LOANS

Loans and cheese mature together in banking program for Italian Parmesan producers

2009-08-22T05:10:00.000-07:00

MILAN (AP) -- All that is golden in bank Credito Emiliano's temperature-controlled vault is not precious metal, but something equally prized in Italy: aging Parmesan cheese.

Row upon row of 39-kilogram (85-pound) wheels of straw-colored Parmesan cheese, stacked some 10 meters (33 feet) high at a secure warehouse, age for as many as two years under the care of bank employees trained in the centuries-old art of Parmesan making.

The program allows Parmesan producers to pump cash into their business by using their product as collateral while it is otherwise sitting on a shelf for the long aging process. While the mechanism was not born out of the current economic crisis, dating rather from Italy's post-World War II years, producers say it is ever more important because it ensures that credit keeps flowing during otherwise tight times.

"In times of crisis, the system is helping the cheesemakers," said Iginio Morini, spokesman for the Parmigiano-Reggiano Cheese Consortium, which represents more than 400 Parmesan producers who are the only ones who may name their cheese "Parmigiano-Reggiano."

A cheesemaker turns over a percentage of his production, say 25 percent, to a bank warehouse, and is given a certificate which can be presented to the bank to secure the loan, Morini said. In many cases, the cheesemaker then sells title to the cheese to a distributor while the cheese is still aging.

"An advance payment, as the one offered from Credem (Credito Emiliano) is a really positive thing because it gives at least the chance of surviving the lapse of time, hoping that the market will recover in a short period of time," said Cristian Bertolini, a quality check expert for the consortium.

Typically, a Parmesan maker who produces 7,000 wheels a year might put up 2,000 as collateral for a loan. According to Morini's calculations, each wheel is worth as much as euro300 ($425), valuing the cheese collateral at euro600,000. The bank would then issue a loan of 60 percent to 70 percent of the value, so around euro420,000.

The Parmesan loan business contributes just 1 percent to the bank's annual revenue -- but is critical to its image in the region, where agriculture is a key economic driver, said William Bizzarri, director of the Credito Emiliano subsidiary that deals in Parmesan deposits.

Bizzarri said Parmesan deposits are up about 10 percent due to the recession. At capacity, the cheesy deposits are worth from euro120 million to euro130 million.

Inside the vaults, the temperature is maintained at between 18-20 degrees Celsius (64-68 degrees Fahrenheit) with humidity above 90 percent. The forms are rotated and cleaned automatically by machines.

Parmesan wheels lend themselves well to use as collateral because they are eminently traceable. Each form is stamped with the month and location where it was produced, and after 12 months of aging it earns the Parmesan imprint, although some varieties are aged for up to 24 and even 30 months.

Those markings helped identify 570 Parmesan wheels stolen six months ago, Bizzarri said.

CDS-Linked Corporate Credit Lines

2009-08-22T05:08:00.000-07:00

CDS-Linked Corporate Credit Lines

Some of Wall Street's latest innovations give reason for pause. Consider a trend in business loans. Lenders typically tie corporate credit lines to short-term interest rates. But now Citi, JPMorgan Chase, and BofA, among others, are linking credit lines both to short-term rates and credit default swaps (CDSs), the volatile and complicated derivatives that are supposed to act as "insurance" by paying off the owners if a company defaults on its debt. JPMorgan, BofA, and Citi declined to comment.

In these new arrangements, when the price of the CDS rises -- generally a sign the market thinks the company's health is deteriorating -- the cost of the loan increases, too. The result: The weaker the company, the higher the interest rates it must pay, which hurts the company further.

The lenders stress that the new products give them extra protection against default. But for companies, the opposite may be true. Managers now must deal with two layers of volatility -- both short-term interest rates and credit default swaps, whose prices can spike for reasons outside their control.

Making matters more difficult for corporate borrowers: high fees. Banks are raising their rates for credit lines across the board -- but the new CDS-based credit lines cost far more than the old lines. FedEx (FDX) could end up paying $1.9 million to $3.6 million a month if it decides to tap a new line from JPMorgan and Bank of America. On its previous line with JPMorgan, FedEx would have paid about $540,000.

Old Banks, New Lending Tricks

2009-08-22T05:01:00.000-07:00

Lenders haven't sworn off risky financial products. They've come up with a slew of new ones

That didn't take long. The economy hasn't yet recovered from the implosion of risky investments that led to the worst recession in decades -- and already some of the world's biggest banks are peddling a new generation of dicey products to corporations, consumers, and investors.

In recent months such big banks as Bank of America (BAC), Citigroup (C), and JPMorgan Chase (JPM) have rolled out newfangled corporate credit lines tied to complicated and volatile derivatives. Others, including Wells Fargo (WFC) and Fifth Third (FITB), are offering payday-loan programs aimed at cash-strapped consumers. Still others are marketing new, potentially risky "structured notes" to small investors.

There's no indication that the loans and instruments are doomed to fail. If the economy keeps moving toward recovery, as many measures suggest, then the new products might well work out for buyers and sellers alike.

But it's another scenario that worries regulators, lawmakers, and consumer advocates: that banks once again are making dangerous loans to borrowers who can't repay them and selling toxic investments to investors who don't understand the risks -- all of which could cause blowups in the banking sector and weigh on the economy.

Auto Loans For People With Bad Credit Helped Me Get The Car I Needed

2009-07-19T08:30:00.000-07:00

I got divorced last year and my finances were in complete shambles. My ex ended up moving out of state and took our new car with her, leaving me with the used one that had no payments. Unfortunately, my ex stopped paying for the new car and it turned my good credit into bad credit in just a few months. I was scared to try to apply for auto loans last month when my old car broke down and it was going to cost me more to fix it than it would have been to buy another.

Even with my bad credit I was able to get several different types of financing, although I had to apply for bad credit auto loans. I did not realize how many kinds of loan options and programs are available to people with bad credit. Surprisingly enough, it is usually easier to get auto loans to purchase a car than it is to lease a car.

With car sales down from last year, many people with poor credit will find it easier to get auto loans. The best thing about car sales being down is that most car manufacturers are offering fabulous rebates on new cars, making it even easier to get auto loans.

I used my rebate as a down payment because I had very little money I could afford to put down for a new car. If you are not shopping for a specific car you can find several new cars with huge rebates, making it easier to get auto loans when you do not have a couple of thousand dollars to put down.

Even with my poor credit I am still only paying a few percentage points more than I would if I had good credit. You need to have great credit to qualify for zero percent auto loans and most of these types of loans have short terms as well

auto loans

2009-07-19T08:07:00.000-07:00

My credit is perfect, so when it was time to get a new car I was able to qualify for any of the available auto loans on the market. I do a lot of research before I make a big ticket purchase and when I started to shop, I already knew all of the types of financing available to me.

When I started to shop around I was shocked to find out that in some cases new cars are a better deal than used cars, mostly due to all of the rebates and incentives that car manufacturers are offering. Just about every shipping port in the world is full of new cars right now. With car sales down most manufacturers are giving away rebates to anyone wanting to buy a new car.

I could not have picked a better time to start shopping for a new car. Not only are car dealerships desperate to improve sales, but interest rates are so low that auto loans for people with bad credit even have low interest rates.

Mortgageloans

2009-07-19T07:55:00.000-07:00

123-refinance-mortgage.com offers a convenient way to compare and shop for a loan in a secure, pressure-free environment. You don't have to leave home, spend hours on the phone or jump through hoops to get the best rates, because we do all the legwork for you. We will make it all happen for you.

With 123-refinance-mortgage.com, you'll save time and money. Our participating lenders offer the best rates around, which can add up to substantial savings over the life of your loan. What's more, 123-refinance-mortgage.com is easy to use, and it costs nothing to apply. Our online questionnaire takes a few minutes to complete and, based on what you tell us, we'll search our database of over 800 lenders to find a loan that matches your needs. Within just 24 hours, you'll receive an offer.

Get cash by refinance mortgage

Let the cash be all your for the equity in your home by a refinance mortgage loan. Equity is the value of the house that has already been paid for. It includes your down payment and all the monthly payments you have been making. Once you have built up a substantial investment in your home, you can use that to get a refinance mortgage loan, which will give you cash on your equity.

Refinance is Safe

Standard 30 year fixed rate refinance home loans are a safe bet, however, if your goal is to keep your home for a long period of time, then you may want to reconsider a loan with a 15 year fixed rate. The loan payments may be higher, but the principal reduction is greatly accelerated and resultantly there will be a dramatic reduction in the interest paid over the term of the loan.

Rely on us for 100% secured efforts in refinance mortgage

A refinance mortgage loan is like most of the other loans and has the same monthly payoff schedule which includes the principal payment and the interest payment for the month.

Things to know
A refinance mortgage loan is a safer bet for lenders as a property means that they will have a confirmed means of regaining their debt even if lenders are unable to continue monthly payments. It is a riskier loan to borrowers than any other loan as your house is the collateral for the loan and if worse comes to worse you could end up losing your home.

Purina Credit Union

2009-07-16T23:09:00.000-07:00

PCU gives you the means to achieve
your financial goals . . .

No matter what your plans, they always seem to require money.
Buying a new car, truck or van, improving your home or buying a new one, sending a loved one off to college . . . regardless of your needs, your credit union has a loan program that fits.

Credit Union Loans offer you competitive rates, easy application and quick access to funds. Check with your Credit Union Loan Officer for a lending solution customized to fit your needs and budget. Call (314) 982-4555 or (877) DIAL PCU, (877-342-5728). After hours and wish to apply for a loan? No problem! Just call PCU Loans-24 toll free at (866) 723-8396.

Real Estate Loans

Your Credit Union Membership begins with your share savings account. It is the perfect place to save for any purpose because the more you save, the more you earn. By opening it and maintaining a balance of $25 or more, you become a Member/Owner and are eligible for all Credit Union products and services.
Mortgage Loans
Your Credit Union offers timely approvals and competitive rates that can save you money.

* simple pre-qualification and fast approval processes
* choice of fixed rate terms of 15, 20, and 30 years
* wide assortment of adjustable rate loans

Home and Property Disaster Loans

2009-07-16T23:02:00.000-07:00

Program Description
The U.S. Small Business Administration (SBA) is responsible for providing affordable, timely and accessible financial assistance to homeowners and renters located in a declared disaster area. Financial assistance is available in the form of low-interest, long-term loans for losses that are not fully covered by insurance or other recoveries.
SBA’s disaster loans are the primary form of federal assistance for the repair and rebuilding of non-farm, private sector disaster losses. The disaster loan program is the only form of SBA assistance not limited to small businesses.
Homeowners can apply for a real property loan for up to $200,000 to repair or replace their primary residence to its pre-disaster condition. The loan may not be used to upgrade the home or make additions to it. If, however, building codes require structural improvements to repair the disaster damage, the loan may be used to meet these requirements. Loans may be increased by as much as 20 percent of the verified losses (not to exceed $200,000) to protect the damaged real property from possible future disasters of the same kind.
Homeowners or renters can apply for a personal property loan for up to $40,000 to help repair or replace personal property, such as clothing, furniture, automobiles, etc., lost in the disaster. As a rule of thumb, personal property is anything that is not considered real estate or a part of the actual structure. This loan may not be used to replace extraordinarily expensive or irreplaceable items, such as antiques, collections, pleasure boats, recreational vehicles, fur coats, etc.
General Program Requirements
To be eligible for SBA assistance, homeowners and renters must have sustained physical damage and be located in a disaster declared county.
Loan Terms
Disaster victims must repay SBA disaster loans. SBA can only approve loans to applicants with a reasonable ability to repay the loan and other obligations from earnings. The terms of each loan are established in accordance with each borrower’s ability to repay. The law gives SBA several powerful tools to make disaster loans affordable: low fixed interest rates, long-terms (up to 30 years), and refinancing of prior real estate liens (in some cases). As required by law, the interest rate for each loan is based on SBA’s determination of whether an applicant has the ability to borrow or use their own resources to overcome the disaster.
The SBA can provide up to $200,000 to homeowners to repair or replace their primary residence. Homeowners and renters are eligible for up to $40,000 to help repair or replace personal property. There are no upfront fees or early payment penalties charged by SBA.

Mortgage Library: Types of Mortgage Loans

2009-07-16T22:59:00.000-07:00

All mortgage plans can be divided into categories in two different ways. Firstly, conventional and government loans. Secondly, all the various mortgage programs may be classified as fixed rate loans, adjustable rate loans and their combinations.
Conventional and Government Loans
Any mortgage loan other than an FHA, VA or an RHS loan is conventional one.
FHA Loans
The Federal Housing Administration (FHA), which is part of the U.S. Dept. of Housing and Urban Development (HUD), administers various mortgage loan programs. FHA loans have lower down payment requirements and are easier to qualify than conventional loans. FHA loans cannot exceed the statutory limit. Go to FHA Programs page to get more information.
If you are looking for an FHA home loan right now, please feel free to request personalized rate quotes from HUD-approved mortgage lenders via our website.
VA loans
VA loans are guaranteed by U.S. Dept. of Veterans Affairs. The guaranty allows veterans and service persons to obtain home loans with favorable loan terms, usually without a down payment. In addition, it is easier to qualify for a VA loan than a conventional loan. Lenders generally limit the maximum VA loan to $203,000. The U.S. Department of Veterans Affairs does not make loans, it guarantees loans made by lenders. VA determines your eligibility and, if you are qualified, VA will issue you a certificate of eligibility to be used in applying for a VA loan.
VA-guaranteed loans are obtained by making application to private lending institutions. If you are interesting in obtaining a VA-guaranteed loan you can try our VA loan request form.
Please see also pamphlets published by VA.
RHS Loan Programs
The Rural Housing Service (RHS) of the U.S. Dept. of Agriculture guarantees loans for rural residents with minimal closing costs and no downpayment. Visit our page RHS programs for details.
Ginnie Mae which is part of HUD guarantees securities backed by pools of mortgage loans insured by these three federal agencies - FHA, or VA, or RHS. Securities are sold through financial institutions that trade government securities.
State and Local Housing Programs
Many states, counties and cities provide low to moderate housing finance programs, down payment assistance programs, or programs tailored specifically for a first time buyer. These programs are typically more lenient on the qualification guidelines and often designed with lower upfront fees. Also, there are often loan assistance programs offered at the local or state level such as MCC (Mortgage Credit Certificate) which allows you a tax credit for part of your interest payment. Most of these programs are fixed rate mortgages and have interest rates lower than the current market.
Conforming Loans
Conventional loans may be conforming and non-conforming. Conforming loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac. These two stockholder-owned corporations purchase mortgage loans complying with the guidelines from mortgage lending institutions, packages the mortgages into securities and sell the securities to investors. By doing so, Fannie Mae and Freddie Mac, like Ginnie Mae, provide a continuous flow of affordable funds for home financing that results in the availability of mortgage credit for Americans.
Fannie Mae and Freddie Mac guidelines establish the maximum loan amount, borrower credit and income requirements, down payment, and suitable properties. Fannie Mae and Freddie Mac announces new loan limits every year.

About Loans

2009-07-16T22:58:00.000-07:00

Find out how loans can help cover your educational costs.
Facts about loans:

* Loans are self-help aid funds that you must repay with interest under varying terms and conditions.
* Borrowing is a serious responsibility and can affect your future credit rating.
o Learn about repaying your student loan.
o Stay in close touch with your lender.
o Always make your loan payments on time.
o Carefully determine how much educational debt you can reasonably afford (this online student loan advisor can help).
o See important loan consolidation information for graduating borrowers.
* Before you borrow, pursue outside agency scholarships.
* You may be eligible for 3 types of loans:
o Federal and university need-based loans (in most cases, the federal government pays the interest on your loan if you meet certain requirements; read more about need)
o Federal non-need-based loans (you pay interest on your loan)
o Alternative loans (offered by private non-government lenders)
* You're required to sign promissory notes and may also need to attend loan counseling sessions before you can receive approved loan money.
* Make sure you're eligible to receive loans (or any other types of financial aid): Review eligibility requirements for undergraduates or graduate students.

To apply for loans:

* For all federal and university loans, file your Free Application for Federal Student Aid (FAFSA) each year by March 2.
* Submit any additional documents requested by the Financial Aid Office before the May 1 deadline.
* Follow any additional instructions for specific loan types:
o Federal loans for undergraduates and parents
o Federal loans for graduate/ professional school students
o University loans for undergraduates
o Private loans

AIDS Research Loan Repayment Program

2009-07-16T22:51:00.000-07:00

rogram Description
The AIDS Research Loan Repayment Program helps to assure an adequate supply of trained researchers with respect to AIDS at the National Institutes of Health by providing for the repayment of educational loans for participants who contractually agree to engage in AIDS research as employees of the NIH. Recipients must agree by written contract to engage in AIDS research, initially, for a minimum of 2 years. Continuation contracts are available, dependent upon level of debt and continued involvement in AIDS research, and are issued for one-year periods. Maximum program benefit is $35,000 per year in loan repayments and $13,650 per year in Federal tax reimbursements. Recipients must have qualified educational debt equal to or in excess of 20 percent of their annual NIH salary.

General Program Requirements
In order to qualify for this benefit program, you must be a US national, citizen or permanent resident qualified/certified/licensed for laboratory or clinical research, who is or was a health care professional, has student loan debt, and either completed doctoral level education or is in pursuit of a nursing degree.

Stafford loan aggregate limits

2009-07-09T11:12:00.001-07:00

Stafford loan aggregate limits
Students who borrow money for education through Stafford loans cannot exceed certain aggregate limits for subsidized and unsubsidized loans. For undergraduate students, these amounts are $23,000 in subsidized and $34,500 in unsubsidized loans.[1] Once a student has borrowed the maximum amount s/he is eligible for (based on grade level, such as undergraduate, graduate/professional, etc.), in subsidized loans, the student has the option to take out a loan in an additional amount less than or equal to the amount s/he would have been eligible for in subsidized loans. Once both the subsidized and unsubsidized aggregate limits have been met for both subsidized and unsubsidized loans, the student is unable to borrow additional Stafford loans until a portion of the borrowed funds has been paid back to the respective lender(s). Once the student has paid back some of these amounts, s/he will regain eligibility up to the aggregate limits as before.

Federal student loans to parents

2009-07-09T11:11:00.001-07:00

Federal student loans to parents

Usually these are PLUS loans (formerly standing for "Parent Loan for Undergraduate Students"). Unlike loans made to students, parents can borrow much more — usually enough to cover any gap in the cost of education. However, there is no grace period: Payments start immediately.

Parents should be aware that THEY are responsible for repayment on these loans, not the student. This is not a 'cosigner' loan with the student having equal accountability. The parents have signed the master promissory note to pay and, if they do not do so, it is their credit rating that suffers. Also, parents are advised to consider "year 4" payments, rather than "year 1" payments. What sounds like a "manageable" debt load of $200 a month in freshman year can mushroom to a much more daunting $800 a month by the time four years have been funded through loans. The combination of immediate repayment and the ability to borrow substantial sums can be expensive.

Private student loans

2009-07-09T11:10:00.000-07:00

Private student loans
Private student loans

These are loans that are not guaranteed by a government agency and are made to students by banks or finance companies. Advocates of private student loans suggest that they combine the best elements of the different government loans into one: They generally offer higher loan limits than federal student loans, ensuring the student is not left with a budget gap. But unlike federal parent loans, they generally offer a grace period with no payments due until after graduation (this grace period ranges as high as 12 months after graduation, though most private lenders offer six months). However, some higher education advocates are private loan detractors because of the higher interest rates, multiple fees, and lack of borrower protections private loans carry that are not associated with federal loans

LOANS

2009-07-09T11:04:00.000-07:00

LOANS
In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments; in an annuity, each installment is the same amount. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent.

Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding.