

The bank’s decision to add the direct submission to the lender channel to the existing packaged channels follows a fruitful relationship developed over time through the multiple specialized products offered by the lender.

While Brilliant Solutions does not charge any packaging fees for UTB mortgage products, the company still believes that all brokers should have the choice of submitting business through whatever channel is most suitable for that specific advisor. The company is now able to offer these brokers a full choice, with full support.

Michael Walters, Director of Sales, Real Estate Intermediaries at United Trust Bank, said: “We are delighted with this improvement in our distribution and to be able to offer UTB’s full suite of mortgage products through Brilliant Solutions. We have constantly developed our proposition and we understand that today intermediaries face new challenges when responding to the various requirements of their clients.

“As the mortgage market is constantly evolving, we keep UTB at the forefront by regularly reviewing our offering and deploying the best technology alongside experienced and dedicated people.

“Partnering with Brilliant Solutions further extends our reach to borrowers who may not be best served by High Street and instead need a more specialized product and approach. We look forward to helping Brilliant Solutions members meet the needs of their customers.

Michael Craig, Sales Director of Brilliant Solutions, added: “United Trust Bank’s brilliant product line and ability to consider all client needs on an individual basis is a great fit for our mortgage brokers and ensures that our brokers see better results for their clients.

“We have worked alongside United Trust Bank as a packager and believe our broker base has a dual distribution option, so it makes perfect sense to integrate them into our mortgage club. We look forward to supporting our brokers with direct access to the United Trust Bank team.

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Motley Fool: M&T Bank struggles could make it attractive to investors Sun, 19 Sep 2021 07:27:08 +0000

M&T Bank (NYSE: MTB) posted disappointing second quarter results in July. Its struggles have recently depressed the stock, which means it could be a good time for investors interested in buying.

Consumer loans are currently enjoying more momentum than commercial loans, and M&T is primarily a commercial lender. Its credit quality has also deteriorated in recent times – its unrecorded loans, those that went 90 days without payment, increased 15% year-on-year in the second quarter.

But M&T Bank is developing non-interest-bearing deposits well, so it pays no interest on about 43% of total deposits. M&T’s upcoming acquisition of Connecticut-based People’s United bank is also promising.

Its addition will significantly increase M&T and its tangible book value, by TBV. Banks trade on the basis of the TBV, so an increasing TBV usually helps the stock. The deal is also expected to increase M & T’s earnings per share from 10% to 12% in 2023.

It should also open up new income opportunities; People’s United has many small business clients to which M&T can cross-sell products and services. Meanwhile, People’s United brings in a strong equipment finance business that it can expand to M&T customers.

While M&T Bank may face some short-term difficulties, this is an opportunity to buy long-standing, high-performing bank stock at a historically low tangible price-to-book ratio – with a dividend paying off. recently about 3.2%.

Ask the foolQuestion: What does it mean if a company goes public via direct listing? – BN, Madison, Indiana

A: Think of a traditional IPO – the initial public offering whereby most companies “go public,” issuing new shares to trade on the public market for the first time.

The process typically involves companies hiring investment banks as underwriters to manage the process, including determining an appropriate valuation for the company and the share price. For this, underwriters often received up to 7% of the gross proceeds of the IPO.

With a direct listing, companies bypass underwriting intermediaries and sell existing stocks (such as those owned by employees) to the public, saving money.

Question: What’s so bad about buying a stock at, say, $ 30 instead of $ 20, if you’re sure it will hit $ 60 in 10 years? – CD, Walnut Creek, California

A: It’s all in the math. Imagine Holy Karaoke Inc. (ticker: HYMNS) is trading at $ 30, and you expect it to hit $ 60 in a decade. This would be a gain of 100% in 10 years, or an average annual gain of about 7.2%.

But if you bought it at $ 20 and it hit $ 60 in 10 years, that would be a tripling – a gain of 200% (about 11.6% per year, annualized).

Considering that the overall stock market has gained around 10% per year over long periods of time, you can see that a 7% annual gain is less attractive than an 11% gain.

Still, there’s a case to be made that getting into a formidable stock at $ 30 instead of $ 20 is okay, especially if you hope to hold it for many years to come. In general, however, the price you pay for a stock matters.

My dumbest investmentMy dumbest investment was selling my Microsoft stock for around $ 40 a piece in 2014. (I bought them in 2008 for around $ 30 each.)

I’ve learned that it’s best to hang on to a big business, unless the underlying fundamentals of the business have changed. – BD, online

The madman replies: It’s an extremely common mistake to prematurely sell shares of a great company – and many people do it after making a reasonable gain, like you did.

Your $ 30 to $ 40 trip with the stock gave you a 33% gain, but as you know, if you had held on you would have done a lot better.

After you sold your stock at around $ 40, the stock’s value continued to rise, but not in a linear fashion.

The shares were recently trading at around $ 300 apiece. So if you had held on you would have a 900% win on your hands. In the 13 years since you bought them, they would have increased at an average annual rate of around 19%.

The story is the same for many great long-term performers: many people have sold after a gain of 20% or 50% or even 100% or 300%, only to miss out on gains of 100% or 10,000% – or even more !

The more you learn about your holdings, the stronger your beliefs about them will be, which can help you hold on as long as their future looks bright.

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Does the FAFSA cover summer school? Sat, 18 Sep 2021 13:08:00 +0000
  • FAFSA assistance is not only applicable to the fall and spring semesters; you can also use it for summer.
  • There is an annual maximum that you can take out in federal loans, which includes the summer semester.
  • If you are able, taking a part-time job or a paid internship can help offset the cost of the courses.
  • Learn more about Insider’s student loan coverage here.

While some students use the summer to rest and recharge, others may want to take advantage of the season to get a head start on class. If you’re planning college classes next summer, here’s how the free Federal Student Aid app applies to the summer semester.

What is the financial benefit of taking summer courses?

One of the benefits of summer courses is that you can graduate earlier or earn multiple degrees, and some schools even offer reduced tuition fees for these courses. You can also take classes at a local community college for a lower price and transfer those credits to your school.

You will be able to start earning full-time income sooner, which could help you start your repayment process if you have loans.

Which FAFSA is used for summer school?

This is a gray area when it comes to the suitability of the FAFSA for financial aid for your summer school. For example, will your aid for the 2021-22 or 2022-23 school year go towards the 2022 summer courses?

Ultimately, your college will determine which FAFSA year applies to the summer semester. Contact your school’s financial aid office for their summer school policy.

You’ll also need to be at least a part-time student to be eligible for federal aid, and your college will define what that means for its students. There is a maximum amount you can withdraw per academic year which also includes the help you receive in the summer. The exact annual maximum depends on your school year and can be found here.

What Kinds of Help Can You Get from the FAFSA?

There are three types of aid you can get through the FAFSA: scholarships, work-study, and loans.

  • Subsidies : These are generally offered on the basis of significant financial need or for people who are part of a designated group. Learn more about the different types of federal grants here.
  • Work study: Work-study assistance is generally granted based on when you apply, your level of financial need and the amount of money your school has. Co-op is a type of financial aid that provides part-time positions for students in financial need to earn money for academic fees.
  • Loans: Subsidized loans are offered on the basis of financial need, while eligibility for unsubsidized and Direct PLUS loans is not based on financial need. You should think about loans after exhausting your scholarship and study aid options as you will have to pay back the loans. Interest rates are set on federal loans.

The FAFSA for the 2021-22 school year is open until June 30, 2022, and assistance can be applied retroactively as long as you submit your application by the deadline. The FAFSA for the 2022-2023 school year is available from October 1, 2021 to June 30, 2023. Colleges will set their own aid deadlines, so check with your financial aid office for when to submit your documentation.

What are the other ways to offset the cost of summer courses?

Your school may offer scholarships, although these are usually awarded on academic merit, athletic achievement, or other separating factors. You can also apply for private scholarships, but be aware that they are generally very competitive. In some cases, your school may reduce the aid it gives you by the amount of the private grant.

You can also take a part-time job or a paid internship – provided the requirements aren’t too onerous and don’t negatively impact your studies – to help cover the cost of your summer courses.

You can also borrow from a private lender, but be careful before pursuing this option. Private loans have worse protections than federal loans and often have higher interest rates, depending on your creditworthiness.

Summer school can be a good way to advance your studies. Just be sure to plan your help throughout the year so you don’t run out of it during the summer term.

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Fed meets as inflation slows – what it means for mortgage rates – Forbes Advisor Fri, 17 Sep 2021 19:18:58 +0000 Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but this does not affect the opinions or ratings of our editors.

Inflation is starting to show signs of slowing down, which means the long streak of low mortgage rates is likely to continue until next year. So, if you are considering refinancing your home, now is still a good time to do so.

Consumer prices, a key measure of inflation, were lower than expected, increasing only 0.3% in August from July, according to the latest report of the Ministry of Labor. Overall, inflation rose 5.3% (before seasonal adjustment) for the 12 months ending in August.

While the one-month data may not be meaningful, it is consistent with what Federal Reserve Board Chairman Jerome Powell noted about the summer’s inflation spikes being transient. Supply and demand have been out of whack since the Covid-19 strike, which spiked inflation in July. The August report was therefore a relief, especially as the Federal Open Market Committee (FOMC) is meeting on September 21 and 22 to discuss the next steps in monetary policy.

How the Fed’s Monetary Policy Affects What You Pay for a Mortgage

Mortgage rates have remained near their lowest records since spring 2020. They fell below 3% last July for the first time in recorded history. Rates have stayed in the same range for some time now, in part because of the Federal Reserve’s response to the Covid-19 pandemic and its potential damage to the economy as the unemployment rate hit record highs. record levels.

These actions included two key elements: reducing short-term interest rates to zero and investing money in asset purchases – about $ 80 billion in treasury securities and $ 40 billion in asset-backed securities. mortgage loans (MBS) agencies each month.

Powell said that as the economy rebounds and Covid restrictions are relaxed, production will likely accelerate, which will help temper inflation – and Tuesday’s inflation report could help everyone.

Lower inflation could mean mortgage rates stay in the low 3% range for the foreseeable future. However, if inflation were to continue to rise, mortgage rates would follow.

“Investors are reimbursed in future dollars, and if inflation continues at a high rate, those future dollars are worth less, which means investors are likely to demand what an economist might call an inflation premium – a higher rate to compensate for the possibility of inflation. undermine the value of future dollars, ”says Danielle Hale, chief economist at

Related: Compare current mortgage rates

Powell is expected to announce his phase-out plans by the end of this year, which is another way of saying the FOMC will cut back on asset purchases.

However, even with some decrease, most experts agree that FOMC policy will continue to be expansionary given that the unemployment rate remains significantly higher (5.2% in August) than the levels of ‘before Covid (3.5%).

“I expect the FOMC to announce at its meeting in early November that it will gradually start reducing its purchases of long-term Treasuries and mortgage-backed securities from December,” said Gus Faucher, Chief Economist of PNC Financial Services Group. “This will put slight upward pressure on long-term interest rates, including mortgage rates, but monetary policy will remain very expansionary, especially given current federal funds rates close to zero.”

However, even with a reduction in asset purchases, problems in the rest of the world could continue to put downward pressure on rates, says Odeta Kushi, deputy chief economist at First American Financial Corporation.

“The global economy remains in a period of uncertainty due to the ongoing pandemic and the risk of the spread of variants, which may continue to put downward pressure on yields, and therefore on mortgage rates,” said said Kushi.

Another tool the Fed can use to stimulate the economy is the federal funds rate. And while it has less direct impact on mortgage rates than buying bonds, it still has some influence. However, Faucher says it’s highly unlikely the FOMC will hit the federal funds rate this year.

The FOMC plans to keep the fed funds rate at zero until inflation hits its 2% target and jobs make big gains, both of which are longer-term goals. Faucher expects a rise in mid-2023 at the earliest.

The federal funds rate is the interest rate banks charge each other for borrowing reserve balances overnight, which has a direct impact on short-term loans such as credit card debt and margins. home equity loan (HELOC).

The federal funds rate can influence mortgage rates if banks pass higher borrowing costs on to consumers through long-term mortgage rates.

Where rates should go in 2022

Most economists agree that mortgage rates will end in 2021 in the low range of 3%. However, this is where the deal ends. Some experts believe rates will rise above 4% next year while others expect a more modest increase in 2022. Here’s what economists are saying:

  • The Mortgage Bankers Association predicts that long-term rates will reach 4% by 2022 and peak at around 4.3% by the end of next year.
  • The PNC expects the 30-year fixed mortgage rate to rise from around 3.05% currently to around 3.2% by the end of this year and to 3.4% by the end of this year. 2022.
  • Freddie Mac predicts that the 30-year fixed mortgage will reach 3.4% by the fourth quarter of 2021 and 3.7% by the end of 2022.
  • The National Association of Realtors (NAR) predicts rates will reach 3.3% by the end of 2021 and average 3.6% in 2022.

Consider refinancing if you haven’t already

Low mortgage rates can mean additional funds in the bank for buyers and homeowners. While competitive home prices and a lack of inventory in most real estate markets negate the benefits of today’s low mortgage rates, people who already have mortgages may be able to save big.

With home prices rising so rapidly, homeowners are seeing their net worth skyrocketing in no time. So borrowers who might not have had enough equity to get a lower mortgage rate last year might have accumulated enough money to qualify for the most competitive rate.

Typically, lenders seek 20% of a home’s equity for refinancing. However, if your financial situation is strong (high credit score, proof of strong income), you might qualify with less than 20% equity, but you might pay a slightly higher interest rate.

According to mortgage analysis firm Black Knight, workable equity – the amount you can borrow on minus 20% of your home’s equity – reached $ 1,000 billion in the second quarter of 2021. The borrower Average mortgage has $ 173,000 in usable equity, or 13% more than in the first quarter.

Here’s how to know how much equity you have:

  • First, get the current value of your home (you can use an online estimator to get a quick answer).
  • Next, subtract your current mortgage balance from the market value of your home.

So if your home is worth $ 350,000 and you owe $ 200,000 on your mortgage ($ 350,000 – $ 200,000), your equity is $ 150,000 and you have 42.8% equity in your home. .

But the amount of equity you have is only one element in determining whether you should refinance, you will also need to make sure that the costs of the loan being refinanced do not outweigh the savings.

You can use a mortgage calculator to see how much money you can save each month (and in total interest over the life of the loan) by locking in a lower interest rate.

Remember to factor in closing costs, which can range from 2% to 6% of the total loan amount. So if you plan to stay in the house for several years, you have a better chance of saving money with a refinance than if you sell within the next 12-18 months.

Likewise, if the interest rate you qualify for isn’t much lower than what you get, it might not be worth the cost and hassle. It’s unclear when rates might rise (or fall), so you don’t want to assume that they will stay low forever.

If you don’t qualify for a competitive rate and want to refinance, ask a lender or other financial professional how you can become a better candidate for a lower rate and how long it might take to do so. .

Finally, be sure to look for a lender who offers not only low interest rates, but a low APR, which is the total cost of the loan. Some lenders charge higher fees, which can adversely affect their low advertised rate. So make sure you get several quotes before choosing a lender.

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