This was one critic’s
response to the recent announcement by the U.S. Department of Justice that it
is about to ink a settlement with Bank of America regarding allegations that
the bank misrepresented the quality of the mortgage-backed securities it sold
to investors. At a staggering $16.7 billion, this is the largest settlement ever
paid in U.S. history by a company to U.S. regulators. But this has raised the
pending question among critics as to why executives of the bank are not being
held accountable, and further, that these individuals should be facing criminal
charges. Dennis Kelleher, president of the nonprofit ‘Better Markets,’ was
quoted as saying, “We do not know the name of a
single individual involved and not a single individual is held accountable.
Banks don't commit crimes, bankers do."
critics say that only $5 billion of the settlement amount that B of A is set to
pay is NOT tax deductible. In other words, B of A is just going to write off
the settlement and move on. It’s no surprise then that the response of investors
to the pending settlement was that the bank’s stock rose 4.1% last week.
Posted by Corey Curwick Dutton
Â Â Â Â Â JPMorgan and Bank of America are finally being punished by
U.S. regulators for alleged mortgage abuses leading up to the financial crisis.
JPMorgan has agreed to pay $13 Billion Dollars to various agencies and Bank of
America is in line to pay an even higher sum. This is the highest single fine
imposed on a Company EVER by U.S. authorities. There is also open the
possibility of criminal prosecution for said mortgage abuses by both banks.
This is essentially an admission of guilt, which leaves both banks open to even
a civil investigation.Â
Â Â Â Â Â Â Â Â Â Â Â The
U.S. Justice Dept. went after Bank of America last year claiming the lender and
its Countrywide business unit processed thousands of defective mortgage loans
and subsequently sold them to Fannie and Freddie.
The U.S. mortgage and housing regulator, the FHFA is suing
both of these banks in order to recover losses on approximately $200 Billion in
mortgage-backed securities. Bank of America created more than a quarter of
those bonds, the most of any bank, followed by JPMorgan with $33 Billion.
Â Â Â Â Â Â Â Â Â Â Â For
me and many others, this is good news. Both of these banks put their money into
investments that they later bet would fail. This also sets an example that
causing a global financial crisis will not go unpunished. The manner in which B
of A was bailed out and then paid the government back with interest made them
appear squeaky clean. This is NOT a good example and Iâ€™m personally glad to see
these two banks receive the largest fine ever imposed on a company by U.S.
authorities. Burn baby burn!
real estate investors have been acquiring investment properties using
commercial hard money. Commercial hard money has always been a tool of
successful real estate investors to get more real estate opportunities. But
what are the requirements of a commercial hard money loan versus a traditional
bank loan? A hard money lender has less stringent requirements than a bank
lender. Private lenders are more interested in the property characteristics.
They also arenâ€™t concerned if the property needs work or is vacant. Banks
typically wonâ€™t lend on vacant, distressed properties.
you or your clients have questions about Hard Money and how to use it we have
many blog posts on our ActiveRain blog on this topic. Have a great week!
get more specific answers to your questions on our hard money 101 blog here: http://privatemoneyutah.com/hard-money-101/
As retired investors seek
to diversify their retirement portfolios, the returns earned in private money
lending are very enticing. Private money lending is called, â€˜trust deed
investing,â€™ and under this investment model, investors rely heavily on the
expertise of seasoned real estate investors who identify good deals. Investors
who are doing private money lending are making loans to these seasoned real
estate investors on real estate with income-producing potential or an upside on
value. Because these loans are made at a lower loan to value on already
discounted real estate, private money lenders find themselves in a lower risk
asset as compared with other investment opportunities.
In California, more and
more investors are enticed by the returns offered by private money lending.
These returns range from 9% to 12% annually. Because banks arenâ€™t readily
lending on investment properties, real estate investors are depending on
private money lenders to finance their deals more and more.Â Although most can qualify for a bank
loan, there are usually time constraints on a good real estate deal. Because
private money lending is much faster than bank lending to fund on a deal, even
those who can qualify at the bank are seeking out private money lenders to
finance their deals. For private money lenders that work with a seasoned and
professional broker to manage all of their transactions, returns between 9% to
12% annually seem as effortless as putting your money into the stock market.
However, rather than just â€œletting it rideâ€ in the stock market, private money
lenders are parking their cash into hard assets. And in a rising tide of
values, real estate at the right price is a relatively safe place to park that
For more information on
trust deed investing, click here: http://privatemoneyutah.com/contact-2/
According to results
populated by its databases, Zillow identified the top 5 buyerâ€™s markets in the
U.S. The definition that Zillow gave for a â€œbuyerâ€™s marketâ€ is a market in
which buyers are in a position of â€œpowerâ€ as compared to sellers. Well, duh. In
a buyerâ€™s market, homes sit on the market longer with more frequent price
reductions and usually sell for less than the originally list price.
Here were the top 5
buyerâ€™s markets in the U.S.A., according to Zillowâ€™s results:
1.Â Â Â Â
1.Â Â Â Â
2.Â Â Â Â
3.Â Â Â Â
4.Â Â Â Â
New York, NY
I was surprised that New
Jersey was not on this list, given that it had the highest percentage increase
in foreclosure starts over last yearâ€™s numbers. But consider the source.
Zillow. Enough said.
For more information on
our real estate loans for investment properties, click here: http://privatemoneyutah.com/loan-programs/
Most Expensive U.S. Cities to Buy a
What are the
most expensive U.S. Cities to buy a home? You may be fooled by the answer.
Close your eyes real quick and ask yourself, â€˜What are the most expensive
cities in the U.S.A to live?â€™
This list is based on the highest price per
square foot for homes. Iâ€™m sure you may guess several of them but will you
guess all? Here are the top 5:
1. San Fran
3. Washington D.C.
4. San Jose, CA
5. Jersey City, NJ
I was surprised to see New York, NY was No. 7 on a list of ten.
For real estate investors doing flips or
rentals, this is a tough market to be involved in. Larger size deals are always
riskier because more capital is on the line. In whatever City youâ€™re buying and
selling real estate, we are faster than your bank and can fund real estate
loans quickly. Bookmark our website in your browser at: http://privatemoneyutah.com/loan-programs/
Source of List of Most Expensive Cities to
Experts believe that 2013
will lead to tighter times in bank lending for Â investment properties and commercial properties. Banks will
be more conservative in the coming year due to preparations for compliance with
new banking standards imposed by the Basel III. Not only will banks be wary of
renewing debt this year, but they will be extremely picky about issuing new
debt, particularly on commercial real estate.
Concerned that 2013 will
lead to tighter times in lending? You will certainly want to get a head start
on your financing needs in 2013. Start by submitting a short form on our
website today: http://privatemoneyutah.com/loan-request-form/
and get a head start on real estate financing for 2013.