Bernie Sanders’ Proposed Student Loan Forgiveness Plan

If the student loan forgiveness bill is passed, then the following would go into effect. The Secretary of Education would have 6 months to cancel all outstanding student loan debt that the federal government provides, insured, or guaranteed. This bill would also grant the Secretary of Education the authority to purchase the outstanding loans from private lenders. The program would get private lenders to sell to them by paying off all unpaid portions of the debt including principal, interest and any late charges.

How it will affect the average American

43 million Americans owe money to the federal government due to student loans. The total amount of federal student debt is $1.4 trillion. To those Americans with just federal student debt, their loans would all be forgiven. This will allow those

By |2019-06-25T23:56:06+00:00June 25th, 2019|Student Loans|0 Comments

Fierce Trade War Force Mortgage Rates Below 4%

Last week the 30-year-fixed-rate mortgage fell below 4%, displaying a 16 month low for the product.  Furthermore, the 15-year-fixed-rate mortgage also registered a fall as it averaged 3.46%  from the previous 3.51%.

Interest rates have been following the general market cues similar to the bond market. Important factors influencing the slowdown are general slowing trends globally and speculations regarding the US-China trade war. With dilapidated global growth predictions for the future, investors are finding fixed income assets like bonds more secure. Mortgage interest rates are linked to the ten year US Treasury note.

However contrary to the drop, Americans are not taking much advantage of this downfall. This is evident by the decrease in the number of applications for both mortgages and refinances. The Mortgage Bankers Association released this data

By |2019-06-02T12:21:00+00:00June 2nd, 2019|Mortgage Rates|0 Comments

Mortgage Scam Probe Sees Popular U.S. Landlord Facing Charges In Ponzi Scheme

The Security and Exchange Commission and the Department of Justice charged Robert Morgan for purportedly operating a Ponzi scheme that shuffled money from investors and faking loan documents.

Morgan is estimated to have 140 properties across 14 states. On Wednesday, he was charged for criminal activities by the DOJ for bank fraud, insurance fraud, and wire fraud, and the SEC also charged him with civil fraud for misusing and siphoning investor finances.

These charges stem from a cross-agency investigation effort and were found in August when the fraud allegation that involved loans were looked into – with over $1.5 million in mortgage securities issued by Freddie Mac and Fannie Mae.

This resulted in the indictment of four suspects, including Morgan, who conspired over a period of 10 years to acquire

By |2019-05-31T19:59:04+00:00May 31st, 2019|Loan Fraud|0 Comments

Rising Fears Of Trade War Cause Decline In Mortgage Applications

In spite of low borrowing costs and average price gains, Americans aren’t looking to take on as many new mortgages.

The Mortgage Bankers Association recorded the drop of mortgage applications to 3.3% from last week, even though mortgage interest rates remain low.

Home purchase applications dropped 1% – which was its 3rd weekly decline, however, they still remained 7% higher than they were a year ago. Also, there was a 6% fall in mortgage refinance applications.

Since January 2018, there have been steady fixed interest rates for 30 years at 4.33%.

Joel Kan, MBA’s Associate Vice President of the Economic and Forecasting stated that “Concerns over European economic growth and ongoing uncertainty about a trade war with China were some of the main factors that kept mortgage rates low last week.”

Nevertheless, there

By |2019-05-31T08:18:54+00:00May 31st, 2019|Mortgage Loans|0 Comments