Mortgages Archives - FREE CONSULTATION

Banks Prepare for Consumers to Stop Paying Off Their Credit Cards

Posted on July 26, 2024by Admin

Big banks, like JPMorgan Chase, Bank of America, Wells Fargo and Citigroup are preparing to face more risk when it comes to their lending practices. With interest rates sitting at a two-decade high and inflation rates rising, these banks have raised their provisions for credit losses from the previous quarter.

These provisions are the money that financial institutions set aside to cover any potential losses from credit risk, including delinquent or bad debt and lending, like commercial real estate (CRE) loans.

JPMorgan built up $3.05 billion in provision for credit losses in the second quarter; Bank of America had $1.5 billion in stores; Citi’s allowance for credit losses totaled $21.8 billion at the quarter’s end, more than tripling its credit reserve built from the prior quarter; and Wells Fargo had provisions of $1.24 billion.

A recent analysis by the New York Fed found that Americans owe a collective $17.7 trillion on consumer loans, student loans and mortgages. Credit card balances totaled $1.02 trillion in the first quarter of the year.

Credit card issuance and, subsequently, delinquency rates are also on the rise.

With rents up more than 30% nationwide (between 2019 and 2023) and grocery costs rising 25% in that same period, renters who did not lock in low rates and are struggling with rental prices that have exceeded wage growth are seeing the most stress in their monthly budget.

A recent survey found that 48% of Americans depend on credit cards to cover essential living expenses. As consumer’s pre-pandemic savings dwindle down, the reliance on credit for necessities, such as gas and groceries, has become the norm for many.

Click here to read more.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Consumer News

What Another Federal Reserve Hike Will Mean for Consumers

Posted on December 20, 2022by Admin

With inflation continuing to cause problems for American consumers, financial analysts worry another Federal Reserve rate increase is on the horizon. No official news has been released regarding whether an increase will happen, but experts anticipate one in the near future. Its effects could prove to be damaging to the nation’s economy, however.

The Federal Reserve has already increased interest rates this year, and the effects have been felt. The cost of existing credit card debt has already gone up by just under $23 billion due to the Federal Reserve’s rate increases so far in 2022. If the Federal Reserve increases rates again before the year ends, existing credit card debt is expected to go up by another $3.2 billion. Additionally, WalletHub projects that consumers will end 2022 with approximately $110 billion more in credit card debt than they started the year 2022 with, which makes a national record.

Bankruptcy Law, Credit, Student Loans, Timothy Kingcade Posts

The Consumer Financial Protection Bureau Handled One Million Complaints in Five Years

Posted on September 30, 2016by Admin

The Consumer Financial Protection Bureau (CFPB) recently published the September 2016 Monthly Complaint report. The report revealed that more than five years after opening its doors, the CFPB has handled more than one million complaints.

“Since opening our doors in 2011, we have handled over one million complaints from consumers about their problems with financial products and services. Not only have we achieved substantial relief for consumers, but hearing directly from consumers is fundamental to our mission. We can better protect all consumers because of what we learn from those who have submitted complaints and shared their experiences with us,” said CFPB Director Richard Cordray.

The CFPB was initially handling complaints regarding credit cards, upon opening its doors in July 2011. However, it later expanded to handle complaints in several other areas of finance, such as: mortgages, bank accounts and services, private student loans, vehicle and other consumers loans, credit reporting, money transfers, debt collection and payday loans.

Debt collection recently surpassed mortgages to become the top complaint the CFPB receives. Out of the one million complaints, the CFPB has received 244,008 mortgage complaints and 264,123 complaints regarding debt collection.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com

Credit, Foreclosures, Timothy Kingcade Posts

Mortgage Rates Fall to Record Low

Posted on August 9, 2016by Admin

The national average 30-year fixed home mortgage rate fell to 3.36 percent last week. The number matches the record low reached in December 2012, according to Bankrate.com. It is down seven points from the last week in July. With a 30-year fixed-rate mortgage of 3.36%, a homeowner would pay approximately $441 per month in principal and interest for every $100,000 borrowed.

Financial experts believe low mortgage rates mean that now is the best time to re-finance. Many homeowners and homebuyers have both benefited from the drop in mortgage rates, according to Bloomberg.com.

The average 15-year fixed-rate mortgage is down four points from the previous week at 2.65%. With shorter-term loans such as 15-years, homebuyers pay more per month but save thousands of dollars in the long run.

If you are considering refinancing your home or purchasing a new home, make sure you get your paperwork in order beforehand. Mortgage lenders have strict requirements on paperwork including copies of proof of income, debts, assets, etc.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

http://www.bankrate.com/financing/mortgages/mortgage-rates-monday-august-1/

http://www.bloomberg.com/news/articles/2016-08-01/u-s-mortgage-rates-fall-to-lowest-on-record-chart

Debt Relief, Foreclosures, Timothy Kingcade Posts

Condo Associations Scam South Florida Consumers

Posted on August 3, 2016by Admin

According to the Miami Herald, condo associations are scamming South Florida consumers and residents with exorbitantly high application fees. The Florida state laws permit condo association to charge people a maximum of $100 per person who are applying to rent or buy a unit. The law also states that married couples should be treated as one person and prohibits charges for dependent children or consumers who are renewing their leases. The fee is nonrefundable and covers costs such as background checks and credit checks. However, recent reports have revealed that associations are charging anywhere from $125 to $625 per person.

Further investigation by the Miami Herald also proved that some associations are tacking on additional charges, sometimes several hundred dollars or more, for “move-in fees” or “pet fees.” In fact, the Herald reported that nearly half of all listings in Miami-Dade County charged application fees that exceeded $100.

In addition to the cap on application fees, the Florida Condominium Act also prohibits associations from charging fees that exceed $100 for transfers such as sales, mortgages, leases, sublets or any other unit transfers.

Click here for more on this story.

Credit, Foreclosures, Timothy Kingcade Posts

8 Ways the Housing Market has changed in 2013

Posted on February 11, 2013by Admin

There have been many changes – both good and bad – to the housing market in the last six months. New issues, rules and opportunities have surfaced that will affect everyone who is selling, buying or staying in their homes in 2013. Below are some of biggest changes industry experts have seen:

1. Home prices are on the rise. The housing market recovery has helped to improve the economy with lower interest rates and an increase in buyer demand. As a result, home prices are on the rise. The national median home price increased 10.1% in November 2012, compared to November 2011. Gains during 2013 are expected to continue at a more modest rate.

2. Interest rates are up. During 2012 interest rates declined, sometimes at record-low rates. This year, interest rates are expected to rise slightly. The Federal Housing Administration (FHA) increased its one-time upfront mortgage insurance premium for minimum down-payment loans and will likely increase those premiums again this year.

3. Inventory is down. At the end of November 2012, inventory of existing homes for sale was down 3.8%, which is a 4.8-month supply at the current sales pace. Listed inventory is down 22.5% from one year ago, when there was a 7.1-month supply. Although, an increase in inventory is often a good sign, prices have not increased enough to enable homeowners to sell and recuperate.

4. New mortgage rule to protect buyers from risky mortgages. The Consumer Financial Protection Bureau (CFPB) announced a new rule to protect borrowers from risky mortgages. The rule is known as the Ability to Repay Rule and will take full-effect in January 2014, however most lenders will put the rule into practice this year.

5. Home-equity loans will make a comeback. Home-equity loan rates were down along with mortgage rates for most of 2012. Now that home prices are stabilizing, experts expect to see lenders competing for home-equity loan business. The average rate on a fixed-rate home-equity loan fell to 6% in January, after being as high as 8.5% during the financial crisis in 2009.

6. A drop in foreclosure sales. Due to the housing market crash, foreclosure sales quickly skyrocketed. After the $25 billion deal made in February of 2012 between 49 states and the five largest banks, lenders are looking for ways to help distressed homeowners stay in their homes. Another reason for the drop in foreclosure sales is due to lenders selling off repossessed homes to investors, rather than individual buyers.

7. Home construction will increase this year. An increase in demand for homes will pave the way for home construction in 2013. Applicants for building permits for new single-family homes were up during most of the fourth quarter of 2012. An increase in hiring by builders and record-low interest rates suggested a modest growth in home construction.

8. A suffering luxury market. Luxury homeowners raced to put their homes on the market in November of last year causing a 51% surge of million-dollar home sales. The surge was an attempt to avoid the capital-gains tax hikes in January that were a part of the fiscal-cliff deal. As a result, experts expect a decrease in luxury-home sales during the first part of 2013.

To read more on this story visit: http://realestate.msn.com/8-ways-the-housing-market-has-changed-for-2013

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.

Credit, Foreclosures, Timothy Kingcade Posts

FHA Announced Hike on New Mortgage Premiums

Posted on February 4, 2013by Admin

The Federal Housing Administration (FHA) announced last week that it will be raising premiums in order to reduce borrowers’ exposure to risky loans. It will raise premiums by 10 basis points or .1% on most of the new mortgages it insures. This means that if a borrower with a 30-year fixed rate mortgage puts 5% or more down, they will now pay an annual insurance premium of 1.3% of their outstanding balance. If a borrower puts less than 5% down, they will pay a premium of 1.35%. The FHA is the largest insurer of low-down payment mortgages. It will also raise premiums on ‘jumbo loans,’ or loans of $625,000 or more. Jumbo loan premiums will be raised by 5 basis points, or .05% and increase the minimum down payment requirement on these loans from 3.5% to 5%.

Another change the FHA is making to its insurance requirements is that buyers will now have to pay insurance premiums for the life of their loan. In 2001 a policy was set in place that allowed borrowers to cancel their premium payments once their debt fell below 78% of the principal balance. Borrowers who put more than 10% down at the time of the purchase will be an exception to this new policy.

Other new policies the FHA has set in place include one requiring that mortgages where the borrower has less than a 620 credit score and a debt-to-income ratio above 43% must be underwritten manually. Lenders will be required to adequately document why they decided to approve these loans. Another policy the FHA will enforce will place new restrictions on reverse mortgages.

Foreclosures, Timothy Kingcade Posts

More than 14 percent of Florida mortgages in foreclosure

Posted on February 24, 2011by Admin

It used to be that signing your mortgage documents was an exhilarating experience. New homebuyers eagerly agreed to the terms of the loan because they knew it was an important step towards becoming homeowners.

Now, most homebuyers (and lenders for that matter) sign those mortgage documents with trepidation. And in Florida, there is a good reason for their hesitation. According to the Mortgage Bankers Association, more than 14 percent of all mortgages in Florida are in foreclosure. That is the highest foreclosure rate in the country.

People who excitedly signed those mortgage papers only a few years ago are now having trouble making the payments. Perhaps they have lost their jobs, or maybe the adjustable rate mortgage became too high to pay. Or perhaps the homebuyers have encountered a different financial challenge as the Great Recession takes its toll on Floridians. Regardless of the reason, “more than 20 percent of all loans in Florida are somewhere past due or somewhere in foreclosure,” according to the vice president of the MBA.

There is another possible explanation for the rise in the percentage of Florida mortgages in foreclosure. The foreclosure process in Miami-Dade County now takes nearly twice as long as it took in 2007. Once a home enters foreclosure, it takes 742 days for the foreclosure to be completed. That means that as new homes enter foreclosure, more homes are still in the process.

For the 14 percent of homeowners in foreclosure and the 5 percent who are more than 90 days behind on mortgage payments, the future may seem bleak. However, they should know that there are legal options, especially before the foreclosure process begins. An experienced foreclosure defense or bankruptcy attorney can explain those options and help individuals make decisions that protect their assets.

Source: Miami Herald, “Florida’s foreclosure rate is nation’s highest,” Toluse Olorunnipa, 17 Feb 2011

Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.