Borrowing – Atos Victims Group http://atosvictimsgroup.co.uk/ Fri, 28 May 2021 21:59:38 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://atosvictimsgroup.co.uk/wp-content/uploads/2021/05/default1.png Borrowing – Atos Victims Group http://atosvictimsgroup.co.uk/ 32 32 New CEI Paper Revisits Viral Exchange on Payday Loan Rates by Katie Porter and Kathy Kraninger. https://atosvictimsgroup.co.uk/advantages-of-applying-for-an-alternative-financial-service/ https://atosvictimsgroup.co.uk/advantages-of-applying-for-an-alternative-financial-service/#respond Mon, 03 May 2021 12:35:10 +0000 https://atosvictimsgroup.co.uk/?p=633 It’s not every day an exchange about a technical measurement for loans goes viral on social media. During a 2019 House Committee on Financial Services hearing, Rep. Katie Porter (D-CA) pressed then-Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger to calculate the cost of a payday loan, using the federal government’s official measure of annual percentage rate […]]]>

It’s not every day an exchange about a technical measurement for loans goes viral on social media. During a 2019 House Committee on Financial Services hearing, Rep. Katie Porter (D-CA) pressed then-Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger to calculate the cost of a payday loan, using the federal government’s official measure of annual percentage rate (APR). If you need to find a payday loan, you should use Bridge payday here to provide you with the money you need. 

During her questioning, Rep. Porter posed the hypothetical example of a single mother who had hastily obtained a payday loan to fix her car so she could get to work on time. She took out a two-week $200 payday loan with a $20 interest charge and a $20 origination fee. After explaining the example, she asked Kraninger to calculate the APR of the loan. Kraninger replied that the hearing was supposed to be “a policy conversation” and “not a math exercise.” Porter cut off Kraninger, saying she was “reclaiming my time,” before Kraninger had a chance to answer. The problem is that it was difficult for Kraninger to give a clear answer.

APR is the mathematical calculation that adds up the amount financed, interest, fees, and payment schedule into the cost of credit expressed as a yearly rate. Its disclosure is required by laws that govern all types of loans, including those with durations of much less than a year.

However, as Matthew Adams and I point out in a new CEI paper, APR disclosure rules have led to a distorted view of short-term lending. Under the traditional formula for calculating APR, the loan in Rep. Porter’s example would total a colossal 520 percent interest rate. However, the single mother in question would only have had to pay 20 percent interest, or $40, if she paid back the loan on time, within the two-week duration of the typical payday loan.

Hardly any of Kraninger’s critics were asking how long it typically takes borrowers to pay off these loans and what polic ymakers can do to align disclosure rules with what they actually pay. Adams’s and my paper looks at those vital questions and proposes solutions to help foster a competitive market in short-term lending that can help struggling consumers. We hope you enjoy and get some insights from it.

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Inside DC’s Pandemic-Fueled Real Estate Boom https://atosvictimsgroup.co.uk/inside-dcs-pandemic-fueled-real-estate-boom/ https://atosvictimsgroup.co.uk/inside-dcs-pandemic-fueled-real-estate-boom/#respond Mon, 03 May 2021 07:27:18 +0000 https://atosvictimsgroup.co.uk/?p=360 On a blue-sky Saturday last September, David Abrams arrived a half hour early to his listing at 4 Wynkoop Court in Bethesda. He made his way through the checklist of new tasks that real-estate agents have had to master during the pandemic: opening windows, setting up hand-sanitizer stations, wiping down surfaces. Abrams anticipated that the […]]]>

On a blue-sky Saturday last September, David Abrams arrived a half hour early to his listing at 4 Wynkoop Court in Bethesda. He made his way through the checklist of new tasks that real-estate agents have had to master during the pandemic: opening windows, setting up hand-sanitizer stations, wiping down surfaces.

Abrams anticipated that the three-bedroom midcentury-modern would attract considerable attention, given its unusual architecture and desirable location. But he wasn’t prepared for what he saw out the window 15 minutes before go time. The line of people was dozens long and already snaking around the cul-de-sac. Abrams felt his anxiety spike. Is this safe?, he wondered.

It was six months into a global pandemic. Nationally, 740 people were succumbing to coronavirus every day. Public-health officials were advising Americans to avoid crowded places and indoor gatherings. And millions of people were out of work.

For a time, agents had reason to believe they could wind up among them. Washington’s bustling real-estate market slammed on the brakes when Covid first hit last spring. Buyers called off their searches. Sellers pulled listings. Those in the real-estate industry panicked. BEST HOUSING MARKET IN A DECADE COULD SUCCUMB TO CORONAVIRUS, warned a March 2020 Bloomberg headline.

“It was like, We’re never going to sell a house again,” recalls Hans Wydler, who has been in the business 20 years.

“I was a zombie,” says Alexandria agent Micki MacNaughton. “I told my husband, ‘Cancel everything we don’t need.’ I’m like, ‘Are we watching Hulu? Cancel that.’ ”

But by the time the shoppers were lined up at 4 Wynkoop, agents didn’t have to worry about paying for Hulu—though they might not have had time to watch it. The market was more frenzied than it had been in 15 years. July had been the most expensive month ever for DC-area real estate.

On one level, the situation was a searing example of Washington’s status as one of the nation’s most unequal regions: Despite soaring unemployment, despite shuttered restaurants and shops, despite the many residents struggling to afford groceries, the local homebuying population had not only grown wealthier—it was hungrily looking for a change of scenery.

That’s the big national story, at any rate. Down on the pavement, where crowds were lining up in places like Bethesda, it meant that would-be homebuyers were feeling like gladiators. And it meant that professionals such as David Abrams were suddenly feeling more like traffic cops—and public-health monitors—than like listing agents. As he stood on the porch chatting with people who’d waited 40 minutes to get in, he did his best to enforce social distancing. “The way I could tell how many people were in the house was by the number of shoes at the door,” he says. “I was looking in the window from the front, counting shoes.”

By the end of the afternoon, he estimates that 120 people had come through. On top of that, the home also had more than 115 private showings in six days on the market. When Abrams tallied the offers that rolled in, he could hardly believe it—20 in all. The house had been listed for $949,000. The triumphant bidders, a pair of lawyers, paid $1.2 million.

Listing agent David Abrams was flooded with offers on this midcentury-modern house in Bethesda. Photograph courtesy of HomeVisit

People in Washington these days don’t really buy houses. They win them. There was the picturesque Tudor in Silver Spring that asked $798,000, then sold for $943,000 after reeling in 22 offers. There was the modern three-bedroom near Glen Echo that also got 22 bids—despite that its owner didn’t allow an open house and required everyone who made a private appointment to first show proof of approval by a lender. That one asked $899,000 and sold for more than $1.1 million.

There was the place in North Cleveland Park, where so many people wanted to get in that listing agent Amy Levin had to reprogram the lockbox to allow for 24-hour access. The brick Colonial was priced at $1.595 million and got $1.775 million. After that, says Levin, “I called the 12 other people I’ve ever sold houses to over there and was like, ‘You’ve gotta get your house on the market.’ ”

And then there was the five-bedroom in Alexandria with the great backyard. On the afternoon of the open house, listing agent Marian Rosaaen turned onto the cul-de-sac and at first couldn’t make sense of the crowd: “Hand to God, I said, ‘Is someone having a block party right now?’ ” The home, listed for $624,500, got 54 offers. Fifty-four. (As of press time, the sale hadn’t closed.)

Interviews with more than two dozen local agents turn up similar stories from one side of the Beltway to the other, one jaw-dropping scenario after another. They also reveal an explanation for what’s going on—a trend that long preceded the calamitous arrival of Covid.

As anyone who’s tried to buy a house in the last decade knows, Washington has been in the throes of a worsening housing shortage since the Great Recession. The last time the area had a six-month supply of homes for sale—the threshold for a balanced market—was nearly 12 years ago, according to the real-estate site UrbanTurf. For the past couple of years, the supply has hovered mostly between one and a half and two months, according to Bright MLS, the listing service that local agents use. All the while, prices have risen and regional leaders have fretted about housing costs scaring away the middle class and damaging the region’s ability to compete.

Now add in a global health crisis that dramatically changed what people wanted out of their houses, a big population of white-collar Washingtonians whose job security has been unscathed by Covid, a Wall Street hot streak that has helped the stock portfolios of affluent buyers, and interest rates below 3 percent. The result? A surge in extremely motivated house-hunters fighting over an even more depleted number of options. The latest data, in fact, shows that inventory has plummeted to a one-month supply, meaning that if new listings were to dry up entirely, currently available houses would sell out in a mere four weeks.

So far, there’s little hope for improvement: Though they might be tempted by the potentially astronomical profits, plenty of would-be sellers remain on the sidelines thanks to Covid’s distorting impact on the law of supply and demand. It’s hard to put your house up for sale, after all, when you’re not sure where you’ll be able to go next.

This Tudor in Silver Spring asked $798,000, and sold for $943,000. Listing agent Liz Brent says the house got 22 offers.

So the mad scramble gets madder. “I’ve been a bouncer at some of our open houses,” says Alexandria agent Brittany Patterson. “We’ve seen people try to cut in line. It’s a little like kindergarten.”

Another reason showings need crowd control is that a lot of sellers are loath to let too many people in—either to limit their exposure to the virus or simply because they’re stuck at home. Such was the case with a townhouse in a beyond-the-Beltway part of Silver Spring,­ on the market for less than $500,000. It had been listed on a Thursday, with an offer deadline only two days later. “The owner was still living in the house and was working, so there were huge chunks of time you couldn’t get in. It was booked solid,” says agent Peggy Ferris, whose clients were desperate to see it.

Tellingly, the inconvenient situation didn’t hurt the sale. In a last-ditch attempt, Ferris and her buyers decided to show up without an appointment. “We sat outside trying to get in at, like, 5:30 at night before the offers were presented,” says Ferris. Finally, word came down from the seller’s agent—they already had 15 offers. No one else would be allowed inside.

In fact, the real house-hunter’s dream is to avoid the insanity altogether by finding a home before it’s publicly listed. A couple I’ll call Ben and Lisa (who, to speak candidly about finances, didn’t want their real names used) thought they had struck gold when their agent, Jen Walker, got a lead on a Rosemont house whose owners wanted to sell off-market. As far as Ben and Lisa knew, they were the first ones in the door. They fell in love, booked an inspection for the very next morning, and handed in a full-price contract that night. Then . . . silence. Turns out a neighbor had seen their home inspector, caught on to what was happening, and swooped in with an all-cash offer. “It was just like, Are you kidding me?” says Lisa.

About a month later, in September, Walker emailed with another option. She knew a developer with approved plans to build a five-bedroom house, also in Rosemont. One catch: It would cost about $300,000 more than Ben and Lisa’s original $1.5-million budget. And another thing: It might not be finished until August 2021. At that point, Ben and Lisa—along with their dog and toddler son—had been quarantining in their two-bedroom Logan Circle condo since March. Every trip outside required navigating a germ gauntlet of shared door handles and elevator buttons. “We have a two-year-old who wants to put whatever’s closest at hand into his mouth,” explains Ben.

But August sounded better than never. They went for it.


If the booming prices are a continuation of a longstanding reality, the contours of the current market represent a dramatic shift from recent trends. For the better part of the 21st century, as the urban population swelled and public policy reoriented to promote transit and walkable neighborhoods, the condo market shot up—in central DC as well as in built-up suburbs like Bethesda and Arlington. Things were more sluggish, on the other hand, in leafy, car-dependent areas.

But Covid has changed our sense of space, not to mention our interest in sharing that space with strangers. Though the red-hot market has encompassed large parts of the District, the blocks upon blocks of glassy new condos and apartments are distinctly cold. More people in the city tried to unload those units in 2020 than ever before on record, with condo inventory up by 17 percent compared with 2019. Arlington and Bethesda also saw a deluge of condos hit the market—their inventories were up by nearly 30 percent and 13 percent, respectively.

So many buyers wanted to see this North Cleveland Park house that listing agent Amy Levin had to reprogram the lockbox to allow 24-hour access. The place sold for $180,000 over asking.

The consensus among agents is that unless a unit has two or more bedrooms and private outdoor space, it’s likely to be a dud, at least for now. There’s the ick factor of communal living, of course, but the contingent of would-be con-do buyers—often a younger demographic on a tighter budget—has also been harder hit economically. Meanwhile, the other population of recent condo buyers—baby boomers downsizing to an urban pied-à-terre—are newly aware of their vulnerability and less keen on moving downtown. Plus, with their twentysomething kids moving home due to the pandemic, they’re temporarily no longer empty-nesters.

“This was the first time in a very, very long time that we had move-in-ready, almost underpriced product just sitting on the market,” says broker Lindsay Dreyer of her condo listings. She points to a unit she sold in the fall—a one-bedroom in Columbia Heights. “When I chatted with [the seller], I was like, ‘If you sold a year ago, we could have gotten 325 or 330.’ ” Instead, the listing spent more than a month on the market before settling for $299,000.

A Roller Coaster Year

Highlights of the pandemic market

April ’20: Amid Covid-19 lockdowns, the number of homes listed for sale this month in the Washington area dropped by more than 37 percent compared with the previous April. The number that went under contract plummeted by 41 percent—the sharpest decline in a decade.

June ’20: With lockdowns loosened—and people growing desperate for more space—the frenzy began. More homes went under contract this month than during any other June in the past decade.

July ’20: Prices were officially soaring. This month, the median cost of DC rowhouses exceeded $800,000 for the first time on record.

October ’20: The median price of single-family detached houses in the District exceeded $1 million for the first time.

December ’20: By the end of the year, the inventory of homes for sale in the area had cratered to one month’s worth of supply for the first time ever. (A six-month supply is considered a balanced market.)

January ’21: The market shows no sign of slowing in the new year. In January, a typically slow month for real estate, listings in Washington lasted an average of only 11 days on the market—15 fewer than in January 2020.

In downtown Bethesda, agent Wendy Banner has a condo that has languished more than 300 days. “It is, in my opinion, a steal,” she says, noting that its location, a block from Metro, would normally have buyers swarming. On the flip side, her mega­mansions farther out haven’t been this popular in more than a decade. “We started getting calls on every listing that we had in Potomac. Houses that could take years to sell were suddenly being snapped up in a couple weeks’ time.”

With vacations on hold, agents say high-end buyers have been clamoring for swimming pools and sport courts. Not to mention that with lending so cheap, they can get more for their money than ever before. The pandemic, which has revived interest in things like several-acre lots, has lifted the fortunes of places such as Potomac and Great Falls, where home prices grew by 6.2 percent and 16.3 percent, respectively, in 2020 after long stretches of flatlining.

But don’t toll the death knell for city living just yet. While it’s true that buyers at the moment seem to be prioritizing space over urban walkability, it’s not as if all the District’s downtown neighborhoods have tanked. Logan Circle, for instance, saw prices rise by more than 11 percent last year. Shaw had modest growth, at about 2.5 percent. The Zip code that includes H Street and NoMa increased by 4.6 percent.

Not everyone is ready to flee to the burbs, after all, and as agents explain it, the pandemic has turned all levels of homeowners into move-up buyers. “What we’re seeing is the young couple who bought a condo a few years ago and now they’re both working from home and, oh, by the way, they had a baby six months ago and they’re all crowding in 600 square feet,” says agent Dana Scanlon. “They’re looking for the next step up—a two-bedroom with a terrace, or a little rowhouse.”


For anyone who lived through the early-aughts boom and bust, the spectacles of 2021-style house-hunting—the lines of would-be buyers stretching down sidewalks, the sight-unseen offers, the giddiness-inducing financing opportunities—might come with a touch of dread. Are we in a bubble?

First, the good news: The answer appears to be no. Unlike during the overheated market of the Bush era—fueled by reckless lending practices and rampant speculation—today’s buyers must endure rigorous vetting to secure a mortgage. In bidding wars, sellers often perform even more due diligence, reviewing competitors’ finances to confirm who truly has the cash to close the deal.

Jeannette Chapman, director of the Stephen S. Fuller Institute at George Mason University, an authority on the regional economy, also emphasizes that as quickly as prices are appreciating, they’re not rising anywhere near as fast as they would in a bubble: The median Washington home value increased by 8.7 percent in 2020. In 2005, leading up to the crash, it rocketed by nearly 22 percent.

But even without a bubble, the situation is worrisome for other reasons. Rather than lifting all ships, this rising tide has exacerbated inequality. Homeownership was already out of reach for a lot of working-class Washingtonians—a disproportionate share of them people of color—before the pandemic. With those same parts of the population bearing much of Covid’s economic and human toll, the prospect of catching up has become considerably bleaker for them.

“For the region, it’s not healthy that we don’t have enough homes at a lot of different price points,” explains Jenny Schuetz, a senior fellow at Brookings. “It’s a danger if the middle class can’t stay—the middle class is a lot of your tax base.”

Programs designed before the Covid boom to help balance opportunities also often don’t work in the current market. Veteran loans, FHA loans, and teacher programs, for example, typically require that financing and appraisal contingencies be included in offers—clauses that allow buyers to get out of a contract if their loan falls through or the home doesn’t appraise for the sale price. But these days, when competing buyers are liable to waive all contingencies, and when sellers scrutinize bids in search of the most conventional financing or all-cash offers, well-intentioned programs can be meaningless.

“We have lots of very vibrant communities here,” says Peter Tatian, the Urban Institute’s research director for greater DC, “and that’s what’s put at risk if housing costs get way out of line with what average working people can afford.”

This modern three-bedroom near Glen Echo was listed for $899,000 and sold for more than $1.1 million. Listing agent Dana Scanlon says it got 22 offers. Photograph by Anice Hoachlander; Design by Kim Gavin Design

Agents and economists do anticipate that the intensity will eventually ebb, at least somewhat. Rather than spawn entirely new buyer preferences, they predict that the pandemic has more likely just accelerated timelines. In other words, many young families crammed into condos were going to want big houses and yards anyway. It’s just that an unprecedented crisis caused more of them to pack up in search of those things seemingly overnight. At some point, the thinking goes, this migration will settle down.

But until then, the lines will keep forming. When he sorted through the stack of offers that came in on 4 Wynkoop Court last fall, Abrams found that 15 of the 20 were for more than $1 million, and most were contingency-free. Surely, amid such aggressive competitors, there were buyers who’d already struck out in multiple other bidding wars.

However, one-half of the winning couple who bought the home, Matthew Aichele, tells me he and his wife visited the open house almost on a whim. From their Penn Quarter condo, they’d been casually perusing online listings, but they hadn’t even hired an agent yet.

Says Aichele: “This was the first house we looked at.”

Unless otherwise stated, statistics about the local real-estate market are from Bright MLS, the listing service that agents in the Washington area use.

This article initially appeared in the April, 2021 issue of Washingtonian.

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Russian entrepreneurs adapt to virus lockdown challenges https://atosvictimsgroup.co.uk/russian-entrepreneurs-adapt-to-virus-lockdown-challenges/ https://atosvictimsgroup.co.uk/russian-entrepreneurs-adapt-to-virus-lockdown-challenges/#respond Wed, 07 Apr 2021 23:16:33 +0000 https://atosvictimsgroup.co.uk/russian-entrepreneurs-adapt-to-virus-lockdown-challenges/ MOSCOW (AP) – Valentina Konstantinova vividly remembers when Russia shut itself down for the coronavirus a year ago. His 18-room boutique hotel, called Skazka, or “Fairy Tale,” was full, and within days, only one guest was left. “I still don’t understand how people could have disappeared in a day and where,” she recalls. The lockdown […]]]>

MOSCOW (AP) – Valentina Konstantinova vividly remembers when Russia shut itself down for the coronavirus a year ago. His 18-room boutique hotel, called Skazka, or “Fairy Tale,” was full, and within days, only one guest was left.

“I still don’t understand how people could have disappeared in a day and where,” she recalls. The lockdown lasted for six weeks, but with the borders closed, its business prospects were bleak.

A year later, Skazka is still open – thanks to the creative thinking of its owners – but with fewer guests than before.

Russia was never completely locked down after last spring, and as a result its economy and some of its businesses did not suffer as much as some countries did during the pandemic. But she has also seen her death rates rise.

When infections spiked again in the fall, the government resisted the imposition of restrictions that would have shut down many businesses.

If there had been another lockdown, “we would already be closed,” Konstantinova said.

A six-week lockdown further damaged the weak economy and deepened Russians’ frustrations with falling incomes and deteriorating living conditions. President Vladimir Putin’s approval rating fell from 69% in February 2020 to an all-time low of 59% two months later before rebounding, according to the Levada Center, Russia’s largest independent pollster.

For the remainder of 2020, industries and businesses remained mostly open. During a resurgence of the virus in the fall, some areas imposed restrictions that limited the hours or capacity of bars, restaurants and other businesses, but were rarely closed completely.

According to the Organization for Economic Co-operation and Development, Russia’s gross domestic product fell only 3.6 percent – slightly more than the world average of 3.4 percent. By comparison, UK GDP fell 9.9%. France 8.2%, Germany 5.3% and Canada 5.4%.

Yet it was Russia’s biggest fall since 2009. In recent years, its GDP has grown by around 1-2% per year.

At the same time, Russia has seen a significant increase in mortality, said Sergei Guriev, professor of economics at Sciences Po’s Institute for Political Studies in Paris. The total number of deaths in 2020 increased by almost 324,000, compared to the previous year, according to statistical agency Rosstat.

The country has recorded more than 97,000 deaths from COVID-19, according to Johns Hopkins University, although experts say the real number is likely higher and even Rosstat said more than 200,000 people with the virus have died between April 2020 and January 2021.

“These losses, which obviously could have been avoided, are the price to pay so that the Russian economy does not shut down and that Russian GDP only shrinks by 3%,” said Guriev.

Online sales had a good year. Ozon, a major Russian e-commerce platform similar to Amazon, saw sales increase nearly 2.5 times last year, said the company’s communications director, Maria Zaikina.

But even without a second foreclosure, some small and medium-sized businesses needed creative ways to stay afloat, with government support mostly limited to tax deferrals, cheap but hard-to-obtain loans, and direct grants. relatively modest. Many are not earning what they were doing before the pandemic.

A survey of 5,000 such companies found that around a third still saw a decline in revenue at the start of 2021. The survey, carried out by Russia’s Business Ombudsman Boris Titov and quoted by RBC media outlet last month, reports that about 27% of revenues reported at the same level as last year and nearly one in 10 was looking to close. Only around 19% said they were slowly starting to recover.

Almost 60% of companies surveyed said that continued depressed demand for products and services was one of the biggest challenges they face.

Russians’ incomes fell 3.5% last year, Guriev said, noting that Moscow has spent far less to support businesses and consumers than other countries, where governments have taken “generous measures without previous”.

This could be because the government, with its sovereign wealth fund valued at $ 165 billion in April 2020, was reluctant to open state coffers last spring, when oil prices plunged.

During the first lockdown, Konstantinova still wanted to use her hotel, located in a museum and entertainment complex built in a style that mimics 17th-century Russian architecture. Working with NGOs and humanitarian groups, she has offered free rooms to victims of domestic violence, refugees, doctors and foreigners stranded in Russia.

With tourists unlikely to return anytime soon, Konstantinova was looking for ways to transform her hotel. Some of her non-paying clients were from India, and she decided to use their expertise to add a restaurant serving authentic Indian cuisine. The project took off and his business is now breaking even.

“Profit is out of the question at this point, of course, as is prepayment of loans,” she said. “But the fact that we are working at a breakeven point is important. It means that when the market recovers, the business is likely to turn a profit.”

Artyom Borovoy, co-founder of a company that builds stands for exhibitions, was in a similar situation.

When convention business ended, Borovoy’s company, Stend-Do, began making folding desks for those who worked from home – an idea he said came from Zoom’s discussions with his friends “out of desperation.” “.

Simple, inexpensive plywood desks that fold like an easel and can be used sitting or standing have proven popular for those working remotely from small apartments. Borovoy sold around 2,100 of them last year, but admits the new project is only earning enough to cover costs.

“In terms of profit, there isn’t one yet,” he said.

Borovoy and Konstantinova say they have received no significant government support other than tax deferrals.

Amid the restrictions, some companies have turned to acts of defiance to preserve their revenues.

In St. Petersburg, where severe restrictions were imposed due to a virus outbreak during the New Year’s holidays in December and January, owners of restaurants and bars who have been ordered to close between December 31 and January 3 were upset. to close at 7 p.m. for a week after that.

Dozens of owners joined in what was called the ‘resistance card’ – a pop-up website listing bars and restaurants that refused to obey the restrictions.

“How were we supposed to survive otherwise?” Said Mikhail Kavin, manager of the Commode bar – just off the city’s famous Nevsky Prospekt – which offers rooms named after different cultural figures such as “Gershwin,” “Brando,” “Rockefeller,” and “Lebowski.”

“People had to be able to eat and work. The authorities were unwilling to engage in a dialogue. They did not provide any support, neither to the employees nor to the business leaders, ”he said, stressing that joining the Resistance Map“ was our only way to be heard ”.

Police raided Commode in early December for serving customers behind closed doors after 11 p.m. Security video showed a dozen hooded officers walking through the door and later walking in the middle of clients who were allegedly forced to lie on the ground and beating some with batons.

Authorities eventually relaxed the restrictions: cafes, restaurants and bars were still banned from operating between December 31 and January 3, unless they had “winter terraces” serving customers outside, but they could open between 6 a.m. and 11 p.m. the following week.

Commode operated over the holidays despite the restrictions, but even flouting the rules it did not bounce back to its pre-pandemic sales level, Kavin said.

“Maybe a few months or weeks was an exception to the rule, but it’s a very long way to go to achieve a full recovery,” he added.

___

Daniel Kozin reported from both Moscow and St. Petersburg.

___

Follow AP’s pandemic coverage on:

https://apnews.com/hub/coronavirus-pandemic

https://apnews.com/hub/coronavirus-vaccine

https://apnews.com/hub/understanding-the-outbreak

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Southwest Airlines returns to Metro Jackson on June 6 | MS Business Journal https://atosvictimsgroup.co.uk/southwest-airlines-returns-to-metro-jackson-on-june-6-ms-business-journal/ https://atosvictimsgroup.co.uk/southwest-airlines-returns-to-metro-jackson-on-june-6-ms-business-journal/#respond Wed, 07 Apr 2021 23:16:12 +0000 https://atosvictimsgroup.co.uk/southwest-airlines-returns-to-metro-jackson-on-june-6-ms-business-journal/ Ashlee D. Smith / Southwest Airlines Mississippians planning their summer travel are considering Southwest Airlines as a budget alternative in 2021. Southwest jets are returning to serve Jackson Wiley Medgar Evers International Airport starting June 6. After going out of business in Jackson in June 2014, Southwest flights are returning in just two months and […]]]>









Mississippians planning their summer travel are considering Southwest Airlines as a budget alternative in 2021. Southwest jets are returning to serve Jackson Wiley Medgar Evers International Airport starting June 6.

After going out of business in Jackson in June 2014, Southwest flights are returning in just two months and it can’t happen soon enough. Residents of central Mississippi are excited to have another travel alternative to reach destinations like Houston and Orlando. There will be flights between Jackson and Atlanta for as little as $ 59 one way.






Kevin russell

KEVIN RUSSELL


“The pricing and efficiency of Southwest Airlines add a tremendous option to the traveling public,” says Kevin Russell. “Southwest’s presence will help keep all air fares to and from Jackson more competitive to the consumer. ”

Belhaven vice president for listing and marketing Russell has used Southwest for years and the Mississippian can’t wait to make it a travel habit again. “As a frequent traveler, I love the simplicity of their business model… from boarding to prices to peanuts !. ”

The price for flying anywhere in the United States is not cheap. Millions of passengers appreciate airlines like Southwest for trying to keep costs down. And with more than three million COVID-19 vaccines in the arms of Americans every day, experts predict a significant spike for summer and fall travel across the country. Easter and spring break marked the busiest travel time since the pandemic.






MONIQUE HARRISON

MONIQUE HARRISON


With the last of her immediate family members vaccinated, Madison resident Monique Harrison Henderson will embark on Southwest flights later this year.

“Watch out, California, Texas, Colorado, Nevada, New Mexico and beyond,” says Henderson, education consultant and writer. “We’re on our way home!

When Southwest stopped flying out of Jackson, it limited his family’s travel plans. “A lot of times you can get better airline ticket deals on Southwest – and with a family of four flying, even slight variations in airline ticket costs can really add up quickly! ”

When Monique’s family moved to central Mississippi from Southern California, she was disappointed that they no longer had access to Southwest Airlines here. The airliner began serving Jackson Airport in 1997. Coming back to serve Jackson Airport again is well chosen.

In the months to come, Americans will hit the road in droves. Getaways are tempting after numerous lockdowns due to the onset of the pandemic in March 2020. Some Southwest summer one-way fares are as low as $ 49.

Business leaders in the Mississippi capital believe the revival of Southwest Airlines will spur economic growth.






jeff rent

RENT JEFF


Jeff Rent, president and CEO of the Greater Jackson Chamber Partnership, anticipates further investment and job creation in the region.

“The additional routes will result in more passengers visiting the area while making travel easier and more affordable for our residents, thereby improving the quality of life on the Jackson subway. ”

Rent applauds Jackson Municipal Airport Authority officials for their efforts to recruit the high quality, low cost airline in Magnolia State.






CAL WELLS

CAL WELLS


Lawyer T. Calvin Wells, partner in the Jackson office of Phelps Dunbar, welcomes Southwest Airlines.

With a legal practice focused on complex business financing and acquisitions for a variety of Mississippi companies, Wells travels frequently.

“I was delighted to hear that Southwest Airlines is back in Jackson because it’s great news for our city. I am one of their biggest fans because of their reliability and the speed of their flights. ”

It doesn’t just benefit his business trips. “Their low fares have allowed our family to take a number of trips that otherwise would not have been possible. ”

Wells is hoping that many other members of the state will follow his advice. “I encourage everyone to fly southwest so that additional destinations can be considered in the future. ”

On April 6, near a Pearl constituency, James Bailey noted the tangible benefits of Southwest’s decision to visit Jackson again. His older brother, Charles, lives in Houston. Boarding a Southwestern airliner would end his 450 mile drive to Texas. And the same goes for his brother’s long trip to Mississippi.

“When Southwest pulled out, it made my life harder,” says James Bailey, 56, a Brandon resident. Employed in the auto industry for 33 years before retiring, he said the Southwest exit in 2014 suddenly cut off flights to Orlando and Houston.

The rebirth of the Southwest in Jackson, Mississippi will also be good business for his wife, Rachel. She has two brothers who are Houstonians. Those 6.5-hour trips on the Mississippi, Louisiana, and Texas freeways have aged for the Bailey family.

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Some of SA’s rich are under pressure – bad debt soars among top 2% credit users https://atosvictimsgroup.co.uk/some-of-sas-rich-are-under-pressure-bad-debt-soars-among-top-2-credit-users/ https://atosvictimsgroup.co.uk/some-of-sas-rich-are-under-pressure-bad-debt-soars-among-top-2-credit-users/#respond Wed, 07 Apr 2021 23:15:54 +0000 https://atosvictimsgroup.co.uk/some-of-sas-rich-are-under-pressure-bad-debt-soars-among-top-2-credit-users/ New data from the credit reports group Experian shows a sharp increase in bad debts among the richest 2.5% of credit users in South Africa. Their total new defaults reached R4 billion in the last three months of 2020. Across all income groups in South Africa, personal and auto loan repayments have been hit the […]]]>
  • New data from the credit reports group Experian shows a sharp increase in bad debts among the richest 2.5% of credit users in South Africa.
  • Their total new defaults reached R4 billion in the last three months of 2020.
  • Across all income groups in South Africa, personal and auto loan repayments have been hit the hardest during the pandemic.
  • For more articles, visit www.BusinessInsider.co.za.

Some of South Africa’s top-flight households are struggling to pay their bills, according to the latest report from credit registration company Experian.

In the three months leading up to the end of December, the richest 2.5% of the credit workforce in South Africa saw a total of new defaults on debt repayments of over $ 4 billion. of rand. A default occurs either when a debt has been unpaid for 90 days or more – or when the lender has written off the debt, or has begun to repossess or seize the asset. Members of this group typically have an average starting mortgage of over R12 million and take out car loans of over R450,000. Together, these wealthy households have an outstanding debt of almost R600 billion.

Jaco van Jaarsveldt, director of decision analysis at Experian Africa, says it’s clear the pandemic has had a significant impact on high-income households.

“It is evident that segments of the South African credit population which were previously less affected by the troubled economic environment are no longer immune to financial struggles.”

Experian’s Consumer Default Index (CDI) for the richest credit users deteriorated 13% between December 2019 and 2020. The index measures the total number of accounts that are now in default for the first time, as a percentage of total debt outstanding.

Across all income groups, personal loan repayments have been hit the hardest during the pandemic, according to the latest figures from Experian.

Of all credit products, these defaults increased the most between December 2019 and December 2020. This distress shows that the pandemic continues to put pressure on many people who mostly use personal loans for their monthly expenses, says Experian. Auto loan defaults have also increased.

CDI refers to the Experian Consumer Default Index (CDI).

But mortgage defaults improved slightly from late 2019 to late 2020.

“This suggests that people are prioritizing paying off their home loans over other commitments,” says Van Jaarsveldt.

What’s more, defaults on credit cards and retail store accounts have improved – despite the pandemic. The positive performance of credit cards can be attributed to consumers prioritizing paying off their credit card debt, as it is likely their primary source of funds for their daily expenses, Experian explains.

Defaults on retail store accounts have improved mainly because stores and other lenders adopted stricter criteria before granting credit – and it started even before the pandemic began.

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Go to the Business Insider home page for more stories.

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China’s strengths should not blind us to its weaknesses https://atosvictimsgroup.co.uk/chinas-strengths-should-not-blind-us-to-its-weaknesses/ https://atosvictimsgroup.co.uk/chinas-strengths-should-not-blind-us-to-its-weaknesses/#respond Wed, 07 Apr 2021 23:14:07 +0000 https://atosvictimsgroup.co.uk/chinas-strengths-should-not-blind-us-to-its-weaknesses/ Participants leave the Great Hall of the People in Beijing after the closing ceremony of the Chinese National People’s Congress on March 11, 2021 via Reuters. Conventional wisdom, shared by members of the US Congress of both parties and the recent Interim strategic direction on national security, regards China as the “Threat of rhythm” and […]]]>

Participants leave the Great Hall of the People in Beijing after the closing ceremony of the Chinese National People’s Congress on March 11, 2021 via Reuters.

Conventional wisdom, shared by members of the US Congress of both parties and the recent Interim strategic direction on national security, regards China as the “Threat of rhythm” and the main competitor of the United States.

The reasons for the first review seem compelling. The Chinese economy could overtake the US economy. China may be ahead in breakthrough technologies such as artificial intelligence and 5G. China has deployed a modern army with a navy on track to have 500 ships, with many patrol boats and small craft (although considerably larger than the US Navy’s fleet of about three hundred ships, it is nowhere near as good). China has become more aggressive in its region in pursuit of its goals. Questions arise as to the future integrity of Taiwan as an independent state. And the Belt and Road Initiative has become a multi-trillion renminbi program to gain access and influence through offshore investments and loans. Taken together, these factors make the case that China is ready to challenge the United States as a world leader in virtually any category.

However, is this a comprehensive assessment of China? The answer is no, because it lacks a balanced analysis and assessment of strengths and weaknesses. Consider the following historical comparison.

In October, China will celebrate the seventy-second anniversary of the founding of the People’s Republic of China (PRC) in 1949. In November 1989approximately seventy-two years after the start of the Russian Revolution which led several years later to the formation of the USSRthe Berlin Wall fell, initiating the dissolution of the Soviet Union.

Seventy-two years after the founding of the PRC, no one is suggesting that China is on the verge of collapse. But among the most obvious examples of its growing power and influence lie undoubted weaknesses and problems. Unless these are understood – given that the collapse of the Soviet Union came as a surprise – China too could be subject to enormous internal pressures and an increasingly dominant party structure. which risks alienating large segments of the population.

The Chinese Communist Party (CCP) under President Xi Jinping’s administration appears to have abandoned the government policies of former Chinese leader Deng Xiaoping through consensus and a large degree of economic freedom crucial to creating a modern and advanced society. Suppression of hyper-rich Chinese businessmen; strict adherence to Marxist-Leninist ideology; crushing dissent, whether in Xinjiang, Hong Kong or internally; and the purging of political rivals are not signs of a healthy political system, especially when innovation depends on an entrepreneurial spirit that cannot be dictated by the philosophies of Karl Marx or Vladimir Lenin.

Over 100,000 large-scale events per year have been reported in China, as people demand more resources at home and an end to rampant corruption that favors the few over the many. A combination of so-called social credits that rate citizens on loyalty and creditworthiness – using facial recognition – allows the CCP to exert additional control over Chinese society.

An internal financial system with huge debt, parallel banking services, a possible real estate bubble, and the need for significant real annual economic growth to meet expectations of a better quality of life pose enormous challenges for Beijing’s rulers. . The “one child” policy has led to an aging population, in which the ratio of retirees to workers is heading in the wrong direction, and to many more men than women in Chinese society, which means that many men will not find a spouse.

China also lacks viable allies. Yet China has managed to contain the United States by concluding a trade and investment agreement with the European Union, which has yet to be ratified by the European Parliament. It has also signed the Comprehensive Regional Economic Partnership of fifteen countries, strengthening its potential for economic growth. China would have hit another deal with Iran involving trade, oil and investment that could circumvent sanctions imposed on Iran by western and regional states.

The possible political cancers that could infect China are, first, the CCP’s growing autocratic control over the public, which stifles economic productivity, and, second, a debt balance sheet that could lead to a financial crisis. The Soviets suffered as the first Soviet leader Mikhail Gorbachev attempted to reform what was a failed system, triggering the implosion. The more China tries to control its population, the more it risks a backlash.

Chinese leaders understand that for centuries peasant and other revolutions have ravaged the country. The most recent was the long civil war that ended in 1949. A future revolution can take another form. But make no mistake: China is not an unstoppable colossus. The point is that, like in the former Soviet Union, China has an oppressive politico-ideological regime that limits human ingenuity, imagination and innovation. This may turn out to be the fatal flaw in Chinese aspirations.

In the 1980s, the boom in Japan led to predictions that Japan would dominate the world’s economies. This does not happen. Will the same result apply to China?

This article was originally published by UPI and has been reprinted with permission from the author.

Dr Harlan Ullman is distinguished UPI columnist Arnaud deBorchgrave. His latest book, The Fifth Horseman and the New MAD: The tragic story of how massive disruption attacks endanger, infect, engulf and disunite a 51% nation, is due out this year.

Further reading

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Iowa Cities Affected By Soaring Natural Gas Prices In February Freeze Receive Help From State Farm Forum https://atosvictimsgroup.co.uk/iowa-cities-affected-by-soaring-natural-gas-prices-in-february-freeze-receive-help-from-state-farm-forum/ https://atosvictimsgroup.co.uk/iowa-cities-affected-by-soaring-natural-gas-prices-in-february-freeze-receive-help-from-state-farm-forum/#respond Wed, 07 Apr 2021 23:14:07 +0000 https://atosvictimsgroup.co.uk/iowa-cities-affected-by-soaring-natural-gas-prices-in-february-freeze-receive-help-from-state-farm-forum/ The natural gas bill in Brighton, a town of about 750 people in southeast Iowa, was about $ 130,000 more than expected for the February cold snap, the utilities superintendent said Phil Krochak. “That’s about as much as the city would pay for an entire year,” Krochak said. Before winter, the city had already frozen […]]]>

The natural gas bill in Brighton, a town of about 750 people in southeast Iowa, was about $ 130,000 more than expected for the February cold snap, the utilities superintendent said Phil Krochak.

“That’s about as much as the city would pay for an entire year,” Krochak said.

Before winter, the city had already frozen prices for an amount of natural gas equal to 101% of what it used in 2020, said Mayor Melvin Rich. But he said demand exploded when temperatures fell to 20 degrees or more below zero, forcing the city to buy more natural gas “at peak prices.”

Those costs are passed on to residents, with average bills rising to $ 750 in February, from around $ 250 the month before, Krochak said. Brighton residents, who have the option to pay the additional cost over a year, reported on Facebook that some bills were over $ 1,000.

Rich said the council emailed Gov. Kim Reynolds and the state’s congressional leaders, asking if small towns like Brighton could receive help. “We have a lot of retirees living on fixed incomes” and residents struggling with unemployment, he said.

The state announced Thursday that it will offer a temporary $ 5 million loan program to help cities. He wants municipal utilities to demonstrate that the loans – 1% interest notes that have to be repaid over three years – will be used to spread costs “so residents don’t see their bills go up aggressively,” he said. said Brian Selinger. , team leader for the Iowa Economic Development Authority.

Rich didn’t expect help. The council wanted to educate state and federal officials about the plight of residents of small, rural Iowa. “There is nothing more we could have done,” said Rich. “We don’t control the weather.”

Other states affected by the freeze have also responded with assistance. Kansas, for example, quickly made $ 100 million in long-term, low-interest loans to cities, some of which were at risk of bankruptcy due to their large natural gas bills.

Reynolds is also making $ 195 million in federal aid available to Iowans who struggled to pay their rent, mortgages or utilities during the coronavirus outbreak. The state also helps poor families cover their utility bills through its Low Income Home Energy Assistance Program, often referred to as LiHeap.

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Echoes of Enron in the Greensill saga https://atosvictimsgroup.co.uk/echoes-of-enron-in-the-greensill-saga/ https://atosvictimsgroup.co.uk/echoes-of-enron-in-the-greensill-saga/#respond Wed, 07 Apr 2021 23:14:07 +0000 https://atosvictimsgroup.co.uk/echoes-of-enron-in-the-greensill-saga/ In November last year, when funding from major funder Greensill looked shaky, Sanjeev Gupta appeared to be doing what many cheeky businessmen do when the going gets tough: push forward. He moved the headquarters of his vast GFG alliance from a low-key Mayfair townhouse to a white stone office building on Grosvenor Place. Lex Greensill, […]]]>

In November last year, when funding from major funder Greensill looked shaky, Sanjeev Gupta appeared to be doing what many cheeky businessmen do when the going gets tough: push forward. He moved the headquarters of his vast GFG alliance from a low-key Mayfair townhouse to a white stone office building on Grosvenor Place.

Lex Greensill, founder of the now insolvent supply chain finance company that goes by Greensill’s name, had done large amounts of his business with Gupta: The majority of Greensill Bank’s exposure was to entities related to Gupta . The irony of the address – still widely known as Enron House after its former occupant – will not escape him.

It’s been 20 years since Enron collapsed. Yet the nature of the energy giant’s boom and bust has striking echoes in the rise and fall of Lex Greensill.

Enron operated in the previously frozen world of energy intermediation, where companies made modest profits by connecting producers with customers. In just a few short years, Enron’s cabal of smart, aggressive managers had transformed the business from a pipeline operator into an innovative monster fueled by technology – and also vast fraud.

At the heart of Enron were several levels of deception: the company overestimated income by counting the value of a business with a third party as income; it adopted mark-to-market valuations that indexed assets to the cost of their replacement; and it has raised about $ 20 billion in hidden off-balance sheet “special purpose entity” debt.

Greensill looks amateurish in comparison, but there are some obvious similarities. It took a no-adventure part of the bank and sought to supercharge it. It is still not known if a fraud took place. But aggressive innovation certainly did.

Hundreds of major banks and specialist financiers operate in the area Greensill broke into in 2011. The vast majority play a vital and compelling role in sustaining global commerce and operate under an age-old practice of prepayment of supplier invoices for a small commission of, say, 1 percent. After the global financial crisis, this is the kind of boring banking business that has become all the rage.

Enter Lex Greensill. As a financier at Citigroup and Morgan Stanley, he made a name for himself by shaking up some of the difficult methods of financing invoices and introducing smart innovations. When he went solo, it looks like the innovation quickly turned into obscurity in at least three ways.

First, as it has recently become clear, the group has operated with an insane degree of undisclosed focus on risky ventures, exemplified by the exposure to Gupta, while simultaneously touting its (small-scale) contracts with big brands such than AstraZeneca and Airbus.

Second, Greensill devised a twist of the funding model to advance funds against expected future bills, often without obvious predictive evidence: at first glance, these were unsecured loans disguised as something much less risky, and without any obvious predictive evidence. lender or borrower disclosure.

And obfuscation number three: The group’s image as a smart fintech was sort of vanity – the main tech that Greensill relied on was a third-party platform.

Like Enron, Greensill also turned a relatively simple business into something much more complex, using derivatives as funding. Rather than backing every bill financing deal with a commercial paper issue, as traditional financiers would, large parts of Greensill’s operations have been securitized through asset managers such as GAM and Credit Suisse. Conflicts of interest abound: in Enron’s case, there are tensions between its own interests and those of the thousands of special off-balance sheet vehicles it has created; Greensill, for his part, was shoveling money at companies backed by his own major funder, SoftBank.

Another crucial parallel is the political favor the two companies have sought – Enron with the Bush White House and in particular Vice President Dick Cheney; and Greensill with the UK government, exemplified by the hiring of former Prime Minister David Cameron as an adviser as well as his outsized role as a provider of government guaranteed business loans during the Covid era.

The Enron scandal ended with the conviction of 21 executives, many of whom were sent to prison. Greensill hopes the parallels to the energy giant’s collapse end long before such discoveries and results. So far, it faces a lawsuit from an American client, a vague threat of litigation by Credit Suisse and a criminal investigation by German regulators. This does not bode well.

patrick.jenkins@ft.com

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Regulators continue to pressure independent mortgage banks https://atosvictimsgroup.co.uk/regulators-continue-to-pressure-independent-mortgage-banks/ https://atosvictimsgroup.co.uk/regulators-continue-to-pressure-independent-mortgage-banks/#respond Wed, 07 Apr 2021 23:14:07 +0000 https://atosvictimsgroup.co.uk/regulators-continue-to-pressure-independent-mortgage-banks/ The big question in Washington is what will happen as the COVID crisis slowly ends and the change of government ushers in a new period of abuse of enforcement power against mortgage lenders by the Biden administration. Vice President Kamala Harris, lest we all forget her, catapulted into large-scale politics via the 2012 national mortgage […]]]>

The big question in Washington is what will happen as the COVID crisis slowly ends and the change of government ushers in a new period of abuse of enforcement power against mortgage lenders by the Biden administration.

Vice President Kamala Harris, lest we all forget her, catapulted into large-scale politics via the 2012 national mortgage regulations. So far, the policy changes in Washington appear to be mostly symbolic, although there is evidence that the Consumer Financial Protection Bureau is gearing up for the second round of the Great Mortgage Inquisition.

Hannah Lang reports in NMN that the CFPB rescinded seven policy statements released last year under the Trump administration that gave flexibility to financial institutions in the face of the fallout from the coronavirus pandemic.

The CFPB warned in a terse press release that by abolishing the seven policy statements, the agency “gives notice of its intention to exercise the full extent of supervisory and enforcement authority under the Dodd law- Frank ”. Translated into progressive newspeak, that means, get out your checkbook.

A key indication of the future of the Department of Housing and Urban Development came last week when Secretary Marcia Fudge said: “Given the current FHA delinquency crisis and our duty to manage risk and the overall health of the fund, we have no short-term plan to change the mortgage insurance premium pricing of the Fund. FHA. We will continue to rigorously assess our strategy and work transparently with Congress. “

Fudge’s statement accompanied HUD’s quarterly report to Congress on the financial condition of the Mutual mortgage insurance fund, who noted that the seriously delinquent mortgage rate fell from 4% to 12% in the past year, while prepayment defaults fell from 1% to 6%.

Ian Katz of Capital Alpha Partners retorts, “We see a reduction come back into consideration – most likely in 2022 – assuming the delinquency numbers show improvement. Since Fudge specifically mentioned the “delinquency crisis,” it will be difficult for him to turn the tide until this crisis is clearly over. We’ll see about the timing, but it’s clear that delinquency in the government loan market is a priority in Washington.

Meanwhile at the Federal Housing Finance Authority, director Mark Calabria continues to do “by the book” in terms of enforcing the statute regarding the supervision of Fannie Mae and Freddie Mac. Contradictory rules put in place by Congress force Calabria to prepare GSEs for exit from guardianship, while taking measures to limit the risk to the taxpayer.

Neither goal will be achieved and in doing so much damage is done to this crucial sector of the economy. Perhaps the biggest change to date by Director Calabria is to limit loan purchases through the cash desk, a move that will have serious negative consequences for the mortgage market and consumers by limiting the availability of credit. .

Dozens of small non-bank issuers as well as depositories such as credit unions will likely be forced to go out of business as a result of this unnecessary change. The risks for GSEs associated with over-the-counter purchases are minimal. The winners are the biggest banks, which will gain additional monopoly power in the secondary mortgage market when it comes to loan purchases and liquidity provision.

“This is potentially a big deal, especially for non-banks and small originators who rely on the cash window for liquidity and certainty,” writes Lee Smith, president of mortgages at Flagstar Bancorp. He keeps on:

“Non-bank principals are not only operationally limited by the available capacity, but also financially by the availability of warehouse lines. They don’t have endless operating capacity or warehouse availability, so being able to convert loans to cash quickly is important.

Depriving small independent mortgage banks and custodians of a large source of liquidity may seem like a smart way to reduce risk within the boundaries of the FHFA headquarters. In fact, changes to the cash desk may actually increase systemic risk and limit the availability of credit to consumers at a critical time for the US economy.

While Calabria now migrates to the progressive left in a rhetorical fashion, its decisions so far are conservative and involve a slow death for GSEs and IMBs operating in the conventional market. Look at Calabria’s milestones so far: No liquidity support for IMBs during forbearance, a punitive 500-700bp first payment forbearance fee on COVID loans, an adverse market fee of 50 bp on refis to subsidize GSEs at consumers’ expense, an aggressive capital rule that ends GSE efforts to limit risk to taxpayers, and a ceiling of 7% on loans for residences not occupied by the owner (NOO) and secondary residences.

“If there was any doubt as to what Mark Calabria has done and has done since taking the helm of the FHA, watch his testimony from 2011Former Mortgage Bankers Association president David Stevens told NMN. “Calabria calls for reducing the role of IMBs by shifting volume to banks and crises. He calls for the elimination of NOO loans, lowering of conventional loan limits, salary caps for GSE employees and their receivership. “

It should be noted that Senator Pat Toomey (R-Pa.), Rank Member of the Senate Banking Committee, has just published his principles for GSE reform. Among them are government support, private equity, competition, taxpayer protection and the availability of the 30-year fixed rate mortgage.

But none of these talking points from Senator Toomey are really relevant to the mortgage market of 2021, where banks are shying away from 1-4s and GSEs are sidelined by rules imposed by the FHFA. As banks pull out of the market, IMBs now create and manage two-thirds of all residential mortgages for one to four families.

As this writer noted in a recent blog post, banks saw a huge $ 400 billion net decline in third party serviced assets and portfolio in 2020 due to loan prepayments. The banks have not replaced these loans. In the meantime, IMBs have gained $ 2 trillion in market share since the end of 2018.

More competitive IMBs captured trillions of dollars in loan refinancing events in 2020, resulting in a steep drop to just $ 3 trillion in ASFO and just $ 2 trillion in one-to-one loans. four families held by portfolio banks.

Commercial banks continue to reduce their commitment to residential housing due to the Dodd-Frank, Basel III and state regulatory abuses. When Director Calabria argues for a diminished role for GSEs in the residential credit market, one wonders if he, Senator Toomey and the Biden administration are aware of these important trends.

We should all be asking ourselves what the housing market will look like if Director Calabria remains in office until 2021 and continues to reduce the GSE footprint. Unless Congress and the Biden administration recognize that the real issue in housing reform is to maintain a competitive alternative to the bigger banks, we doubt the mortgage industry will be relieved of negative developments in Washington.

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“We are seeing widespread foam, bubbles, risk taking and leverage,” warns Dr. Doom ‘on the state of the stock market https://atosvictimsgroup.co.uk/we-are-seeing-widespread-foam-bubbles-risk-taking-and-leverage-warns-dr-doom-on-the-state-of-the-stock-market/ https://atosvictimsgroup.co.uk/we-are-seeing-widespread-foam-bubbles-risk-taking-and-leverage-warns-dr-doom-on-the-state-of-the-stock-market/#respond Wed, 07 Apr 2021 23:14:07 +0000 https://atosvictimsgroup.co.uk/we-are-seeing-widespread-foam-bubbles-risk-taking-and-leverage-warns-dr-doom-on-the-state-of-the-stock-market/ “ “We are seeing widespread foam, bubbles, risk taking and leverage … A lot of players have taken too much leverage and too much risk and some of them are going to explode.” “ – Nouriel Roubini, This is the eminent scholar Nouriel Roubini, professor of economics at the Stern School of Business at New […]]]>


“We are seeing widespread foam, bubbles, risk taking and leverage … A lot of players have taken too much leverage and too much risk and some of them are going to explode.”


– Nouriel Roubini,

This is the eminent scholar Nouriel Roubini, professor of economics at the Stern School of Business at New York University, explaining in an interview with Bloomberg Television who broadcast Tuesday that risk-taking on Wall Street is reaching dangerous levels, in his view.

He told the Business Network that the swirling liquidity in financial markets and the aggressive use of borrowed money were likely to create new problematic episodes in markets where investors gorged themselves on debt at the expense of the larger market. large.

Roubini’s comments follow the collapse of Archegos Capital Management about two weeks ago which took its toll on the markets, briefly and so far Credit Suisse AG takes $ 4.7 billion charge loan to the family office headed by Bill Hwang.

Archegos is the family investment arm of Hwang and has been forced to liquidate billions of assets after betting on stocks like Discovery DISCA,
-0.76%
and ViacomCBS VIAC,
-1.16%
suddenly turned on him and forced his lenders to unwind his leverage investments.

Roubini said that a rise above 2% for the benchmark 10-year Treasury bill TMUBMUSD10Y,
1.625%,
which is used to set rates on everything from mortgages to auto loans, could spark further investor explosions.

The rise in yields has prompted investors to sell more speculative bets, as higher yields imply that borrowing costs increase for investors as well, making these speculative bets less economically attractive.

Known as “Dr. Doom ”in some circles for his bearish forecast, Roubini has been consistently pessimistic about his outlook for markets and the economy since the pandemic took hold in the United States in earnest last year. Last year he said that the V-shaped bounce “becomes a U, and the U could become a W if we don’t find a vaccine and don’t have enough stimulus.

Roubini, was once named one of the “the world’s top 100 thinkers»After his specific calls on the impact of the housing crisis more than ten years ago.

The American markets, on the other hand, were try to extend the gains, according to the Dow Jones Industrial Average DJIA,
-0.54%
and the S&P 500 SPX index,
-0.72%
On Monday, the two finished at records. Meanwhile, the Nasdaq COMP Composite Index,
-0.85%
was trading within 3% of its closing high.

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