Review Mortgage Lenders

American Independent Mortgage

The American Dream? - FULL LENGTH

You are being robbed before your very eyes! Do NOT allow this to happen anymore! 1. The government borrows money from the privately owned Federal ...

Accounting standards shouldn't be left to the accountants

The SEC and FASB are at it again with a plan requiring banks to forecast and book “current expected credit losses” over the life of loans without even a credit for expected interest income. Bank regulators are dutifully moving forward with plans to implement the new accounting standards.

The impact could be very negative for most banks, but particularly those that hold mortgages and other longer-term loans. A typical community bank might have as much as half of its balance sheet in residential mortgage loans. Forecasting and booking losses over the life of a 30-year mortgage is highly speculative at best — and requiring it to be done would probably sound the death knell for long-term mortgages.

Unfortunately, this is not our first experience with the Securities and Exchange Commission and its partner, the Financial Accounting Standards Board, trying force banks out of the business of longer-term lending. Mark-to-market (sometimes called “fair value”) accounting was imposed by them in the 1990s and led directly to at least $500 billion loan write-downs for insured depository institutions in the U.S. during the financial debacle of 2008-2010.

Rural America needs an expanded Farm Credit System

There are now two Americas: a growing, dynamic and prosperous urban America (including suburbs) that votes almost exclusively Democratic, and a shrinking, poor, rural America that votes Republican. This divide carries significant consequences, from increased polarization to the opioid epidemic, and defies traditional economic logic. Unless something is done soon to turn around the economic fortunes of rural America, the political and cultural cleavage between rural and urban areas will become complete, and Americans will consider their fellow citizens in other parts of the country as foreign as, well, foreigners.

As rural America’s economic fortunes declined, so too did the number of banks willing to serve them. In December 2017, The Wall Street Journal reported that of America’s 1,980 rural counties, 625 don’t have a locally owned community bank (twice as many as 1994), and that at least 35 counties have no bank at all, with about 115 served by just one branch.

Postal banking and tax-advantaged “opportunity zones” are two recent policy proposals designed to increase the flow of capital to poor rural and urban communities. While these proposals are well-intentioned, they suffer from several design flaws and do not target the unique needs of rural America. Thankfully, solving the rural-banking problem may be as simple as expanding the authority of an existing network of credit institutions that Congress established over 100 years ago to serve the financing needs of America’s agricultural producers.

How can a poor young American be independent these days?

I mean we got a bad economy and prices are going high. I am a green card holder, has a useless AA degree and works in a store for years. What will I do if I lose my job? The mortgage alone, is not half paid.

What is your AA degree in?? If there are no jobs where you are, why aren't you going to the jobs??

I have an AA in information technology. I couldn't find a job where I was - Pacific Northwest. I went to where the jobs are - East Coast.