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Posts Tagged ‘credit cards’

Policy Institute says Dodd-Frank is a Bust

February 1st, 2016 Comments off

dodd_frank___bloombergbusinessweek___creditThe American Action Forum (AAF) has determined there has been a 20.5 percent drop in community banks with assets under $1 billion dollar in assets since Dodd-Frank became law five + years ago, according to data supplied MHProNews by the Federal Deposit Insurance Corp (FDIC). That is a substantial increase from the 13.1 percent drop during the five years leading up to Dodd-Frank, reports newsok.

A center-right policy institute, the AAF has also determined that the legislation that was designed to keep large financial institutions from causing a recession has resulted in the “too big to fail” banks are thriving while the smaller ones are not, despite the fact they were not the responsible ones causing the housing downfall. While this is not new information, AAF says D-F has led to a 14.5 percent decrease in consumer revolving credit, such as credit cards, since 2010, and cased mortgages to cost about $350 more.

Dodd-Frank’s regulatory burden must be borne by someone: financial institutions and their employees, shareholders, or consumers in the form of higher prices or less access to credit,” the AAF report states. “It appears the law has affected all three entities.”

While Dodd-Frank was supposed “to generate nothing but good,” according to AAF the rules of Dodd-Frank state creditors might consider adjusting the terms and conditions of loans to pass some or all of the price increase through to consumers. The final rule could increase the cost of credit or curtail access to credit for a small share of … consumers and purchase-money consumers.”

As the MHPro industry knows, Dodd-Frank also put a big crimp in the ability of individuals and retailers to finance the sale of manufactured homes, especially by consumers at the lower end.

The bottom line: consumers have fewer options for financing, less access to credit, and higher costs accessing credit. ##

(Image credit: bloomberbusinessweek)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Big Box Discounter Offering Mortgages

May 2nd, 2012 Comments off

Discount merchandiser Costco is entering the mortgage and student loan business, OriginationNews tells MHProNews.com. Already into financial services with marine and recreational loans, credit cards, health and auto insurance, and investing services, Costco has partnered with New Jersey-based First Choice Bank and ten other lenders to offer full-service home loans. The company has already written 10,000 mortgages for its members.

(Image credit: ForeclosureListings)

Is the Recovery Spinning Down?

April 5th, 2012 Comments off

The etruth in Elkhart County, Indiana says business leaders are cautiously optimistic about the future given business expansion and new jobs, but concerns remain about the increase in fuel costs that ultimately will be passed on to consumers that could drag the economy back down. Despite the 12.1 percent unemployment rate in this northern Indiana area that is home to numerous manufactured housing and recreational vehicle plants, as well as component suppliers, one employer says some jobs go begging because recent applicants work histories indicate they work until they qualify for unemployment and then quit. Another concern, according to Kevin Deardoff of Lake City Bank who has over 30 years in the banking industry, is people who used to pay their mortgage first now pay their credit card first, causing mortgage delinquencies to rise. MHProNews.com has learned homeowners who lost jobs became dependent on credit cards during the economic downturn, and realized it takes lenders longer to file foreclosure than to cut off a line of credit.

(Photo credit: Idaho Statesman/Chris Butler)

Good News, Bad News…

March 7th, 2012 Comments off

According to research done by Moody’s Analytics and Equifax, the total balance of outstanding home loans dropped $1 trillion, 10.4 percent, in the last four years, an indication of consumers getting rid of debt. Although mortgage rates are at historic lows, credit remains tight, which MHProNews.com has learned could be the reason for the outstanding home loans falling in value. At the same time, consumers are responding to more solicitations for credit cards. Equifax Chief Economist Amy Crews Cutts says consumers are set to spend again, according to HousingWire. She says, “The most promise we have seen has primarily been within the consumer spending and auto financing sector, while the housing market continues to see incremental progress toward gaining traction in the coming months.” One point of concern is student loans. As people lost jobs, they returned to school, but that segment is now seeing a higher than normal rate of delinquency.

(Graphic credit: MoneyControl)