It’s OK if minorities don’t repay loans: KPCC chief
At Envoy, brokers rushed in recent days to get such requests in so fewer loans would be affected, Zugheri says. Builder Fulton Homes in Phoenix did the same, says Dennis Webb, vice president of operations. Even so, a shutdown running longer than a week could result in loan delays, Zugheri says. He estimates 25% of his company’s loan closings or several hundred nationwide could be delayed, largely because of the IRS issue. Wells Fargo says IRS information requests were already processed for most loans in the pipeline. New applicants will go through the same check.
Shutdown will stall home loans for thousands
The Wall Street Journal reported Tuesday that many people who file for Chapter 13 bankruptcy are restricted from making full monthly payments on their student loans during the cases three-to-five-year repayment period because of the U.S. Bankruptcy Codes repayment rules. When they dont get full payments on student loans, lenders can add interest, late fees and other penalties to the bill. Do the math, and its easy to see why interest alone can cause a student-loan balance to grow by thousands of dollars. Consider a graduate-degree holder who owes $55,000 on private and federal student loans and cant afford to pay any so-called nonpriority unsecured debt (which excludes some taxes but includes consumer debt such as credit-card debt and medical bills) during a Chapter 13 cases repayment period. (Payment percentage rates vary widely, but it isnt uncommon for a borrower to pay nothing.) If $45,000 of that borrowers debt is a federal loan with 6.8% interest, and the borrower didnt make any payments on those loans, the balance would grow to $60,300 after five years, said Mark Kantrowitz, publisher of Edvisors.com, an education-finance information provider. The remaining $10,000 in private loans, with an interest rate of 10% and capitalization at the end of the bankruptcywhen accrued interest is added to the principalwould grow to $16,000, he said. That means that even without adding late penalties or collection fees, the borrowers student-loan balance would have grown to $76,300.
How Bankruptcy Can Send Your Student Loans Soaring
[Learn about recent student loan interest rate changes .] Keeping tabs on every loan and figuring out exactly what is due each month can be tricky. Consolidating those loans can eliminate some of the confusion, says financial aid expert Mark Kantrowitz, publisher of Edvisors.com. “Consolidation can make it easier to repay student loans by streamlining repayment and replacing multiple loans with a single loan,” Kantrowitz said via email. This is not a one-size-fits-all solution, though, and experts suggest graduates consider four things before consolidating. 1.
Retail loans for festive season to be announced soon: Rajan
Never mind if the beneficiaries don’t repay the loans. Topi hakidre parvagilla (colloquial for ‘no issues if they cheat’). Many people and officials have duped government agencies of several thousands of crores of rupees. It’s part of the development process,” he said. Also present at the workshop were Union minister for minority affairs K Rahman Khan , former MP CK Jaffer Sharief , minister Qamarul Islam , R Roshan Baig and Naseer Ahmed. The opposition was quick to react.
Even if this were to get resolved in a week, youve got an enormous backlog, said Eric D. Gates, president of Apex Home Loans in Rockville. Its going to double or triple the effects in terms of delays. The approval of mortgage applications requires several interactions with the federal government that many home buyers may not know about. Lenders have become much more meticulous about following federal rules after the housing crisis that began in 2007, and are now more thorough in verifying the information on loan applications. These concerns were far less common when the government last shut down in 1995. The need for document checks and quality control just didnt exist, Stevens said. Today, were in a world of huge risk and regulatory requirements. Among the obstacles, it is furloughs at the IRS that could have the widest impact.
Student Loans: What to Consider Before Consolidating
Credit: Reuters/Danish Siddiqui/Files RAIPUR, India | Fri Oct 4, 2013 5:13pm IST RAIPUR, India (Reuters) – Reserve Bank of India (RBI) governor, Raghuram Rajan, said the government was in talks with the bank to decide the contours of a package for retail investors for the festive season, which would be announced soon. Rajan was speaking in Raipur after the RBI’s board meeting on Friday. Indian banks will offer cheaper loans to stimulate demand for two-wheelers and other consumer durables as Finance Minister P. Chidambaram tries to pull the economy out of the worst slowdown in a decade ahead of national elections due by next May. (Reporting by Suvashree Dey Choudhury; Editing by Subhranshu Sahu)
Greece’s Piraeus and NBG to set up ‘bad banks’ as bad loans soar
The banks are still recovering from 27 billion euros ($36.69 billion) of losses brought about by the country’s unprecedented sovereign debt restructuring in 2010. By the end of June, bad loans constituted 29 percent of Greece’s four largest banks’ combined 260 billion-euros loan books, more than three times the 7.15 percent average the International Monetary Fund recorded for the eurozone in 2012. Christodoulou said NBG, which has the lowest rate of non performing loans (NPLs) at 24.4 percent of its total book, was looking to set up a bad bank “in the next two months” and was in the process of hiring advisers to help with the project. “You need to have clear focus, clear identity of the NPLs, clear management of the NPLs, clear responsibility structure of who’s responsible for what,” said Christodoulou. “You need a different set of skills for NPLs.” The volume of assets to be transferred over has not yet been set. “We’re in the design phase,” he said, adding that the bad bank should be operationally separate by the end of 2013. NBG may also use the bad bank structure to offload some of its bad loan exposure by finding an investor to take a minority stake in a subsidiary that will hold some of the loans.
Greece mulls swapping bailout loans with 50-year bond issue: source
International lenders have already agreed they could give Athens further debt relief, likely in the form of lower financing costs or extended repayment of its loans, if it meets its fiscal targets this year. “Among the proposals being examined at a technical level as part of debt relief measures is issuing a long-term bond with a maturity of up to 50 years to possibly replace the bilateral loans from the first bailout,” said the official who declined to be named. The official did not disclose the size of the bond issue under discussion. Euro zone countries provided Greece with 52.9 billion euros of loans in the first 110 billion-euro bailout, which included 20 billion euros of loans from the IMF. The remainder of the aid came from the EFSF rescue fund. Repayment of these bilateral loans is set to begin in 2025. The swap would extend repayment by decades. Athens has about 30 billion euros of outstanding government bonds held by investors. The big chunk of its debt load, expected to peak at 322 billion euros or 175.6 percent of gross domestic product this year, is official sector loans owed to its partners and the IMF.