12 Stories

Where Most People Don't Go for Mortgages Anymore: Banks

For the first time in 30 years, nonbank lenders break the 50% mark in lending dollars

(Newser) - Remember when you'd go to a bank or credit union to sign mortgage papers? While this may still be the first lending method that enters future homeowners' minds, non-bank lenders issued more than half the mortgage dollars extended to borrowers in the third quarter of 2016—the first time... More »

This Is What Happens When You Apply for a Payday Loan

Pam Fessler got dozens of calls, for months

(Newser) - If you've spent much time on the Internet, surely you've seen an ad for a payday loan service, promising a quick cash advance. Pam Fessler decided to click on one of those ads, and what happened next astounded her. She applied for a $500 loan using mostly fake... More »

Rejected for a Loan? Blame Your Facebook Friends

Some startups using social data to assess loan risk

(Newser) - You're already concerned about your credit score; one day you may also have to be concerned about your Facebook friends—because a few tech startups are using social data when determining whether to loan you money. Lenddo checks out whether your Facebook friends list includes anyone who's ever... More »

Fla. Woman Fights Epic 25-Year Foreclosure Battle

She hasn't paid since '85, vows she's going to die there

(Newser) - A retired Florida woman who hasn't paid her mortgage since 1985 is engaged in one of the longest foreclosure battles ever. Armed with a stack of legal challenges both legit and frivolous and protected by a 105-pound pit bull, the 71-year-old has successfully staved off six lenders in a cautionary... More »

US Could See Record 1M Foreclosures in 2010

Numbers 'unprecedented'

(Newser) - More than 1 million American households are likely to lose the roof over their heads to foreclosure this year, as lenders work their way through a huge backlog of borrowers who have fallen behind on their loans. Nearly 528,000 homes were repossessed by lenders in the first six months... More »

Jobless to Get Mortgage Relief

US will tell lenders to cut or eliminate payments temporarily

(Newser) - The US plans to tell banks to drastically slash or even eliminate the mortgage payments of unemployed borrowers for up to 6 months. The initiative is expected to be unveiled tomorrow as a new tool to help reduce foreclosures, which remain high in part because of the nation's stubborn unemployment... More »

Credit Reform May Drain $9B in Holiday Sales

Consumer protections result in lower limits, less spending

(Newser) - The impending enactment of new credit card law is poised to rob retailers of $9 billion in holiday sales compared to last year. The law, designed to protect consumers from rates being raised on the sly and sneaky fees, already has led to lower credit limits and more rejected applications... More »

Microfinance Bubble Traps Poor in Debt

Predatory lenders offer easy cash with gouging interest rates

(Newser) - Microfinance, loaning tiny sums to the world's poor to help start small businesses, began as an anti-poverty strategy but quickly became highly profitable for private equity firms and foreign investors. In India, writes the Wall Street Journal, poor neighborhoods are being bombarded with high-interest loan opportunities, resulting in a bizarre... More »

CIT Strikes $3B Deal, Averting Bankruptcy

(Newser) - CIT Group Inc. has made a deal for a $3 billion rescue package from bondholders to stay afloat, Reuters reports. The board of the lender, which was facing bankruptcy, struck a tentative agreement tonight. It includes high interest rates and apparently lacks long-term solutions, reports the Wall Street Journal. But... More »

Bankruptcy Looms as Feds Refuse to Bail Out CIT Group

Treasury 'drawing line in sand,' says analyst

(Newser) - The Obama administration has rejected CIT Group's pleas for a bailout, and the troubled commercial lender is likely to file for bankruptcy as early as today, reports the Washington Post. CIT—which has already received $2.3 billion in TARP funds—provides financing to close to a million small- and... More »

Major Small-Business Lender Faces Bankruptcy

(Newser) - One of America's biggest commercial lenders is preparing to file for bankruptcy, the Wall Street Journal reports. CIT Group, which lends to about a million small and medium-sized businesses, probably won't be able to make a $1 billion payment due in August and has hired bankruptcy counsel. In the meantime,... More »

Lenders, Not Zell, May Run Tribune Co.

(Newser) - The bankrupt Tribune Company could emerge from protection with its top creditors—and not chairman Sam Zell—in charge, the Chicago Tribune reports. Zell exerts control based on $90 million he spent to secure the option of buying 40% of the company for $500 million, and a $250 million loan.... More »

12 Stories