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Tag: Loans

Half of households which deferred home loans have restarted repayments

Half of all households who cut or temporarily halted their mortgage repayments at the height of the Covid-19 economic crisis are back to making full repayments.

During the national lockdown in March and April, banks agreed to let households whose incomes had reduced to either temporarily stop, or reduce repayments on their home loans, a move that was commonly referred to as taking a repayments ‘holiday’.

At its peak in June around 7 per cent of all home loans were on deferred or reduced payment plans with their banks, according to data from credit reporting bureau Centrix.

But Mark Rowley, Centrix chief operating officer, said that by the end of September, the number of mortgages on deferral had halved from its June peak to 3.5 per cent of all home loans.

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* Bank profits cut nearly in half by Covid-19 economic crisis
* ‘Staggering’ number of households behind

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Richfield’s Economic Development Authority Authorizes Second Round Of Coronavirus Small Business Forgivable Loans

September 30, 2020

Since the outbreak of the COVID-19 pandemic, 1.4 million small businesses have either closed of suspended operations according to a study by Oxxford Information Technology Ltd. It is expected that as many as four million small businesses could be forced to shut down permanently by the end of the year, or about 13 percent of the country’s small businesses.

Richfield’s Economic Development Authority (EDA) is doing everything it can to provide financial assistance to the city’s small businesses as they try and weather the global health crisis. The authority has authorized a second round of small business forgivable loans.

“Businesses of all shapes and sizes are seeing a drastic reduction in income during the COVID-19 pandemic,” explained Richfield Chamber of Commerce Chairman Greg Worthen. “Richfield was one of the first cities in Minnesota willing to help its small businesses through this crisis in the form of a

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Hawaii defense contractor accused of $12.8M in fraud coronavirus PPP loans

A Hawaii defense contractor has been charged with bank fraud and money laundering for stealing more than $12.8 million in Paycheck Protection Program money meant to assist businesses affected by the coronavirus pandemic, federal authorities alleged Wednesday.

Martin Kao, CEO of Martin Defense Group LLC, formerly known as Navatek LLC, transferred more than $2 million into his own personal accounts, a criminal complaint said.

Kao also submitted at least two fraudulent loan applications, authorities said.

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“According to the charges, Kao falsely inflated the number of employees on the loan application and falsely certified that the applicant and its affiliates would not receive, and had not received, another PPP loan,” the U.S. attorney’s office in Hawaii said in a statement.

Congress authorized the Paycheck Protection Program, known as PPP, in March to provide emergency financial assistance to those suffering economic effects of the pandemic through

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Thawing of frozen loans stalls as restrictions bite

The $229 billion of loans on repayment deferrals represents 8.5 per cent of $2.7 trillion in total loans, down from 9 per cent in July and 10 per cent in June.

The mixture of home loans to SME loans is broadly the same, with the value of home loans falling to $160 billion in August from $167 billion in July and deferred SME loans falling to $53 billion from $55 billion over the same period.

Lender level data shows Bank of Queensland remains the big lender with the highest proportion of deferred loans, accounting for 12 per cent of its total book. BoQ has frozen repayments of 11 per cent of its home loan book and 21 per cent of its SME loan book.

Earlier this week the bank announced it was ramping up provisions for bad debts to $175 million after taking into account the worsening impact of the

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Bank of England seeks to increase competition in home loans

LONDON (Reuters) – The Bank of England (BoE) set out proposals on Wednesday to end unfair advantages some banks have in calculating how much capital to hold for mortgages in a bid to increase competition.

Some bigger banks can use their own internal models for determining the risk weightings and therefore capital levels for home loans they have granted.

Typically this has resulted in lower capital levels than under the so-called standardised approach to risk weightings set out by regulators that many smaller lenders have to use.

The BoE’s banks supervision arm, the Prudential Regulation Authority (PRA), said it wanted to reduce risks that stem from “inappropriately” low risk weightings that can be thrown up by in-house models.

“For those firms whose risk weights may increase as a result of these proposals, and where capital requirements are not already determined by other capital measures (e.g. leverage), there would be costs

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Big purchases for your business, should you use credit cards or loans

Personal loans or credit cards, which is a better financial product for making big purchases?

By: Hitesh Khan/

Image credit: Hloom via Flickr

Should you use a personal loan or credit card when making major purchases? Assuming that you have good credit and can qualify to borrow money, here are some things to consider when choosing between the two financial products.

Best interest would determine the financial product you should use for big purchases

The first thing most people look at when borrowing money is the amount of interest being charged. It usually isn’t a problem to find personal loans with fixed rates. Having a fixed interest rate means there won’t be any surprises when you receive your loan statement. You’ll always know exactly how much to set aside each month for your loan payments.

Credit card interest rates sometimes fluctuate. While you may initially be offered a low introductory

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Mnuchin and Powell back jobless aid, small business loans

WASHINGTON (AP) — Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell said Thursday that the government’s top priorities in any new economic relief package should be to provide affordable loans to small businesses and further support for millions of Americans still unemployed.

With the prospects for any new federal aid package appearing dim, members of the Senate Banking Committee pressed both officials to list improvements that could be quickly made in the nearly $3 trillion in support that Congress has passed to fight the pandemic-induced recession that has nearly 11 million people still jobless.

Democrats on the panel urged Mnuchin, one of the administration’s top negotiators, to work harder to persuade Republicans in Congress to raise the amount of money they would be willing to support in a new bill. And Republicans urged Democratic members to consider a lower amount that might clear both the House and Senate

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Mnuchin and Powell back jobless aid and small business loans | WGN Radio 720

Treasury Secretary Steve Mnuchin testifies during the Senate’s Committee on Banking, Housing, and Urban Affairs hearing examining the quarterly CARES Act report to Congress on Capitol Hill, Wednesday, Sept. 24, 2020, in Washington. (Toni L. Sandys/The Washington Post via AP, Pool)

WASHINGTON (AP) — Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell said Thursday that the government’s top priorities in any new economic relief package should be to provide affordable loans to small businesses and further support for millions of Americans still unemployed.

With the prospects for any new federal aid package appearing dim, members of the Senate Banking Committee pressed both officials to list improvements that could be quickly made in the nearly $3 trillion in support that Congress has passed to fight the pandemic-induced

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Renovation loans get pandemic boost as homeowners want home offices

HW+ house roof

Vexed by work-from-home arrangements owing to the COVID-19 pandemic, homeowners are taking the long view and rethinking floor plans. The reality is, home offices are no longer a luxury.

In the initial three weeks of public health lockdowns in March, according to Gallup, the percentage of employed Americans working from home doubled to 62%. Of these workers, three in five said they’d prefer to work from home when restrictions are lifted. Homeowners are serious about dedicating room for work.

There’s a mainstay in mortgage finance poised to help in working from home. The Federal Housing Administration’s 203(k) rehabilitation mortgage insurance program is designed for borrowers to renovate when they purchase or refinance.

For over 40 years with Section 203(k) of the National Housing Act, FHA has been protecting lenders with fully-insured mortgage loans even as renovations are underway. In turn, the program opens access to much-needed renovation capital for borrowers.

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New Jersey Lawyer Issued Almost $9 Million in PPP Loans, Bought House, Invested In Stock Market, DOJ Says

A New Jersey attorney was indicted on Tuesday with multiple counts of bank fraud for allegedly obtaining $9 million in federal Paycheck Protection Program (PPP) loans.



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Jae H. Choi of Bergen County submitted four fraudulent applications for PPP loans to four lenders on behalf of four businesses that were said to provide educational services, according to filed documents and statements made in court. He allegedly lied about the existence of hundreds of employees on the application, manipulated bank records, and falsified a driver’s license—while stating that these companies paid over $3 million in monthly wages.

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In one instance, Choi falsely claimed in an email to a lender that he told 150 of his employees that they would lose their jobs because the PPP loans had not

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