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Colleges offer to pay tuition for part of grads’ future salary

“Unlike with standard education loans, students with income-share agreements pay back a percentage of their salary for a set period” writes The Associated Press for seattletimes.com. Norwich University said Tuesday that it will become the latest school to offer this type of contract, known as an income-share agreement.MONTPELIER, Vt. — As more students balk at the debt loads they face after graduation, some colleges are offering an alternative: We’ll pay your tuition if you offer us a percentage of your future salary.For some students, income-share agreements are seen as less…

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Senators propose bill to restrict international development loans to Turkey

“Of the development banks cited in the bill, the EBRD invests the most in Turkey, its biggest lending market” writes Midwest Communications Inc for 95kqds.com. The bill, dubbed the Turkey International Financial Institutions Act, directs the U.S. executive of the World Bank and European Bank for Reconstruction and Development (EBRD) to oppose future loans, except for humanitarian purposes, to Turkey, the Senate Committee on Foreign Relations statement said. Source: 95kqds.com Share This:

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AmEx 2Q profits rise, but there are worry spots on lending

“Total loans carried by AmEx customers stood at $75.4 billion last quarter, the company said, up from $67.9 billion a year earlier” writes The Associated Press for seattletimes.com. But it had to set aside more money to cover potential bad loans, and saw its delinquency rate rise noticeably.AmEx said it set aside $806 million, up 38 percent from a year earlier, to cover for potentially bad loans. The company’s worldwide write off rate for loans was 2.1 percent in the quarter, up from 1.8 percent a year earlier. Source: seattletimes.com Share…

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BofA profit beats on consumer loan growth, lower expenses

“In comparison, JPMorgan Chase & Co’s core loans, which exclude consumer credit and loans to the biggest corporations, rose 7 percent” writes Midwest Communications Inc for 95kqds.com. Citigroup Inc’s total loans rose 5 percent.But concerns around an escalating trade war between the United States and China have cast some doubt on future loan growth.BofA’s total loans increased 2 percent in the quarter, with its consumer banking and wealth management businesses both recording growth of about 7 percent.Revenue in the year earlier quarter included a $793 million pretax gain on the…

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Postal banking faces challenges, but is more plausible than you’d think

“Opponents insist that government-to-consumer lending is an unproven, big-government takeover of a mature, well-regulated (but disliked by some) industry” reports washingtonexaminer.com. We don’t think of state and federal agencies as financial services institutions, but that’s exactly what Sen.Additionally, these same governments offer direct loans for mortgages, student aid, rural development, and more.More recently, Native American tribal governments have developed internet-based financial services businesses and used the revenues for social, cultural, and infrastructure projects on the reservation.However, state, federal, and tribal government-to-consumer direct lending is nothing new. Source: washingtonexaminer.com Share This:

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Citigroup earnings buoyed by growing loans

“Citigroup Inc. said Friday its second-quarter profit rose 16%, boosted by growing loans and flat expenses” writes Christina Rexrode for marketwatch.com. Chief Financial Officer John Gerspach said last month that he expected trading revenue to be flat in the second quarter.Second-quarter trading revenue fell about 1% from a year ago, to $3.94 billion.Quarterly profit at the New York-based bank was $4.49 billion, up from $3.87 billion a year earlier. Source: marketwatch.com Share This:

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A decade on, pre-crisis mortgages linger for big banks, homeowners

“Since 2009, Wells Fargo has forgiven $9 billion of mortgage principal, including $6 billion of Pick-a-Pay loans” reports businessinsider.com. Girls walk by a locked and boarded up home in Brentwood, New York Thomson Reuters By Elizabeth Dilts NEW YORK (Reuters) – A decade on big U.S. banks are still running down and selling off crisis-era mortgages, a process executives point to as weighing on loan growth.Wells Fargo spokesman Tom Goyda said that the bank works “hard to help customers avoid foreclosure.”. They started struggling to pay their Wells Fargo Pick-a-Pay…

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Yet Another Way Student Debt Keeps People from Buying Homes

“Then there were his liabilities: credit-card debt, car payments, and student-loan debt” writes Adam Harris for theatlantic.com. But he found something troubling when lenders were calculating his student-loan debt payments: They were saying he owed a lot more than he actually had to pay.The mortgage lenders Habash was going to did not look at that lower monthly payment, and instead calculated monthly payments based on the size of his loan.If a borrower makes regular payments of the agreed-upon amount for 20 to 25 years, based on their specific income-driven repayment…

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U.S. home refinancing requests drop to lowest since 2000: MBA

“The Washington-based industry group said its seasonally adjusted index on homeowners’ requests for refinancing fell 3.8 percent to 958.5 in the week ended July 6” writes Midwest Communications Inc for 95kqds.com. Refinancing’s share of weekly mortgage activity fell to its lowest since August 2008 at 34.8 percent of total applications. The group’s seasonally adjusted barometer on total mortgage applications gained 2.5 percent to 372.6 last week.Thirty-year mortgage rates generally fell in step with longer-dated U.S. bond yields last week, while adjustable-rate loan rates declined with higher shorter-dated bond yields.Meanwhile, the…

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UBS on Goldman: ‘We believe concerns over Marcus are overblown’

“UBS also expects Goldman to see a recovery in its fixed income, currency, and commodities business, which could provide a short-term bump to the stock price” writes Oscar Williams-grut for businessinsider.com. But UBS remains neutral on the stock as “we are still struggling to get more constructive longer term.”.  Source: businessinsider.com Share This:

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