“The US housing market continues to represent a ticking time bomb not just for lender balance sheets, but for the entire economy,” warn William C. Wheaton, et al, in an article in the article “Rebalancing the US Housing Market: Two Proposals,” in Real Estate Finance. Why the concern and warning? One reason is the marked increase in both Home Equity Loans and Home Equity Lines of Credit (HELOCs). They increased some 20 percent in 2015 in what USA Today described as a “borrowing binge.” Their numbers are increasing, with even […]
Read More“No credit? Bad credit? Pulse? 100 percent approved! Sign here and drive your new car home today.” What they don’t say is that the people who have no credit or bad credit qualify as “subprime,” that is a FICO score at or below 640, and they stand a 10 percent chance of having the lender take that car back. One of five car loans is made to a subprime borrower, that’s 11.5 percent for new cars and 32.2 percent for used cars. Experian, the credit reporting company, predicts that this […]
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