The New York Times editorial got it wrong

August 22nd, 2014 by Admin

An editorial in the Saturday, Aug. 9, issue of The New York Times made unreasonable demands on dealers and automotive lenders while grossly misrepresenting automotive lending.

The Times editorial, titled When a Car Loan Means Bankruptcy, argued that auto dealers, like mortgage lenders, must be made responsible for verifying that borrowers have the ability to repay their loans and meet their other expenses.

How far into household budgets would dealerships have to dig to do that? Would customers share such information? Imagine the added dealership paperwork such a requirement would create.

It would be akin to requiring that realtors guarantee that home buyers can pay the mortgages...

Recent developments in acquisition finance

August 22nd, 2014 by Admin

Several recent legal and regulatory developments in the US will likely alter the makeup of the group of arrangers and financiers willing to arrange and provide financing for certain highly leveraged transactions, and also provide guidance to those considering a loan-to-own or related acquisition strategy, in order to help avoid potential pitfalls.

Revised Leveraged Lending Guidance

Three Federal agencies (Federal Reserve Board, FDIC and OCC) issued updated Leveraged Lending Guidance (Guidance) for the financial institutions they regulate in March 2013, revising their original 2001 guidance. Depending upon how the Guidance will be implemented by these agencies, it could lead to important...

Milne: Let’s get practical

August 22nd, 2014 by Admin

Its fortunate that we have good political culture in Vermont where people by and large work together, he said. Now with the Shumlin administration with super majorities in both houses, one I think a more balanced government would be healthy for everybody and more evidently to me as the last four years have unwound, weve turned into this very progressive state where it seems like almost every week were trying to do something to prove were the most liberal state in the country.

He said the GMO labeling bill, which had some healthy transparency aspects to it, was a confrontational way for Vermont to be the most liberal. Along with trying to be the most progressive state in the Union,...

Testimony: McDonnell failed to list loans before wife was questioned by police

August 22nd, 2014 by Admin

RICHMOND

While trying to refinance a home in January 2013, Gov. Bob McDonnell failed to list three unsecured loans totaling $120,000 he received from a businessman.

Then state police questioned his wife Feb 15 about her relationship with Jonnie Williams and some of the loans, according to court testimony.

Three days later, the governor sent the credit union new paperwork listing all of the loans.

The Pentagon Federal Credit Union paperwork was entered into evidence today in the federal conspiracy and corruption trial of McDonnell and his wife, Maureen.

A defense attorney for the former governor characterized the initial paperwork his client submitted as a draft...

Finance company cutting 170 jobs in Evansville

August 21st, 2014 by Admin

A consumer finance company is planning to close its 170-worker mortgage servicing center in Evansville.

Springleaf Finance, a division of Springleaf Holdings Inc., has told state officials that it will permanently close the center
that#39;s in the company#39;s downtown Evansville headquarters by the end of September.

Springleaf was formerly known as American General Finance and has gone through major changes since the 2008 recession.

The Evansville Courier amp; Press reported that Springleaf in 2012 closed more than...

Dave Ramsey: Chapter 7 vs. Chapter 13

August 21st, 2014 by Admin

Dear Dave,

What’s the difference between a Chapter 7 bankruptcy and Chapter 13 bankruptcy?

Claudia

Dear Claudia,

Chapter 7 bankruptcy is what most people think about when they hear the word “bankruptcy.” It’s total bankruptcy, almost like dropping an atomic bomb on your entire financial picture.

Virtually all of your unsecured debt (except student loans, child support and money owed to the IRS) is wiped out. These things are not bankruptable. About 98 percent of the time, creditors of your other unsecured debt — things like credit cards and alike — get nothing. Items that are secured debt, such as your car or house, are treated...

Vicious cycle of bad credit, inequality

August 21st, 2014 by Admin

The other day, I got to wondering something: What is the effect of automated payments on credit scores? Automated payments, I reasoned, reduce late payments among the people who are basically responsible budgeters but terrible at remembering to mail their bills on time every month. Those people should see their credit scores increase as they rack up fewer late payments to creditors.Alas, the Internet seems to be silent on this point, or at least my Google-Fu was not good enough to discover any research that could shed light on my theory. But I did stumble across an interesting paper put out by RAND Corp. last year on the impact that credit scores have on auto lending.Credit scoring has been...

Fitch Rates QVC’s Proposed Senior Secured Offering ‘BBB-’

August 21st, 2014 by Admin

NEW YORK–(BUSINESS WIRE)–Fitch Ratings has assigned a BBB- rating to QVC Inc.s (QVC) proposed
10.5- and 30-year note offerings. Proceeds are expected to be used to
redeem the remaining $769 million principal amount of 7.5% senior
secured notes due October 2019, which become callable in October 2014 at
103.75. Any excess proceeds are expected to be used for general
corporate purposes, including working capital. Fitch views the
transaction as neutral to the credit profile as it is expected to be
materially leverage neutral. A full ratings list is provided at the end
of this release.

The QVC notes...

Business Live: Tuesday 19 August 2014

August 21st, 2014 by Admin

Regulation of credit brokers and payday lenders should be consistent, Russell Hamblin-Boone, from the Consumer Finance Association (which represents payday lenders), tells Radio 5 live. Payday lenders are due to be regulated from January next year, but brokers have a further year to get their licence, he says. Many people are confused as to whether they are dealing with a broker or a lender.

Perpetuals in Vogue as Malaysia Airports Sells: Islamic Finance

August 20th, 2014 by Admin

Malaysia Airports Holdings Bhd. (MAHB)’s
plan to sell perpetual sukuk highlights rising interest in the
debt from companies looking to shore up their balance sheets.

The manager of all of Malaysia’s 39 airports will hold an
investor presentation for the offer on Aug. 25, two people with
knowledge of the deal said last week. It will be the nation’s
first sale of rated ringgit Islamic bonds with no set maturity
following unrated issues by Malaysian Airline System Bhd. in
2012 and Boustead Holdings Bhd. in June. Boustead, a plantations
company, sold the notes at 6.1 percent, 2.3 percentage points
higher than its two-year non-Islamic...