Banker Resource

SEC Seeking Public Comment on Dodd-Frank Financial Literacy Study

Fri, 27 Jan 2012 11:05:21 CST

The Securities and Exchange Commission is requesting public comments on financial literacy and investor disclosure issues that it is studying as part of a review mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

New HARP Guidelines Leave Jumbo Mortgages Out in the Cold

Fri, 27 Jan 2012 11:05:12 CST

Once again there is excitement in the mortgage industry because of the new HARP 2.0 guidelines which were released on November 15, 2011. For the most part the original HARP which was passed in 2009 as the Making Home Affordable plan or the Obama Refi plan has been a failure. Very few people were able to qualify for the program and those who did qualify were only able to refinance at a lower rate and did not see the actual principal balance of their loan reduced.

EEOC ENFORCEMENT OF AMERICANS WITH DISABILITIES ACT

Mon, 23 Jan 2012 13:43:51 CST

QUESTION: WHY SHOULD MY FINANCIAL INSTITUTION CARE ABOUT THE EEOC "FINAL RULE" IMPLEMENTING THE AMERICANS WITH DISABILITIES ACT AMENDMENTS ACT? ANSWER: AVOIDING DISABILITY DISCRIMINATION IS THE RIGHT THING TO DO, IS GOOD FOR BUSINESS, AND NONCOMPLIANCE WILL LEAD TO LITIGATION!

Where's the Promised Government Loan Money (HARP) for Distressed Homeowners?

Fri, 06 Jan 2012 11:13:57 CST

The significant changes in HARP eligibility requirements announced by President Obama in October 2011 have led mortgage industry insiders to dub it HARP 2.0, even as the history of HARP is little more than two and a half years old. The Mortgage Bankers Association has previously estimated that $900 billion in mortgages will be originated in 2012 but with HARP 2.0 fast becoming effective, this number will certainly rise. Unfortunately, HARP was not designed to help homeowners already in foreclosure proceedings or in danger of being foreclosed upon.

Fair Labor Standards Act Exemptions

Thu, 22 Dec 2011 16:16:22 CST

QUESTION: SHOULD MY BANKING EMPLOYEES BE CLASSIFIED AS "LEARNED PROFESSIONALS" FOR EXEMPTION PURPOSES, OR NOT? ANSWER: YOUR BANKING EMPLOYEES ARE NOT ENTITLED TO OVERTIME PAY UNDER THE FAIR LABOR STANDARDS ACT IF THEY ARE PROPERLY CLASSIFIED AS "LEARNED PROFESSIONALS."

Is Green Lending Your New Mortgage Niche?

Thu, 15 Dec 2011 08:49:04 CST

The hot topic in real estate is green homes. People are building, buying, and remodeling existing homes to make them more energy efficient, healthy, and have less of an impact on the environment. While it is a fairly recent trend in housing, it started in commercial building more than two decades ago as owners looked for ways to cut rising utility bills. The field quickly grew beyond a concern with energy to incorporate materials, techniques, and products that conserve scarce resources, recycle used materials, and avoid the use of toxic ingredients and processes. As better and cheaper products and materials became available, green or eco-friendly building spread to residential construction.

Bank Controls Lacking, Regulation Insufficient

Mon, 12 Dec 2011 14:30:04 CST

Huge bank losses demonstrate that past regulatory efforts failed FSOC says banks must focus on ethical controls and increased integrity The fallout and real costs of banking crisis still being assessed

Cybercrime - No One Is Immune

Mon, 12 Dec 2011 14:29:58 CST

Senior managers need to take cybercrime more seriously. According to PricewaterhouseCoopers' (PwC) economic crime report, Cybercrime: Protecting Against the Growing Threat, businesses face serious threats from cybercriminals, from both within and outside their organizations.

HARP 2.0 Refinancing America's Upside Down Home Owners

Mon, 12 Dec 2011 14:29:51 CST

There is a lot riding on the release of HARP 2.0, with over 12 millions home owners upside-down, strategic foreclosures the new in thing and buyers with no compelling reason to buy. I have been in the mortgage and real estate industry as an active producer and CEO for 20 years, have hosted financial and real estate talk shows for 17 years and just authored a book, "Get Rich In Real Estate"(link http://www.783loan.com/GetRichBook.htm ), available on Amazon January 2012. I have been following the mortgage crisis and the HARP program very closely and have personally used the HARP program for my borrowers with little or no equity to refinance and help them stay in their homes. I have my own opinion and analysis on HARP 2.0 and what stocks might be impacted. I am also throwing in the answers to the top 5 questions I am getting each day about the new HARP 2.0 program.

Learn to Play Nice: Your Career Advancement Might Depend on It

Mon, 12 Dec 2011 14:25:32 CST

It still pays to play nice at work, a new Robert Half survey confirms. Nearly half (48 percent) of workers interviewed said being courteous to others can help an employee rise through the ranks. Another 41 percent said etiquette plays at least some role in career advancement.

Ethics Compliance for Government Contracts

Fri, 18 Nov 2011 15:13:35 CST

QUESTION: CAN MY BORROWER'S BUSINESS REALLY LOSE ITS CONTRACT WITH THE FEDERAL GOVERNMENT MERELY FOR NOT ADOPTING A CODE OF CONDUCT? ANSWER: IF THE FEDERAL ACQUISITION REGULATION APPLIES TO YOUR BORROWER'S BUSINESS AND ITS CONTRACT, FAILURE TO ADOPT A CODE OF CONDUCT MAY CAUSE YOUR BORROWER'S PAYMENTS TO BE WITHHELD OR MAY PREVENT IT FROM DOING BUSINESS WITH THE FEDERAL GOVERNMENT!

Creating Multiple Accounts for Financial Social Media

Tue, 15 Nov 2011 15:56:24 CST

The financial industry is increasingly using financial social media tactics as a way to promote their organizations or company's mission and messages. It is important for those in the financial industry to be present on all social media platforms, including Blogger, Facebook, LinkedIn, Twitter and YouTube. It is also worthwhile to consider creating multiple accounts on each of these social media platforms.

Florida Short Sale Incentive Program

Tue, 15 Nov 2011 13:56:53 CST

Bank of America recently announced that it may pay up to $20,000 to encourage short sales by Florida homeowners. This Florida short sale incentive program is directed at Florida homeowners who are upside in their mortgages and wish to avoid the embarrassment and credit-rating damage that commonly accompanies a foreclosure.

Contract Liability

Mon, 14 Nov 2011 16:19:45 CST

Question: Can I limit the amount of my lability for negligence to the amount I get paid under the contract? Answer: In Arizona, the parties to a contract can limit the amount of liability for negligence by a negotiated limitation of liability clause in a contract.

How Referrals Boost Bank Marketing

Mon, 14 Nov 2011 15:16:56 CST

Financial institutions such as credit unions and banks use bank marketing strategies that employ the use of marketing gifts as a main component. This is because of the increased competition in the industry at present. Bank marketing programs are being implemented now to attract new clients, keep current clients, and persuade these current clients to take advantage of more products and services.

Lender Liability During the Great Recession

Tue, 11 Oct 2011 14:24:46 CDT

Lender liability law says lenders must treat their borrowers fairly, and when they don't, they can be subject to borrower litigation under a variety of legal claims. Today, as lenders and borrowers blame each other for nonperforming loans in the worst economic downturn in almost a century, lender liability is once again at the forefront of many legal battles.

Fraudulent Transfer

Tue, 11 Oct 2011 08:26:47 CDT

QUESTION: HOW DOES THE HEALTHCARE PROVIDER GET THE PROPERTY BACK THAT THE PATIENT HAS TRANSFERRED TO OTHERS? ANSWER: USE THE FRAUDULENT TRANSFER ACT AND DEAL WITH DUMB DEBTORS!

Gen Y: The Consumers in the Mirror are Closer Than They Appear

Mon, 26 Sep 2011 13:49:14 CDT

Generation Y, a term coined in 1993 in Maxim magazine, refers to the generation born between the early 1980s and mid 1990s. Nearly 55 million Americans today fall into this category, and these numbers are expected to rise over the next 20 years as the children of the Baby Boomers come of age. While coming of age, this generation has experienced two wars, an economic recession, various acts of terrorism, and unprecedented natural disasters. They were raised to be conscious of society and their surrounding environment and have proven to embrace civic duties and responsibilities more than the generation before them. They believe that marriage is part of the American Dream, focus on personal pursuits rather than career ambitions, and have higher self-confidence than their parents.

Modern Loan Origination Software Makes Lending Automation a Piece of Cake

Mon, 26 Sep 2011 13:45:36 CDT

Loan origination can be a long and demanding process for financial institutions (FIs) and customers alike. Manual underwriting makes the process longer and more costly. The changing market environment makes modifying business logic a recurring necessity which can require many IT hours and other resources to complete with legacy systems. Modern loan origination software, however, makes lending automation more efficient and cost-effective. These new loan origination solutions help to eliminate manual processing when it isn't required and can seamlessly transition from manual to automatic processing. Also, new loan origination software gives control of business logic changes to the business user instead of requiring IT. Now, FIs can have their cake and eat it too.

Who Wins and Who Loses With the Durbin Amendment?

Mon, 12 Sep 2011 13:47:12 CDT

Theoretically, merchants and ultimately consumers, should win with this new legislation, but will they? And, banks and issuers will most definitely be the losers so how will they make adjustments? Here's some ideas.

Weakened Banks Being Crippled By Complaints Over Mis Sold Mortgages

Fri, 09 Sep 2011 16:11:35 CDT

Banks are in a very fragile state at the moment. The global economies are week, recession is looming once again, and banks have had to set aside billions to pay for Mis selling mortgage claims and payment protection insurance claims.

The Small Business Financing Crisis

Fri, 09 Sep 2011 13:57:21 CDT

The current small business credit crunch is getting much attention and rightly so. We know very little about the overall small business universe because it is so huge and diverse. Most discussions about this topic focus on credit and lending, but the issue is much more complex than that. A more broad-based discussion is necessary to understand the full extent of the current crisis. The crisis encompasses both types of financing, debt and equity.

Stupid Trading terms, REBCO, SWIFT MT-103 Madness, and Mandates

Wed, 17 Aug 2011 13:14:38 CDT

STOP the madness ! Trade safe and avoid fraud. New and established Import Export traders, brokers and intermediaries often find misinformation about several important key terms. To save you time and money, and help you find the best possible deals to close, it's essential to remove all misinformation about these terms. Today we will look at Mandates, SWIFT MT-103 messages, REBCO, and bad trading procedures

Insights for the generations on communication

Wed, 17 Aug 2011 11:01:58 CDT

"What we talk about when we talk about communication" was the title of the 2011 Annual Symposium of the Bernard Schwartz Communication Institute of Baruch College/CUNY held on May 6th. I am fortunate to be among the invitees who were treated to a full day of keynotes, small group discussions and informal talk at meals.

The Challenge of Large Deposits in Teller Capture

Fri, 12 Aug 2011 11:20:46 CDT

The implementation of Check 21, electronic check exchange systems, and the closure of many Federal Reserve Bank check processing centers have prompted a majority of financial institutions scan checks at branch locations. A recent study conducted by the UCLA Anderson School of Business estimates that 70% of US banks have adopted some form of imaging at the branch, while only 35% of teller stations are equipped to capture checks immediately by the teller. The 35% teller adoption rate may be over-stated because it includes two large banks, JP Morgan Chase and Wells Fargo, who image checks at the teller line.

Banks Need Social Media Skills to Improve Customer Experience

Fri, 12 Aug 2011 11:18:10 CDT

Retail banks must get to grips with social networking websites if they are to improve customer service.Research by Ovum in their 'The Impact of Social CRM on Retail Banking' report revealed that two out of five banks around the world are vulnerable to competitors because they have no social media strategy in place.

S.A.F.E. Act Overview And Its Effects On Real Estate Investing

Thu, 11 Aug 2011 15:42:34 CDT

The S.A.F.E. (Secure and Fair Enforcement for Mortgage Licensing) Act is very broad and it's rules are almost constantly being changed by our politicians to hopefully improve it to become more reasonable to real estate professionals than what is allowed in its present form.

Lender Liability During the Great Recession

Thu, 11 Aug 2011 15:32:55 CDT

What Every Financial Institution Should Know About Social Networking

Thu, 14 Jul 2011 10:20:41 CDT

What once required face-to-face conversations and the physical exchange of contact information can now be done in an entirely virtual environment with just a click of a button.

Asset management public relations firms have to change how people think about their clients

Thu, 14 Jul 2011 09:36:10 CDT

The public mistrust of the financial sector is worse than it's ever been. Thus, asset management public relations firms have to work especially hard to fight bad press.

Cloud Computing: Trendy or Transformational

Tue, 12 Jul 2011 12:56:27 CDT

In the world of information technology, it seems that every few years a new concept comes along that emerges as being the next great leap in technology. One of the current concepts that fits that description in the IT world is called cloud computing. However, before a company decides that it will embrace cloud computing, it needs to make sure that it understands all the implications of this new offering.

Complicated, Expensive and Time-Consuming - But the PCI DSS Isn't Going Away

Tue, 12 Jul 2011 12:52:07 CDT

Around $12Billion is wasted on unused gym memberships each year, confirming that good intentions can get you as far as signing up, but not necessarily to work out. So every year around the world, good intentions to exercise more regularly and to get fit once and for all still remain unfulfilled.

New RESPA Regulations: What Lenders Should Know

Mon, 13 Jun 2011 16:00:01 CDT

As of January 1, 2010, the latest changes to the Real Estate Settlement Procedures Act (RESPA) went into effect for all "loan originators" — lenders and mortgage brokers — handling federally-related residential property loans. The RESPA revisions were intended to provide consumers a means of better understanding the terms of their loan obligations. The onus for ensuring compliance with these regulations, however, falls squarely upon lenders.

FBAR: Foreign Bank (and Financial) Account Reporting Rules Expanded With Higher Penalties

Fri, 03 Jun 2011 10:43:05 CDT

The U.S. Treasury issued expanded rules, effective March 28, 2011, requiring U.S. persons to report foreign bank and financial accounts each year. The new rules apply to every U.S. citizen or resident and every entity organized under U.S. law. They must report every foreign account over which he, she, or it has signature authority and every foreign account in which he, she, or it has a financial interest. The reports on Form TD F 90-22.1 must be received by June 30 by the IRS at an address in Detroit, MI. Penalties under the new rules can be the highest balance in the account, up to $25,000 each, and may include criminal penalties (jail time) for willful failures.

The Next QE-3 Will Be In 2012

Tue, 31 May 2011 13:21:49 CDT

Almost everyone in the financial media is talking about the current quantitative easing program(QE-2) that is scheduled to expire in late June 2011. This is where the central bank, called the Federal Reserve, creates money and buys U.S. Treasuries. The Federal Reserve has bought about $500 billion dollars worth of U.S. Treasuries so far since the current QE-2 program began in November 2010. The Federal Reserve is scheduled to buy another $90 billion in U.S. Treasuries next month(June). Many economists and investors in the financial media are betting that the Federal Reserve will begin buying more U.S. Treasuries as soon as the current QE-2 program ends at the end of June. If we have learned anything from this group of bankers it is that they love to surprise the markets and will do anything to keep the stock markets inflated.

Loan Software - How to Select it for a Bank

Fri, 13 May 2011 13:55:59 CDT

The banking industry is changing very rapidly. Banks of all sizes are implementing technologies to meet the needs of their customers. As banking becomes more and more advanced, new capabilities are being added: advanced check deposits, banking via cell phones, just to name a few.

Recording Conversations

Tue, 10 May 2011 14:53:27 CDT

Can you secretly record conversations with delinquent borrowers and share those discussions with the loan committee or the board of directors? The temptation to record conversations in the banking business can arise in a number of situations. Maybe you want to be able to prove what someone told you in negotiations. Maybe you want to be able to prove representations about finances and assets. But be careful, the Federal Wire Tap Act prevents intentionally intercepting spoken conversations or intentionally disclosing or using such illegally intercepted conversations!

Could you be breaking the law by not archiving e-mails?

Mon, 09 May 2011 15:26:34 CDT

It's 4:30 on Friday afternoon when you get the message that a key vendor will not be able to deliver what was promised on time, which will in turn cause YOU to miss a critical deadline for your most important client. Frustrated, you call the vendor, who instantly denies ever being told about the deadline. You know deadlines were discussed but can't find it in your original written agreement. You then turn to your e-mail only to be forced to dig through hundreds of messages to try and find the e-mail where you conveyed the importance of this project being delivered on time, but you can't find it because it was deleted.

Mint.com adds home loans feature to help homeowners make financial decisions

Mon, 09 May 2011 15:13:09 CDT

Mortgage payments can be one of life's biggest expenses, comprising 65 percent of all consumer debt, according to the Federal Reserve. To help people better tackle this debt, online personal finance solution Mint.com has added a home loans feature to the "Ways to Save" portion of its award-winning tool. The feature looks through thousands of home loan options and compares them to a person's income, debt ratio, and credit worthiness – giving the person a customized look at home loan options presented by multiple lenders. Using that information may help the individual reduce interest rates or lower monthly payments.

Debit cards rewards may be gone; more changes coming

Mon, 09 May 2011 15:10:23 CDT

JPMorgan Chase has announced that it will end its popular debit card rewards program for existing customers on July 19. Wells Fargo, SunTrust, and PNC have announced that they will either end their rewards programs or close them to new customers. Large banks are reacting to a ruling proposed by the Federal Reserve in December to lower the interchange fees that banks charge merchants to $.12, from approximately $.44, for an average single debit card transaction.

Is this dress code professionalism overkill?

Mon, 09 May 2011 14:22:41 CDT

If you are thinking about branding or flexibility for your firm's people, the 43-page new dress code from Swiss bank UBS AG should get your attention.(It immediately drove pursuit of dress code stories by ABC and MSNBC, judging from media queries I received the day after Elena Berton's story "Dress to Impress, UBS Tells Its Staff" appeared on the front page of the Wall Street Journal Money & Finance (!) section, Dec. 15, 2011.)

Defining Mortgage Backed Securities

Tue, 12 Apr 2011 16:26:28 CDT

Few people understand how mortgage rates are set. While there are many influences on interest rates, it basically all comes down to what is called a Mortgage-Backed Security or MBS.A MBS is defined as an asset-backed security or debt obligation that represents a claim on the cash flows from mortgage loans, most commonly on residential property.

Fair Debt Collection Practices Act - Both Friend and Foe

Tue, 12 Apr 2011 15:30:27 CDT

Debt collection is one of the highly regulated industries in the United States today. It does not matter what fancy or complimentary title you wish to adopt. If you are in the judgment recovery or debt buying business, you will be classified a "debt collector" and subject to the Fair Debt Collection Practices Act (FDCPA) when collection from individuals. The FDCPA is the business bible that you must embrace, learn in depth, and always apply in every transaction you process.

Fannie Mae and Freddie Mac - Pervasive Impact on the Real Estate and Mortgage Industry

Tue, 12 Apr 2011 15:19:56 CDT

From time to time the federal government "sponsors" enterprises. Such an entity is appropriately called a "Government-Sponsored Enterprise". There are a substantial number of these types of entities. Perhaps none has had greater impact on the social fabric of American society than two mortgage related Government-Sponsored Enterprises, the Federal National Mortgage Association (FNMA), and the Federal Home Loan Mortgage Corporation (FHLMC). Each of these organizations has a homespun nickname, which are loosely derived from their acronyms. In the case of FNMA, the nickname is Fannie Mae. The nickname for FHLMC is more abstract, since it is derived from the "Federal" and "MC" in its acronym, and is referred to as Freddie Mac.

Treasury Department Issues New Foreign Bank Account Reporting Rules

Mon, 04 Apr 2011 16:28:53 CDT

Final Regulations Are Applicable for FBARs Due June 30, 2011The Financial Crimes Enforcement Network (FinCEN) of the Treasury Department has issued new, final regulations governing foreign bank account reporting requirements under the Bank Secrecy Act. The new rules are effective for Reports of Foreign Bank and Financial Accounts (a reporting form commonly referred to as an “FBAR”) which are due to be filed by June 30, 2011, and for all subsequent calendar years. Among the significant changes contained in the new FBAR regulations are (1) a revised definition of “signature or other authority”; (2) clarification of whether an account is “foreign” for FBAR purposes and, in particular, filing obligations in context of custodial accounts holding foreign assets; (3) a revised definition of “mutual fund”; (4) changes to the filing obligations for foreign accounts held by trusts; (5) enactment of an “anti-avoidance” provision designed to deter non-compliance with the FBAR rules; and (6) clarification of the recordkeeping obligations of officers or employees who file FBARs because of signature or other authority over foreign accounts of their employers. The final regulations include a lengthy preamble which contains a significant number of explanatory notes which clarify a number of previously ambiguous areas based upon comments submitted to FinCEN. It is expected that Treasury will issue a new FBAR form with instructions to reflect changes in the filing rules sometime prior to the June 30 filing deadline.

Loan Software - Evaluating It For Your Bank

Mon, 14 Mar 2011 14:50:48 CDT

Technology is evolving more rapidly than ever - especially in the banking industry. Community banks are joining the revolution to better accommodate customers' wants and needs: mobile banking, advanced check deposit options, and smart phone apps, to name a few. What "behind the scenes" technologies are available to banks to help streamline operations and reduce risk? Implementing an effective, streamlined and user friendly loan software platform is one way to achieve both of these goals.

Real Estate Settlement Procedures Act (Respa): Know Your Loan Ingredients!

Fri, 25 Feb 2011 15:36:47 CST

In Series Number One, we reviewed the merits of the Good Faith Estimate and its value to the borrower for transparent disclosure of facts and figures. In the Part Two, we need to address the "service" aspect of the Real Estate Settlement Procedures Act. When you apply for a home mortgage, you may think that the lender, or loan originator, will service the loan until it is paid off or your house is sold. However, in today's market mortgage, servicing rights often are bought and sold. The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute which affords you certain disclosures and strategies for problem resolution with your mortgage and/or escrow account.

New Jersey Court Analyzes Counterclaim Waiver Provision in Commercial Loan Documents

Fri, 25 Feb 2011 15:36:38 CST

In a recent decision, the New Jersey Superior Court, Appellate Division, analyzed the enforceability of a counterclaim waiver provision contained in commercial loan documents. In Investors Savings Bank v. Waldo Jersey City, LLC, A-6201-09, _____ N.J. Super. _____ (App. Div. 2011), the court held that enforcement of such a provision in a collection action is contrary to New Jersey's court rules and policy in favor of judicial efficiency. This decision, however, does not significantly impinge upon lenders' rights - it merely permits a borrower to bring a lender liability claim as a counterclaim in a collection action, rather than in a separate action.

Information About How Bank Debt Recovery May Differ From Other Debt Collection

Wed, 09 Feb 2011 13:50:26 CST

Bank debt collection may differ from other varieties of collections, for a variety of various factors. The greater number of debts to banks are usually collateralized debts, more particularly home loans and consumer loans that are collateralized against a property, such that in a majority of these cases bank debt recovery is normally quite simple. Whenever there are defaults on these loans, it is customary for the debt to be paid back as quickly as feasible or risk losing his or her residence and banks will typically enter into agreements for the debts to be paid off over a period of time, since it is without question better for the bank to have the debt paid out off steadily than to have to take ownership of the property.

UCC Liens and UCC Judgment Liens

Wed, 09 Feb 2011 13:49:38 CST

A UCC (Uniform Commercial Code) lien, either is a general or a specific lien on most business property, and certain kinds of personal property. This lien does not cover real estate property. (Real estate requires a different kind of lien, such as an abstract of judgment, recorded at the county recorder where the property is located.)

Know Your Loan Ingredients! Truth In Labeling For Borrowers

Wed, 09 Feb 2011 13:09:26 CST

When the FDA required food manufacturers to reveal the ingredients, nutritional value, calorie count and net weight on their product labeling, the big winner was the consumer. The consumer wins again now that Department of Housing and Urban Development (HUD) has set a standard for loan transparency. As of January 2010, all loan originators are required to give borrowers a loan "ingredient" list called a Good Faith Estimate (GFE). This three page "label" is structured within the Real Estate Settlement Procedures Act (RESPA) and clearly discloses key loan terms and closing costs to the borrower. Actually the Good Faith Estimate is more than a guesstimate, because once presented to the borrower, it is a binding statement of costs with few exceptions. A loan originator must issue a GFE no later than 3 business days after the loan originator receives either an application or information sufficient to complete an application and failure to provide a GFE to a borrower is a violation of Section 5 of RESPA. However, if the loan originator denies the loan before the end of the three business day period, or if the applicant withdraws the application, then the GFE does not need to be provided nor does the Special Information Booklet. HUD's new settlement cost booklet (pdf version - updated 1/6/2010 with corrections of minor detail)

Basel III Final Rules Issued

Thu, 03 Feb 2011 15:23:16 CST

The Basel Committee on Banking Supervision (the "Basel Committee") issued its new Basel III framework on December 16, 2010. The new framework is intended to reform the international financial system and improve the banking sector's resiliency in times of financial and economic stress by instituting higher global capital and liquidity standards. This Client Update is intended to alert recipients to this development; a more comprehensive explanation will appear in the January 2011 Debevoise & Plimpton Financial Institutions Report.

Section 365(o) Coming Into Focus

Thu, 27 Jan 2011 12:30:22 CST

The Great Recession continues to take a toll on banks. In 2010, 149 banks had failed by mid-November. That's nine more than in 2009 and more than five times the number in 2008. Not since 1992 have so many banks failed in one year. See www.bloomberg.com/news/2010-11-22/adelphia-vitro-lehman-workf lowlocal-insight-bankruptcy.html.The situation is not expected to improve soon. The Federal Deposit Insurance Corporation (FDIC) recently reported that 860 banks in the U.S. are "problem" institutions. See www.fdic.gov/news/news/press/2010/pr10256.html. That means that almost one in nine of the nation's 7,760 banks are the highest risk for failure. See www.nytimes.com/2010/11/24/business/24fdic.html?scp=1&sq=Eric%20Dash%20and%20FDIC&st=cse.

Why Financial Management Rate of Return is used by Investment Analysts

Tue, 11 Jan 2011 09:45:45 CST

Financial management rate of return (or FMMR) is a return that was conceived (I do believe) by the Commercial Investment Real Estate Institute (CIREI) and is taught to students seeking the CCIM (Certified Commercial Investment Member) designation. So I'll give the CIREI the credit for the financial management rate of return with the reservation that I might be mistaken and it originated elsewhere. Fair enough.

List In Flat Fee Listing, Short Sales Are In Demand

Tue, 11 Jan 2011 09:31:40 CST

Short sales property demand has raised enormously with many property investors looking this opportunity as profit making. Once your short sale property gets listed in flat fee listing you are bound to get good amount of buying queries. People, who got strangled in this worst economic crisis ever with many of the businesses shutting, losing jobs, many of them have been not able to pay their mortgage instalment. This has resulted in lender mailing them foreclosure notice causing home owner social embarrassment. To avoid the foreclosure search for right short sale agent is required who can help the best way to avoid foreclosure.

Bankruptcy Property Exemptions

Tue, 28 Dec 2010 15:47:34 CST

The process of bankruptcy offers debtors a clean slate when they are overwhelmed by financial burdens. Once a bankruptcy case is completed, however, the debtor will still need basic possessions and assets to move their life forward. Fortunately, the Bankruptcy Code recognizes these basic needs and provides a variety of property exemptions for debtors. If property is exempt, it will not be subject to the claims of creditors. Under new bankruptcy law, a debtor will be required to submit a schedule or list of exempt property when they file the bankruptcy petition. The schedule should include a description of the property, specifying the law authorizing the exemption, and list the value of the exemption and its market value. This information allows parties involved in the case to evaluate the exemption claim and submit any legitimate objections within 30 days from the meeting of the creditors. If someone objects, they must prove that the exemption has been improperly claimed.

New Challenges to the Federal Defense of Marriage Act Filed in Federal Courts in Connecticut and New York

Tue, 28 Dec 2010 11:45:43 CST

The federal Defense of Marriage Act (“DOMA”) is the controversial law at the focus of the national debate over the legalization of same-sex marriage. The DOMA provides for all purposes of federal law, the word “marriage” means “only a legal union between one man and one woman as husband and wife” and the word “spouse” refers “only to a person of the opposite-sex who is a husband or wife.” In addition, the DOMA stipulates that no state shall be required to recognize a same-sex relationship that is considered a legal marriage in another state.

Banking KPI's - Metrics Used To Assess A Banking Entity's Performance

Mon, 25 Oct 2010 15:57:21 CDT

Banking KPI's include certain metrics that are quantifiable and specific. They can be categorized to six classifications, such as income metrics, cost metrics, company asset metrics, investment metrics, interest margin metrics, and risk metrics.

Special Needs Trusts

Mon, 18 Oct 2010 13:52:57 CDT

When a person wants to set up a trust that benefits a person who, without additional help, may not be physically or mentally capable of handling the funds under their possession, the law provides several options to plausibly allow for these transfers of property. Known as a special needs trust or, namely in American law, a supplemental needs trust, certain legal structures permit special types of trusts to give money or property to mentally or physically disabled individuals without interrupting their Medicaid support.

COBRA Subsidy Extended

Fri, 25 Jun 2010 10:32:55 CDT

The extension of the COBRA health insurance subsidy, signed into law by President Obama on December 21st after an 88-10 vote by the Senate, will provide additional relief for a record number of unemployed workers.

IRS Issues FBAR Filing Relief, But Certain Filing Obligations Remain

Tue, 22 Jun 2010 09:38:09 CDT

The IRS has recently issued several pieces of guidance related to the filing of the Report of Foreign Bank and Financial Accounts, IRS Form TD F 90-22.1 (“FBAR”), by pension plan sponsors. While the IRS has relieved some of the filing obligations, most notably the requirement for plans to file for foreign hedge fund investments for 2009 and prior years, certain filing obligations remain.

Supreme Court Clarifies Treatment of Joint Ventures Under Antitrust Law

Fri, 11 Jun 2010 11:31:45 CDT

The Supreme Court recently released its unanimous opinion in American Needle, Inc. v. National Football League, 560 U.S.___ (2010), 2010 WL 2025207 (American Needle), its latest foray in the area of competitor collaboration under the antitrust laws (and specifically Section 1 of the Sherman Act, 15 U.S.C. § 1). In American Needle, the 32 member teams of the National Football League formed National Football League Properties (NFLP) to develop, license and market their intellectual property

Supreme Court to Consider Wheather Federal Arbitration Act Preempts State Law Limitations on Arbitration Agreements

Fri, 11 Jun 2010 11:31:37 CDT

On May 24, 2010, the U.S. Supreme Court granted certiorari in Mobility LLC v. Concepcion, No. 09-893, to address the question of whether the Federal Arbitration Act (FAA) preempts state law rules limiting the enforceability of arbitration agreements. In Concepcion, the Supreme Court will consider whether the FAA preempts California state court decisions that class action waivers are unconscionable in consumer arbitration agreements as a matter of public policy

"Business Interruption Claims" and the Recent Gulf of Mexico Oil Spill

Fri, 11 Jun 2010 11:31:34 CDT

On April 20, 2010, an explosion on the mobile drilling rig Deepwater Horizon occurred some 130 miles southeast of New Orleans, Louisiana. As of May 23, 2010, it is estimated that a minimum of 6 million gallons of crude oil have spilled into the Gulf of Mexico as a result of this incident. However, a growing number of scientists assert that they believe the count is even higher than that troublesome figure.

Court Issues Ruling In Firefighter Applicant Disparate Impact Case

Fri, 11 Jun 2010 11:31:30 CDT

This morning, with Justice Antonin Scalia writing a unanimous opinion, the U.S. Supreme Court ruled in a case brought by a group of African-American firefighter applicants who alleged that the city of Chicago's applicant selection process had a disparate impact on African-Americans in violation of Title VII of the Civil Rights Act of 1964.

A Trap for the Unwary? Discovery Plan Crafted Under Rule 26(f) No Guarantee Against Privilege Waiver

Fri, 11 Jun 2010 11:31:26 CDT

In a recent decision, a magistrate judge in a U.S. District Court in New Jersey ruled that a discovery plan crafted pursuant to Federal Rule of Civil Procedure 26(f) did not protect the plaintiff’s inadvertent production of privileged documents from being subject to waiver. This case is important because it distinguishes between the procedural or process-based rules found in Federal Rules of Civil Procedure 26(b)(5)(B) and 26(f), and the substantive-based rules regarding privilege waiver found in Federal Rule of Evidence 502.

Obama Administration Proposes New EPA Enforcement Priorities

Fri, 11 Jun 2010 11:31:22 CDT

On January 4, 2010, the United States Environmental Protection Agency (EPA) formally solicited comments on what should be EPA's enforcement priorities for fiscal years 2011 through 2013. The EPA's draft list of priorities indicates a new emphasis on certain sectors of the economy, including manufacturers that cause disproportionate environmental impact to minority neighborhoods, manufacturers and users of pesticides, developers with projects impacting wetlands, and owners, operators and industrial users of municipal wastewater treatment facilities. EPA's request for public comments is published at 75 Federal Register 146-148.

Is the Tide Turning Against Discretionary Clauses in Insurance Contracts?

Fri, 11 Jun 2010 11:31:19 CDT

A recent decision by the Ninth U.S. Circuit Court of Appeals may make it harder for insurance companies in some states to defend claims denials. Standard Insurance Company v. Morrison, a case decided by the court on October 27, 2009, established its place in claims denial case history by addressing the standard of review in Employee Retirement Income Security Act (ERISA) cases.

New RESPA Rules for Consumer Protection in Real Estate Settlements and Loans

Fri, 11 Jun 2010 11:31:16 CDT

The U.S. Department of Housing and Urban Development (HUD) recently issued new rules that modify the Real Estate Settlement Procedures Act (RESPA). RESPA is a consumer-protection statute that was enacted to (1) help consumers become better shoppers for settlement services and (2) eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services. Loans secured with a mortgage placed on a one-to-four-family residential property are governed by RESPA. These loans include most purchase loans, assumptions, refinances, property improvement loans, and equity lines of credit. HUD's Office of RESPA and Interstate Land Sales is responsible for enforcing RESPA.

Action Items For HITECH Act Compliance

Fri, 11 Jun 2010 11:31:14 CDT

This year has brought about historic and dramatic changes in federal law governing the privacy and security of health care information in the United States. The February 2009 enactment of the Health Information Technology for Economic and Clinical Health (HITECH) Act, which was part of the American Recovery and Reinvestment Act of 2009 (ARRA), created federal notification requirements for security breaches of protected health information (PHI) and added numerous provisions and amendments to the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and its implementing privacy and security regulations.

Federal Courts Conflicted on Climate Change Litigation

Fri, 11 Jun 2010 11:31:11 CDT

Three recent federal court decisions sharply divide on whether large carbon emitters may be sued under common law theories of nuisance and negligence.Connecticut v. American Electric Power CompanyNative Village of Kivalina v. ExxonMobilComer v. Murphy Oil USA

Major Title Insurance Companies Decline to Issue Creditors' Rights Endorsements

Mon, 10 May 2010 12:41:26 CDT

Many major national title insurance companies have just announced they will no longer provide "creditors' rights" coverage in connection with new policies of title insurance. Therefore, commercial real estate lenders and purchasers will now bear certain insolvency risks that were often covered by title insurance endorsements in the past.

Patent False-Marking Lawsuits: Could Your Company Be Next?

Mon, 10 May 2010 12:41:20 CDT

If you own U.S. patents and mark your products as patented or patent pending, you could find yourself defending a federal lawsuit. A recent Federal Circuit Court of Appeals decision has opened the floodgates for qui tam plaintiffs to challenge the accuracy and validity of patent marking, requesting to split any statutory damages award with the government—assessed “per article.”

Avoiding Sanctions Over Duty to Preserve Evidence

Mon, 10 May 2010 12:41:17 CDT

In late 2009 a federal District Court sitting in Orlando, Fla., sent shockwaves through the in-house general counsel world. The case, Swofford v. Eslinger,1 is the first reported case to sanction in-house counsel for spoliation of electronic evidence.

Supreme Court Rules Against Inference of Class Arbitration in "Silent" Contracts

Mon, 10 May 2010 12:41:14 CDT

April 27, 2010, with Justice Samuel Alito writing for the 5-3 majority (Justice Sonia Sotomayor abstained), the U.S. Supreme Court addressed class-action arbitration when the parties' agreement was silent regarding the aggregation of multiple parties' claims. According to the Court, the arbitration panel's imposition of class arbitration – despite the parties' stipulation that they had not reached an agreement on this issue – is "fundamentally at war" with the Federal Arbitration Act (FAA) principle that arbitration is a matter of consent.

Do You Have an ESI Strategy Yet? Companies and In-House Counsel Sanctioned for Poor Oversight

Fri, 09 Apr 2010 15:10:27 CDT

Although it has been more than three years since the Federal Rules of Civil Procedure were amended to codify parties' obligations to preserve and produce potentially relevant electronically stored information (ESI), a recent survey conducted by Kroll Ontrack reflects that only 46% of U.S. corporations possess an ESI readiness strategy.1 Meanwhile, a review of recent judicial decisions on requests for discovery sanctions reflects a growing impatience by courts for a lack of such a readiness strategy and resulting failures to competently preserve and produce potentially relevant electronically stored information.

Appellate Judge Excludes Damages Theory from Patent Trial

Fri, 09 Apr 2010 15:10:24 CDT

As is known among many in the intellectual property field, Judge Randall R. Rader, of the U.S. Court of Appeals for the Federal Circuit, periodically takes a break from his appellate duties to preside over trials of patent cases at the district court level. In one such case, he recently issued a decision reminding lawyers, litigants, and expert witnesses that plaintiffs must have a firm evidentiary foundation before submitting a broad damages theory to the jury.

Supreme Court to Decide Important "Informational Privacy" Case

Fri, 09 Apr 2010 15:10:21 CDT

The United States Supreme Court has stepped into the fray in a closely watched case involving the collection of personal information by the National Aeronautics and Space Administration (NASA) from “low risk” contract employees at the California Institute of Technology’s (Caltech) Jet Propulsion Laboratory (JPL). Robert M. Nelson, et al., v. National Aeronautics and Space Administration, et al., Supreme Court Case No. 09-530. While the result of this case will directly impact the extent to which the government can collect background information from its employees and third-party contractors, a broad decision by the Supreme Court may impact other areas of the Court’s “privacy” jurisprudence.

New Federal Court Ruling Reinforces Need for Proper Framework for Litigation Holds and Preservation

Fri, 09 Apr 2010 15:10:18 CDT

Earlier this month, Judge Shira Scheindlin of the U.S. District Court for the Southern District of New York, and author of the landmark Zubulake decisions regarding electronic discovery, issued an 88-page decision detailing issues on document preservation, spoliation, discovery conduct, and sanctions. Pension Committee of the University of Montreal Pension Plan, et al. v. Banc of America Securities, et al.1Pension Committee is not a tale about litigants who intentionally destroyed evidence.

Decision Underlines Counsel's Obligation to Understand e-Discovery Rules and Advise Clients

Fri, 09 Apr 2010 15:10:16 CDT

RICHMOND, Va. (2/1/10) – An opinion issued by Judge Shira Scheindlin of the U.S. District Court for the Southern District of New York in January appears to mark an important milestone in the development of litigants’ duties to preserve and produce electronic evidence and counsel’s obligation to understand those duties, according to Bill Belt, a shareholder in LeClairRyan’s Richmond-based Discovery Solutions Practice Group.

Unreported Claims Against Former Lawyers Could Expose Your Firm to Liability

Fri, 09 Apr 2010 15:10:13 CDT

In Berry & Murphy, P.C. v. Carolina Casualty Insurance Company, 586 F.3d 803 (10th Cir. 2009), a recent malpractice insurance coverage decision, the Tenth Circuit held that there was no coverage under a lawyers’ professional liability policy where a claim against a former shareholder was made prior to the policy period.

Seventh Circuit: CAFA Jurisdiction Remains After Class Certification Is Denied

Tue, 09 Feb 2010 08:06:08 CST

On Friday, January 22, 2010, the U.S. Court of Appeals for the Seventh Circuit held that a federal court does not lose Class Action Fairness Act (CAFA) jurisdiction over an action when class certification is denied. Cunningham Charter Corp. v. Learjet, Inc., ___ F.3d ___, 2010 WL 199627 (7th Cir. Jan. 22, 2010). The Eleventh Circuit came to the same conclusion in Vega v. T-Mobile USA, Inc., 564 F.3d 1256 (11th Cir. 2009), noting that its vacating an order certifying a class action did not affect CAFA jurisdiction. Id. at 1268 n.12.

New Penalty for Failing to Report Payments to Medicare Beneficiaries

Tue, 09 Feb 2010 08:06:00 CST

Beginning January 1, 2010, a failure to comply with a new requirement for reporting to Medicare payments to Medicare-eligible individuals for resolution of claims involving medical expenses could cost the payor $1,000 per day in penalties for noncompliance.

Supreme Court to Review Employee Privacy in Text Messages

Tue, 09 Feb 2010 08:05:55 CST

Many organizations believe they have the right to monitor employees' activities on their computers and the Internet, including the sites they visit and the content of e-mails they send or receive. Such a belief is understandable: the equipment is provided for business purposes, and organizations can be held responsible if an employee misuses those resources. Therefore, organizations ought to have the right to check up on employees and make sure their resources are being used appropriately.

States Embrace Electronic Discovery

Mon, 01 Feb 2010 16:37:10 CST

If you were under the misguided impression that attorneys and their litigant clients only need to deal expressly with electronic discovery in federal court, you need to wake up and smell the e-discovery coffee. In the wake of the 2006 e-discovery amendments to the Federal Rules of Civil Procedure, state legislatures have been getting into the act, adopting e-discovery rules for state court cases. Indeed, more than half of our 50 states have gone this route so far.

Weight Reduction Treatment Awarded to Allow Primary Medical Treatment for Back Surgery

Mon, 01 Feb 2010 16:37:01 CST

On August 6, 2009, the Indiana Court of Appeals issued a decision that has generated considerable interest in the business community. The Court upheld an Indiana Worker's Compensation Board (Board) award in favor of a Claimant who had alleged a work-related back injury. At issue in the case was whether the Claimant was entitled to receive "secondary medical treatment" (possibly including surgery), for weight reduction in order to permit back surgery to occur, which had been ordered by the Board as a result of the Claimant's work-related accident.

Red Flags Rule Deadline Quickly Approaching: The FTC Will Begin Enforcing the New Identity Theft Rule on November 1, 2009

Mon, 01 Feb 2010 16:36:53 CST

The Federal Trade Commission (FTC) is slated to begin enforcement of the Red Flags Rule on November 1, 2009. The Red Flags Rule (“Rule”), requires businesses and other organizations to implement effective, new policies to detect, prevent and mitigate identity theft.

D&O Issues: Lloyd's Not Liable for Defense Costs; Did Not Consent to Settlement

Mon, 01 Feb 2010 16:36:46 CST

In Safeco Insurance Co. of America v. Certain Underwriters at Lloyd’s, London, Case No. BC378070 (Cal. Super. Ct. September 30, 2009), the Los Angeles County Superior Court granted summary judgment to defendants Certain Underwriters at Lloyd’s, London and New Hampshire Insurance Co. (NHIC), holding that Lloyd’s and NHIC did not have to pay Safeco Insurance Company more than $1 million in defense costs.

When Affirmative Action Goes Wrong

Mon, 01 Feb 2010 16:36:36 CST

In Humphries v. Pulaski County Special Sch. Dist., decided by the Eighth Circuit Court of Appeals on September 3, 2009, a white public school administrator was repeatedly denied promotion to assistant principal, allegedly because of the school district's affirmative action program and policies that favored promotion of African-American employees. Because the school district was legally compelled to engage in affirmative action efforts as part of a Consent Decree with the EEOC to remedy past discrimination against African Americans, the school district argued that its efforts to implement its court-approved affirmative action program could not be held against it.

Are Legal Materials From the Internet Authentic? It Depends

Mon, 01 Feb 2010 16:36:29 CST

One thing to consider when doing legal research on the Internet is the issue of authentication. It's one thing to find authority online. It's another to use it in court. Various courts have rules about what precedent can be used and, more particularly, from where it can come. It seems odd in the days of courts having their own official web sites that the opinions which they distribute through these sites may not be official.

3rd Circuit - Independent Contractor May Bring Section 1981 Race Discrimination Claim

Mon, 01 Feb 2010 16:35:55 CST

Courts typically have dismissed discrimination claims under Title VII if those claims were made by an independent contractor, rather than by an “employee” of the company. However, 42 U.S.C. §1981 (“Section 1981”), which prohibits racial discrimination in the formation of contracts, states that “all persons” shall have the same right “to make and enforce contracts as is enjoyed by white citizens.” In a case of first impression for the 3d U.S. Circuit Court of Appeals, that court has followed prior decisions of three sister-appellate courts in holding that an independent contractor may sue for race discrimination under Section 1981. Brown v. J. Kaz, Inc. d/b/a Craftmatic of Pittsburgh, 3d Circ., No. 08-2713, Sept. 11, 2009.

Catching the Wave: How Advances in Computer Technology are Impacting Business Disputes

Mon, 01 Feb 2010 16:35:49 CST

Computer technology has revolutionized the way businesses operate in today’s market. Companies that rely upon computer technology advances to support their business are often unaware of the impacts that technology can have on business disputes and the extent to which computer advances have altered the legal landscape. By better understanding the changing landscape, businesses can more effectively prepare to confront litigation, protect business interests, and minimize the effect of legal disputes on daily operations.

How To Not Be Fooled By The Jobs Report And Its Impact On The Recovery

Fri, 08 Jan 2010 12:45:16 CST

As the markets float slightly to the downside, the market continues to digest the Non Farm Payrolls and Unemployment data from this morning. Non Farm Payrolls for December dropped by 85,000. This was slightly below estimates as

A Day Unlike Any Other (Give Thanks, And Never Forget)

Mon, 30 Nov 2009 11:39:39 CST

As we all manned our trade stations and prepared for another day, the admin staff answered calls, the interns looked to impress the traders, the veterans got their coffee, the office was nearly full and the day was beginning like any other. Only this would be a day we would remember for the rest of our lives. As I sat at my desk, finger on the trigger ready to fire off trades, all of a sudden

Individual Managers May Be Personally Liable for Unpaid Wages When an Institution Fails

Mon, 30 Nov 2009 11:29:54 CST

Where an individual manager exercises "control over the nature and structure of the employment relationship," or "economic control" over employees, then that individual manager may be subject to liability for unpaid wages under the Fair Labor Standards Act.

Court Invalidates Contingent Fee Arrangement and Finds Attorney Liable Under Chapter 93A for Charging an Excessive Fee Under the Agreement

Mon, 21 Sep 2009 12:28:09 CDT

In Landry v. Haartz, et al., Lawyers Weekly No. 12-105-09, the Superior Court ruled the plaintiff’s conduct in securing a contingent-fee agreement calling for exorbitant legal fees, constituted unfair trade practices in violation of G.L. c. 93A (“Chapter 93A”).

A Return From the Brink--Federal Circuit Reverses Bose and Reaffirms the Applicable Standard in Trademark Fraud Claims

Mon, 21 Sep 2009 12:27:57 CDT

The U.S. Court of Appeals for the Federal Circuit issued a decision on August 31, 2009 that may allow in-house lawyers and others who sign trademark use affidavits to breathe a little easier, by making it substantially more difficult to prove that a trademark registration was procured based on fraud.

USING 1031 EXCHANGES AS A RETIREMENT PLANNING TOOL

Tue, 01 Sep 2009 11:24:04 CDT

Most investors think about the immediate tax implications of completing a 1031 exchange but may not consider the long-term benefits of the tax deferral. An exchange provides the opportunity to apply pre-tax dollars towards replacement property and put that money to work for the investor. This money can help the investor acquire a more expensive replacement property that may yield a higher annual return on investment and may enjoy greater long term appreciation. Exchanges also provide the opportunity to diversify real estate holdings, consolidate investments and acquire property that is less management intensive.

Major announcement: U.S. life expectancy hits a new high of 78

Wed, 26 Aug 2009 16:31:34 CDT

The good news, according to government statistics released on Wednesday, is that life expectancy in the US is the highest it has ever been at 77.9 years. The immediate effect on every single American is that you should rush off and check if you can afford to live to this extended ripe old age.

Fair Debt Collection Act

Thu, 16 Jul 2009 10:03:38 CDT

A fair debt collection act protects the rights of both the creditor and the debtor. A debt collection act prohibits collection agencies from abusive practices. Debt collection refers to pursuing payments on debts owed by individuals or businesses. The debt collector can either be an individual or a collection agency. A collection agency operates as an agent of the creditor. The collection agencies collect the debts at a percentage of the total money owed.

Five Tips to Restore Credit

Thu, 16 Jul 2009 09:57:50 CDT

After two years of deep recession, many people need to restore credit scores. Here are five tips to help you restore credit for you and your family. Lots of people have 'fallen out of the sky' over the last 24 months due to the financial crisis around the world. There a little glimmers of hope that the crisis is lessening and now is the time to regain control over your credit. Whether you have a couple of small glitches or the bottom fell out completely for you, any credit situation can be improved.

New Bankruptcy Laws

Thu, 16 Jul 2009 09:50:16 CDT

According to the new bankruptcy laws, individuals with higher income can no longer qualify for Chapter 7 bankruptcy. These individuals will have to repay at least a portion of the debt under Chapter 13. The new laws require all debtors to go through debt counseling before they want their debts to be wiped off. This new law has made it difficult for everyone to file bankruptcy. For many individuals, filing bankruptcy was an easy way out of a massive debt they had no plans to pay. Since the laws are stringent, finding an attorney will become a difficult task.

The Banking Dilemma - Business Versus Technology

Thu, 16 Jul 2009 09:43:35 CDT

It never ceases to amaze me that in the world of banking two different worlds can seemingly co-exist side by side, each oblivious of the other. There are many examples of this, such as "sound risk management" versus "business imperatives". This particular issue lies, in my view, at the heart of the current financial crisis.

Monitoring the Monitor? The Need for Further Guidance Governing Corporate Monitors Under Pre-Trial Diversion Agreements

Wed, 15 Jul 2009 09:41:51 CDT

Over the last several years, there has been an increase in Federal prosecutors' use of Deferred Prosecution Agreements ("DPAs") or in some cases Non-Prosecution Agreements ("NPAs"). From 2002-2005, the Department of Justice ("DOJ") entered into twice as many of these agreements with defendant-companies as it had over the previous 10 years.

Consumer Fraud & Class Actions Lawsuits. Common Questions.

Wed, 15 Jul 2009 09:41:43 CDT

What is consumer fraud? Unfortunately, there are many different ways you can be harmed by consumer fraud. If you buy something that does not work as advertised, or if you are purposefully overcharged for the item, you have suffered consumer fraud. You may also be harmed by a fraud scheme, such as paying for sweepstakes winnings or internet actions and receiving nothing in return. Finally, identity theft is also considered consumer fraud.

Real estate lawyers stay busy in uncertain economy

Wed, 15 Jul 2009 09:41:33 CDT

In today's economy, with financial meltdown news dominating the headlines, one may wonder: Is there any money available to complete a deal? Of course there is. After all, institutions that are in the business of providing loans still needed to move money. That's their business. There's not a hotter real estate issue today than the funding and collateralization of loans. Before we analyze from a legal perspective, we need to talk briefly about the business environment. After all, law is driven by business. Business doesn't drive law.

Mitigating the Financial Risk of Employment Litigation: Employment Practices Liability Insurance

Wed, 01 Jul 2009 16:54:23 CDT

Employment Practices Liability Insurance (EPLI) is the so-called new kid on the block in the insurance world. In comparison to other forms of indemnity which have been around for decades, the first EPLI policies appeared circa 1990. Although EPLI constitutes a relatively new line of insurance, it is one that no employer of individuals should be without. EPLI transfers the risk of losses associated with employment litigation during the entire employment life cycle, from recruiting through termination, to an insurance carrier.

U.S. Supreme Court Narrows Scope of CERCLA Liability

Wed, 01 Jul 2009 16:54:21 CDT

In a stunning defeat for state governments and the Environmental Protection Agency (EPA), the United States Supreme Court issued a critical opinion on the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). The opinion, published on May 4, interprets the "arranger for disposal" status and application of joint and several liability to all liable parties under CERCLA Sec. 107.

Business Finance - Organize and Increase Your Efficiency

Tue, 30 Jun 2009 07:25:29 CDT

It is easy to lose yourself in the consistent stress accumulating world of business. For some, the overwhelming pile of obligations that caravan along side the opportunity of owning your own business can glorify the repetitive nature of saying "yes sir" to your boss. However, hope is not lost. The cure is simplified order, and the best place to begin is your business finances.

Seller Financing... Useful Strategies in a 1031 Exchange

Thu, 18 Jun 2009 14:30:16 CDT

In the current lending environment seller financing may be an option that benefits both the buyer and the seller. When an Exchangor sells property and wants to provide seller carryback financing to the buyer and also take advantage of the tax deferral of a 1031 exchange, the Exchangor has several options.

Making Money Off Government Tax Liens

Tue, 16 Jun 2009 08:31:33 CDT

There isn't anybody with a mind functioning properly that doesn't like the sound of the word "taxes". Hearing somebody mention it only stirs up negative and sometimes blasphemous conversations, knowing that the government takes a part of every single income that flows into our pockets. In some areas, income taxes are so high that it almost feels like the government acts like a tyrant, pillaging us citizens. But there are some that actually love taxes, why? Because these individuals have found the brighter side to taxes, and use the problem in such a way, that it benefits them by making money.

What is a Short Sale?

Tue, 26 May 2009 09:44:43 CDT

With the recent boom in foreclosures hitting the nation, it's almost certain that if you watch the news or read the news paper, you have probably heard the term "short sale"... But do you really understand or know what a short sale is? For many, they are still unclear. Put simply, a short sale is when a lender or lenders, accept less that the full amount due on a loan when the property is sold. The lender will usually accept the short sale to avoid the time and expense of a foreclosure, but do require that the owner of the property show some type of a "hardship", or reason that they can no longer afford the home and need to sell. In a short sale, the lender will pay all of the fees that are involved with the sale, including the Realtor's commissions.

Bankruptcy - The X-Credit Files & Charge Offs

Wed, 20 May 2009 10:51:36 CDT

You fall past due on your credit cards, and the bill collectors start calling. They call every week, every day, sometimes every hour...then all the sudden it all stops. The phone goes quiet for months, sometimes years. It's like everyone has forgotten about the debt. They haven't, but it may seem that way. You have just entered the charge-off zone.

Another bubble in the making?

Wed, 20 May 2009 10:27:09 CDT

The market has staged a very impressive rally since the March 6th low. At that time the S&P bottomed at 666 and is now around 900. This massive rally has occurred in just two and a half months. Some talking heads in the media are now saying that this is the start of the next bull market. Many call a move of 20% or more a bull market and perhaps by that definition they are correct. However, the decline seen last year should then be called a 'mega bear' as the S&P went from 1576 to 666 in just 18 months.

Bankruptcy for Business: Will My Partnership Be Affected?

Wed, 20 May 2009 09:24:56 CDT

If you own a business that is registered as a partnership, and you find yourself in the position of having to file for personal bankruptcy protection, what happens to your business? Does personal bankruptcy have to mean small business bankruptcy as well? Owning a partnership means that your personal and business finances are one and the same. It also means the same for your partners. Each partner is responsible for the entirety of the business's debts. Since your personal debts and your business debts are the same, they cannot be separated when you file for bankruptcy protection.

Chapter 7 Bankruptcy and How It Can Affect You

Fri, 15 May 2009 09:51:04 CDT

Occasionally debtors digg themselves a hole so deep that they possibly could be pressured into filing for bankruptcy. Only as a last choice would that be advisable; it stays on a persons credit report for at least seven years and could make it more difficult to purchase or even rent a home, to purchase a car, to apply for just about all kinds of credit, etc.. The two most usual kinds of bankruptcy are Chapter 7 and Chapter 13 bankruptcy. At this moment we are going to discuss Chapter 7 bankruptcy.

Getting Approved For Commercial Loans

Fri, 15 May 2009 09:16:58 CDT

Capital and finance are the two important ingredients of entrepreneurship. On turn they also involve getting commercial loans. Depending on your handling of the issues the obtaining of such loans may be easy or difficult. However any one who aspires for such factor as the commercial loans must learn the terms of trade such as the commercial foreign exchange, merchant accounts trade finance and process payments etc.

Top 10 Reasons To Refinance Your Mortgage...Now!

Tue, 05 May 2009 11:42:52 CDT

If there is a silver lining to be found behind this otherwise gloomy economic state, it's that there are great deals to be found everywhere you look. From cars to houses, things have gotten much cheaper. And as a homeowner, that means your mortgage can get cheaper too. Here are the top ten reasons you should refinance now.

Distressed Real Estate and the Benefits of a Receiver

Wed, 29 Apr 2009 10:41:46 CDT

Some lenders will decide to pursue a non-judicial foreclosure, as provided in the original loan documents. When this remedy is taken and the lender becomes the sole title holder of a distressed real estate property, all income, as well as all the burdens and liabilities of the ownership of the property become theirs. These burdens are further complicated if construction is under way at the distressed property, as the decision must be made to either complete construction or leave it as it is. This scenario, along with the responsibilities of taxes, tenants, leasing r and maintenance issues all become a legal obligation of the lender.

The Benefits of Bankruptcy Compared to Its Alternatives

Wed, 29 Apr 2009 10:40:10 CDT

Are you in serious financial straights, but afraid to file for bankruptcy? You're not alone. Many people are fearful of a bankruptcy's effect on their future. They wonder about their credit score, and worry they'll lose their house. In reality, filing for bankruptcy is often a better solution than the alternatives, including: credit counseling, debt consolidation, and/or raiding retirement accounts.

What are the impacts of shifting from segment or product driven organizations to holistic management of customer value chains?

Wed, 29 Apr 2009 08:00:43 CDT

As a result of this crisis, financial institutions and telecom companies are seeking new strategies to gain more insight on risk management issues and try to implement early warning mechanisms to foresee possible damages of unpredictable circumstances. In banking sector, in many of the most developed countries, stress tests are widely used nowadays to see the possible impacts of alternatives scenarios on balance sheets to identify bail-out needs or shareholders structures.

What an omen! Can 666 be the low on the SPX?

Mon, 27 Apr 2009 07:50:52 CDT

On March 6th the S&P traded as low as 666. This was a new 12 year low and since then it has rallied higher by over 170 points, trading as high as 845. Many so called market mavens have said the lows are in for the year. There is even talk that these are generational lows and the opportunity of a lifetime. While the market was extremely oversold in early March and a bounce was due, can we call this the final bottom? While we are technical traders and just follow price action, pattern, and time, we will look at the underlying financial problems and see what we can uncover.

They Have To Blame Someone!

Mon, 27 Apr 2009 07:50:50 CDT

Have you ever noticed that a day does not go by without the media pointing to a reason why the market traded higher or lower on a particular day? According to the media, there is always a reason for a move higher or lower.

Goldman Sachs, The Market Leader Even After Paulson's Departure

Mon, 27 Apr 2009 07:50:47 CDT

Goldman Sachs began its meteoric rise from one of the many financial firms to the one true elite player as Paulson took power. Goldman Sachs quickly gained traction as the market directional leader almost like a blessed being. They could do no wrong...

Thank You, Mr. President!

Mon, 27 Apr 2009 07:50:27 CDT

Those of us in the mortgage business know just how many incredible opportunities are being presented in this otherwise dismal economic climate. From opportunities to buy at insanely low prices, to interest rates not seen in decades, we know (because we're immersed in the business day in and out) that it is unequivocally one of the best times in history to be a buyer. We also know that it's a remarkable time to be a homeowner, as you can save thousands by refinancing into safe, old fashioned 30 year fixed loans.

Bankruptcies Are On the Rise

Mon, 06 Apr 2009 14:56:48 CDT

According to recent news articles, bankruptcies are at their highest level since October 2005, with an average of 5,945 filings per day during the month of March. Adding to this the fact that 663,000 Americans lost their jobs last month, indications appear to be that this number will only increase during the coming months. While this is a shame, all too many people file bankruptcy when it is not their best financial option. Bankruptcy comes in two versions that apply to most consumers. Chapter 7 is a near total liquidation of assets and near total elimination of debts. Chapter 13 is basically a negotiated repayment plan, with terms set and monitored by the courts.

The Changing Face of the Financial Sector

Mon, 30 Mar 2009 12:06:53 CDT

After more than 10 years spearheading the US and UK economies, the unprecedented events of last year - which saw a whole host of financial behemoths bailed out by their respective governments - are still playing out, and the whole industry is undergoing a huge transformational change. As the world reels from the aftershocks, the epicentre of the crisis is having to do some very quick, and often painful adjustments to cope with the public scrutiny it now faces. Banks are recognising their corporate social responsibility; a concept that previously seemed not to apply. The immediate need to downsize is not exclusive to the financial sector, but after years of over hiring and seemingly overpaying those who posted huge paper profits, the world at large feels that heads should roll.

How a Dead Woman Brought Down the World Economy

Mon, 30 Mar 2009 12:05:01 CDT

The roots of the sub-prime mortgage implosion, and subsequent recession, can be traced back to novelist, Ayn Rand, who passed away in 1982. Ms Rand, who was a Russian born immigrant, wrote many works based upon her philosophical concept of "Objectivism". Her most famous Objectivist work was the 1957 novel, "Atlas Shrugged".

Just Capitalism

Mon, 30 Mar 2009 12:00:37 CDT

The financial and economic situation in our country, like all over the world lately, sharply deteriorated. There are many obvious causes, but in summary this is a result of the exhaustive levers of managing the contemporary capitalistic system. The foundation of progress in the capitalistic system consisted of increased production of goods and services that was an alternative to redistribution and economic insecurity. Undoubtedly the limit of continuous economic growth was reached and, in the near future, we shall satisfy our requirements with the reached peak and slower growth.

The Great American Hole Gets Deeper by the Day

Fri, 06 Mar 2009 15:04:55 CST

I promise to stop soon. I really do. It brings me very little pleasure to upset you this way on such a constant basis. In fact, I look forward to the day when this column is full of nothing but hot stock tips. But I'd rather bring a steady diet of hard cold facts, than any sort of hollow sugary confection. In the end, it's healthier for all of us to face up to the problems at hand now, before they grow even larger. And so with that in mind, I have an update on the bank situation and a heads up on another brewing crisis along the same lines. On Monday, I showed you the growing gap between the Federal Deposit Insurance Corporation's growing responsibilities and the funds it has set aside to cope with same.

Bankruptcy Boom Result of Recession

Fri, 06 Mar 2009 15:01:31 CST

According to a report released by the National Bankruptcy Research Center, personal bankruptcy filings are up 34 percent in January 2009 as compared to January 2008. Compared to the previous month, December 2008, filings were up 4.5%. These increases are no doubt a consequence of the current economic crisis. The National Bureau of Economic Research (NBER) reports that the United States' economy entered recession in December of 2007.

The Top 6 Frequently Asked Bankruptcy Questions

Fri, 06 Mar 2009 14:59:29 CST

Bankruptcy is a long and complicated process, requiring a lot of paper work to be done, which can be extremely stressful. The hardships experienced here can be amplified exponentially if the person filing for this "status" has no idea on where to start. For the amateurs or those unfamiliar with the system of filing for such, bankruptcy questions run through their minds all the time. That's completely understandable, because I haven't heard of anybody that can walk through the entire process without difficulty. Some frequently asked bankruptcy questions include this: will my wife or husband be affected if I file for bankruptcy? The answer to that would depend on whether or not your husband or wife signed any agreements that directly tie her to the bankrupt accounts.

AIG Getting Another Bailout, When Will They Stop?

Wed, 04 Mar 2009 11:10:46 CST

We all know that we are in very difficult times at the moment, the economy is at its lowest point and people are losing their jobs, left, right and centre. But there are a few companies that are suffering quite a bit and one of them is in fact AIG and the banks. AIG was probably one of the first companies to get a bail out by the government of around $85 billion and then in November 2008 they got given even more totalling it up to $150 billion. But things do not seem to be getting any better for the company as they are now asking for another $30 billion investment of new capital after having quarterly losses of around $61 billion.

Cycles, Do They Repeat Or Rhyme?

Tue, 03 Mar 2009 10:19:59 CST

Cycles have been repeating from the beginning of time. The use of our clock is a cycle. There are sixty seconds in a minute, sixty minutes in an hour, two twelve hour cycles or twenty four hours in a day. The ancients used the moon cycle which is a twenty nine day cycle. The four seasons are a cycle of roughly ninety days for each cycle or season.

Stimulating News on the Mortgage Front

Sun, 15 Feb 2009 08:59:47 CST

Details are still trickling out on the stimulus package, but housing should finally get some major help.1) Loan limits will revert to last year's limits for high cost areas.2) First time homebuyers may get up to a $7,500 tax credit3) The Obama administration is devoting $50 Billion to help homeowners stay in their homes and reduce the number of foreclosures.4) The government and the Fed will continue buying Mortgage Backed Securities from Fannie and Freddie keeping rates low.5) Money will be included to help the now defunct CMBS (Commerial Mortgage Backed Securities) Market.

Subprime Mortgage Markets' Collapse to the Credit Markets'

Tue, 10 Feb 2009 09:23:56 CST

Part One of the blog series about the Subprime Mortgage Market Collapse addressed some key features of the subprime mortgages now defaulting in huge numbers and it noted how these features were similar to those seen in many improper transactions that preceded the Savings and Loan Crisis of the early 1990s, as well as in more recent corporate governance scandals. Part Two of that series examined some statistics and problems with liability theories plaintiffs are asserting to establish the liability of defendants in various securities class actions seeking damages claimed to have been caused by the implosion of the subprime mortgage market.

Good News for Home Owners- Home Sales Are Up, Inventory Is Down

Tue, 10 Feb 2009 08:42:30 CST

I'm certainly not trying to sugarcoat the fact that our economy is in dire straits. However, most economists agree that in order for the economy as a whole to stabilize, the housing market must stabilize, at least a bit. The first step towards stabilization is unquestionably reducing the surplus of homes currently for sale.

Market Always Knows Best

Tue, 10 Feb 2009 08:01:32 CST

Have you ever wondered why a stock rallied after reporting their worst earnings ever? Have you ever seen a stock drop like a rock after reporting blockbuster earnings? I'm sure the answer to both of these questions is a simple, yes. This happens endlessly in the market on a daily basis. By now you are asking why does that happen?

Technical vs Fundamental

Fri, 06 Feb 2009 10:53:31 CST

In the mid 1990's a massive bull market took place. Everywhere you turned people were talking about EPS, PE's, book value, and even EBITDA(earnings before interest, taxation, depreciation and ammorization) and countless other fundamental factors. Who can understand EBITDA? Fundamentals work great in a bull market. Then again, so does throwing a dart at any stock in the newspaper.

401K' nockout!!! Down for the Count?

Wed, 04 Feb 2009 16:23:50 CST

2008 will go down in history as the worst year on record for individual retirement account performances. Most 401k retirement plans and IRAs were down 40% on average for the year. Many retirement accounts that were heavily weighted in international funds performed even worse. Most international funds finished down more than 70% for the year and a majority of energy funds finished down 50% for the year. Just take a moment... Realize the market erased all the gains that were created in the last 10 years in one year.

Product Management by Innovation and Loyalty Schemes for Banks and Telecom Companies

Mon, 02 Feb 2009 12:47:59 CST

How to shift to the second generation of product and loyalty program management in financial services ? What kind of product development and innovation initatives could generate new income opportunities especially for commercial banks hit by the last global financial crisis?

The Chapter 7 Discharge: What Debts Are NOT Eliminated?

Mon, 02 Feb 2009 12:42:50 CST

Many people are familiar with the most common categories of debts that may be discharged in Chapter 7 bankruptcy. These include credit card account balances, medical bills, old utility and phone bills, and unsecured personal loans. What are not so well known, however, are the types of debts not eligible for discharge in Chapter 7 bankruptcy. The key to understanding those so called 'nondischargeable' debts is a familiarity with the section of the Bankruptcy Code that sets forth a list of 'exceptions to discharge'. The logic of the code is that if the debt does not fall into one of these categories, it is presumed to be dischargeable unless contested by a creditor. That is to say, a creditor may file an objection to the dischargeability of a particular debt under this section, in which case the court will decide the issue.

Chapter 7 Bankruptcy Exemptions

Wed, 28 Jan 2009 11:36:36 CST

Federal and state bankruptcy laws reflect the public policy value that no one should be deprived of all of their property. The federal bankruptcy laws, as well as the state laws where you reside, therefore, both allow for certain "exemptions." Federal exemptions are the same for all bankruptcy filers nationwide, while state exemption limits vary from state to state. The debtor may choose whether to use the federal or state exemptions; in general it's best to use the federal exemptions because they are more 'generous' (that is to say, higher).

Things To Consider When Thinking Of Mortgage Refinance For A Commercial Property

Fri, 23 Jan 2009 15:28:48 CST

When thinking of a Mortgage Refinance for a commercial property, you may want to consider becoming familiar with the terminology to help understand how the process will play out. This will increase your knowledge and help you prepare yourself for what to expect. Long before I became involved in Real Estate, I would hear terms mentioned in regards to Residential and Commercial Loans and Mortgage Refinance options, ARMS, Balloons etc. I was just getting started in this industry and had absolutely no experience in any real estate or financing, so these terms were like a foreign language. I realized very quickly that without thorough knowledge of the terminology it is hard to understand what direction you will go.

Watching U.S. Dollar: Will it Collapse in 2009?

Fri, 23 Jan 2009 15:26:05 CST

The thought of the U.S. dollar collapsing in the way it's being looked at today, would have been unheard of in our past history. Sure, we've had inflationary times before where the dollar was devalued, but it seem today we are encountering a perfect storm of conditions nobody has any control over. Among the points converging are low interest rates, U.S. Treasury bonds ready to burst, the dollar being view as very risky by foreign government, including giant trading partner China, government offering bailouts indiscrimately to private industry, increased socialization of the economy, China starting to sell some of its Treasury holdings, China using its own currency for business transactions internally, and the unending printing of dollars by the federal reserve to fund all the programs and deals the government has pledged to the people.

Obama Foresees Years Of Trillion $ Deficits!

Fri, 16 Jan 2009 12:29:19 CST

President Elect, Barack Obama prophesized yesterday that the U.S. would see "trillion-dollar deficits for years to come", and added that the country will need to continue spending taxpayer dollars in order to get the economy back on track. Obama, who was speaking to reporters at his Washington transition office, admitted that he didn't want to get into specific budget numbers because his proposal is still to be worked out with lawmakers and has yet to be submitted for debate, but he did caution that he expects a trillion-dollar deficit before the next fiscal-year budget is even proposed.

The SEC slows down Peer to Peer Lending

Fri, 16 Jan 2009 12:27:51 CST

Peer to peer lending is a new type of lending that involves individuals lending money to each other. The SEC has made this type of business a bit tougher for those involved. In the beginning of peer to peer lending, the industry's regulation was lax. Loans were issued for amounts ranging from $1,000 to $25,000 over a three year period. Borrowers found these loans to be ideal for the purposes of debt consolidation, small business loan, or just a small personal loan. Lenders like the return on their investment which could range from 6% to 19%. The transaction issued by the banks involved is a promissory note between lenders and borrowers. Furthermore, there is often a secondary market allowing lenders to trade notes. The banks involved are considered to be non traditional because they are purely based on the internet and allow the trading of these notes. The governing of notes was completely in the hands of the banks involved and had no governmental involvement.

How Low Can We Go? Interest Rates On 30 Year Fixed Keep Hitting New Lows

Mon, 12 Jan 2009 08:13:17 CST

For the 10th consecutive week, interest rates on 30 year fixed rate loans have set a new record low. This week, rates dropped to an average 5.01%, which is the lowest average recorded since Freddie Mac started tracking rates in 1971. I have to admit, this has got me thinking...just how low can they go? And more importantly how long can they stay this low? Well, many economists are predicting rates to remain low for at least several months, due to the FED's buying of mortgage backed securities from Fannie Mae, Freddie Mac and Ginnie Mae. However, given the volatility of the market and overall economic climate, I'm leery of betting on that.

What kind of opportunities should Financial Institutions invest during the global financial turmoil?

Tue, 06 Jan 2009 12:07:51 CST

As the credit crunch continues to impact the global financial markets and a vast number of economies around the world, financial institutions are seeking new strategies to respond by gaining greater operational control, lowering costs and undertaking risk mitigation as a critical component of their business. Recent financial crisis, deteriorating moral checks and balances in the sector and perilous exuberance of investment banks are leading to more risks than these institutions could leverage (toxic derivatives). Recent scandals (e.g. Barings, Enron) in the financial sector have demonstrated that risk management, early warning mechanisms in asset & liability and liquidity management are now top agenda items for the finance sector executives.

Fraud and Greed of Trusted Rating Agencies Helped Spread the Credit Crisis

Mon, 05 Jan 2009 11:05:54 CST

Underlying the credit crisis gripping the U.S. and world Trigger Event Strategist Website - Shah Gilanieconomies is a crisis of confidence. Blame has been laid at the feet of the U.S. Federal Reserve, and an investment bankers' brew of toxic financial products. Ultimately, however, it was the supposedly trustworthy rating agencies that got everyone to drink the poisoned Kool-Aid. The sheer fraud and greed of rating agency analysts and executives is staggering. That no one has gone to jail, and none of the agencies have been shut down is a travesty of justice on an infinitely larger scale than Bernie Madoff's Ponzi scheme. Until depositors, bankers and investors regain confidence in the quality of ratings we rely upon to measure financial stability and creditworthiness, the tremors that underlie the credit crisis will drag on indefinitely.

Guide to Small Business Loan Interest Rates

Mon, 05 Jan 2009 11:05:38 CST

If you are starting your own business and do not have enough start up cash to do so, a small business loan can be very useful. However, whenever we think of applying for loans we think of banks and financial institutions. It is true that loans taken from these banks have sound legal formalities. But sometimes these small business loan interest rates can be difficult to repay. Most of the time the novice entrepreneur fails to pay the regular monthly installments. This mainly happens because a business that has just started is less likely to be able to generate adequate revenue to be able to afford such high payment rates for these small business loan interest rates. When a business is unable to pay the installments due on these loans, it will results in negative publicity of the company in the market and even bankruptcy in extreme cases. Also, borrowers end up taking more loans in order to pay off these unpaid ones. This gives rise to a vicious cycle of bad debts

Refi Madness (But This Time It's A Good Thing)

Mon, 05 Jan 2009 09:40:18 CST

Refinances are on the rise! In fact, some accounts have shown that refinance applications have surged 50% in the past week. But unlike earlier in the millennium, when refinances surged due to loans with teaser rates (Adjustable Rate Mortgages, aka ARMS), and Option Arms, this time the refinance craze is due to phenomenally low rates on 30 Year Fixed Mortgages.

Financial Crisis - Manage Money In Business

Tue, 23 Dec 2008 13:02:45 CST

Handling a business is similar to handling a home, with all the different expenses to consider preventing the business from going under with deficits and bankruptcy. A business has "children" in terms of all the employed workers working hand-in-hand and with utmost efficiency to make sure that the finances float above break even. There is one main focus for a business to thrive and exist in security and balance, and that is the knowledge of knowing how to manage money in business with the overhead and operation expenses.

Wall Street Crash Changes Companies

Mon, 22 Dec 2008 15:01:10 CST

We change, society changes, and business changes. From night to day and from spring to fall the world keeps changing around us. Those who fail to change soon have the please of seeing the back of the head of the new leader. After the recent sub prime mortgage crisis and volatile swings in global stock markets due to the defaulting investment firms the business environment has drastically changed. We don't know how the business environment will change or what the business world will be like but we do know that change management and risk analysis will become more important topics over the next five years.

Loan Workout Anyone?

Thu, 18 Dec 2008 12:21:51 CST

With the current financial instability in the economy, many mortgage lenders are offering to modify a mortgage loan for those who can qualify. The credit crisis and problems associated, such as job losses, are resulting in a higher number of missed payments and defaults, not only on hire purchase agreements and other finance arrangements but also on mortgages and 2nd charges on property. This is resulting in potential repossessions, and although many lenders are in turmoil, there are still avenues open for the consumer in these sort of situations.

Prohibited Debt Collection Practices

Thu, 18 Dec 2008 12:11:56 CST

As we all know, the country is in the midst of an economic crisis. Delinquencies on credit card accounts are at an all time high. Many of these delinquent accounts are being sold to unsavory debt collection agencies who have purchased the debt for pennies on the dollar, who then attempt to collect the monies from you. There is a federal law that governs debt collection in this country, and it is called the Fair Debt Collection Practices Act (FDCPA). The Act sets forth some criteria, guidelines and policies that must be followed by debt collectors. The following are some examples of prohibited debt collection practices as set forth in the FDCPA...

Certificates of Deposit: The Basics

Thu, 18 Dec 2008 11:32:01 CST

With the recent turmoil in the stock market, many folks are looking for alternative ways to invest their hard-earned money. Certificate of deposits (CDs) are a great way to do this in a relatively risk-free way, and many financial advisors suggest using one of these instead of a traditional savings account. Certificates of deposits (CDs) can be purchased from a brokerage firm, credit union, bank, or savings and loan institution. When you purchase a CD you agree to leave a set amount of money in the account for a set period of time. In return, the financial institution guarantees you a set amount of interest on that money. When the CD matures you then get your initial money back plus a small profit from the interest earned. The following is some basic information about CDs and some guidelines for choosing the right investment.

Four things you need to know before filing for bankruptcy

Thu, 18 Dec 2008 11:31:18 CST

When you find yourself buried under mountains and mountains of debt and it looks as if there is no way out of it, filing for bankruptcy is an option for you. Before you file for bankruptcy however, make sure that you are aware of its short-term and long-term consequences. A bankruptcy can stay on your credit file for ten years. During this time, it will be extremely hard for you to obtain a loan or get financial assistance. In the future, you never know when you need the money, especially when it comes to emergencies regarding your health and safety. Before filing for bankruptcy, here are some things that you have to be aware of.

Private Lenders Earn 15% to 74% Profits Secured by Real Estate!

Wed, 03 Dec 2008 00:00:00 CST

Are you getting 15% - 74% or more yield from your CDs, stocks, savings accounts, self directed IRAs, pension plan or other investments? If the answer is no, and I'm pretty sure that it is, I have a simple solution that I myself use and have taught others on how to make tens of thousands of dollars more on their investments simply by increasing the yield on the same money they are investing now. I am going to share with you the way you can control your investments and safely make them grow three, four, even five times your current rate. Yes, I know that this sounds too good to be true, but it isn't.

How to Successfully Navigate Your Business through an Economic Downturn

Tue, 25 Nov 2008 11:38:35 CST

An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses. While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.

Home Prices Are Down: How Could That Be A Good Thing?

Mon, 24 Nov 2008 07:20:56 CST

This week the National Association of REALTORS® (NAR) issued a report which indicated that median home prices are down nationally 9% from the same time last year. While that doesn't sound like particularly good news for homeowners; in California, it may be an indicator that we're nearing the end of price declines, as buyers are re-entering the home purchasing market. Let me explain. Because home sales are rising so rapidly in the hardest hit areas of California, and because in many cases homes for sale in California are beginning to see multiple bidders for properties, NAR's Chief Economist Lawrence Yun stated that this "suggests that future price declines may be minimal." Hot diggity! Hope he's right.

Hot Stocks: Citgroup to Buy Back Billions in SIV Assets, May Face Another Write-Down

Fri, 21 Nov 2008 11:45:42 CST

Embattled U.S. banking giant Citigroup Inc. (C) has agreed to buy back $17.4 billion of assets remaining in a series of funds known as structured investment vehicles, or SIVs, after it previously agreed to guarantee the liabilities in those funds. In a separate story today (Wednesday), Wall Street banking analyst David Trone said that he expects higher credit costs and additional losses to force Citi to take $3 billion in write-downs in the year's final quarter, a realization that prompted him to boost his quarterly loss estimate for the company and cut his target price for the stock.

Important Reminder: Conforming Loan Limits Will Be Decreasing!

Mon, 17 Nov 2008 07:38:21 CST

The increases in conforming loan limits that we saw earlier this year are darn close to reaching their expiration date. Well, technically the loan limits (some as high as $729,750) will be decreasing effective January 1, 2009. HOWEVER, most banks will not be accepting new loan applications for the higher limits past late November, or early December. There just won't be time to get the loans funded before the limits change again.

Where To Turn To Get Your Bankruptcy Questions Answered

Fri, 14 Nov 2008 10:51:24 CST

The new bankruptcy laws are stricter and more inhibitive than ever before. Filing a bankruptcy is not as easy as it once was, nor is it a simple matter. The new laws have made it a complex, involved process that no layman should attempt on their own. Because these laws have become so complex, bankruptcy questions are definitely going to pop up somewhere along the way. Even if you can stumble your way through it, you will absolutely commit errors that will cost you time. Keep in mind that some debts cannot be discharged at all anymore. Will you know what those are?

Wholesale Banking - Banking For Merchant Banks And Other Financial Institutions

Fri, 14 Nov 2008 10:47:01 CST

Wholesale banking is often defined as banking services which are provided between merchant banks and other financial institutions. Although, wholesale banking is also a term referred to the wide range of financial services that are provided by financial institutions to various businesses and corporations as well as the government. Retail banking and wholesale banking are two different things. Wholesale banking focuses more on corporate style entities and high-value transactions, while retail banking focuses on individual customers and sometimes small businesses. Sometimes a bank will engage in both wholesale and retail banking.

Credit Repair - Key Techniques To Increase Your Credit Report Scores

Fri, 14 Nov 2008 10:44:58 CST

Increasing your credit report score rating is not a difficult proposition. It simply takes time and patience. You must not expect to see results overnight. And if you are approached by someone in a credit repair company which insists that they are capable of cleaning up your credit report within a couple of months, walk away. If you have plans to buy a new home, or a new care in the future, now is the time to review your credit report and improve your credit score ratings. We will share some simple legitimate and easy to apply techniques to help you progressively increase your credit report scores over a period of time.

Globalization and the Rise of Monopolization Speeds Economic Failure

Fri, 14 Nov 2008 10:43:35 CST

Capitalism's base tenant of supply and demand requires a healthy environment of competition. Many of the calculated moves toward a global market have undermined that tenant. In a competitive arena, there are bound to be winners, and the governments used to regulate that to prevent monopolies from consolidating control in market sectors. On a national level, consolidation has been occurring at increasing rates for the past 20 years. Do you remember the old mom and pop Hardware Stores? They are now rarely, if ever, found. The same has been occurring in the banking industry, as well as in nearly all other sectors. Control supply, and what happens to capitalism's balance? It no longer works.

Credit Repair: Taking Care of Your Debt Situation

Tue, 04 Nov 2008 13:54:27 CST

You can determine a financial emergency once you experience a situation that can render you moneyless, homeless or without any important property. You should differentiate this kind of emergency from a threatening phone call or letter from a bill collector. When experiencing such emergency, it is crucial to act immediately and begin by contacting the creditor. Doing so enables you to work out a temporary solution, which can help you keep your properties. However, it does not always work and if so, getting in touch with your lawyer to negotiate with the creditor is helpful.

How The Government Helps Pay The Mortgage

Tue, 04 Nov 2008 13:44:45 CST

It is true that buying a home can save you money when you file your tax returns. As you read every word of this article, you will discover some of the incredible tax advantages of home ownership. The government wants to encourage you to own your home. Therefore it allows a home owner to deduct certain costs you may incur from owning a house. In effect, the tax code allows you to reduce some of your out-of-pocket costs related to buying and owning your home. Expenses related to home ownership can be tax deductible. You can also profit from the sale of your home tax free as well as borrow, reaping tax-free funds.

Is It Ever Wise To Get A Mortgage? Who Can You Trust?

Tue, 04 Nov 2008 13:44:00 CST

Even with our current economic times and the failure of several financial institutions, mortgages are here to stay. In fact, over 80% of all homeowners have mortgages. But, is this a wise decision or are these people asking for trouble? In this article, we will discuss whether it is wise to get a mortgagee as well as who you can trust in the mortgage industry. Lastly, we will provide you with some tips in dealing with the mortgage industry. Sound good? Let's get started. First all, let's discuss the benefits of a mortgage. Well, there are many benefits of getting a mortgage. First, mortgages allows people to purchase property that they were not otherwise able to buy and actually provides them with a long term investment. In addition, having property provides most people with a sense of financial peace and also gives them immediate tax breaks from the government.

A Pleasant September Surprise: Unexpected Increase In New Home Sales

Mon, 03 Nov 2008 07:40:35 CST

This week the U.S Census Bureau announced an unexpected increase in new home sales for the month of September. This increase (2.7%) is a great comeback from the decline in new home sales in August of 12.6%. The increase in new home sales is undoubtedly in part due to the fact that median home prices are now at their lowest levels in four years. But, whatever the reason, it's very good news that homes are selling, as nearly all respected economists and financial gurus insist that in order for our economy to recover, the housing market must stabilize.

Emergency Cash Loans: Why Should You Scare For Emergencies?

Thu, 30 Oct 2008 12:46:32 CDT

Certain incidents are there which creates extreme emergencies. For handling these money becomes the most important thing. Money is the only thing that provides a person the capacity to control a situation. With it you can afford immediate medical treatment for injuries in accident. With it you can make your child appear for his exam and pay his examination fees. Many more things are there that occurs suddenly and creates emergency.

Advantages of Commercial SBA Loans

Tue, 28 Oct 2008 11:43:55 CDT

Some of the most reliable commercial mortgage programs offered are government sponsored. One of those reliable programs is the SBA commercial loan. Borrowers may not like some of the features, but bottom line, if they need a new commercial real estate loan this maybe their only option, besides commercial hard money. Lately, SBA commercial loans have gotten a bad rap. The SBA features some exceptional advantages for many commercial borrowers would such as 90% commercial financing. The typical commercial mortgage only goes up to 75% financing. That is 15% loan difference back into the borrowers pocket or can be used as capital for their business. SBA loans allow borrowers to use projections and help commercial applicants who have low cash flow or assets. In contrast, most conventional lenders will just say no to these loan requests. However, with those incredible benefits offered, a large complaint still exists which is the length of time to actually get the loan and the load of documentation necessary. For some borrowers, the government's process simply becomes too much to accept.

Why Should I Pay Fees And What Does Each One Mean?

Tue, 28 Oct 2008 11:42:15 CDT

An average person might consider a loan to be cash lent to him with an interest. Very true. But current times make it inevitable for lenders to charge certain fees in addition to the very rightful interest charged. We shall explain what the main fees are for as well as what is reasonable and what is not. Every Mortgage- Every mortgage loan is a commercial transaction and as such, it has fees. When a lender surprises you with abnormally low fees, or directly writes off some of the main fees, it is generally loaded on to the interest rate. It is not normal to say that there are no fees and then charge them all on the rate and leave them as part of the APR. It is your duty to find out what fees are included in the APR and which ones are not.

Fed Inevitable Rate Cut To Boost Economy and Job Market

Tue, 28 Oct 2008 11:40:39 CDT

As economic problems persist in market despite government efforts to ease crises with bailout packages another step would be necessary. Fed. might have to cut rates by 0.5 to 1 basis points to ease Wall Street desperate moves of selling stocks. Even Alan Greenspan who ran the Fed for 8 ½ years admitted that he made mistakes that may have aggravated the economy's slump. With economy already at recession level, Fed would have to cut rates to ease economic vows as consumers have cut back sharply. 401(k) s have dropped in value and home values just keep declining. Businesses stopped hiring or slowed down on hiring as well as hard to get financing is contributing to slowdown of economy.

Summary and Analysis of the Emergency Economic Stabilization Act of 2008

Fri, 24 Oct 2008 15:22:40 CDT

So begins the Emergency Economic Stabilization Act of 2008 passed by Congress and signed into law by the President on October 3, 2008. Over the past two weeks, Blank Rome has been preparing alerts for its colleagues, clients, and contacts on the development of this legislation. This report is intended to provide...

Patriot Act Compliance and Identity Verification

Fri, 24 Oct 2008 12:19:06 CDT

Section 326 of the Patriot Act required the U.S. Secretary of the Treasury to develop regulations setting forth minimum standards regarding customer identification for opening new accounts at certain financial institutions. The federal banking regulatory agencies together developed regulations to implement Section 326. That regulation is known as "the CIP rule" because it requires banks, savings associations, credit unions and certain non-federally regulated banks to have written Customer Identification Programs (CIP).

Predatory Lending and You

Fri, 24 Oct 2008 11:28:26 CDT

In 2000, over 71 million Americans owned their own home, more than any time in American history. With the start of the Mortgage Lending boom in 2001, this number grew significantly as lenders devised subprime financial instruments and loans to allow more and more borrowers who otherwise would not qualify for a loan. These new homeowners not only did purchase loans to get into their first house, but then refinanced over and over again as their property values went up. This problem was exacerbated as lender came up with more Adjustable Rate Mortgages (ARMS's) that had low teaser rates. With this massive demand for more loans, people flooded to the mortgage industry and complex loan programs and a myriad of regulatory issues that include Predatory Lending, RESPA, Truth in Lending (TILA), Regulation Z, and other state and federal laws, were being explained and followed by mortgage sales people with little experience or understanding or mortgage compliance law. As such, over 90% of all mortgage loans from 2001 to 2008 contain major or minor Predatory Lending or Truth in Lending violations that could impact the validity of the mortgage note.

Confirmed, Irrevocable Letters of Credit Are Not Always the Answer

Tue, 21 Oct 2008 09:57:04 CDT

Perhaps your company has dabbled with exporting for a few years and management likes the results: increased sales, access to markets that even out seasonal and economic cycles in the U.S., new outlets for older products, etc. What was originally an experiment is looking like a strategy. The Sales group has been given the green light to hire more people and the objective of raising exports from 10% of annual sales to 25%. Your job in Credit Management is to protect the company from losses that may result. Up until now, the job hasn’t been too tough. By setting a policy of shipping only against cash in advance (U.S. dollars, to be sure), or confirmed, irrevocable letters of credit, you’ve avoided the political, economic, and commercial risks of exporting. Or perhaps the Sales folks have been limited to bringing on customers in Canada and Western Europe, whose culture and legal and accounting systems are similar to those in the U.S. But now your Sales people are going to be venturing into new markets — South America, Eastern Europe, and Asia — and you know they’re going to whine that they won’t be competitive unless you, in the Credit Management (often vilified as “Sales Obstruction”) Department will approve more liberal terms of sale.

10 Things for Exporters to Keep in Mind When Arranging Standby Letters of Credit

Tue, 21 Oct 2008 09:56:41 CDT

Tips, Tricks, and Facts Regarding Bid and Performance Bonds and Advance Payment Guarantees1. A letter of credit is a bank’s agreement to pay a specified amount of money upon presentation to them of documents specified in the letter of credit. Think of it as a certified check that can be cashed by presenting it back to the bank with a few documents stapled to it. The documents can be anything you, the applicant, have the L/C specify, but the bank must be able to examine them quickly and determine whether or not they comply. Of course, your customer, the beneficiary, must agree to the documents you require or they may reject the L/C at the outset. For example, it is allowable for the L/C to require documents that purport to be signed by you, but doubtful the beneficiary will accept such a letter of credit.

Good Interpretation of the Uniform Comercial Code

Mon, 20 Oct 2008 15:25:49 CDT

F&I - "Express or Implied" Warranties - What you should know to protect yourself. Purchasing a Pre-owned vehicle could be a risky decision if you are not aware of the processes the selling dealer applies to make sure the vehicle is as mechanically sound as possible. How important is the vehicles remaining warranty in your buying decision? Would you buy a vehicle that was labeled "As Is"? It will help to take time to know the law on Express or implied warranties in order to protect yourself. The following excerpts are from the FTC Uniform Commercial Code. They have direct relevance to automobile dealerships and Pearson Infiniti has reviewed these sections carefully.

Creditors Do Not Have an Automatic Right to Accelerate Debts

Mon, 20 Oct 2008 15:23:25 CDT

Pursuant to the U.S. Bankruptcy code, subsequent to a debtor filing a chapter 7 or 13 bankruptcy, they are unable to obtain another discharge of unsecured debt for 8 years. As such, many debtors believe they have no way out of new debt incurred. This could not be further from the truth. There is substantial statutory and case law that suggests a right to negotiate in good faith with creditors. Moreover, creditors must partake in the interactive process. It has long been held that if a creditor has no agreement for acceleration of an entire obligation upon default, the creditor may not accelerate a debt unless the debtor's default rises to the status of an anticipatory repudiation. See, e.g., Sheet Metal Workers Local No. 76 Credit Union v. Hufnagle, 295 N.W.2d 259, 29 U.C.C. Rep. Serv. 1087 (Minn. 1980).

Does Your Business Need to Be PCI DSS Compliant?

Fri, 17 Oct 2008 12:17:18 CDT

Despite increasingly heightened security by merchants and service providers, credit and debit card fraud is still on the rise. Perpetrators are using even more sophisticated methods of infiltration to access sensitive payment card information. The financial cost of fraud to any sized corporation can be huge and the price of preventing it is vast.

Exploring Revolving Credit Agreements

Fri, 17 Oct 2008 12:12:07 CDT

A Revolving Credit Agreement is a legal contract between a bank and a customer, in which the bank promises to lend the customer up to specified, maximum amount during a specified period. The customer could be an individual or could be a multi-national corporation, and the amount of the credit limit could be small or could be quite large, but the principles of the agreement remain the same. Such an agreement provides for a line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. Along with the commitment fee there is also usually interest expenses for corporate borrowers and carry forward charges for consumer accounts.

Is Your Business Compliant With Sarbanes Oxley Standards? | Ask an Expert

Fri, 17 Oct 2008 12:07:17 CDT

This methodology allows you to define in a quantifyable manner the compliance tasks involved in your company. All of the companies which use a type of Sarbanes Oxley software have the same financial data collection and their reporting needs are not really one and the same. For this reason, you should ask for help from your auditor or even an IT solution provider who is qualified and has a proven track record with regards to Sarbanes Oxley compliance issues. If you are unfamiliar with this you should know that it is not a particular product, but rather a methodology for business finance, thus when this article refers to software, it is not referring to any specific product, but software on this in general.

Quality of Service Improved through Automatic Defragmentation

Fri, 17 Oct 2008 11:45:31 CDT

The banking and finance industries are so competitive that every penny is pinched, counted and still expected to provide high returns. Not only is spending scrutinized, but you have to deal with stringent data security and regulatory compliance guidelines. And at the end of the day, IT has to provide the business superior performance. While speed is certainly important, reliability is critical. User's experiencing applications that hang or freeze can easily cause the loss of customers and business.

Landmark Housing Bill Implements Significant and Immediate Changes to Programs

Wed, 08 Oct 2008 14:47:23 CDT

On July 30, 2008, the president signed into law the Housing and Economic Recovery Act of 2008, H.R. 3221. This landmark housing legislation will make significant changes to a number of housing programs in an effort to stabilize the housing market. These changes will have an immediate impact on the financing and development of affordable housing projects, including projects currently in the development process.

Does reverse Mortgage affect Medicaid benefits and Life Estate?

Fri, 03 Oct 2008 15:06:46 CDT

My grandparents are taking out a reverse mortgage from a bank which has offered to provide funds on a monthly basis. The agreement is such that after they pass away, the bank would sell the property and take away the proceeds leaving behind anything that's extra to their children. Is it ok? My grandparents are nearly 70 years old and have health problems too. They have also applied for Medicaid. They have a life estate on their property with my brother. Can there be any problem with the Medicaid and life estate if they take out reverse mortgage?

What to Look for in a Commercial Collection Agency

Fri, 03 Oct 2008 15:01:50 CDT

Unfortunately, some debtors who have judgments against them, will still not pay up. It then becomes necessary to do a thorough check of all their assets, including a bank account search. Professional agencies can do research on the debtor, and find out where their assets are hidden, and how much income they are generating.

What is a Short Sale in Real Estate

Tue, 02 Sep 2008 07:46:53 CDT

A short sale in real estate is when a lender accepts a discount on a mortgage where the outstanding loan balance is greater than the amount of the market value of the property. A lender will accept a short sale to avoid a possible foreclosure auction or worse, the homeowner declaring bankruptcy. With a short sale, you are still buying the house from a seller, but you are purchasing the mortgage directly from the lender for a discount. For example: A homeowner, who is facing foreclosure, has an existing first mortgage of $300,000. The house may only be worth $275,000. You write an offer to the lender for a lower amount like $220,000, which is accepted as full payment for the loan. This is a short sale.

How to Conquer the "Analysis Paralysis" Syndrome When Investing in Real Estate

Fri, 29 Aug 2008 09:09:45 CDT

Do you get that paralyzing feeling when trying to analyze an investment property? This is a constant struggle with beginning investors as well as some experienced investors. Let’s discuss some of the reasons that cause this problem and the solutions to overcome them. Most investors get “analysis paralysis” because they simply don’t have the proper tools or experience to understand all the elements in analyzing a good real estate deal. Here are some of the concerns and stumbling blocks to 4 of the most common problems investors face along with simple solutions.

Will Fannie and Freddie Make It?

Tue, 26 Aug 2008 08:25:50 CDT

That seems to be the question on everybody's mind lately. It seems like every day the news gets worse as their stocks get pounded. Insiders have been betting for some time now that the losses will mount and that eventually the government will have to step in. While this isn't good news for Fannie and Freddie stockholders, I'm confident that the government will step in if and when needed. The Fed and the Treasury have already taken other bold steps to help us navigate the turbulent mortgage meltdown waters. And they've indicated that they'll step in to shore up Fannie and Freddie if needed.

Fair Credit Reporting Act

Mon, 04 Aug 2008 09:23:11 CDT

Question: The Fair Credit Reporting Act allows me to pull a credit report on a debtor any time I am collecting a debt, doesn't it?Answer: Not necessarily, because the Fair and Accurate Credit Transactions Act makes it clear that debt collection is a permissable purpose for obtaining credit reports only in connection with credit transactions in which consumers have participated directly and voluntarily. So, what do you do if the buyer of your real estate bounces the deposit check, defaults on the contract, and causes you to miss a legitimate sale?

6 Steps to Get Started Investing in Short Term Real Estate

Mon, 04 Aug 2008 08:11:39 CDT

Many beginning investors get stumped when trying to figure out exactly the best way to get started investing in short term real estate. They see people on TV, the internet and direct mail buying and selling houses for profit. I have put together a simple guideline to help these beginners. My favorite way of telling people how to get started in this business is to wholesale or "flip" their properties for a quick cash payout. This way they can also track the process of making larger profits by watching the more experienced investor.

The Foreclosure Process

Mon, 04 Aug 2008 08:07:30 CDT

When a property is being foreclosed and sent to a sheriff sale or auction, the minimum bid usually includes all the money owed to the lender. These amounts are a total of the balance of the loan, attorney's fees along with any other costs which have be incurred during the foreclosure process. When you bid at a sheriff sale for any properties, be prepared to have a bank check in the amount of 20% of your bid price. You also get the property in "as-is" condition. This may include getting the house with the old owners still living there!

How to Buy a Banked Owned Property

Mon, 04 Aug 2008 08:06:14 CDT

Bank owned properties are more commonly known as REO's. That stands for "Real Estate Owned." I often get asked why they are called REO's and not BOP's or "Bank Owned Properties?" My answer is always the same..."Beats me!" You have heard about bank owned properties from friends, relatives and business associates or perhaps your local real estate agent and how some investors are making a score from buying and selling these properties. In some cases this is very true, but it is critical to understand the process along with some common misunderstanding about buying bank owned properties.

The Many Shades of Expert Testimony in Insolvency Cases

Wed, 30 Jul 2008 14:53:02 CDT

Congratulations! You have just received a call about being an expert in bankruptcy matter. But what type of case? And what type of expert? Knowing the answers to these basic questions can save you and your potential client a lot of unpleasant surprises down the road. In business insolvency and bankruptcy proceedings, experts are typically utilized to provide opinions on whether a business is viable, the value of the business, or the value of the lender's collateral.

Getting Paid With Cashier's Check, Teller's Check, or Certified Check

Fri, 18 Jul 2008 08:48:43 CDT

Parties to real estate transactions, commercial transactions, or credit arrangements often seek to avoid the risk of non-payment by insisting upon payment in the form of cashier's checks, teller's checks or certified checks. Essentially, the party seeking to be paid is insisting that the debt be paid by an obligation of a bank, rather than a check from an individual or business. After all, bank obligations don't "bounce." Unfortunately, even this level of diligence will not always guarantee payment.

Perfection of Security Interests Under Revised Article 9 of the UCC

Fri, 18 Jul 2008 08:33:57 CDT

Article 9 of the Uniform Commercial Code deals with security interests in personal property. A key concept under Article 9 is perfection. Utah, the state in which the author practices law, adopted Revised Article 9 which became effective July 1, 2001, the uniform effective date prescribed by the drafters of Revised Article 9. Each of the other states also has a version of the Revised Article 9. (In the citations below, the paragraph numbers in brackets are references to Utah's paragraph numbers, while the unbracketed paragraph labels are those of the code as nationally promulgated.) Let's review the perfection of security interests created after that effective date. The rules of perfection have changed considerably from the original Article 9.

How to Buy Houses Using the "Subject To" Technique

Wed, 16 Jul 2008 07:32:10 CDT

There are several ways to purchase homes. We all know about the traditional methods of buying with a purchase contract, lease optioning a home, options or just paying cash. But another savvy investor way to purchase homes that is not really new but is over looked by beginners is buying homes "subject to."

How to Buy Bank Owned Properties

Wed, 16 Jul 2008 07:28:34 CDT

There is an abundance of "Bank Owned" property, (Otherwise known as an REO's). By understanding the process in making offers on REO's, you will reduce the stress on everyone involved and greatly increase your odds of completing a successful transaction. The Listing Agent (REO Broker) is simply a conduit between the Buyer's agent (if your using a real estate agent) or you and the Seller. An important thing to remember is that the Listing Agent does not have any authority, power or say as to what the terms of the sale would be and has little or no negotiating power or influence.

Flipping Foreclosures for Quick Profits

Wed, 16 Jul 2008 07:25:24 CDT

Most newbie investors and just about everyone for that matter has probably heard about all the quick and easy money you can make by buying and selling foreclosures. Or as the new term is called "flipping" foreclosures, as well as other distressed or vacant houses. People hear about this from friends, contractors, real estate agents and other investors. Each one has a story on how they made a quick profit from "flipping" one of these foreclosures and then proceeds to tell you that it would be a great way for you to also make some money. And maybe you nodded your head enthusiastically and said, "Sounds great—I’ll look into it." And for the newbie investors who have joined their local real estate investor clubs seeing many of the members actually flipping these foreclosures are all ready to jump in flipping properties with both feet!

Show Me The Money!

Wed, 16 Jul 2008 07:10:58 CDT

This is a subject everyone wants to know about because it deals with the one aspect of distressed property investing that scares people. And you know what it is. Money...Capital... "Moolah." It frees us or it makes us its slaves. And you certainly can't get the great distressed real estate deals you want without a certain amount of money invested. (No matter what the Gurus say.) Because don't forget, even if you do get a house by having the deed signed over to you for little or no money, most times the house will still need some work to get it in saleable condition. And that takes cash. Buying bank owned properties? Banks want cash at closing. If you've had some problems with funding over the years then you know what I am talking about.

Trustee Selection

Sat, 12 Jul 2008 00:00:00 CDT

The selection of an appropriate trustee is of concern for anyone establishing a trust. A good trustee will provide real tangible benefits and a bad trustee will provide nothing but nightmares. This Article contains thoughts on the subject of trustee selection which counsel drafting trust instruments may find useful in dealing with clients. Any trustee of any trust should have certain fundamental characteristics. Does a trustee need to be a saint? No, but it would be a step in the right direction. Standards of trustee integrity and skill are quite a good deal higher than for the general business world with which most people are familiar.

E=MC2 Einstein on Referrals

Thu, 10 Jul 2008 12:14:54 CDT

I’m often asked the question, “How can I meet and do business with the top Realtors in my market? The answer to this question may surprise you. What most loan agents are looking for when they ask this question is a turnkey system they can use to impress a top Realtor to a sufficient degree that the Realtor will be magically transported to a state of mind where they can’t help but want to do business with you. The approaches are varied and creative (and often expensive). One popular approach is to spend a lot of money on image advertising so that you’ll be noticed and that when you call, The Top Realtor will eagerly take your call wanting to team up with you so that you both can make nothing but money.

10 Keys For Commercial Mortgage Brokering Success

Thu, 10 Jul 2008 12:06:06 CDT

If I told you the secret to success in the commercial loan business was to kiss a frog would you do that? Keep this thought in mind for the next few minutes while you read this article. Over the past 25 years I've seen a lot of people come and go in the commercial loan business. Most didn't do very well. Some did okay. And a few have thrived and done extremely well. How did they do it? What separated them from the rest of the pack? What I'm about to tell you is likely to shock you in its simplicity.

Where to Look For Foreclosure Properties

Thu, 10 Jul 2008 11:53:08 CDT

One easy way is to thumb through real estate publications and you'll sometimes see ads that are selling lists of foreclosed properties. Prices start at about $50. But I've seen the price for some lists costing $500 or more. In the pursuit of affordable housing in this appreciating market, you may be tempted to order one of these lists. Don't! You can obtain practically everything found in such lists free of charge. You just have to be willing to do a little research.

3 Methods of Buying Foreclosures

Thu, 10 Jul 2008 11:44:29 CDT

Buying pre-foreclosures is one of the best ways to buy foreclosures. This is because it only involves you and the seller. When the homeowner is behind 3 to 4 payments, the lender usually has started the foreclosure procedure. Now is the time for the homeowner to try to sell their house as they are in great jeopardy of losing their home and usually will entertain offers made by real estate investors. Buying pre-foreclosures this way can cut the competition and investors can usually make profitable deals.

Networking 101: Which Type of Networking Group Should You Join

Thu, 10 Jul 2008 11:10:26 CDT

Effective networking during a slower market will prove invaluable for mortgage brokers. With ever changing guidelines and the elimination of some products, networking may be the saving grace for brokers struggling to generate referral business during these turbulent times. That said, remember that networking, as its name implies, will require work. Simply joining a networking group won’t automatically earn you the referral business you seek. You’ll have to engage in the group’s activities, or your membership in any organization will be fruitless.

Arbitration Legislation

Thu, 10 Jul 2008 11:10:16 CDT

Many creditors have grown used to court attacks on their mandatory arbitration clauses. Courts look to see if the arbitration clauses are fair to both the consumer and the creditor, and also look to the intent of the parties at the time the consumer signed the contract. At the moment, the House and Senate are further attacking mandatory arbitration clauses. Representative Henry C. Johnson (Georgia) and Senator Russell D. Feingold (Wisconsin) in the House and Senate, respectively, introduced the Arbitration Fairness Act of 2007. Committee hearings have been held in both the House and Senate.

eBay Sales of Repossessed Cars

Thu, 10 Jul 2008 11:09:00 CDT

“Welcome to eBay—the next frontier in the sale of reposed cars?” Or, “Welcome to eBay, evidence of a sale being unreasonable?” With its rainbow colored headlines, attractive pictures, and ease of surfing, eBay is a favorite of buyers and sellers of electronics, shoes, clothing, and collectibles. But is eBay the best outlet for secured creditors to sell vehicles?

Ethical Lending: What's Good for the Goose is Good for the Gander

Wed, 02 Jul 2008 11:02:07 CDT

The U.S Treasury reported in April that suspected mortgage fraud had risen 42% in 2007. Moreover, the report also pointed directly to mortgage brokers as a large part of the problem. Specifically, the report states that mortgage brokers acted as "intermediaries that did not verify information submitted on the loan application.” This is clearly not painting a favorable image of brokers. That’s why it is so vital that as commercial brokers we immediately begin to implement measures to ensure that we are operating at only the highest level of ethics, and that we’re also working hard to ensure that our clients and colleagues are doing the same. It is unfortunate that while most of us conduct business ethically day in and day out, our image has been marred by the practices of a few. But, since what has been done can’t be undone, our only option now is to ensure that we do all we can to combat this. We need to identify any actions that seem unethical, any applicants that seem questionable, and any practices that seem fraudulent and we need to nip them in the bud.

Why Do It All Yourself? Outsourcing May Be The Best Financial Decision For Your Team

Wed, 02 Jul 2008 11:02:03 CDT

We’ve all been guilty of trying to manage everything. Most of us realize quickly though, that this simply isn’t possible. To be successful, we need to learn to delegate tasks to others. Delegation frees up our time to do what we do best, which is managing our team. In doing what we do best, we also do what is most profitable as well. ne of our key objectives as managers is to ensure employee success through employee satisfaction. Achieving this objective will lead to success in our primary objective of maintaining profitability. Unfortunately, any time that is taken away from focusing on supporting and guiding our loan originators, isn’t likely to be time well spent.

Top 7 Reasons The Housing Market Is On The Mend

Wed, 02 Jul 2008 11:01:59 CDT

The housing and lending markets have been in peril for some time, as we’re all well aware. The media, (which is more than happy to report on the “failing housing market” or the “subprime storm” or the “mortgage meltdown”) has yet to report though, that there are seven encouraging signs that the housing market is at or near the bottom and is showing signs of recovery. Consider that the housing market has been in a decline for nearly two years. However, it has only been within the last year or so that it’s been so widely covered. Many great economists have said that by the time we (as part of the general public) recognize a downturn in the economy, we’re already on our way out of it. This certainly seems to apply to the state of the real estate and lending industry. Here are 7 good indications that the state of the housing market has in fact already bottomed out, and is now slowly recovering.

Networking Know-How: 10 Traits of Top Notch Networkers- REALTORS

Wed, 02 Jul 2008 11:01:54 CDT

In today’s competitive market, building your “social capital” is more important than ever. That is REALTORS® who know how to build strong social relationships will generate more capital, -via referral business- than those who do not. It’s important to realize in this slowing market, that although we may be tempted to adopt a “hunting” mentality to earn business, we must recognize that building social capital will require a “farming” approach to networking. So how can REALTORS® increase social capital? First, you’ll need to build a solid foundation for cultivating relationships, much as a farmer preps the land before planting the crops. The secret to building this foundation and thus becoming a “master networker” begins with adopting 10 simple traits. These 10 traits are ranked in order of their perceived importance to networking, based upon a study conducted of 2,000 people throughout the U.S, the United Kingdom, Canada and Australia.

Become a Referral Clearinghouse and Watch The Referrals Flood In!

Wed, 02 Jul 2008 11:01:50 CDT

As mortgage professionals, we can live or die by referrals. When the market is hot, referrals keep our pipelines bursting. When the market is cool, referrals keep our pipelines from freezing. Being that we’re in one of the coolest markets in recent memory, earning referral business is going to be paramount to making it through the winter. But what if you’re struggling to keep referral flames lit? Well, there’s a good chance that you don’t know about the “secret” networking trick that will have your pipeline flowing long before the snow can thaw this spring. The “trick” is really not that tricky at all. It is based on the well researched premise that those who provide others with referrals; earn referrals in return. Sounds easy enough right?

Top 7 Reasons The Conforming Loan Limits Need To Be Increased Permanently

Wed, 02 Jul 2008 11:01:47 CDT

The Economic Stimulus has successfully passed, and within weeks we’ll know how high the conforming loan limits will be for each Metropolitan Statistical Area (MSA). HUD is scheduled to publish these new limits by the middle of March. The new loan limits will be based upon the Median Home Value of each MSA. Although the limits will be determined soon, it will likely take lenders into the summer, before they are ready to offer these new loan products. For hundreds of thousands of homeowners and potential buyers in areas where the median home value is more than $417K, this temporary increase will bring with it some truly amazing opportunities. But, because the increase is currently only scheduled to remain in effect until the end of 2008, the potential boost it will bring not only to the housing market, but to the overall economy, will be short lived. That is, unless these increases become permanent, in which case, the entire economy stands to gain a great deal of stability.

Stormy Mortgage Climate: Networking As Your Umbrella

Wed, 02 Jul 2008 11:01:43 CDT

What a year! To date we’ve seen dozens of lenders close their doors, the secondary market has taken a wallop and to boot, rates are on the rise! Couple that with the non-stop dismal news coverage our industry has received and suffice to say it hasn’t been the brightest year in the mortgage industry. But wait, there’s more. Now consumers are leery of originators and lenders and fearful of buying a home altogether. Geez! Why don’t we all just give up? Unfortunately, too many people have done just that; given up on the industry. In fact, some days it seems that you can’t throw a rock five feet without hitting an ex-mortgage professional.

Let Others Help! 5 Ways Your Friends, Family and Contacts Can Help You in A Slowing Market

Wed, 02 Jul 2008 11:01:38 CDT

As mortgage professionals, we’re being tested in more ways than one these days. Not only have many of our products disappeared, but many of our lenders have closed their doors, and to boot, we’ve taken quite a beating from the press. As a result, we’re now facing one of the most challenging and competitive markets in at least a decade. Suffice to say, that in today’s market, anytime someone asks us if there is anything they can do to help; we’d be prudent to take them up on their offer. But our friends, family and contacts can’t help us through this difficult time unless we tell them how.

The New Rules for Family Farmer Bankruptcies - Chapter 12

Fri, 27 Jun 2008 09:09:02 CDT

If debtors or debtors’ counsel are looking for good news in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), they will probably need to look to Chapter 12. Chapter 12 was an amendment to the Bankruptcy Code in the mid 80’s to address what was then seen as a national farm crisis. To get the amendment passed, the statute had a two-year sunset provision. Ever since, Chapter 12 has had to be re-enacted, and there have been gaps.

Foreclosing Mortgage Liens and Security Interests

Tue, 24 Jun 2008 00:00:00 CDT

When bringing an action to collect an agricultural loan, friction arises from the fact that the creditor wants to commence the action right away, yet an action to foreclose a real estate mortgage cannot be brought until thirty days after service of the notice before foreclosure. One solution is to serve the notice before foreclosure, wait the thirty days, and bring one action to foreclose the real estate mortgage(s) and foreclose the personal property security interests.

Legislation to Ban Discrimination Based on Genetic Information Passed by Congress

Mon, 23 Jun 2008 12:36:01 CDT

On May 1, 2008, the House of Representatives, by a vote of 414-1, passed the Genetic Information Nondiscrimination Act, which prohibits discrimination on the basis of genetic information with respect to health insurance and employment. The Senate had previously approved the bill, with a 95-0 vote, on April 24, 2008. President Bush is expected to sign the bill within the next two weeks.

Association Reserve Accounts: Pay Now or Pay Later?

Mon, 23 Jun 2008 12:35:59 CDT

Association reserve accounts are established and maintained by associations to hold funds for the long-term or deferred maintenance and replacement of any assets that the associations are responsible for maintaining. Generally these assets have a remaining useful life of less than 30 years. For example, an association might hold funds in a reserve account for the replacement of items such as HVAC equipment in a condominium building, for the repair or replacement of the roof on a community clubhouse, for the replacement of exercise equipment in an association’s fitness center or for other less obvious items, such as the replacement of property following windstorm damage. In the context of condo hotels, ample reserves are also needed for the replacement of all furniture, fixtures and equipment contained within the condo hotel units, particularly at a branded condo hotel where hotel brand standards must be maintained.

U.S. Supreme Court Allows Retaliation Claims Under Section 1981

Mon, 23 Jun 2008 12:35:56 CDT

Litigation Partner Judith A. O'Brien contributed to this article.Employees gained an additional federal cause of action for race-based retaliation claims under a decision issued last week by the United States Supreme Court. Section 1981 (42 U.S.C. § 1981)—a civil rights law that grants all persons the right to make and enforce contracts regardless of race—permits a cause of action for retaliation, the Court held. See CBOCS West, Inc. v. Humphries, No. 06-1431 (May 27, 2008) (slip op.).

When is a Release a Release?

Mon, 23 Jun 2008 12:35:53 CDT

Businesses that provide recreational activities or other services where injuries are not uncommon often require that participants sign a release of all claims ("general release" or "release") before allowing them to engage in the activities. As a general rule, releases are valid and enforceable, but a release's enforceability will be dependent on many factors.

Thoughts Concerning Trustee Selection

Mon, 23 Jun 2008 10:39:45 CDT

Real Property Lender Security, Lease, and Other Downside Concerns

Mon, 23 Jun 2008 10:39:42 CDT

There are different sorts of “lenders” providing financing for real estate transactions, and there are different loan situations. A financing where the property is subject to one or more leases may involve such situations as: a fee owner trust deed to secure a tenant improvement loan, a fee owner loan against the leased land for the owner’s own purposes, or a leasehold secured loan to the tenant. The tenant as sublessor is in a position similar to a fee owner leasing a property. A seller in a seller financed transaction will be in a situation analogous to a fee lender. In each situation, the lender’s key concern will be ensuring the ability to have the loan repaid out of the collateral.

Real Estate Closings

Mon, 23 Jun 2008 10:39:40 CDT

The closing is where the transaction all comes together. If the agreements have been drafted properly and the parties have followed through, there should not be many unpleasant surprises at closing, because expectations and requirements will have been specified and taken care of ahead of time. Thus, the most important things for closing should have been taken care of well in advance of the closing, and the closing should consist almost entirely of signatures, smiles, and champagne–but this is, unfortunately, not always how things turn out. Let’s see what can be done to increase the odds of a smooth closing.

The Basics of the Uniform Fraudulent Transfer Act

Mon, 23 Jun 2008 10:39:37 CDT

Most of the states (approx. 43), including Utah (since 1988) (where the author practices law), have enacted the Uniform Fraudulent Transfer Act (promulgated in 1984). Other states (approx. 3) have enacted the earlier Uniform Fraudulent Conveyances Act (promulgated in 1918; used in Utah prior to 1988), while still others have some form of rules based on the Statute of Elizabeth of 1571, 13 Eliz. 1, C.5 of England. One way or the other, all states have some version of a fraudulent transfer rule which protects, to one extent or another, creditors from certain transfers by a debtor or obligations undertaken by a debtor with the intention or effect of avoiding payment of debts.

Chapter 7 or Chapter 13 Eligibility: What Is the Means Test?

Thu, 09 Jun 2011 11:13:07 CDT

The underlying theory behind BAPCPA is that debtors who could pay their debts, or at least a portion of their debts, were abusing the system by eliminating all of their debts in a Chapter 7. BAPCPA set up a system to analyze the debtor’s income and expenses in a structured way to determine eligibility for Chapter 7. The overwhelming majority of debtors who could file chapter 7 bankruptcy under prior law can still file chapter 7. All bankruptcy practitioners have had to learn the “means test”. The means test is used to create a presumption whether the debtor may file a Chapter 7 petition.

Protecting Collateral In Bankruptcy

Fri, 13 May 2011 15:16:36 CDT

How a secured creditor may approach a bankruptcy case in order to protect its collateral often depends on the Chapter under which the bankruptcy was filed. Chapters 7, 11 and 13 are highlighted.

Red Flags Rule Compliance: The Feds May Be The Least Of Your Concerns

Mon, 09 May 2011 16:30:35 CDT

After several false starts, the FTC has finally initiated enforcement of the Fair and Accurate Credit Transactions Act's, Red Flags Rule, and has placed the burden of policing identity theft activity squarely on the shoulders of both big and small businesses. However, the FTC may be the least of your concerns if you originate credit for an identity thief because attorneys across the country have been eagerly awaiting this dangerous and virtually impossible regulation. Your problem? Verifying the identity of your customer. If you don't have required and accepted procedures in place to do so, it could cost you everything you've ever worked for. Your Required Red Flags Rule Policy & Program. First, your operation must develop and implement a Red Flags Rule Policy which must include four required key elements in addition to other regulations and issues that must be addressed. To demonstrate the importance the FTC places on the Rule, your operation's Board of Directors is required to approve your Red Flags Rule Policy and Program. For those operations without a board, a committee of senior management must approve the initial Program and monitor it on an annual basis.

Loan Workouts

Mon, 28 Feb 2011 13:47:18 CST

The Loan Workout is an inexact science in which a Lender and Borrower work together to resolve a troubled loan. The options available are only limited by the parties' imagination and willingness to cooperate. The range of what "is" a Loan Workout starts somewhere in the vicinity of a Forbearance Agreement, passes Receiverships and ends at Foreclosure. A variety of factors will help determine which neighborhood a Loan Workout ends up residing in - some are within the control of the Lender and Borrower and some are outside their control. Regardless of the acronym used for the Lender's Group that is handling the troubled loan (i.e. SSG, ARG, REMA, SAD, SAM, or SAG), the general methodology and best practices remains the same. Of course, the makeup of the collateral, history of the Borrower and Lender and many other distinct features make each Loan Workout a similar but wholly unique situation. These aspects make resolving troubled loans interesting, frustrating, rewarding and sometimes even fun.

Security Interests In Personal Property - Creation And Enforcement In Maine

Thu, 03 Feb 2011 10:49:28 CST

In the absence of agreement or court order, a creditor does not usually have the right to seize, repossess or otherwise proceed against property belonging to a debtor in order to satisfy debts owing from the debtor to that creditor. Thus, no matter what the creditor may think (or what may be the practice in certain instances), a furniture salesman who has sold an item on credit may not in most instances seek to repossess that item when the customer does not pay, unless the customer has agreed that this could occur, or a court has ordered such a procedure. But see 11 M.R.S.A. § 2-702 (allowing seller to reclaim goods sold on credit in certain instances where buyer is insolvent). Similarly, a creditor who lends a debtor money cannot, without an agreement or a court order, seize that debtor's property when the debtor does not make required repayment absent agreement or court order. At the time a credit sale or loan is made, the creditor may obtain the buyer's or borrower's agreement to allow certain personal or real property to be used to satisfy the resulting debt. With several exceptions, in Maine such an agreement and the parties' resulting rights and obligations are governed by Article 9-A of the UCC if the collateral involved is personal property and not real estate.

Truth in Lending Act

Thu, 27 Jan 2011 16:33:11 CST

Liability, Cures & Defenses, & Rescission Under the Truth in Lending Act

IRS Form 1099 Reporting

Wed, 26 Jan 2011 15:37:07 CST

Form 1099 is a series of forms used in the United States income tax system by the Internal Revenue Service (IRS) to prepare and file an information return under Internal Revenue Code Section (IRC) 6041 – which in plain language states that all persons engaged in a trade or business and making payments to another person of $600 or morein any tax year are required to report these payments to the IRS using an information return.

Collection and Repossesion

Wed, 26 Aug 2009 16:09:04 CDT

The Fair Debt Collection Practices Act (FDCPA) is a federal statute codified at 15 USC section 1692 et. seq. The purpose of the statute is to eliminate abusive, deceptive, and unfair collection practices. 15 USC 1692(e). It is also designed to insure that collectors who refrain from abusive practices are not put at a competitive disadvantage and to bring uniformity and consistency to the laws protecting consumers from abusive collection practices.

Loan Documents: What You Need to Know

Thu, 19 Jun 2008 14:50:17 CDT

The loan documents set forth the rights, obligations and remedies of the Borrower and Lender with regard to the loan. While the contents of the loan documents will vary depending upon the type of loan, the basic loan documents are as follows:1. Loan Agreement2. Promissory Note3. Security Agreement4. Deed of Trust/Mortgage5. Ancillary Loan Documents

Bankruptcy: What Are My Options?

Thu, 19 Jun 2008 14:45:07 CDT

The concept of relief from one’s debts has existed since antiquity. In Western civilization, it dates back at least to the Jubilee Year of biblical times. The drafters of the United States Constitution included bankruptcy relief among the powers delegated to the Congress. The modern Bankruptcy Code was enacted in 1978 and has been amended several times, most recently with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA”). Bankruptcy provides for two competing and sometimes conflicting goals: first, to provide a fresh start for a borrower and, second, to provide for the orderly liquidation of assets and repayment of debts.

Commercial Real Estate Financing

Thu, 19 Jun 2008 14:42:03 CDT

Commercial Real Estate financing is essential for individuals, developers, and large retail and hotel institutions. It is likely that any one or more of these entities will venture into commercial real estate financing at many different points in the existence of the entity, and commercial lenders will see the same faces emerge again and again over the lifetime of the enterprise, whether they request a term loan for the financing of an already existing property with improvements which have already been built, a construction loan to finance the construction of the improvements on raw land, or a bridge loan as a means of securing temporary financing until a later date not too distant in the future. Amendments to any or all of these loans can take place at any time during the existence of the Loan term, depending upon the credit situation and needs of the borrowers, and these amendments can run the gamut of an extremely simple extension of a maturity date in a note to give the borrower more time to pay off a loan to a complete restructuring of the Loan terms, whether it be a substitution of borrowers, a substitution in the structures of repayment of the Loan, or a combination of any or all of the above. As a commercial real estate lender, borrower, or counsel for either the lender or borrower, it is crucial to know the steps in the process from documenting the loan to the final closing process.