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Goldman Sachs to offer home improvement loans

“Wall Street’s best known investment bank is looking to help you renovate your bathroom” reports foxbusiness.com. Goldman Sachs (GS) will start offering home improvement loans to borrowers this month, its latest push into the world of consumer lending — a business the bank has avoided for much of its nearly 150-year history.The bank has offered debt consolidation loans since late 2016, and for a couple years it’s had an online savings account, both under the brand name Marcus. Goldman executives say they’re aiming at borrowers looking to finance projects larger…

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Do car dealerships discriminate against some races?

“Car dealerships discriminate against nonwhite buyers, according to a new report from the National Fair Housing Alliance, a Washington, D.C.-based nonprofit that advocates against housing discrimination” writes Maria Lamagna for marketwatch.com. The alliance sent 16 “testers” into eight franchised car dealerships in Virginia, between fall 2016 and spring 2017. Source: marketwatch.com Share This:

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Banks to customers: pay 2018 property tax now, settle up escrow later

“A borrower can prepay property taxes directly out of pocket, a move that requires forking over a big sum upfront” writes Rachel Louise Ensign for marketwatch.com. Lenders are struggling to accommodate mortgage borrowers who are rushing to prepay their property taxes before the Republican tax law takes effect.The other option is for a borrower to ask a lender to pay property taxes on their behalf before year-end using the funds already held in escrow.Many homeowners in high-tax states such as New York, Massachusetts and California are scrambling to prepay their…

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800,000 Washington residents owe student-loan money — to the tune of $24B

“Nationally, 43 million student-loan borrowers collectively owe $1.34 trillion, more than they owe in credit-card debt or auto-loan debt” writes Seattle Times Higher-education for seattletimes.com. The average debt held by Washington student-loan borrowers, about $23,000, is lower than the average in many other states.About 800,000 Washington borrowers owe money on student loans, a number that has increased by about 35 percent in the last decade, according to the report by Ferguson’s office.They have increased by more than 35 percent in the last five years in Washington, and hold student-loan debt…

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What 2017 meant for student loan borrowers

“Student debt is the second biggest form of debt in the United States and makes up about 10.6 percent of all consumer debt” writes unknown author for cnbc.com. Currently, 44 million Americans hold a total of over $1.3 trillion in student loan debt.”The student debt in this country is more than all of the auto debt and credit card debt combined,” Congressman Rodney Davis tells CNBC Make It. Since student debt affects so many Americans, here is a look back at five of 2017’s biggest stories about college affordability and…

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These New Yorkers are struggling the most with student debt

“Student debt is typically portrayed as a challenge affecting millennial, often college-educated workers” writes Jillian Berman for marketwatch.com. Student loans can be a useful tool to help students attend college and get ahead in today’s economy.Still, student loan challenges are most severe among low-income borrowers in New York City and at the national level.But a new analysis of student loans in New York City indicates that they can be a particularly acute problem for low-income and older borrowers. Source: marketwatch.com Share This:

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Here’s who defaults on student loans

“The median debt of borrowers who default is $9,625, $8,500 less than the median debt for borrowers who never defaulted” writes Jillian Berman for marketwatch.com. When the student loan system was first developed, the idea was that low-income students would get help paying for college through grants, while middle-income students would take on some loans and wealthy students would pay their way.The analysis notes that it’s possible borrowers who have taken on loans more recently aren’t struggling as much because of the increased popularity of income-driven repayment plans, which allow…

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Survey: Many first-time home buyers lack basic knowledge about mortgages

“Despite the efforts of housing counselors, real estate agents, mortgage lenders and the Consumer Financial Protection Bureau (CFPB), many Americans lack basic knowledge of mortgages and the home-buying process” reports washingtonpost.com. The primary source of information about mortgages, as with most subjects today, is the Internet, with 24 percent of borrowers researching mortgages on various sites.For the complete survey and an array of mortgage calculators and information, click here.While understanding your personal home financing is essential, the survey also asked about whether borrowers know about the role of Fannie Mae…

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Liz Weston: Would a bank payday loan be any safer?

“Payday loans are advertised as a way for people to meet a short-term cash crunch in a hurry” writes The Associated Press for seattletimes.com. The six major banks that offered them — Wells Fargo, U.S. Bank, Fifth Third Bank, Regions Financial, Bank of Oklahoma and Guaranty Bank — phased out the loans in 2014.The CFPB in 2013 warned that the very nature of payday loans and deposit advances often created debt traps. Source: seattletimes.com Share This:

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Which subprime borrowers are riskiest?

“He defined subprime borrowers as those with FICO scores below 620, including the near-prime category of scores from 580 to 619” writes James B for autonews.com. He said that only 10 percent of auto loans in Montana go to subprime borrowers, vs. more than 20 percent in Florida.Loans to subprime borrowers in the U.S. Southeast and Midwest are riskier than similar ones elsewhere, reflecting relative economic softness in those states, Vogan said.Although default rates are rising nationwide on subprime auto loans, Vogan’s analysis shows the trend won’t get worse.Loans to…

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