| Bank executive explains mortgage fallout
REEDSBURG-In the last several months, financial news services have been reporting on the demise of many mortgage lenders that specialized in the "Subprime" mortgage market. As of March 25, no less than 43 of these lenders have gone out of business, leaving their creditors and investors holding millions of dollars of debt and/or securities that may very well end up worthless. Much of the real estate speculative frenzy of the last few years was driven by loans provided by these lenders. Offering "exotic" loan financing, such as the Option ARM, interest only, 40 and 50 year mortgages and a host of other non-traditional loans has become a "fool's paradise," as many borrowers are now learning. The result? It is anticipated that 20 percent of all Subprime mortgages originated in 2005 and 2006 will end up in foreclosure.One of the contributing factors to this implosion has been the unbridled zest for fees and profits by lenders who have little interest in educating the borrower in a way that helps the borrower focus on a loan that they can afford, and ultimately pay back, without experiencing excessive pressure on their household budget.
The end is nigh - now for a new beginning
The 2006/2007 tax year is now over - once the clock hit midnight on Thursday April 5th that was that for another year as far as the taxman was concerned. However while he was clocking off, time also ran out for savers hoping to beat the taxman. The big way to avoid tax for savers and investors is the ISA allowance and the bad news is that if you missed the April 5 deadline you missed out. The good news is that when one door closes another door opens. And the end of one tax year means the start of a new one. Don't get fooled again ISAs sound complicated but they're pretty simple really. The initials stand for Individual Savings Account which is pretty self-explanatory Everyone has a maximum ISA allowance every year of up to £7,000.
Retirement savings account help proposed
State Rep. Marc Corriveau (D-Northville) said he hopes legislation introduced recently will help Michigan residents plan for the future. The plan would provide 401k style retirement plans to employees in small businesses that would not otherwise have such an opportunity, he said. “It's one of the things we're trying to do to help small businesses stay competitive," he said. Under the plan, the state would work with a private investment planner to set up the 401ks. They would be open to all businesses and people who are self-employed. The state would front the money to set it up—only about $560,000, according to Corriveau—and recoup the funds as the plan grows. Employees who take part in it would be able to transfer the account should they take another job in Michigan.
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