Obama Announced Student Loan Changes–What it Means for Borrowers

Posted on Jun 16, 2014 in Stated Income Loans

Question by SHANI D: current mortgage question?
Discuss the current mortgage situation in the U.S. and explain why sub-prime lending has created a credit crisis for banks and borrowers alike. What lessons can we learn from this experience to help guide regulators in the future?

Best answer:

Answer by Flattruth
I don’t want to write a whole paragraph on this, cialis 40mg visit this site but here’s summarized choronological of events that lead up to where we are today.

1. Dotcom bust causes recession.
2. FED lowers interest rates to fight recession.
3. Low fed rates filters down to mortgages rates.
4. Banks begin lending with very loose standards (ie no credit check, visit low or no down payment, ARM’s, etc.)
5. Real estate demand picks up because of easy lending and low rates. Building boom to feed demand.
6. Economy out of recession and fear of inflation causes Fed to raise rates.
7. Homeowners with adjustable mortgages rates (ARM’s), or those who misunderstood their financial capability, default because of higher dues.
8. Real estate demand subsides and owners/investors experience values go down causing upside down mortgages, etc.. More defaults and foreclosures occur.
9. Banks become homeowners and can’t sell over-assessed properties with profit.
10. Banks experience big losses. Banks wise up and tighten their lending standards….

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Obama Announced Student Loan Changes–What it Means for Borrowers
The government determines discretionary income by subtracting 150% of the poverty level from an individual's total income, shop explains Mark Kantrowitz, help senior vice president and publisher of Edvisors Network. “The idea is that it accounts for money you …
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Congressman Pushes Income-Based Student Loan Plan
PETRI: No. The loan's still there, but you don't have to pay anything. And there are programs for income-contingent repayments on the books now, but they're very complicated and they're kind of bureaucracy-centered. As a result, very few people take …
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