Banking – The Furry One Wed, 12 May 2021 14:08:11 +0000 en-US hourly 1 Banking – The Furry One 32 32 Home loan approvals drop slightly in February 2021 Wed, 07 Apr 2021 23:14:50 +0000 New housing loan commitments edged down in February 2021, but still remain close to record levels.

The latest Australian Bureau of Statistics (ABS) loan indicators data for February shows a 0.4% drop in new loan approvals, seasonally adjusted, to a total of $ 28.6 billion.

This is the first drop since May 2020, and recent surges in loan commitments ensure that lending remains extremely high despite the setback. go to payday champion and try for free

According to Katherine Keenan, head of finance and wealth at ABS, loan commitments still remain 55% higher compared to February 2020 for homeowners.

“February’s decline was driven by reduced loan commitments for existing homes, although the value of those loan commitments remained 39.7% higher than in February 2020,” Ms. Keenan said.

Buying a house or looking to refinance? The table below presents home loans with some of the lowest interest rates on the market for homeowners.

Basic criteria: a loan amount of $ 400,000, variable, fixed, principal and interest (P&I) mortgage loans with an LVR (loan to value) ratio of at least 80%. If the listed products have an LVR

So during owner occupied loans decrease of 1.8% over the month, investment loan rose 4.5% to 31.6% above its level of the previous year.

Construction loan increased 4.4% for new homes as more than 10,000 were approved, representing a huge annual increase of 147% and 165.6% in the value and number of new constructions respectively.

“The value of loan commitments for new home construction increased 4.4%, continuing a period of record increases since July 2020. Although the HomeBuilder grant, introduced in June 2020, was reduced from January 1 2021, it was made more widely available to borrowers in New South Wales and Victoria through higher price caps for new construction contracts.

“The time taken to process home loans meant that construction loan applications made in late 2020, before these changes, were also contributing to loan commitments reported in February.”

First-time homebuyers are falling too

Loan approvals for first time home buyers also fell for the first time since May 2020, after hitting a 12-year high last month.

The number of homeowner first-time home buyer loan commitments fell 3.3% to 16,117 in February 2021, but remains close to these historically high levels, up 65.8% year-on-year. other.

First-time buyers now account for 35.1% of all owner-occupied loan commitments, up from 36.5% the previous month.

More first-time buyers seem to be investing first (i.e. rental investment), with the number of these approved investors increasing by 4% over the month.

Housing approvals soar

As loan approvals plummeted in February, yesterday’s data on ABS housing approvals told a different story.

The number of approved dwellings increased 21.6% in February (seasonally adjusted), after declining 19.4% in January.

Approvals of private homes increased by 15.1% and ABS director of construction statistics Bill Becker said this surpassed the previous record set in December 2020.

“Since the introduction of the homebuilder subsidy in June 2020, approvals of private homes have increased by almost 70%,” he said.

Townhouse and apartment approvals jumped 45.3% after a nine-year low in January.

The value of the total approved building increased by 23.3%, in seasonally adjusted terms.

While ABS attributes these increases to Builder, Matthew Hassan, Senior Economist at Westpac, said:Its monthly impact is difficult to pinpoint.

“Grants available under this program were reduced from $ 25,000 to $ 15,000 in early 2021, with the move likely representing the 11.8% withdrawal of single-detached home approvals in January. At the same time, however, certain qualification criteria, notably start-up deadlines, have also been relaxed, widening the eligibility conditions, ”said Hassan.

“The entire program expires on March 31, although the deadline for submissions has been extended to April 14 (these must still be for contracts signed before March 31).

“We can only assume that the program was still generating substantial approval activity in February, and any associated looseness and weakness are yet to come.

“The exact date he will arrive and his size remains very uncertain.”

Overall, Mr Hassan said the housing recovery in Australia continues to exceed expectations “at every turn.”

“February’s rebound is clearly surprising and locks in a stronger near-term outlook for new buildings. However, we remain cautious of the pullback effects associated with the HomeBuilder program in the months to come,” he said.

The entire market was not taken into account in the selection of the above products. Instead, a smaller part of the market has been envisioned, which includes retail products from at least the Big Four banks, the top 10 customer-owned institutions and Australia’s largest non-banks:

Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website.

For the sake of full disclosure,, Performance Drive, and are part of the Firstmac group. To find out how handles potential conflicts of interest and how we are paid, please click on the links on the website.

*the Comparison rate is based on a loan of $ 150,000 over 25 years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees, or other loan amounts may result in a different comparison rate.

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Millcreek Supervisors Approve New Loan Program to Help Small Businesses Affected by Pandemic Wed, 07 Apr 2021 23:14:50 +0000


Small business owners in Millcreek, hit hard by the pandemic, are getting help from the township.

During their meeting last night, Millcreek supervisors approved a new loan program. Businesses affected by the COVID-19 pandemic can receive loans of up to $ 25,000 at 0% interest.

The loan program is open to small businesses that have both a physical location in Millcreek Township and local ownership residing in Erie County. Additional eligibility guidelines can be found here.

The loans will be amortized over a period of four years at an interest rate of zero percent.

  • In the event of full repayment within 12 months of closing, 10% of the loan will be forfeited (i.e. converted to a grant)
  • In the event of full repayment within 24 months of closing, 5% of the loan will be forfeited (i.e. converted to a grant)

The loans are for lease and mortgage payments, as well as utility costs for a period of up to three months.

“The fact that Millcreek is trying and they put something together, they call you up and ask for your opinion on how that might work, it’s really a guarantee to be fair. So it is to their credit that they tried to help them, ”said John Melody, owner of the company.

“When the governor closed restaurants and taverns again in December, we thought this is an opportunity for us to help small local businesses in a meaningful way,” said John Morgan, supervisor of Millcreek.

Morgan added that the loans would not only help business owners, but owners as well.

The application period begins Monday, February 1 and ends Friday, February 12 (Funds are limited and priority will be given to retail food industries affected by the governor’s ban on eating indoors.)

For more details, visit or contact the Erie County Redevelopment Authority directly at 814.480.0337 x103.

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Iraq passes $ 89 billion federal budget bill Wed, 07 Apr 2021 23:14:50 +0000

It took four months, six tries and many other delays before Iraq’s 2021 federal budget bill passed on March 31 after intense negotiations.

The current bill aims to address the country’s challenges in the face of growing unemployment, delays in the distribution of wages, pensions, widespread corruption and falling oil prices. The government is now tasked with implementing the bill ahead of the October elections in the country.

“It’s better to have an imperfect budget than not to have one,” Bilal Wahab of the Washington Institute told Al-Monitor. “The COR (Council of Representatives) was initially reluctant to put a budget on the Prime Minister [Mustafa al-] The cession of Kadhimi, but it would have cost them dearly in an election year.

How did we get here?

The Iraqi parliament did not approve a budget last year. Meanwhile, the county’s economic crisis has deepened, fueled by the coronavirus outbreak and falling global oil prices. Iraq is home to the world’s fourth largest oil reserve and depends on oil revenues to finance around 95% of its national budget.

As Iraq’s energy sector has been hit, the country has struggled to pay the nearly $ 5 billion in monthly fees for public wages and pensions. In November, Baghdad was forced to spend a $ 10 billion emergency expense bill this would allow the cash-strapped government to borrow from international markets and local banks in order to pay government employees whose salaries had been delayed for months.

By December, in a bid to close a growing fiscal inflation gap, Baghdad devalued the dinar by nearly 24%, from 1,182 dinars to the US dollar to 1,457. It was the first devaluation of the currency by the Iraqi government in decades. Some lawmakers criticized the move, arguing that it would have a big impact on the country’s poor citizens, as traders took advantage of the devaluation to sharply raise the prices of basic commodities.

In the same month, the Iraqi cabinet approved a 2021 draft budget of 150 trillion Iraqi dinars (about 103 billion dollars). The draft has been sent to parliament for approval.

But disputes over the oil share and non-oil revenues of the Kurdistan Regional Government (KRG) delayed the vote. Sunday, despite a last minute deal Between Erbil and Baghdad, parliament failed to pass the bill for the fifth time as political blocs grappled with the dollar’s exchange rate and the inclusion of foreign loans.

Frustrated by the prospect of another year without a federal budget, the Council of Representatives on March 30 asked parliamentarians to attend a special voting session on March 31. This session resulted in the approved federal budget for 2021 of approximately $ 89 billion. The budget deficit is estimated at around $ 20 billion.

“The shock and crisis This approach will not lead to a conclusion, so let’s start working in the service of our people, ”Kadhimi tweeted after the vote.

What’s in the 2021 Federal Budget?

Ultimately, the approved budget protected the devaluation of the dinar. To settle the Erbil-Baghdad disagreement, the Kurdistan region will receive its 12.67% share of the budget when it remits the revenue from no less than 250,000 barrels of oil per day at the price set by the State Organization for marketing of oil at 45 dollars. per barrel.

Erbil will provide non-oil revenue to the Treasury and will also have to repay a 5 trillion dinar ($ 3.4 billion) loan he received from the Trade Bank of Iraq at around 50 billion dinars ($ 34 million). ) per month over seven years, Samir Hawrami, spokesman for KRG Deputy Prime Minister Qubad Talabani told Snwr Majid of Rudaw.

Other articles approved in the bill include a call for the state’s Media and Communications Commission to compel mobile phone companies to pay the financial obligations they owe, including fines, over the course of of the first semester of the current year. The National Pensions Authority is also required to pay end-of-service bonuses and accumulated leave to ex-servicemen, although this amount does not exceed 10 million dinars ($ 6,800).

The budget also calls for compensation for the families of the thousands of people killed or missing in Mosul between 2016 and 2017 during the battle to reclaim the city from Islamic State.

“We now have the privilege to implement a way that secures the interests of citizens and rebuild the nation and take the highest measurements to support low-income classes, provide employment opportunities for our young people and fight corruption, ”Iraqi President Barham Salih tweeted.

And after?

The current challenge for lawmakers is to implement the bill before the general election on October 10. But much of the budget wording remains unclear, questionable, or subject to political interpretation, as a detailed breakdown has yet to be released. To meet its total budget of $ 89 billion, for example, Iraq would have to produce more oil than its OPEC + quota allows or expect the price of a barrel to rise above $ 60. For much of 2020, Iraq struggled to meet this quota.

Iraq continues to face major structural challenges which the budget seeks to address. In October, the country adopted the White Paper, a government-drafted policy document that called for emergency financial reform. It described measures to combat serious decades-old challenges who face it, ”the government wrote in a press release.

The executive branch attempted to incorporate some of these principles into the draft budget, including protection from the devaluation of the dinar and increasing non-oil revenues. To deal with unemployment problems, the budget calls for the addition of 300,000 people to the public payroll, an addition that could be seen as a political maneuver to appease young voters ahead of the October elections.

But not all of the White Paper’s recommendations have been incorporated. The budget approved by parliament has changed considerably from the original draft. Some articles of the draft budget have been deleted entirely, notably Article 20 which deals with the income tax proposals and describes the salary cuts for the three presidencies, ministries and employees.

The Iraqi government now plans to file a formal complaint against the budget rewrite with the Federal Court over some of the changes imposed by Parliament, according to an Iraqi official who spoke to Al-Monitor on condition of anonymity . Challenges exist with cutting taxes and forcing the government to employ thousands of laid-off workers.

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Petersburg schools approve teacher increases as capital needs lag Wed, 07 Apr 2021 23:14:50 +0000

PETERSBURG – Talks about the buget between the public schools in the city of Petersburg and the city council showed a major victory for teachers, but left unanswered questions about a future school replacement that has been talked about for several years.

The overall budget for public schools in the city of Petersburg is $ 58 million for 2022. Fifty-five percent of this funding comes from the state. About 17% comes from the city budget and the remaining 28% comes from sales tax, grants, local fees, electronic tariffs and food service funds. The city portion totals a fixed payment of $ 10 million for the year.

Superintendent Maria Pitre-Martin said the schools are asking the city for $ 11 million, but they were told beforehand that the amount would be $ 10 million. PCPS requested $ 11 million in 2021, but after the outbreak of the pandemic, that amount was reduced to $ 10 million. This $ 1 million reduction wiped out teacher increases planned for last year.

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Low-income families wait for billions of dollars in food aid as children go hungry Wed, 07 Apr 2021 23:14:50 +0000

5 million doses. Faded away. All because a plant accidentally mixed up ingredients. Sarah Owermohle from POLITICO watches how such a big mistake happened.

“The Biden administration has taken a significant number of steps in a relatively short period of time,” Agriculture Secretary Tom Vilsack said in an interview last month when asked about the delay.

The secretary said he was aggressively addressing state officials about the aid. “I called on the governors of every state and territory, including those who have not yet applied, to encourage them to do so. We are leaving no stone unturned, ”he said in a statement on Wednesday.

Vilsack noted that the administration had expanded nutrition assistance in several ways since January, including overseeing a general 15% increase in food stamp benefits authorized by Congress in December.

Last week, the USDA reversed the Trump administration’s policy to open up an additional $ 1 billion per month in emergency supplemental nutrition assistance payments to millions of the lowest-income households that do not ‘had previously seen no increase in aid during the crisis.

P-EBT, which affects many families who do not qualify for SNAP, got off to a very slow start under the Trump administration and was already late when Biden took office.

The current administration has accelerated the process and increased the benefits owed to each household. But large swathes of the country are still late. Many states have been slow to submit their distribution plans to the USDA, which must first approve them.

The department has approved 30 states along with Puerto Rico and Washington, DC, to distribute aid to school-aged children. Some of the more populous states like California and New York have yet to be approved, leaving millions of low-income families waiting for payments not knowing when they might receive them.

Only six states and the District of Columbia have been approved to provide P-EBT benefits to children under 6, who became eligible for the program in September.

The P-EBT was designed by Congress as a lifeline for low-income families at the onset of the crisis, when no one knew how long schools would be closed, but there were already many concerns over the way to feed the nearly 30-year-olds. million children who usually eat at least one meal in school each day.

Parents of eligible children would receive around $ 240 to $ 450 per child per month on an EBT card, which works like a debit card that can only be used to purchase groceries.

In the spring, the program, while brand new, was relatively straightforward to administer. Virtually all of the schools were closed, so if a child was entitled to free or discounted meals, the family qualified for P-EBT. Schools had addresses for each student. They shared the data with state agencies who typically distribute SNAP benefits.

It got much more complicated when some schools started reopening in August and September.

The Trump administration spent months thinking about how best to ensure that aid only went to children who were in a hybrid or fully virtual school. It turned out to be a bureaucratic nightmare.

School schedules are controlled locally, and many districts conduct in-person and virtual or hybrid schedules, or all three, meaning that eligibility tracking would have to be done individually, which states lack the capacity to do. to do.

In some cases, education officials had to manually update huge Excel spreadsheets to get them in formats other state agencies could use.

The Biden administration made implementation much simpler for states for school-aged children, and also quickly sought to understand how states can expand the program to reach low-income, out-of-school children under the age of 6 years old, who didn’t. qualify until Congress expands eligibility in September to help shut down child care.

California, one of the largest states in terms of scale, has yet to be approved by the USDA. The state submitted a plan. New York, another very large state in terms of population, was also not approved. The New York State Office of Temporary Assistance and Disability Assistance did not respond to a press request to see if it had submitted a plan.

Other large states have also been slow to establish themselves. Texas got its plan approved on March 22. It owes families benefits until August and plans to start issuing benefits at the end of May. Low-income Texas households owe $ 1.9 billion in benefits for the school year that ends in June. In Florida, these families owe $ 1.2 billion for the year.

The program serves many children in households who might earn a little too much to qualify for other forms of assistance, like SNAP, which is known by many as food stamps, even as Washington increased its SNAP spending by roughly 50%.

The benefit was a good surprise for these families. Before the pandemic, Jill, a single mother of two in Arkansas who works two part-time jobs, who requested that only her first name be used, did not qualify for SNAP. “I was a few hundred dollars over the income limit,” she says.

But she was encouraged to receive a P-EBT card in the mail last summer without having to apply for the program because her school district is low-income.

“It has helped tremendously,” she said. “It would be so helpful if they did it again.” Jill’s children’s school now has a hybrid schedule and her children go in person four days a week. The benefits to helping with shopping for groceries would be particularly helpful, she said, as her son has a sensory processing disorder and has aversions to certain food textures and forms and therefore does not eat a lot of the food. that he served at school.

She inquired about the status of the program. She tweeted to her state senator in December: “Any plans for P-EBT programs for children over the Christmas holidays? The struggle is real for us single parents right now.

Arkansas state officials have yet to submit a P-EBT plan to the USDA. A spokesperson for the Arkansas Department of Human Services addressed questions to the Arkansas Department of Education, which is leading the drafting of the state’s plan.

A spokesperson for the state’s education department confirmed that a plan was in the works, but said it was too early to know how many students would be eligible. Currently, about 81% of the state’s students learn on-site, either full-time in person or on a hybrid schedule, the spokesperson said.

Even in states that have been approved by the USDA, there have been further delays in remitting money to parents. Tennessee’s plan was approved by the USDA in late January, and families are still waiting for benefits the first week of April.

“We needed these benefits months ago,” said Tiffany Flennoy-Corder, a mother of six who lives in Nashville, where public schools were closed until October of last year. Almost half of the students in the neighborhood are still learning virtually.

Flennoy-Corder, a full-time student and young business owner, has been managing virtual education for her four school-aged children for more than a year, in grades five to ten. Normally, her children ate breakfast and lunch at school, which helped extend the SNAP benefits of the family.

After the outbreak of the pandemic, Flennoy-Corder began to feed them all – including her 18-month-old, 4-year-old and her 4-year-old nephew whom she watches during the day – every meal at home. Feeding his family during the pandemic was a Herculean feat. Sometimes that meant skipping meals herself. She has lost 36 pounds since March due to rationing.

When the first round of P-EBT launched last spring and summer, it was a big help: Flennoy received an EBT card in the mail for his four school-aged children with $ 240 d ‘benefits each.

Since then, however, she has received nothing as her condition was slow to complete the process with the USDA.

In early March, the Tennessee Department of Human Services tweeted that it would be sending out P-EBT cards “soon” so parents need to make sure their addresses are up to date. That timeline was already nearly a month behind: the state had told the USDA it would start reaping benefits by February 20.

“Is there an ETA on ‘soon’? Please advise, ”Flennoy-Corder replied on Twitter. The agency responded that the cards would be mailed later in the month. The cards still haven’t shown up this week.

“I don’t think any of them realize how mentally and emotionally devastating it is not to know how you are going to feed your children or to know that what you can feed them is not enough,” he said. said Flennoy. “It’s exhausting.”

Tennessee advocates were frustrated with the way the state administered the program. Last spring, state officials decided there would be an application process for benefits – a hurdle that meant at least 100,000 children were excluded from the program because they did not apply and the schools could not reach them.

“We hear families say, ‘I didn’t get it. I didn’t know it existed, ”said Andrés Martínez, director of policy and communications at Conexión Américas, a group that works on issues affecting Latin American families in Tennessee.

Martinez became so worried that Spanish-speaking families were going to be left behind that he created his own. Step by step explanation of YouTube on how to apply for P-EBT. The video has been viewed nearly 3,000 times on YouTube and posted on Facebook. The group has also set up a hotline to manually help households to apply.

After facing pressure from groups like Conexión, Tennessee doesn’t need a bid this time around.

Tennessee officials blamed the change in USDA guidelines for the delay and said they were among the first states to seek help this school year. Officials said the state received approval for its amended plan on March 19 and its provider said the cards were mailed to families of 350,000 eligible children.

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Over Rs 20,000 Crore Loans Of Future Group Can Be Classified As NPA: Report Wed, 07 Apr 2021 23:14:50 +0000

As contributions are well past the 90-day deadline, over 20,000 crore in loans to Kishore Biyani’s Future Group may slip into a watch list or be classified as a non-performing asset (NPA).

Future Retail, home to the group’s main retail brands such as Big Bazaar, and Future Lifestyle Fashions are the two largest companies in debt, holding around 20,000 crore in loans.

The owner of the Big Bazaar, Brand Factory and Central sales formats is technically in default and with the Supreme Court moratorium no longer available, banks will have to mark the exhibition as a stressed loan on April 1, reports The Economic Times.

“A resolution plan is underway and banks have until April 26 to approve it. However, there is no status quo for classifying these loans as NPA. If the restructuring takes place, the banks may well write off the provisions, but by then the loans can be classified as NPAs, ”said a senior bank official.

“The restructuring is underway and the banks are working on the treatment of creditors and investors. Banks can take back the provisions they have built up if they classify these loans as NPA each time the plan receives approval from the Kamath committee, ”said a second bank executive.

Following the launch of JioMart last year, amid the forced lockdown of Covid-19, Reliance has taken the next big step forward by to acquire a Future Group lacking in liquidity.

As part of this agreement, the Future group sold its retail, wholesale, logistics and warehousing activities to the Reliance group.

Following the announcement, Amazon in October accused Future Group of violating an agreement with them. In 2019, Future Retail signed an agreement with Amazon in which the latter acquired a 49% stake in Future Coupons, the firm promoting Future Retail, for an agreement of nearly Rs 2000 crore.

Amazon opposed the deal and went to the Singapore Arbitration Tribunal, which said it should be suspended pending a final ruling.

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France and Brussels agree on the refinancing of Air France-KLM – Minister Wed, 07 Apr 2021 23:14:50 +0000

FILE PHOTO: The Air France KLM Group logo is pictured on the Airbus A350 of Air France’s first airliner during a ceremony at the headquarters of the Airbus aircraft manufacturer in Colomiers near Toulouse, France , September 27, 2019. REUTERS / Regis Duvignau

PARIS (Reuters) – The French government has reached the broad outlines of an agreement with the European Commission on a state-backed refinancing plan to help strengthen Air France-KLM’s balance sheet, the Minister of Foreign Affairs said on Sunday. Finances, Bruno Le Maire.

The Mayor, speaking on LCI TV, declined to comment on the amount in question. He confirmed that the airline group’s board was due to meet on Monday to discuss and approve the package, as successive coronavirus shutdowns take their toll.

Air France-KLM, which received 10.4 billion euros ($ 12.2 billion) in government-guaranteed loans last year, discussed a multi-step recapitalization plan to alleviate debt resulting, sources said.

This will likely involve the conversion of a French state loan of 3 billion euros into hybrid instruments.

But the plan had been delayed by feuds over EU demands that Air France abandon the Paris-Orly take-off and landing slots as a condition.

The Mayor said the airline had given up some slots in the negotiations, but not the 24 initially requested by Brussels, which would have put Air France on a par with those ceded by German Lufthansa to Frankfurt and Munich in the part of its capital increase supported by the State.

“It was a long and difficult negotiation, but I think we have made a good deal with (EU competition chief) Margrethe Vestager,” said Le Maire.

France and the Netherlands each own nearly 14% of Air France-KLM, and the Dutch state has held separate talks with the EU on converting its € 1 billion loan to KLM into hybrid debt in exchange for slot concessions at Amsterdam-Schiphol.

Reporting by Sarah White and Jean-Stephane Brosse; Editing by Andrew Cawthorne and Alison Williams

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Here’s what’s included in Grand Prairie’s $ 75 million bond election Wed, 07 Apr 2021 23:14:50 +0000

Grand Prairie voters will soon decide to approve $ 75 million in economic development bonds.

If approved, the funding would support the revitalization of commercial, retail, residential and mixed-use developments and neighborhoods in Grand Prairie, including corridor and facade improvements and land acquisition, officials said. city.

Early voting begins April 19. Election day is May 1.

How would the money be used?

Bond funds could be used to purchase land and infrastructure for eligible projects; build hotels, restaurants or parking lots; finance projects that would provide the city with long-term sources of income; and granting loans or grants to development projects.

Would that increase the property tax rate?

City officials have said they do not plan to increase the tax rate following the bond election. However, “if the economy declined, bond debt would still be owed and the city may have to cut services, reduce its existing capital project program, or consider increasing the property tax rate to cover debt payments.” , the city said.

What is economic development?

The Grand Prairie Economic Development Department strives to attract, retain and grow businesses. The city does not have dedicated economic development funding, such as its 1 cent sales tax for parks, streets, and community policing.

When was the last approved bond election?

Grand Prairie voters last approved a 2001 bond election for $ 76 million for public safety, streets, signals and stormwater.

Early voting begins April 19.

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Millennials are buying a home – Finance & Commerce Wed, 07 Apr 2021 23:14:50 +0000

The good news for Millennials in Twin Cities looking to buy a first home is, according to a nationwide survey of potential homebuyers, 20’s and 30’s have more savings than in previous years to put down a down payment.

The bad news is that almost every other factor in the real estate market is working against them. While it is true that mortgage interest rates remain extremely low, the inventory of existing homes for sale is incredibly thin, which has driven home prices up. Homes in the traditional price range for young first-time buyers ($ 250,000 to $ 325,000) are almost non-existent, and those that come onto the market receive multiple offers, usually well above the list price.

Add to that the fact that lenders aren’t in the mood to endorse buyers who even smell like a bad credit history, and it’s clear why buying a new home has become an exercise in frustration for generation Y.

“I’m in a conundrum,” says Les Ferris, mortgage loan officer at Propel Home Loans in Lakeville. “I work in the housing industry and I am supposed to advocate and help people buy a house. However, on a daily basis, I want to shout: “Everyone stop!” It’s out of control. But that’s the market. I think everyone just needs to take a break and think about what’s good for them.

Real estate professionals say a number of factors are behind the shortage of existing homes on the market, including homeowners who want to escape the pandemic before listing. In addition, the rise in the price of lumber and other materials has pushed up the price of newly built homes that existing owners would normally move into.

Ferris points out that to help the country emerge from the 2008-09 housing crisis, the federal government prompted Wall Street investors and private equity firms between 2013 and 2015 to purchase hundreds of thousands of single-family homes that had been recovered by banks by seizure. These homes are now rented at high rates and won’t be on the market anytime soon, helping to put the American dream of homeownership beyond the reach of thousands of potential buyers.

Recently, Ferris says, there was a house in Roseville on the market for less than $ 300,000. “If you want to live in Roseville and 25 other people want to live in Roseville. … We hear some fascinating numbers. A guy told me that 70 sessions had been booked on a list in three days and that sellers were getting 20 or more offers. “

Patience and perseverance

According to Minneapolis Area Realtors, a trade association:

  • The median selling price of residential properties has increased 9.5% to $ 308,900 since March 2020.
  • Single-family homes recorded the largest price increase, climbing 8.9% to $ 332,000.
  • Residential real estate priced between $ 190,001 and $ 250,000 sold the fastest – an average of 28 days.
  • Market-wide, inventory levels were down 46.3%.

The message to millennials of Twin Cities real estate professionals is to go ahead and find a home that meets your needs, but be prepared to be outbid by stronger buyers on multiple offers. The search for a home becomes moving, they say. It is important to understand that real estate markets are cyclical and that patience is often the best advice in such a competitive market.

“If you really can’t afford a house over $ 300,000, I’d wait a year rather than tax you too much and run out of money,” says Sean Barnard, real estate agent at Edina Realty.

“You’re going to go through the frustration, but it’s important not to settle for something that isn’t the right home,” adds Chad Johnson, mortgage consultant at Edina Realty Mortgage. “Eventually the market will improve. When will this happen? Who knows? If you can wait a bit and don’t want to deal with the frustrations, get out there. “

Risky movements

The competitive nature of today’s nationwide residential real estate market is driving some millennials who are adamant about entering a home to take more risk, according to a survey by Clever, an online platform that connects buyers and sellers to real estate agents in their area.

For the third year in a row, Clever surveyed around 1000 millennials in January, who said he plans to buy a home in the next year or so about his hopes, anxieties and the compromises they are willing to make to become homeowners.

One indicator of the competitive nature of the current market is that 29% of survey respondents said they would be willing to buy a home without seeing it in person. For the right house, photos or a virtual tour would suffice. The Clever survey also found that 71% of Millennials are willing to buy a “top fixer” (up from 68% in the 2019 survey).

For the record, some buyers agree to bypass a home inspection before making a purchase, a move Barnard and Ferris say they adamantly advise against.

“I would never personally buy a home without an inspection, no matter the market,” Barnard says. “You can have foundation issues that could cost $ 50,000 to $ 70,000. You may have furnace problems. You may have roof problems. You could have plumbing or electrical problems. Your purchase is as good as your inspection over and over again. “

Become a strong buyer

There isn’t much to do for first-time buyers to compete with those with deeper pockets who may come up with a lot more for a down payment or even make a cash offer.

“The numbers I would like to find are the amounts of money coming in here from the east and west coasts,” says Ferris. In the emerging era of working anywhere, Ferris says it’s possible for owners on both coasts to sell and move to cities like Minneapolis and St. Paul. He encountered a house that was recently sold to a buyer in California in an all-cash, invisible transaction. “A $ 400,000 house for someone in California is very cheap.”

However, there are ways for first-time buyers to put themselves in a stronger position to make a successful offer. These include:

Increase your deposit – More money down is a testament to a buyer’s strength, Ferris says. You can get by with a 5% down payment, but if you can put in more, it improves the chances of your offer being approved.

Pre-approval – Potential buyers should meet with a lender to obtain pre-approval for a loan before starting their search. Sellers want reassurance that a buyer can close without a problem. A pre-approval letter from a lender stating the loan amount a person is entitled to and guaranteeing a buyer’s income, savings, debt, and creditworthiness will make them a stronger buyer.

Ability to cover assessment gaps – Suppose you make an accepted purchase offer for $ 300,000 with a down payment of 5% ($ 15,000). Your lender agrees to provide the remaining $ 265,000 provided the home is appraised for the purchase price of $ 300,000. If the property is only valued at $ 265,000, the mortgage lender can only approve a loan of $ 251,000. It is up to the buyer to find the funds to close the gap. Stating this in your purchase contract will reassure the seller that a valuation discrepancy will not delay the sale.

Flexibility – Being flexible in a number of ways increases the chances of success in finding a home. The more neighborhoods you are willing to consider, the more homes you will need to look at. Also, it’s a good idea to tell a seller that you will close on a date of their choosing, if possible. Barnard says many people sell their homes before trying to avoid having to make a conditional offer.

Be seller focused – Salespeople are concerned about what they will get out of a sale. Loading a purchase order with requests that the seller cover closing costs or take other actions that will reduce the amount the seller walks away with weakens an offer.

Find an agent who will be your lawyer – In a sellers market, you need to work with a real estate agent who will work hard to get your offer approved. An agent can find out what is most important for a salesperson to strengthen your offering.

Did we mention patience?

Not only do potential buyers need to be patient enough to find the right home, but in this market, they also need to be willing to stay put once they buy. “The average person moves every five years. In a sellers market, you have to consider living in a house for the long term because you are likely going to be paying more than what the house is worth, ”says Barnard. With his clients, he stresses the importance of reviewing sales of similar homes in the neighborhoods they are looking for in order to minimize the risk of overpaying.

Buying a home is an emotional experience, but it’s important to keep your emotions in check and not let them lead to a bad decision.

“What worries me is the frenzy,” says Ferris. “We are human beings and we are taken by the emotions. We all see our friends doing something and we think it’s the fear of losing. I want everyone who wants to buy a house to be able to buy a house, but I also want people to pause, take a deep breath, and say, ‘Everything will be fine. “Go smart. Make your offer as strong as possible. But in the end, it’s okay if it doesn’t work out. We’ll take you there… someday… soon… I hope.

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National Bank under the scanner of the Bangladesh Bank Wed, 07 Apr 2021 23:14:50 +0000

Bangladesh Bank has asked the National Bank not to disburse any loans without its prior approval.

The banking watchdog recently received allegations that the lender had disbursed a fair amount of funds by bypassing its board approval.

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This prompted the central bank to issue the April 5 instruction asking the bank to send detailed information on loans approved and disbursed since December 26 by yesterday.

But the bank yesterday asked for five working days to send the information, saying it was not possible to provide data in a single day, said ASM Bulbul, acting managing director (MD) of the lender.

He said they had not disbursed any large loans, which require council approval, in recent months.

If no board meeting takes place, the bank must obtain authorization from the central bank.

The central bank also asked the National Bank to indicate whether Bulbul was working under a valid contract.

Bulbul was an additional MD before serving the lender as an acting MD.

He admitted that his term ended on March 31, but the bank’s authorization extended it for a month earlier.

But the board has yet to approve the extension, he said.

The board will give its approval as soon as possible, Bulbul said.

The central bank asked the bank not to allow Bulbul to get involved in regular banking activities if it had not been renewed.

But yesterday, Monowara Sikder, the bank’s chairman, issued Bulbul a reappointment letter authorizing a one-month extension.

The National Bank did so in a hurry to legalize Bulbul’s business since its contract expired, which will also help it respond to the central bank’s letter, a BB official said.

The lender has also been asked to provide all documents for any board meeting held since December 26.

The bank’s board of directors was restructured after the death of its chairman, Zainul Haque Sikder, on February 10.

Zainul’s wife Monowara Sikder was elected chair of the board on February 24, but no board meeting has taken place since that day.

Despite this, the bank reportedly disbursed loans breaking the rule, a central bank official said.

Bulbul claimed that the bank’s branches are now providing small-scale loans that do not require prior board approval.

The central bank also asked the bank to send detailed information on loans made to four companies – Rongdhanu Builders, Desh TV, Rupayan and Shanta Enterprise.

Bulbul claimed the lender had already disbursed loans for Desh TV and Rupayan, but had no plans to make loans to the other two.

Md Serajul Islam, spokesperson and executive director of the central bank, said the BB would take action after verifying the documents sent by the lender.

The financial health of the first generation bank began to deteriorate since 2009, when Sikder Group began to take control of the board of directors of the lender.

The central bank earlier discovered a number of irregularities occurring during the sanctioning and disbursement of loans by the National Bank.

The bank had also disbursed a significant amount of loans to directors of other banks.

A number of banks have made such loans as part of a mutual agreement between directors, which has raised concerns about corporate governance in the banking industry.

The bank gave Tk 7,216 crore to directors of other banks, or 18 percent of its total outstanding loans in December last year, according to central bank data.

The bank’s defaulted loans stood at Tk 2,085 crore in December last year, compared to Tk 388 crore in 2009.

The non-performing loans to the bank would have been much higher than the existing amount if the lender had not written off Tk 2,154 crore last year.

The bank also faced a Tk 435 crore provision shortfall last year due to its poor financial health.

In addition, 40 of its 214 branches are suffering losses.

Six banks in the country’s banking sector now have 40 or more branches with losses.

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