Day 410 of My Financial Freedom Countdown
We are going into our 13th month of attempting to get a loan modification on our primary residence. Again we were declined because we have a business card charged off with the same bank that services our mortgage. So it looks like this will be continuing to drag on for God knows how long.
If this charge off was with another institution this would not even be a question or if the loan was held with Fannie Mae rather than Freddie Mac. All loan mods are not considered equal as it may seem. We were able to get a mod on our rental property with the greatest of ease because that loan was with Fannie Mae. Because the primary residence is with Freddie Mac we're a no go. Fannie does not look at outstanding debt while Freddie does.
Even though one looks at debt and the other doesn't, why is the bank throwing the charge off in our face? It doesn't make sense to me and seems like it is just another excuse. We have already called the president of the mortgage division's office, which we have been receiving call backs, but that does nothing because we are back at step one anyway. We did however receive another call today form a new negotiator. We will be calling him tomorrow to see what he has to say.
I am thinking our next step is to contact our state senator, who is Harry Reid, and discuss this travesty. The fact that all loan mods, regardless of investor or loan program, are not the same is outrageous. There is also not much out there laying out this type of scenario. The public needs to be made aware of this, as I don't feel that this information is public knowledge. Am I to be the guy who has to start a crusade to get this fixed? Even if we do not get a loan mod in the end something needs to be done about this.
My wife did find one bit of hope out there. According to Freddie Mac, if the borrowers debt is greater than 55%, the borrower must take a free debt counseling course in order to qualify. This may be our saving grace as this as yet to be offered to us as an option. We'll have to see what this new negotiator has to say, but I feel a war coming on.
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).] Did you enjoy reading this article? You can receive free full-text articles from Financial Elite by RSS in your email inbox daily by entering your email HERE. Your email will only be used for this daily subscription, and each email will include a link you may use to unsubscribe at any time. Also follow us on Twitter.
Showing posts with label bank. Show all posts
Showing posts with label bank. Show all posts
Tuesday, February 15, 2011
Thursday, May 6, 2010
What Will a Foreclosure Do to My Credit?
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
If you are having trouble paying your mortgage never, never, never give up until you have tried to work with your bank with some sort of repayment plan or a loan modification.
But if all your options have been exhausted and your only alternative is a foreclosure, how bad will your credit suffer?
From Les Christie at CNNMoney.com: How foreclosure impacts your credit score
Here are the average hit your credit will take:
30 days late: 40-110 points
90 days late: 70-135 points
Foreclosure, shot sale, or deed-in-lieu: 85-160
Bankruptcy: 130-240
Notice that for both borrowers a single one-time black mark results in steep drops, but it is when they fall further behind that things get really harsh. [ a spokesman for Fair Isaac, Craig Watts]
"The lending industry tends to regard an account differently when it has become 90 or more days late," he said, "The likelihood that consumers will resume paying their overdue obligations drops off significantly after the delinquencies have reached 90 days."
In the end don't stress yourself out over all this. It is what it is, but do try and do all you can do to stay in your home. Try to get help first.
Despite the problems a poor credit score can cause. People who are in financial dead ends, like totally unaffordable mortgages, it's better to recognize that and cut your losses quickly; don't prolong the problem. [ vice president for public education at Experian, Maxine Sweet]
"You need to do what you need to do to get your finances back in order," she said. "Don't worry about your credit score."
We Also Suggest:
If you are having trouble paying your mortgage never, never, never give up until you have tried to work with your bank with some sort of repayment plan or a loan modification.
But if all your options have been exhausted and your only alternative is a foreclosure, how bad will your credit suffer?
From Les Christie at CNNMoney.com: How foreclosure impacts your credit score
Here are the average hit your credit will take:
30 days late: 40-110 points
90 days late: 70-135 points
Foreclosure, shot sale, or deed-in-lieu: 85-160
Bankruptcy: 130-240
Notice that for both borrowers a single one-time black mark results in steep drops, but it is when they fall further behind that things get really harsh. [ a spokesman for Fair Isaac, Craig Watts]
"The lending industry tends to regard an account differently when it has become 90 or more days late," he said, "The likelihood that consumers will resume paying their overdue obligations drops off significantly after the delinquencies have reached 90 days."
In the end don't stress yourself out over all this. It is what it is, but do try and do all you can do to stay in your home. Try to get help first.
Despite the problems a poor credit score can cause. People who are in financial dead ends, like totally unaffordable mortgages, it's better to recognize that and cut your losses quickly; don't prolong the problem. [ vice president for public education at Experian, Maxine Sweet]
"You need to do what you need to do to get your finances back in order," she said. "Don't worry about your credit score."
We Also Suggest:
- Bank of America's Balance Liquidation Program (BLP) Still Sucks
- What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
- How did This Economic Crisis Start?
- Should I Use My 401K to Pay Off My Mortgage?
- Should I Take Out a 401K Loan to Pay Off My Credit Cards?
- Follow my journey to pay off debt and subscribe by email.
- Subscribe in a Reader (RSS)
- Follow us on Twitter
- Follow us on Blogger
Wednesday, May 5, 2010
Why Bank of America Fire Me: Kudos to Jackie Ramos
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
Bank of America, YOU MUST BE OUT OF YOUR MIND! I had recently put my credit cards on Bank of America's (BLP) Balance Liquidation Program to help me get my credit back on track and it has been working, but the help I did get wasn't that easy and I have found out why.
I came across this video of a former Bank of America employee named Jackie Ramos, who was fired for doing the right thing and helping consumers. Jackie talks about her experience working in the so called customer assistance department, which is another name for the collection department.
Jackie took countless calls from consumer credit card holders trying to get assistance with their payments. These were people trying to do the right thing and pay back the money they owed on their cards and were looking for a hand up not a hand out.
Why Bank of America would rather jack up interest rates and make it even harder for card holders to make payments is beyond me. There are consumers out there who are out to stiff the banks out the money they owe them and that type of consumer deserves the late charges and high interest rates, but people who are trying to make things right deserve a helping hand.
Jackie had understood that people who are asking for help deserve a chance and began taking things in to her own hands. She refunded over the limit and late fees and put people on the banks fixed payment plans more often then she should have and because of this she was ultimately fired..
Bank of America why would you rather get nothing than something from people wanting to repay you? It's really a no brainer. Jackie understood with help a client could keep their account in good standing and prevent it from being charged off or forcing a client in to bankruptcy. How do you expect a borrower to afford to pay a 29.99% interest rate and late fees, but think that being on a debt reduction plan is unaffordable?
Are you telling me consumers and subordinate employees are smarter than the executive's that make these decisions? May be the consumers and the subordinate employees to deserve the bonuses you are still getting.
Have you tried to get a fixed payment or get on a balance liquidation program with your bank only to be denied? Tell us your story.
We Also Suggest:
Bank of America, YOU MUST BE OUT OF YOUR MIND! I had recently put my credit cards on Bank of America's (BLP) Balance Liquidation Program to help me get my credit back on track and it has been working, but the help I did get wasn't that easy and I have found out why.
I came across this video of a former Bank of America employee named Jackie Ramos, who was fired for doing the right thing and helping consumers. Jackie talks about her experience working in the so called customer assistance department, which is another name for the collection department.
Jackie took countless calls from consumer credit card holders trying to get assistance with their payments. These were people trying to do the right thing and pay back the money they owed on their cards and were looking for a hand up not a hand out.
Why Bank of America would rather jack up interest rates and make it even harder for card holders to make payments is beyond me. There are consumers out there who are out to stiff the banks out the money they owe them and that type of consumer deserves the late charges and high interest rates, but people who are trying to make things right deserve a helping hand.
Jackie had understood that people who are asking for help deserve a chance and began taking things in to her own hands. She refunded over the limit and late fees and put people on the banks fixed payment plans more often then she should have and because of this she was ultimately fired..
Bank of America why would you rather get nothing than something from people wanting to repay you? It's really a no brainer. Jackie understood with help a client could keep their account in good standing and prevent it from being charged off or forcing a client in to bankruptcy. How do you expect a borrower to afford to pay a 29.99% interest rate and late fees, but think that being on a debt reduction plan is unaffordable?
Are you telling me consumers and subordinate employees are smarter than the executive's that make these decisions? May be the consumers and the subordinate employees to deserve the bonuses you are still getting.
Have you tried to get a fixed payment or get on a balance liquidation program with your bank only to be denied? Tell us your story.
We Also Suggest:
- Bank of America's Balance Liquidation Program (BLP) Still Sucks
- What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
- How Did This Economic Crisis Start?
- Should I Use My 401K to Pay Off My Mortgage?
- Should I Take Out a 401K Loan to Pay Off My Credit Cards?
- Follow my journey to pay off debt and subscribe by email.
- Subscribe in a Reader (RSS)
- Follow us on Twitter
- Follow us on Blogger
Tuesday, May 19, 2009
Bank Of America Finishes Its At The Market Stock Offering
As we have discussed before Bank of America has begun raising the required capital to meet the Stress Test for banks.
Bank of America late Tuesday concluded its previously announced sale of common stock.
The stock was sold through what is called an "At-the-Market" issuance program in which shares are sold over a period of time.
The company issued 1.25 billion shares of common stock since beginning the program on Friday, May 8 at an average price of $10.77, representing gross proceeds of approximately $13.47 billion.
"We're pleased to have this portion of our capital plan completed." said Chief Financial Officer Joe Price. "This strengthens and diversifies our capital structure."
See Bank of America's related press release on Tuesday.
Bank of America late Tuesday concluded its previously announced sale of common stock.
The stock was sold through what is called an "At-the-Market" issuance program in which shares are sold over a period of time.
The company issued 1.25 billion shares of common stock since beginning the program on Friday, May 8 at an average price of $10.77, representing gross proceeds of approximately $13.47 billion.
"We're pleased to have this portion of our capital plan completed." said Chief Financial Officer Joe Price. "This strengthens and diversifies our capital structure."
See Bank of America's related press release on Tuesday.
Saturday, May 16, 2009
Bank of America To Sell China Construction Bank Stock To Raise Capital
With the new stress test results out, many banks are in need to to raise capital. Bank of America, which is required to raise 34 billion, has begun doing just that.
Bank of America has decided to reduce its stake in China Construction Bank (CCB) to 10.95% to help strengthen Bank of America's capital levels while still allowing the company to remain a long term partner with CCB.
"In our view, the cooperation between the two banks has been very successful," said Greg Curl, Bank of America Global Corporate Strategy and Planning Executive." I am pleased with the progress we have achieved with our partner. We intend to remain long term, strategic partner with CCB and maintain our ownership at or above 10 percent."
China Construction Bank is the leading commercial bank in China and consists of three principal business segments: corporate banking, personal banking and treasury operations.
Under the Strategic Assistance Agreement with CCB, Bank of America experts assist CCB with risk management, governance, bank cards, consumer banking, information technology, human resources and treasury services. Since October 2005, more than 850 teammates from across Bank of America have contributed talent to more than 100 Shared Experience Sessions, 54 collaborative and advisory projects and 36 training sessions.
The strategic agreement has also provided Bank of America associates with more than 320,000 hours of international experience through their work with CCB.
Bank of America sold 13.5 billion shares in CCB or 5.78percent to an investment consortium this week. The proceeds from the sale, after adjusting for the cost of the original investment and applicable taxes, will bolster Bank of America's common capital levels, Bank of America remains the second largest shareholder in CCB.
Bank of America has decided to reduce its stake in China Construction Bank (CCB) to 10.95% to help strengthen Bank of America's capital levels while still allowing the company to remain a long term partner with CCB.
"In our view, the cooperation between the two banks has been very successful," said Greg Curl, Bank of America Global Corporate Strategy and Planning Executive." I am pleased with the progress we have achieved with our partner. We intend to remain long term, strategic partner with CCB and maintain our ownership at or above 10 percent."
China Construction Bank is the leading commercial bank in China and consists of three principal business segments: corporate banking, personal banking and treasury operations.
Under the Strategic Assistance Agreement with CCB, Bank of America experts assist CCB with risk management, governance, bank cards, consumer banking, information technology, human resources and treasury services. Since October 2005, more than 850 teammates from across Bank of America have contributed talent to more than 100 Shared Experience Sessions, 54 collaborative and advisory projects and 36 training sessions.
The strategic agreement has also provided Bank of America associates with more than 320,000 hours of international experience through their work with CCB.
Bank of America sold 13.5 billion shares in CCB or 5.78percent to an investment consortium this week. The proceeds from the sale, after adjusting for the cost of the original investment and applicable taxes, will bolster Bank of America's common capital levels, Bank of America remains the second largest shareholder in CCB.
Tuesday, May 12, 2009
Bank Of America Unveils Bank of America Home Loans
On April 27 Bank of America announced the new Bank of America Home Loans Brand at locations nationwide and unveiled new tools through which home buyers and homeowners will find greater clarity in the home finance process. The Clarity Commitment, a single one page loan summary clearly presents to borrowers their interest rate, terms, and other details of the loan in a plain and simple language. The Bank of America Home Loan Guide is an interactive web site that arms customers with the personalized information to prepare for home ownership and make informed home buying and refinance decisions.
"We met with thousands of customers and created tools that reflect the transparency they want in the home buying process,"said Barbara Desoer, president, Bank of America Home Loans "Doing the right thing for our customer is the foundation of our brand promise is always be a responsible lender and help create successful homeowners, and these tools exemplify that promise"
These new tools help customers make informed decisions. The Clarity Commitment is a simple document that uses straightforward language designed to make it easier for customers to understand the terms of their loan. The summary includes information regarding interest rate, monthly payment, payment terms, and explanation of closing costs and other loan information. Provided both at application and at closing, the Clarify Commitment is available on most new purchase and refinance transactions, including traditional and government backed loans.
In addition to the Clarity Commitment the company introduced the Bank of America Home Loan Guide as part of the new Bank of America Home Loans Web Site bankofamerica.com/homeloans. The unique interactive guide is designed to provide prospective home buyers and existing homeowners looking to refinance with a personalized simulation of the home loan process. It helps consumers understand the criteria that drive lenders' decisions, steps they can take to be more successful in the search of the appropriate home loan and how a home loan fits into their budget and how a home loan fits into their total financial picture.
By explaining key points and highlighting the "rules" of home buying this easy-to-use guide gives consumers information that helps then to understand their options and make an informed decision.
"Purchasing a home is one of the biggest decisions a person can make, and we take seriously our responsibility to educate and arm then with the information they need to make smart decisions, " said Desoer. "Especially in this environment, it's important that consumers understand the true, comprehensive costs of home ownership so they can buy a home and enjoy it with confidence."
Bank of America Home Loans also introduced Flat Fee Mortgage Plus through the 6100 Bank of America banking centers. A new mortgage product, Flat Fee Mortgage Plus has no application fee and one single closing fee that represents the lender and other fees required for third-party services. The product features a close-on-time guarantee and best value guarantee. The Flat Fee Mortgage Plus will be available through additional channels in the future.
The Bank of America Home Loans brand represents the combined operations of Bank of America mortgage and home equity business and Countrywide Home Loans, which Bank of America acquired on July 1, 2008.
Countrywide customers already have access to Bank of America's 6100 banking centers, a coast to coast network of Bank of America Home Loans retail locations, and one of the nation's largest ATM networks. As the new brand becomes more visible through re branded locations, account statements, marketing materials, and advertising, customers should continue to use current methods for managing their accounts and contacting customer service until the full systems conversion later this year.
The company originated and services one out of every five loans in the country, representing a servicing portfolio of almost 14 million loans. During the first quarter of 2009, Bank of America funded $85 billion in first mortgages, helping more the 382,000 Americans purchase a home or refinance their current mortgage. More than $16 billion of those mortgages were for low to moderate- income borrowers.
"Bank of America Home Loans has the scale, capacity and capability to respond to the significant customer demand we've seen recently," Desoer added. "We are actually lending in this economic environment and continue to be open for business to new and existing customers."
"Other businesses gained through the Countrywide acquisition will retain their brands, including Balboa Insurance Services, one of the leading providers of lender-placed property insurance, and LandSafe, a supplier of pre- and post- closing services.
Bank of America has committed to offer modifications for as many as 630,000 customers to help them stay in their homes. In the first quarter, the company completed loan modifications for more then 119,000 borrowers. Bank of America has more than 6400 home retention associates dedicated to this effort.
The company also announced a $35 million neighborhood preservation and foreclosure prevention package focusing on grants and low-cost loans to help local and national non profit organizations engaged in foreclosure prevention, and to purchase vacant single family homes for neighborhood preservation.
"We met with thousands of customers and created tools that reflect the transparency they want in the home buying process,"said Barbara Desoer, president, Bank of America Home Loans "Doing the right thing for our customer is the foundation of our brand promise is always be a responsible lender and help create successful homeowners, and these tools exemplify that promise"
These new tools help customers make informed decisions. The Clarity Commitment is a simple document that uses straightforward language designed to make it easier for customers to understand the terms of their loan. The summary includes information regarding interest rate, monthly payment, payment terms, and explanation of closing costs and other loan information. Provided both at application and at closing, the Clarify Commitment is available on most new purchase and refinance transactions, including traditional and government backed loans.
In addition to the Clarity Commitment the company introduced the Bank of America Home Loan Guide as part of the new Bank of America Home Loans Web Site bankofamerica.com/homeloans. The unique interactive guide is designed to provide prospective home buyers and existing homeowners looking to refinance with a personalized simulation of the home loan process. It helps consumers understand the criteria that drive lenders' decisions, steps they can take to be more successful in the search of the appropriate home loan and how a home loan fits into their budget and how a home loan fits into their total financial picture.
By explaining key points and highlighting the "rules" of home buying this easy-to-use guide gives consumers information that helps then to understand their options and make an informed decision.
"Purchasing a home is one of the biggest decisions a person can make, and we take seriously our responsibility to educate and arm then with the information they need to make smart decisions, " said Desoer. "Especially in this environment, it's important that consumers understand the true, comprehensive costs of home ownership so they can buy a home and enjoy it with confidence."
Bank of America Home Loans also introduced Flat Fee Mortgage Plus through the 6100 Bank of America banking centers. A new mortgage product, Flat Fee Mortgage Plus has no application fee and one single closing fee that represents the lender and other fees required for third-party services. The product features a close-on-time guarantee and best value guarantee. The Flat Fee Mortgage Plus will be available through additional channels in the future.
The Bank of America Home Loans brand represents the combined operations of Bank of America mortgage and home equity business and Countrywide Home Loans, which Bank of America acquired on July 1, 2008.
Countrywide customers already have access to Bank of America's 6100 banking centers, a coast to coast network of Bank of America Home Loans retail locations, and one of the nation's largest ATM networks. As the new brand becomes more visible through re branded locations, account statements, marketing materials, and advertising, customers should continue to use current methods for managing their accounts and contacting customer service until the full systems conversion later this year.
The company originated and services one out of every five loans in the country, representing a servicing portfolio of almost 14 million loans. During the first quarter of 2009, Bank of America funded $85 billion in first mortgages, helping more the 382,000 Americans purchase a home or refinance their current mortgage. More than $16 billion of those mortgages were for low to moderate- income borrowers.
"Bank of America Home Loans has the scale, capacity and capability to respond to the significant customer demand we've seen recently," Desoer added. "We are actually lending in this economic environment and continue to be open for business to new and existing customers."
"Other businesses gained through the Countrywide acquisition will retain their brands, including Balboa Insurance Services, one of the leading providers of lender-placed property insurance, and LandSafe, a supplier of pre- and post- closing services.
Bank of America has committed to offer modifications for as many as 630,000 customers to help them stay in their homes. In the first quarter, the company completed loan modifications for more then 119,000 borrowers. Bank of America has more than 6400 home retention associates dedicated to this effort.
The company also announced a $35 million neighborhood preservation and foreclosure prevention package focusing on grants and low-cost loans to help local and national non profit organizations engaged in foreclosure prevention, and to purchase vacant single family homes for neighborhood preservation.
Sunday, May 10, 2009
Deposit Image ATM's Are The Best Thing Since The Invention Of The ATM Itself.
Last week I was excited to see the image deposit ATM's had been installed at the Bank of America banking center near my office. The cool thing about it is you don't need an envelope to make a deposit. You just feed the checks or cash you are depositing and the ATM totals everything up and asks you if the total is correct. Once you agree the amount is correct you will be given a receipt with copies of the items you deposit. It's that simple.
Here is what Bank of America has to say about their new ATM's:
Another example of how Bank of America continues to find solutions to improve customer convenience in an environmentally friendly way is its more than 12,000 Deposit Image ATM's.
Like I was saying, unlike a traditional ATM, the Deposit Image allows customers to make deposits without an envelope or slip.
In the fourth quarter of 2008, customer delight with Deposit Image ATM's rose to 80% top two box score, according to a Bank of America Banking Center Satisfaction Study. An additional study across all markets shows that satisfaction continued to climb compared with the previous five quarters, and is higher than levels seen among envelope ATM customers. The continued increases in customer delight are attributed to enhanced benefits and improved performance.
The Deposit Image ATM scans checks and counts cash to process the deposits electronically. Images of the checks and a cash count are displayed on the screen and customers get to review and approve the amount deposited. Once verified, they can receive a detailed receipt with images of checks and cash count for their records and even see the posted deposit by using the Online Banking Service. By eliminating the need for envelopes and deposit slips, and upgrading software to accept and post deposits via image, Bank of America ensures customers' deposits are posted more quickly and accurately than ATM deposits made with envelopes.
Additionally, customers using deposit Image ATM's can get immediate credit for cash deposits as well as make deposits until 800 pm and still have the deposit processed the same day. This extended time frame provides greater flexibility for customers, including small business customers who may be unable to make deposits in banking centers before normal closing time.
Deposit Image ATM's drive down expenses while conserving the environment by reducing the use of paper. Processing deposits electronically is significantly less expensive than processing paper envelopes. In Addition, transportation fees have been greatly reduced as the need for armored supplier servicing has been minimized.
Since introducing Deposit Image ATM's in 2006, Bank of America has led the industry with more than a half billion items deposited via Deposit Image ATM's.
In addition to Deposit Image ATM's, Bank of America has more than 4,800 Bank of America branded ATM's that dispense cash only, creating the largest bank owned network of ATM's in the United States. In March alone, approximately 18.3 million deposits were made at all deposit ATM's,a record month and in an increase of 12.7% over last year. On April 3, Bank of America achieved another milestone, with a record day of 857,654 deposits at bank ATM's.
By the end of 2009, all Bank of America ATM's that accept deposits will convert to Deposit Image. In contrast, the bank's closest competitor has anticipated conversion of 6,900 ATM's, leaving Bank of America with a continued strong lead--approximately two times more Deposit Image ATMs.
Here is what Bank of America has to say about their new ATM's:
Another example of how Bank of America continues to find solutions to improve customer convenience in an environmentally friendly way is its more than 12,000 Deposit Image ATM's.
Like I was saying, unlike a traditional ATM, the Deposit Image allows customers to make deposits without an envelope or slip.
In the fourth quarter of 2008, customer delight with Deposit Image ATM's rose to 80% top two box score, according to a Bank of America Banking Center Satisfaction Study. An additional study across all markets shows that satisfaction continued to climb compared with the previous five quarters, and is higher than levels seen among envelope ATM customers. The continued increases in customer delight are attributed to enhanced benefits and improved performance.
The Deposit Image ATM scans checks and counts cash to process the deposits electronically. Images of the checks and a cash count are displayed on the screen and customers get to review and approve the amount deposited. Once verified, they can receive a detailed receipt with images of checks and cash count for their records and even see the posted deposit by using the Online Banking Service. By eliminating the need for envelopes and deposit slips, and upgrading software to accept and post deposits via image, Bank of America ensures customers' deposits are posted more quickly and accurately than ATM deposits made with envelopes.
Additionally, customers using deposit Image ATM's can get immediate credit for cash deposits as well as make deposits until 800 pm and still have the deposit processed the same day. This extended time frame provides greater flexibility for customers, including small business customers who may be unable to make deposits in banking centers before normal closing time.
Deposit Image ATM's drive down expenses while conserving the environment by reducing the use of paper. Processing deposits electronically is significantly less expensive than processing paper envelopes. In Addition, transportation fees have been greatly reduced as the need for armored supplier servicing has been minimized.
Since introducing Deposit Image ATM's in 2006, Bank of America has led the industry with more than a half billion items deposited via Deposit Image ATM's.
In addition to Deposit Image ATM's, Bank of America has more than 4,800 Bank of America branded ATM's that dispense cash only, creating the largest bank owned network of ATM's in the United States. In March alone, approximately 18.3 million deposits were made at all deposit ATM's,a record month and in an increase of 12.7% over last year. On April 3, Bank of America achieved another milestone, with a record day of 857,654 deposits at bank ATM's.
By the end of 2009, all Bank of America ATM's that accept deposits will convert to Deposit Image. In contrast, the bank's closest competitor has anticipated conversion of 6,900 ATM's, leaving Bank of America with a continued strong lead--approximately two times more Deposit Image ATMs.
Friday, May 8, 2009
Is Everybody passing the Bank Stress Test?
The results are now in on the Bank Stress Test. The Federal Reserve announced this plan for the stress test back in February allowing to look at the financials of our nation's largest financial institutions.
The test revealed the bank's capital adequacy in the event of a hypothetical worst case economic scenario over two years. The test showed that under a particularly long lasting and dire economic scenario, this is what the test showed us about the the top 10 financial institutions:
1. Bank of America- would need $33.9 billion
2. Wells Fargo- would need $13.7 Billion
3. GMAC- would need $11.5 billion
4. Citigroup- would need $5.5 billion
5. Regions Financial- would need $2.5 billion
6. Sun Trust- would need $2.2 billion
7. Morgan Stanley- would need $1.8 billion
8. KeyCorp- would $1.8 billion
9. Fifth Third Bancorp- would need $1.1 billion
10.PNC- would need $600 million
The test revealed the bank's capital adequacy in the event of a hypothetical worst case economic scenario over two years. The test showed that under a particularly long lasting and dire economic scenario, this is what the test showed us about the the top 10 financial institutions:
1. Bank of America- would need $33.9 billion
2. Wells Fargo- would need $13.7 Billion
3. GMAC- would need $11.5 billion
4. Citigroup- would need $5.5 billion
5. Regions Financial- would need $2.5 billion
6. Sun Trust- would need $2.2 billion
7. Morgan Stanley- would need $1.8 billion
8. KeyCorp- would $1.8 billion
9. Fifth Third Bancorp- would need $1.1 billion
10.PNC- would need $600 million
Tuesday, April 28, 2009
10 Things Credit Card Companies Don't Want You To Know. Part 6 0f 10
April has been Credit Card Question and Answer month here at Financial Elite. We continue with Part 6 with information provided from an article from SmartMoney about the little known rules that are costing you money and putting your credit, your identity and your family at risk.
Banks generally calculate interest charges in one of two ways: based on average daily balance or on something called two-cycle billing. The latter, which more card issuers are not adoption, penalizes consumers who carry a balance, even if it's only on occasion.
Here's how it works: Say you start your month with a zero balance and charge an amount that you don't pay off in full at the end of the month. If your card uses the average daily balance method to calculate interest, you are charged nothing for the month you made the purchase and interest only for subsequent months in which payment is outstanding. With two-cycle billing, interest charges begin with the day you make the purchase.
Banks defend two-cycle billing as correcting the true interest charges for credit card purchases. Ron Brooks, a spokesman for National City, says it's a way to make sure card users pay interest should they suddenly go from being transactors (those who pay every month) to revolvers (those who carry a balance).
One way to avoid the issue is to stay away from credit cards that use two-cycle billing to calculate interest charges and stuck with those that go by average daily balance. Unfortunately, it's not a permanent solution. Your card provider can switch between the two with just a 15 day notice, so you'll have to keep checking.
Banks generally calculate interest charges in one of two ways: based on average daily balance or on something called two-cycle billing. The latter, which more card issuers are not adoption, penalizes consumers who carry a balance, even if it's only on occasion.
Here's how it works: Say you start your month with a zero balance and charge an amount that you don't pay off in full at the end of the month. If your card uses the average daily balance method to calculate interest, you are charged nothing for the month you made the purchase and interest only for subsequent months in which payment is outstanding. With two-cycle billing, interest charges begin with the day you make the purchase.
Banks defend two-cycle billing as correcting the true interest charges for credit card purchases. Ron Brooks, a spokesman for National City, says it's a way to make sure card users pay interest should they suddenly go from being transactors (those who pay every month) to revolvers (those who carry a balance).
One way to avoid the issue is to stay away from credit cards that use two-cycle billing to calculate interest charges and stuck with those that go by average daily balance. Unfortunately, it's not a permanent solution. Your card provider can switch between the two with just a 15 day notice, so you'll have to keep checking.
Monday, April 27, 2009
White Paper Report Is Issued By Federal Reserve On Bank Stress Test
Government officials recently conducted stress tests on 19 large financial institutions with the stated goal of helping to assess the health of the banking industry and the ability of banks to weather weak economic conditions. On April 24, the Federal Reserve issued a white paper report outlining the methodology used to conduct the stress test. The white paper is intended to assist analysts and members of the public in understanding the results of the stress test, formally called the Supervisory Capital Assessment Program.
The federal Reserve met with the industry banks on Friday, asking for feedback on preliminary results of the test. the public announcement of the results are expected in early May.
The federal Reserve met with the industry banks on Friday, asking for feedback on preliminary results of the test. the public announcement of the results are expected in early May.
Sunday, April 26, 2009
10 Things Credit Card Companies Don't Want You To Know. Part 2 0f 10
April has been Credit Card Question and Answer month here at Financial Elite. We continue with Part 2 with information provided from an article from SmartMoney about the little known rules that are costing you money and putting your credit, your identity and your family at risk.
2. "When it comes to identity theft, we're part of the problem."
Tony Sciulli of Santa Barbara, an identity theft victim, says it all started with a forged credit card application. A $3,000 balance was mysteriously transferred to a new credit card in his name, followed by a ready made check billed to one of his other cards. What can you do to avoid this sort of low tech thievery? Buy a shredder, and minimize the credit credit applications coming to your house by registering at OptOutPrescreen.com
But paper solicitations are only the beginning. As Internet security expert and author Bruce Schneier warns, "Data about you is not under your control." He points to examples such as May 2005 case involving Bank of America and Wachovia, in which a man posing as collection agent paid bank employees for customer data in New Jersey. The banks notified customers their data may have been compromised and offered to help watch their accounts for suspicious activity. (The man, Orazio Lembo, pleaded guilty in March 2007 and was sentenced to five years in prison and fined $20,000.)
But John Hall, a spokesman for the American Bankers Association, insists that banks have "Pentagon level security." His advice:"Monitor your accounts. Protect your passwords and your computer."
2. "When it comes to identity theft, we're part of the problem."
Tony Sciulli of Santa Barbara, an identity theft victim, says it all started with a forged credit card application. A $3,000 balance was mysteriously transferred to a new credit card in his name, followed by a ready made check billed to one of his other cards. What can you do to avoid this sort of low tech thievery? Buy a shredder, and minimize the credit credit applications coming to your house by registering at OptOutPrescreen.com
But paper solicitations are only the beginning. As Internet security expert and author Bruce Schneier warns, "Data about you is not under your control." He points to examples such as May 2005 case involving Bank of America and Wachovia, in which a man posing as collection agent paid bank employees for customer data in New Jersey. The banks notified customers their data may have been compromised and offered to help watch their accounts for suspicious activity. (The man, Orazio Lembo, pleaded guilty in March 2007 and was sentenced to five years in prison and fined $20,000.)
But John Hall, a spokesman for the American Bankers Association, insists that banks have "Pentagon level security." His advice:"Monitor your accounts. Protect your passwords and your computer."
Thursday, April 23, 2009
Bank of America to Begin Opening Customer-Driven Banking Centers.
When I started my life in finance, working as I teller, I often wondered why banks did not operate like investment firms. Where you make an appointment and went into an office to speak to a knowledgeable professional regarding your investment needs. People so often complained of long waits and lack of privacy I don't why Bank of America did not think of this sooner.
As always Bank of America continually delivers new capabilities targeted to the evolving needs of customers. It recently opened a banking center at the EpiCentre restaurant and retail development in Charlotte and soon to be opened banking centers at Bank of America Tower at One Bryant Park this month and 86th & Lexington in August in New York City are examples of this approach. The centers were specially designed as a direct result of listening to and learning from customers about how they want to interact with us.
The banking centers combine the use of technology such as online experience and technology based resources with the personal attention of a banking center associate, "This design allows us to test new concepts to better meet the evolving needs and preferences of our customers," said Ken Jackowitz, Cross Channel Design and Transformation executive. "The layout helps customers quickly navigate to the right area to meet their need, allowing them to work independently or with an associate."
The results from these banking centers will be used to further develop the experience to better meet preferences of customers. "The seamless combination of interactive technology, clear marketing communications and knowledgeable, customer driven associates guide, inspire and add value for customers who choose to casually browse, intentionally shop or purposefully collaborate to achieve financial well being at Bank of America," said Janet LaCasse, retail Program Execution executive.
Some of the elements that are unique to these banking centers include the following:
- Interactive surface computers and Learn PCs allow customers to learn about concepts such as managing their finances, and to explore products as Online Banking and Mobile Banking.
- Bank By Appointment (BBA) helps customers save time by allowing them to save time by allowing them to book an appointment before coming to the banking center. Once there, associates use BBA to place customers in a virtual queue, displayed on monitors throughout the store. By knowing their place in line, customers are free to actively browse while waiting to meet with an associate.
- Videoconferencing expands the banking center team by allowing customers to interact with experts from other areas of the bank not located at the banking center, such as a mortgage loan officer or Customer Solutions specialists.
- Interactive product materials that customers can e-mail home to continue their research and learning.
I think this is a great concept and look forward to seeing these branches make their way throughout the country.
As always Bank of America continually delivers new capabilities targeted to the evolving needs of customers. It recently opened a banking center at the EpiCentre restaurant and retail development in Charlotte and soon to be opened banking centers at Bank of America Tower at One Bryant Park this month and 86th & Lexington in August in New York City are examples of this approach. The centers were specially designed as a direct result of listening to and learning from customers about how they want to interact with us.
The banking centers combine the use of technology such as online experience and technology based resources with the personal attention of a banking center associate, "This design allows us to test new concepts to better meet the evolving needs and preferences of our customers," said Ken Jackowitz, Cross Channel Design and Transformation executive. "The layout helps customers quickly navigate to the right area to meet their need, allowing them to work independently or with an associate."
The results from these banking centers will be used to further develop the experience to better meet preferences of customers. "The seamless combination of interactive technology, clear marketing communications and knowledgeable, customer driven associates guide, inspire and add value for customers who choose to casually browse, intentionally shop or purposefully collaborate to achieve financial well being at Bank of America," said Janet LaCasse, retail Program Execution executive.
Some of the elements that are unique to these banking centers include the following:
- Interactive surface computers and Learn PCs allow customers to learn about concepts such as managing their finances, and to explore products as Online Banking and Mobile Banking.
- Bank By Appointment (BBA) helps customers save time by allowing them to save time by allowing them to book an appointment before coming to the banking center. Once there, associates use BBA to place customers in a virtual queue, displayed on monitors throughout the store. By knowing their place in line, customers are free to actively browse while waiting to meet with an associate.
- Videoconferencing expands the banking center team by allowing customers to interact with experts from other areas of the bank not located at the banking center, such as a mortgage loan officer or Customer Solutions specialists.
- Interactive product materials that customers can e-mail home to continue their research and learning.
I think this is a great concept and look forward to seeing these branches make their way throughout the country.
Monday, April 20, 2009
Bank of America Gives Back To The Shareholders And The Community
As predicted another bank makes a profit for the first quarter of the year. Well ahead of expectations, Bank of America surprised Wall Street on Monday, reporting a whopping $4.2 billion. Passing up Wells Fargo's expected $3 billion. Financial Elite thought this would cause another surge in the market but, Bank of America's, as well as other stocks fell sharply in early morning trading as Bank of America warned of "deteriorating credit quality." Deteriorating credit quality should be a built in expectation as things are improving but, we are not out of the woods yet.
On a continued positive note Bank of America said it earned 44 cents during the quarter. A year ago, the bank reported a profit of $1.21 billion, of 23 cents a share.
Although, Bank of America's profits are not quite giving back to shareholders yet, Bank of America's associates are.
During Global Service Month in April, Bank of America associates will participate in environmental volunteer activities related to Earth Day, an internationally recognized event that promotes the importance of protecting the global environment. Earth Day is an opportunity to reinforce Bank of America's $2o billion, 10 year environmental initiative to address global climate change through lending, investing,, new products and services, operations, as well as philanthropic and volunteer support.
"Bank of America's commitment to strengthen the economic and social well-being of the community stems from the recognition that the success of our business is intrinsically linked with the health of the individuals and families we serve," said Andrew Piepier, Global Community impact executive. "As part of Bank of America's Global Service Month, associates have an opportunity to play an important role in improving neighborhoods through volunteerism aligned with the bank's environmental commitment."
Officially celebrated on April 22, Earth Day activities include raising awareness about climate change, helping to build environmentally sustainable housing, planting trees or flowers, and picking up trash from public spaces. Additional bank wide Global Service Month activities include hunger relief projects through a partnership with feeding America, financial education in conjunction with Teach Children to Save Day, and affordable housing in partnership with Habitat for Humanity.
On a continued positive note Bank of America said it earned 44 cents during the quarter. A year ago, the bank reported a profit of $1.21 billion, of 23 cents a share.
Although, Bank of America's profits are not quite giving back to shareholders yet, Bank of America's associates are.
During Global Service Month in April, Bank of America associates will participate in environmental volunteer activities related to Earth Day, an internationally recognized event that promotes the importance of protecting the global environment. Earth Day is an opportunity to reinforce Bank of America's $2o billion, 10 year environmental initiative to address global climate change through lending, investing,, new products and services, operations, as well as philanthropic and volunteer support.
"Bank of America's commitment to strengthen the economic and social well-being of the community stems from the recognition that the success of our business is intrinsically linked with the health of the individuals and families we serve," said Andrew Piepier, Global Community impact executive. "As part of Bank of America's Global Service Month, associates have an opportunity to play an important role in improving neighborhoods through volunteerism aligned with the bank's environmental commitment."
Officially celebrated on April 22, Earth Day activities include raising awareness about climate change, helping to build environmentally sustainable housing, planting trees or flowers, and picking up trash from public spaces. Additional bank wide Global Service Month activities include hunger relief projects through a partnership with feeding America, financial education in conjunction with Teach Children to Save Day, and affordable housing in partnership with Habitat for Humanity.
Sunday, April 19, 2009
Bank of America Film Recognized For Excellence In Filmmaking
Our haven't had all that good of press last year but, things are beginning to turn around. One good thing I can say is Bank of America is always giving back to the community.
Bank of America's Global Diversity & Inclusion Film, produced in 2008, has been honored in two prestigious film competitions.
The film earned a prestigious 2009 Finalist Certificate from the New York Film Festival in the Industrial Productions-Public Relations category. In a field of 700 entrants--including Fortune 500 corporations, Universal Studios, HBO and Showtime--fewer than 20 were recognized with the award.
The film was also honored with a local Charlotte ADDY Award, receiving silver-level recognition for both audio/visual sales presentation and cinematography. With more than 60,000 entries annually, the ADDY Awards is considered the world's largest and most competitive advertising competition. The American Advertising Federation, a not for profit industry association, conducts the ADDY Awards through its 200 member advertising clubs and15 districts. It is only creative awards program administered by the advertising industry for the industry.
The Global Diversity & Inclusion Film debuted in 2008 as the hallmark of a campaign to raise awareness of the bank's commitment to diversity and inclusion. It documents Bank of America's long history of diversity and inclusion and showcases its work in recruiting diverse talent, doing business with diverse suppliers, charitable giving in diverse communities and providing innovative products and services to customers and clients. Nearly 200 Bank of America associates across the lines of business participated in the production of the film.
For more information about the awards, visit the New York Film Festival Web Site and the American Advertising Federation's Charlotte affiliate Web Site.
Bank of America's Global Diversity & Inclusion Film, produced in 2008, has been honored in two prestigious film competitions.
The film earned a prestigious 2009 Finalist Certificate from the New York Film Festival in the Industrial Productions-Public Relations category. In a field of 700 entrants--including Fortune 500 corporations, Universal Studios, HBO and Showtime--fewer than 20 were recognized with the award.
The film was also honored with a local Charlotte ADDY Award, receiving silver-level recognition for both audio/visual sales presentation and cinematography. With more than 60,000 entries annually, the ADDY Awards is considered the world's largest and most competitive advertising competition. The American Advertising Federation, a not for profit industry association, conducts the ADDY Awards through its 200 member advertising clubs and15 districts. It is only creative awards program administered by the advertising industry for the industry.
The Global Diversity & Inclusion Film debuted in 2008 as the hallmark of a campaign to raise awareness of the bank's commitment to diversity and inclusion. It documents Bank of America's long history of diversity and inclusion and showcases its work in recruiting diverse talent, doing business with diverse suppliers, charitable giving in diverse communities and providing innovative products and services to customers and clients. Nearly 200 Bank of America associates across the lines of business participated in the production of the film.
For more information about the awards, visit the New York Film Festival Web Site and the American Advertising Federation's Charlotte affiliate Web Site.
Tuesday, April 14, 2009
If My Bank Fails Do I Still Have To Pay Back My Credit Card?
Hello? I don't intend to be mean but, yes, you have to pay back your credit card. Even if the credit card company or the bank where you have your credit card or credit cards fails you are still responsible for the debt. This goes for loans too. As we have discussed before there is no easy way out. You have a personal responsibility to pay these debts. You made these charges and you must pay the debt you created.
Keep making your payments like normal. I recommend keeping a copy of the payments you make either by check or electronically, and put it in safe place where you can find it if needed. The new bank or credit card company that picks up your account should begin billing you normally, but you never know. You should keep records of payments for at least six months after your bank is taken over by another bank. Things happen during mergers or transfers of accounts to other banks or credit card companies. If for some reason there is a delay in billing don't think you are off the hook. The bank or credit card company will eventually discover the error and get you caught up. Don't miss payments. This will effect your FICO credit score.
Monday, April 13, 2009
Bank of America Begins Refinancing Under "Making Home Affordable" Plan
Bank of America, which services one out of five mortgages in the United States, announced last week that it has begun processing its first wave of mortgage refinance applications under the U.S. Treasury Department's Making Home Affordable program. The initiative provides new refinance opportunities to homeowners who previously could not qualify.
"Combined with historically low interest rates, this program has generated significant interest from borrowers seeking the benefit of lower mortgage payments," said Barbara Desoer, president of Bank of America Mortgage, Home Equity and insurance services. "We are proud to be one of the first lenders to take loans from application to closing under the treasury's plan, providing the opportunity for more Americans to save money on their monthly mortgage payments and supporting efforts to stabilize the nation's housing market."
The treasury Department's plan allows homeowners with loans owned by Freddie Mae or Freddie Mac, who are current with their mortgage payments and whose first mortgage
does not exceed 105% of the current market value of the property an opportunity to refinance their loan. Eligibility guidelines can be found on the Making Home Affordable Web Site.
In its first wave, Bank of America will be able to serve the majority of eligible homeowners whose mortgages are serviced by Bank of America or Countrywide and who do not have mortgage insurance on their current loans. Additional borrowers will be included as systems become operational.
Eligible homeowners may benefit from refinancing under the plan because of historically low interest rates coupled with guidelines designed to provide increased flexibility:
- Increased loan-to-value
- No mortgage insurance required on loans that did not previously carry mortgage insurance.
- No minimum credit score
"Millions of Americans will potentially benefit from the government's refinance and loan modification programs," said Desoer. "In just one month since announcing this program, nearly 200,000 homeowners have contacted us to determine their eligibility for refinancing. We're pleased to begin offering the program now to the majority of eligible customers and we look forward to expanding the offering to others in the coming weeks."
Bank of America is in the process of implementing the Treasury Department's "Home Affordable Modification" program for Bank of America and Countrywide customers. In the next two weeks, the company expects to begin offering trial modifications under that aspect of the Making home Affordable plan.
Bank of America has extended its voluntary moratorium on foreclosure of loans that may be eligible for the Home Affordable Modification program until April 30, 2009.
On April 27, 2009, the Bank of America and Countrywide mortgage brands will combine to become Bank of America Home Loans.
For more information about refinancing, Bank of America customers can call 1-888-256-7683 and Countrywide customers can call 1-800-593-7798.
"Combined with historically low interest rates, this program has generated significant interest from borrowers seeking the benefit of lower mortgage payments," said Barbara Desoer, president of Bank of America Mortgage, Home Equity and insurance services. "We are proud to be one of the first lenders to take loans from application to closing under the treasury's plan, providing the opportunity for more Americans to save money on their monthly mortgage payments and supporting efforts to stabilize the nation's housing market."
The treasury Department's plan allows homeowners with loans owned by Freddie Mae or Freddie Mac, who are current with their mortgage payments and whose first mortgage
does not exceed 105% of the current market value of the property an opportunity to refinance their loan. Eligibility guidelines can be found on the Making Home Affordable Web Site.
In its first wave, Bank of America will be able to serve the majority of eligible homeowners whose mortgages are serviced by Bank of America or Countrywide and who do not have mortgage insurance on their current loans. Additional borrowers will be included as systems become operational.
Eligible homeowners may benefit from refinancing under the plan because of historically low interest rates coupled with guidelines designed to provide increased flexibility:
- Increased loan-to-value
- No mortgage insurance required on loans that did not previously carry mortgage insurance.
- No minimum credit score
"Millions of Americans will potentially benefit from the government's refinance and loan modification programs," said Desoer. "In just one month since announcing this program, nearly 200,000 homeowners have contacted us to determine their eligibility for refinancing. We're pleased to begin offering the program now to the majority of eligible customers and we look forward to expanding the offering to others in the coming weeks."
Bank of America is in the process of implementing the Treasury Department's "Home Affordable Modification" program for Bank of America and Countrywide customers. In the next two weeks, the company expects to begin offering trial modifications under that aspect of the Making home Affordable plan.
Bank of America has extended its voluntary moratorium on foreclosure of loans that may be eligible for the Home Affordable Modification program until April 30, 2009.
On April 27, 2009, the Bank of America and Countrywide mortgage brands will combine to become Bank of America Home Loans.
For more information about refinancing, Bank of America customers can call 1-888-256-7683 and Countrywide customers can call 1-800-593-7798.
Wednesday, April 8, 2009
If My Bank Fails What Happens To My Credit Card?
The best thing is to make sure you keep your FICO credit score in good standing. If your banks fails another bank will take on yours and other credit card accounts. But keep in ind the new bank does not have to continue to offer you that card. It will look at your account and credit report and decide if you are a good credit risk. Take in into consideration: If your bank failed, probably for being to lenient with their credit standards, than the new bank may possibly be more stringent with their credit standards. The new bank may possibly not want to keep you as a customer. If you are determined to be a credit risk your account will probably be closed. If you have maintained your FICO credit score as you should the new bank may be wanting to sign you up for credit.
Sunday, March 8, 2009
Reverse Mortgage's To Benefit From Loan Limit Increase.
Reverse Mortgage business is expected to benefit from an additional increase to the U.S. Government insured Home Equity Conversion Mortgage (HECM) loan limit signed by by President Barack Obama on February 17 as part of the $787 billion American Recovery and Reinvestment Act. This is the second limit increase to the Federal Housing Administration's HECM product in the last four months.
In 2008 the U.S. Government insured HECM products represented the vast majority of reverse mortgages funded in the United States.
The provision signed by the President and enacted by the U.S. Department of Housing and Urban Development (HUD) raises the HECM loan limit to $625,500 for the remainder of the calendar year 2009. The new limit took effect on February 24. However, HUD will allow any loan with a case number assigned prior to this date to close at either the previous limit ($417,000) or the new limit of $625,500 until April 30.
The previous single, national HECM lending limit of $417,000 was set in October 2008, raising the relatively low, country based loan limits, which topped out at $200,160 for the majority of counties and $362,790 for higher costs areas.
These limit changes enable existing reverse mortgage borrowers with higher home values to refinance and access a greater amount of equity in their homes. In addition, seniors who have not obtained a reverse mortgage now have the opportunity to receive more money than previously allowed. This will be especially helpful to seniors living in high cost housing area, such as California and the northeast.
Statics show that more seniors have already benefited from the October 2008 increase. Revers mortgage loan volume has increased substantially in the last 6 months. Bank of America Reverse Mortgage has experienced a 41 percent increase in new loan closings. Additionally 43 percent of Bank of America reverse mortgage loans closed over the last couple of months had values in excess of $300,000.
In this economic environment, more seniors are considering a reverse mortgage to help them with the costs of retirement. This additional increase will go a long way to help seniors access the funds they need to age in place.
Thursday, March 5, 2009
What If My House Is Worth Less Than I Owe?
"What if my house is worth less than I owe? Well, do have to sell it? Are you not willing to do what it takes to save your home? Maybe get a second job, sell material possessions, rent out a room?
If you have exhausted all your options, there are a lot out there, then push your bank for a short sale.
In the case of a short sale, the bank or lender agrees to take whatever your house sells for in the current market. They will do this even if your mortgage balance is greater than the houses value. Once you give all proceeds from the sale to the lender you mortgage will be considered settled. The difference between the what was owed and the selling price is forgiven.
Lenders do this when they feel the loss in the difference is not as great as the costs incurred from a foreclosure. It is not easy as it sounds to get a short sale approved by your lender, but it doesn't hurt to ask.
The damage to your credit score is no different than if you went through a foreclosure, but it will save you a lot of headaches in the long run.
Wednesday, February 18, 2009
Bank of America Makes $402 Million TARP Dividend Payment
I am not sure if people know this, but the TARP money is repayable.
Bank of America made its first dividend payment to the U.S. government under the Troubled Asset Relief Program on February 17.
The payment totalling $402 million, reflects Bank of America's ongoing commitment to paying back U.S. taxpayers. This payment represents the dividend on the Fixed-Rate Cumulative Perpetual Preferred Stock issued in connection with the $45 billion in government investments that Bank of America received in late 2008 and early 2009.
"It is our intention to pay back these loans as soon as possible," said Bank of America Chairman and Chief Executive Officer Ken Lewis. "In the meantime, we are using these funds to support the U.S. economy by extending credit to individuals ans businesses."
Approximately $223 million of the dividend payment relates to the federal government;s $15 billion investment in Bank of America made under the Capital Purchase Program of the Troubled Asset Relief legislation and an additional $50 million relates to the federal government's $10 billion investment in Bank of America as part of the agreements to acquire Merrill Lynch & Co., Inc. The remaining $129 million stems from the government's $20 billion investment on January 16 to help facilitate the acquisition of Merrill Lynch. Total cash dividend payments to the government in 2009 will reach approximately $2.8 billion.
As previously reported, Bank of America extended more than $115 billion in new credit during the fourth quarter of 2008, of which about $49 billion was in commercial non-real estate; $45 billion was in mortgages, nearly $8 billion was in domestic card and unsecured consumer loans; nearly $7 billion was in commercial real estate; more than $5 billion was in home equity products, and approximately $2 billion was in consumer Dealer Financial Services.
I was so impressed hearing Bank of America was repaying their TARP funds. It reminded me of Russell Crowe in "Cinderella Man" repaying the money he had received when he was on welfare. Consumers should learn a lesson from this and realize that all debt-anything borrowed- is a loan and is meant to be repaid. No matter who you are. Pay your loans people.
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