Finance – Planten En Bloemen Wed, 22 Dec 2021 00:18:36 +0000 en-US hourly 1 Finance – Planten En Bloemen 32 32 What is it and how does it affect your mortgage? Tue, 09 Mar 2021 10:58:00 +0000
  • The 28/36 rule refers to the amount of debt you can have while being approved for a compliant mortgage.
  • Lenders prefer that you spend 28% or less of your gross monthly income on housing expenses.
  • Ideally, you would spend 36% or less of your gross monthly income on all debt, but there are exceptions.
  • Learn more about Personal Finance Insider.

What is the 28/36 rule, and how does it affect your mortgage?

The 28/36 rule refers to the amount of debt you can take on while being approved for a conform mortgage, which you can think of as a “normal mortgage” that is not guaranteed by the government.

As a rule, you should only spend 28% or less of your gross monthly income on housing expenses. You should also only spend 36% of your gross monthly income on all your debts, from credit card at auto loans child support. (Remember that gross monthly income refers to the income you earn before taxes are levied.)

You might have difficulty getting a compliant mortgage if any of the following are true: Taking out a mortgage would require you to spend more than 28% of your gross income on housing expenses, or the amount would require you to spend over 36% of your gross income on total monthly debt payments.

Keep in mind that passing the 28/36 rule makes you a competitive buyer. You would likely be approved for the amount you want to borrow and get a good interest rate. But if taking out a mortgage forces you to take on more debt than you would like, many lenders will still approve you for a mortgage.

The entry ratio of 28%

You may hear your lender use the term “initial ratio”. This is the ratio of your monthly housing expenses to your monthly gross income, and under the 28/36 rule, the ratio should ideally be 28% or less.

The initial ratio doesn’t just refer to your mortgage payments. It refers to all of the following:

  • Main: This is the amount you borrow for your mortgage.
  • The interest: The lender charges you interest for borrowing money, and you will pay money for the interest each month as part of your mortgage payment.
  • Property taxes: Your property taxes will depend on the value of your home and where you live in the United States. You could end up paying hundreds every month.
  • Assurance: You will pay for home insurance, and you might have additional insurance policies to cover things like flooding or earthquakes.
  • Contribution of the owners association: If you live in a neighborhood with a owners association, your monthly contributions are taken into account in your initial ratio.

Keep in mind that utility bills are not part of your initial ratio.

Let’s say your gross income is $ 5,000 per month. You pay $ 1,000 for principal and interest, $ 150 for property taxes, $ 100 for home insurance and $ 50 in HOA contributions. In total, you pay $ 1,300 per month for your home.

Divide $ 1,300 by $ 5,000 for a total of 0.26. Your entry ratio is 26%.

The back-end ratio of 36%

You may also hear the term “final ratio” in the mortgage process. We could also call it the “Debt-to-income ratio”.

This is the ratio of your total monthly debt payments to your gross monthly income. Under the 28/36 rule, you would ideally want your back-end ratio to be 36% or less.

The back-end ratio is important because even if your housing payments are less than 28% of your gross income, you might have other debts that make you a higher loan risk.

The final ratio refers to housing payments as well as payments to credit card, student loans, auto loans, personal loans, alimony and child support.

Maybe you are paying $ 1,300 for your house each month, $ 50 for your credit cards, and $ 250 for student loans. Your monthly debt payments total $ 1,600.

Divide $ 1,600 by your gross monthly income ($ 5,000) to get 0.32. Your back-end ratio is 32%.

Exceptions to Rule 28/36

If you have too much debt to pass the 28/36 test, don’t just throw in the towel. There are a few exceptions.

A lender can still approve your application if other parts of your financial profile are exemplary. Maybe you have a excellent credit rating or more than 20% for a deposit.

You could also still be approved with higher debt ratios, but simply pay a higher rate than if you had less debt.

Also, keep in mind that the 28/36 rule mainly applies to conforming mortgages. If you qualify for a government guaranteed mortgage through the FHA, Virginia, Where USDA, a lender could approve your request with a higher ratio.

Getting a government guaranteed mortgage offers more leniency (and VA loans don’t account for initial ratios at all). Just consider if you qualify for a government guaranteed mortgage and are comfortable with the terms.

How to get a mortgage when you are in debt

You may have too much debt to pass the 28/36 test, but you still want a great rate on a compliant mortgage. There are two main ways around this problem: improve your ratio or improve other parts of your financial portfolio. Here are tips for accomplishing both.

Pay off debts

If you have a relatively low balance on a car loan or credit card, for example, consider paying it off in full. This way, your monthly payment on this loan will disappear completely.

You can also consider refinance a loan for lower monthly payments. Just make sure you understand the refinancing terms beforehand to decide if it’s the best financial move.

Look for ways to increase your income

Making more money is easier said than done, but you want to cover all of your bases. If you think you deserve a raise, this might be a good time to talk to your boss about the possibility. Or consider getting an additional part-time or freelance job.

Improve Your Credit Score

If you are in debt, a mortgage lender can still approve your application whether your credit rating is very good or excellent.

Payment history is the most important factor in your credit score, so make sure you pay all of your bills on time. You can also request a credit report from one of the three credit bureaus (TransUnion, Equifax, and Experian) to check for errors. If you find that you have been unfairly penalized, dispute an error with the office.

Save for a larger down payment

A lender can also approve your request if you have more than the minimum requirement for a down payment. The minimum amount of the deposit will depend on the type of mortgage you get.

Mortgage rates are expected to stay low for the foreseeable future, so you probably have time to save more for a down payment without worrying about missing a good rate. It might also give you time to work on other parts of your financial portfolio, like raising your credit score or getting closer to passing the 28/36 test.

Mortgage and refinancing rates by state

New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Rhode Island
Caroline from the south
South Dakota
Washington DC
West Virginia

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$ 1 million deployed from KC’s COVID-19 relief fund, according to AltCap Tue, 09 Mar 2021 10:57:59 +0000

Editor’s Note: The following is part of Startland News’ ongoing coverage of the impact of the coronavirus (COVID-19) on the Kansas City entrepreneurial community, as well as how innovation is helping to create a new normal in the ecosystem. Click on here to follow related stories as they develop.

JJust weeks after the application opened, a relief fund for Kansas City’s hardest-hit small businesses has already deployed more than $ 1 million in microloans to entrepreneurs, many of which have fallen through the cracks of other aid programs.

“Forty-two loans averaging $ 25,000 were made to small ‘non-core’ businesses – with less than $ 2.5 million in revenue and 20 or fewer employees – that are operationally strong but were unable to access capital through traditional channels like banks and federal disaster relief efforts, ”according to AltCap, which is responsible for administering the KC COVID-19 Small Business Relief Loan Fund .

Click on here to learn more about the launch and deployment of the $ 5 million relief effort.

“This fund represents the best of our community – the spirit of Kansas City, real partnerships, working hard for something bigger than you, and love and appreciation for our small businesses,” said Ruben Alonso , president of AltCap.

Carlos Rivera Jr., Barber Shop Str8 Edge

To determine the first round of beneficiaries of the fund, AltCap prioritized sectors like retail, food service, personal services, the arts and hospitality, which were deemed non-essential when the COVID-19 shutdown began, but “are vital to the overall health of our communities and our economy.”

In contrast, only 9% of federal paycheck protection program (PPP) first-round loans went to companies in the accommodation and food services industry, AltCap said, stressing the need to alternative support efforts.

“AltCap has provided a sense of relief and ease at this time of need, especially for small businesses,” said Carlos Rivera Jr., owner of Leavenworth-based Str8 Edge Barber Shop and recipient of a microcredit. “Str8 Edge Barber Shop went from a productive business to zero sales in an instant. AltCap gave my hair salon a way to not only break even but also create an opportunity to bounce back from COVID-19. “

Of the $ 1 million already deployed through the KC COVID-19 Small Business Assistance Loan Fund:

  • $ 333,602 went to minority-owned businesses
  • $ 487,400 went to women-owned businesses
  • $ 255,302 went to businesses located in economically struggling census tracts

AltCap plans to approve an additional $ 1.5 million for small businesses over the next two weeks while continuing to raise loan capital, the organization said on Wednesday.

Continue to read the video below.

Fundraising efforts have been greatly enhanced by recent contributions from new funding partners including the Marion and Henry Bloch Family Foundation, Wells Fargo, Academy Bank, First National Bank, Heartley Foundation and KCRise Fund. The new commitments amount to $ 1 million towards the fund’s target of $ 5 million.

“AltCap has served Kansas City calmly and competently through economic cycles of all types,” said Darcy Howe, Founder and Managing Director of the KCRise Fund, highlighting AltCap’s 12 years of experience in deploying high-end capital. impact and community driven in Kansas City. Region.

“Now is the time to help increase their lending capacity so they can help the avalanche of Main Street businesses that suddenly need our help to survive,” Howe continued. “We are one of the most generous and friendly communities in America. By helping KC’s small businesses make it through another day, our region can get by faster than any other city in the United States. ”

Click on here donate to the relief fund.

AltCap is also looking for low-rate long-term loans and other equity investments to help further capitalize the $ 5 million fund.

This story is possible thanks to the support of the Ewing Marion Kauffman Foundation, a private, non-partisan foundation that works with the education and entrepreneurship communities to create unusual solutions and empower people to shape their futures and succeed.

For more information visit and connect to and

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[ad_2] ]]> Rocket delivers record third quarter volume, but executives are silent on buying v refi Tue, 09 Mar 2021 10:57:59 +0000

In September, the leaders of Rocket companies boasted of having achieved a record third quarter, the kind of original volume that no observer or analyst has ever seen before. They weren’t kidding.

Thanks to unprecedented market conditions, demographic development and historically low interest rates, Rocket posted a closing origination volume of $ 89 billion, up 122% year-over-year, and rate foreclosure volume at nearly $ 95 billion, an increase of 101% compared to the third quarter of 2019.

Armed with these mind-boggling numbers, Rocket hit a third quarter profit by nearly $ 3 billion, an increase of 506% year-on-year.

“Rocket Companies helped more clients in the third quarter of 2020 than any other quarter in our 35-year history,” CEO Jay Farner said during Tuesday afternoon’s earnings call.

Rocket, the nation’s largest mortgage lender, easily surpassed its some $ 72 billion in originations from the second quarter. He had forecast between $ 82 billion and $ 85 billion in loan origination for the third quarter, with sales profit margins projected between 4.05% and 4.23%. He blew all those numbers out of the water.

In particular, sales margins were 4.52%.

In Tuesday’s earnings call, executives attributed the prosperous quarter to gains in the direct-to-consumer channel, investments in technology and a host of strategic partnerships, some just announced in the third trimester.

The Detroit-based company has entered into a marketing partnership with News Corp. real estate portal., integrated a mortgage program via the fintech app mint, and bought a Canadian fintech company. (Farner also said Rocket will have another major partnership to announce in Q1 2021.)

Although analysts asked Farner and CFO Julie Booth to break down the share of buying volume versus refinancing volume, they refused to do so. (In his S-1, Rocket revealed that in 2019, only 27% of his loans had been purchased.)

“We are not disclosing this and the mix between the chains,” Booth said Tuesday.

However, Farner noted that the third quarter was “one of the strongest buying quarters” and that Rocket issued more verified letters of approval to customers in the third quarter than any previous quarter in the past. history of the company. He further stated that the buying activity is driven by Millennials who prefer a digital mortgage experience.

According to the income statement, Rocket’s direct-to-consumer sales channel generated $ 53.6 billion in financed loan volume in the third quarter, with a sales gain margin of 5.78%. It contributed $ 3.3 billion in third quarter revenue.

Meanwhile, its network of partners, which includes referrals from Charles Schwab and State farm insurance as well as mortgage brokers, generated $ 29.6 billion in volume of financed loans during the third quarter. The profit margin on the sale was 2.70% and contributed to sales of $ 1.2 billion.

Farner also revealed that the company will repurchase $ 1 billion of its Class A shares, which were trading at $ 21.60 as of close of business on Tuesday.

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No payment, no problem: in Rosy World of Tobearance, official delinquencies plunge, credit scores of delinquent borrowers jump Tue, 09 Mar 2021 10:57:58 +0000

The credit score algos were deceived by the abstention. The strangest economy ever where no one knows what’s going on.

Through Wolf Richter for LOUP STREET.

So what happens to the debt when borrowers stop paying their mortgage, credit card debt, car loan, or student loan, and the lender puts the loan on hold or in a deferral program, and notes the loan as “in progress” despite overdue payments because no payment is due this month since the loan is now in arrears? Well, the algo of credit bureaus, like Equifax, sees that the borrower who was delinquent has “cured” the delinquency and became “current”, and that then increases the borrower’s credit rating. A brave new world, but here we are.

Overdue loan balances have plunged into all types of loans, as those overdue loans were shifted into forbearance or deferral programs, according to data from the New York Fed. household credit report for the third trimester.

No payments, no hassle for student loans.

The percentage of student loans that are 90 days past due fell from 11% of total pre-pandemic loan balances to 6.5% in the third quarter of 2020. And the percentage of newly past due student loans rose from 9.4%. of total pre-pandemic loan balances to 4.5. %, by far the lowest of the data going back to 2004:

Student loan forbearance – the program also included 0% interest on unpaid balances and cessation of collection efforts – was originally scheduled to end on September 30, but was extended until December 31. turned into a feeling of virtual certainty and the thought of making payments even after forbearance programs ended.

Best of Times for Auto Loan Defaults.

Auto loans are not guaranteed by the government, and deferral and forbearance programs have been implemented by private sector lenders and loan officers. Newly delinquent auto loan balances fell to 5.8% of total auto loan balances, the lowest in 2003. Note auto loan defaults during the previous crisis, when they exploded to two. figures. But this crisis is now the best of times:

In the case of auto loans, there are two factors: voluntary loan deferral programs by private sector lenders and government cash sent to households.

In terms of lenders, for example, Ally Financial reported Last summer that in its second quarter, about 21% of its auto loan customers were enrolled in its deferral programs where they would not have to make payments for 120 days. The programs ended September 30. For her third trimester, Ally reported that 8% of borrowers leaving its deferral programs were 30 days or more past due.

In terms of government money sent to households, this included the $ 1,200 per adult and $ 500 per child in stimulus checks, as well as additional unemployment benefits sent under federal programs, including the additional $ 600. per week until July, then the additional $ 300 per week from the end of August, along with other special federal programs established under the CARES Act, including the Unemployment Pandemic Assistance Program (PUA ) who has been surrounded by allegations of fraud. This government money has helped many households keep their auto loans up to date.

Credit card arrears are also plunging.

In this era of carry-over programs and government money sent to households, newly delinquent credit card balances also fell during the crisis, instead of increasing, as they did in the last crisis. . Credit card defaults had been on the rise since 2016, during the good times. Then the pandemic and the unemployment crisis hit, and surprise, instead of increasing, newly delinquent credit card balances fell to 5.7% of total credit card balances, the lowest since 2016. :

Forbearance pushes mortgage delinquencies to an all-time high.

The government guarantees or insures the vast majority of residential mortgages issued in the United States, and these mortgages have become eligible for forbearance programs under government rules, which provide for six-month forbearance, extendable for an additional six months, so in total for one year. These borrowers can live in their home without making payment for a year. When borrowers who are behind on their mortgage forbear, the lender can choose to mark the loan as “outstanding”. This “cures” delinquency although no catch-up mortgage payment has been made. Newly overdue mortgage loans fell to a record low of 2.5%, despite the crisis:

Who are the borrowers requesting forbearance?

The New York Fed examined which borrowers relied on forbearance to process their mortgages and auto loans and found that borrowers who are now forborne had lower credit scores and higher outstanding balances in the March before forbearance, than borrowers without abstention:

  • Auto loan borrowers now subject to forbearance had an average credit score of 652 in March, compared with 693 of non-forbearance borrowers.
  • Mortgage borrowers now forborne had an average score of 708 in March, compared to 754 for borrowers without forbearance.
  • Forbearers had about 30% higher outstanding balances for both types of loans in March than those who did not participate in forbearance.

Confused Algos Boost Credit Ratings Of Borrowers With Delinquent Bad Loans.

The New York Fed found that for both types of loans, “distressed borrowers were much more likely to opt out, as evidenced by participants’ higher default rates three months before the first month of the loan. abstention”.

But then, once the delinquent loans are in arrears, lenders mark them as “outstanding” and the delinquency is “fixed” as shown in the charts above, which the New York Fed also noted. .

And this treatment of delinquent balances by shifting loans to forbearance has a salutary effect on the credit scores of delinquent but non-delinquent borrowers.

The New York Fed found that “on average, delinquent borrowers whose loans were converted to ‘current’ at the time of forbearance saw an average 48 point increase in their credit rating (here, the risk score of Equifax 3.0).

But for borrowers who weren’t in default when they went into forbearance, their credit rating was unchanged.

Yes, the algos that Equifax and others use to arrive at their credit scores, and that lenders rely on when making new loans, got screwed, and these algos have improved credit scores. borrowers whose delinquent loans have been forbidden when they have not changed. the credit scores of borrowers who were not in arrears. Just another distortion in the Weirdest Economy Ever, fueled by deferrals of government sponsored loans and government stimulus payments, where in the end no one really knows what’s going on.

My 13 whiplash charts on retail sales by retailer category. ReadStimulation fatigue? Retail sales are declining at many Brick & Mortar stores. Department stores are moving towards Zombiehood. But increase in online sales to be recorded

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Defaults on agricultural bank loans 2.68%, highest since 2012 Tue, 09 Mar 2021 10:57:58 +0000

In a report released on June 29, the data company and a division of S&P Global, said the pandemic has contributed to 2.68% of “total farm loans” for banks being in arrears as of March 31. This is the highest level since the first quarter of 2012, according to the report.

As of the third quarter, banks held $ 179.52 billion in farm loans, according to the report, which does not list the farm credit system, a major player in farm credit. It lists John Deere Capital Corp. of Reno, Nevada, as the largest US bank in farm lending in the quarter, with $ 15.6 billion, up 6.1% year-over-year.

According to authors Carolyn Duren and Nathaniel Melican, delinquencies on bank farm loans were higher for both farm home loans and farm production loans for things like equipment and seeds.

Farms that filed for bankruptcy in the year to March 30, by state, were led by Wisconsin, at 78. In that full year, no bankruptcies were filed in North Dakota, 37 in North Dakota. Iowa, 35 in Minnesota, 17 in South Dakota, 12 in Montana, and 41 in Nebraska. It is not clear whether these were Chapter 12 farm bankruptcies or whether the numbers also included Chapter 11 bankruptcies for large agricultural companies.

As part of the report, Bruce Lee, president and CEO of Heartland Financial USA Inc. of Dubuque, Iowa, said animal producers are hit hardest. Heartland had $ 549.2 million in farm loans in its portfolio as of March 31, representing 6.5% of its loan portfolio.

“Farmers couldn’t bring their animals to market and couldn’t afford to feed them either, which created a problem,” he said. He said the bank was increasing communications with borrowers. The bank suffers few losses “in part because the borrowers have high collateral values ​​on their land.”

“Delayed” indicator

David Kohl, professor emeritus of agricultural finance at Virginia Tech, was cited in the report, saying that bankruptcies are a “lagging indicator” and that bankruptcies caused by the coronavirus pandemic will not emerge for at least a year.

The pandemic effect “calls into question” the concentration of US agricultural production, Kohl said.

“Concentration and size bring efficiency and optimization, but it also undermines the resilience of diversification,” he said.

Banks use government programs, value portfolios, and offer interest-only and principal deferral to help get through the cycle, Kohl said.

Agriculture, food, and allied industries in 2017 contributed $ 1,053 billion to the U.S. gross domestic product, or 5.4 percent of the total, according to the U.S. Department of Agriculture. USDA’s Agricultural Research Service reports that “farm production” contributed $ 132.8 billion to that figure, or 1% of GDP.

Andrew Liesch, managing director and senior research analyst at Piper Sandler Cos., Cited in the report, said he would not be surprised to see an increase in “problem loans” later this year. Piper Sandler Cos. is an independent, multinational investment bank and financial services company based in Minneapolis. Financial regulators told banks in March that “modified” agricultural loans for borrowers affected by the pandemic would not require a “distressed debt restructuring” category – even if they were deferred for up to 180 days. By this point, many farmers will have harvested their crops and be able to repay their loans, Liesch said.

Important players

The following are some of the Upper Midwest’s “Leading Consolidated Banks” listed in the report:

  • Great Western Bancorp, Inc., Sioux Falls, SD, had $ 1.87 billion in agricultural loans, including $ 967 million in production loans and $ 913 million in agricultural loans. GWB’s agricultural loans were down 11.3% from the previous year, accounting for 19.4% of its total loans.

  • US Bancorp of Minneapolis had $ 1.49 billion in agricultural loans, including $ 566 million in production loans and $ 920 million in agricultural real estate loans. USB’s agricultural loans were down 10.7% from the previous year and represent 0.5% of its total loans.

  • Bremer Financial Corp. of St. Paul, Minn., had $ 1.24 billion in agricultural loans, including $ 566.4 million in production loans and $ 672.3 million in agricultural real estate. Bremer’s agricultural loans increased 2.5% in the previous year and totaled 13.6% of all its loans.

  • Ida Grove Bancshares from Ida Grove, Iowa, had $ 987 million in farm loans, including $ 419.7 million in operating loans and $ 567.3 million in home loans. Ida Grove increased its agricultural loans by 6.4% over the year, with 76.9% of its loans in agriculture.

  • Dacotah Banks, Inc., of Aberdeen, SD, had $ 937.9 million in farm loans, including $ 362.7 million for operations and $ 575.2 million for real estate. DBIN increased its agricultural loans by 2.3% the previous year. Agriculture represented 44.1% of its loans.

  • Stockman Financial Corp, Miles City, Mont.., had $ 783.2 million in farm loans, including $ 302.1 million in operating loans and $ 481.1 million in home loans. The company’s agricultural portfolio increased by 1% over the year and represents 29.7% of its activity.

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Santander 2022 auto loan review: rates and terms Tue, 09 Mar 2021 10:57:57 +0000

Disclosure of the advertiser

A Santander car loan can be tempting for drivers who have already filed for bankruptcy or have a low credit rating. However, before signing a contract with Santander, it is worth considering what the Santander auto loan ratings have to say about the lender.

In this article, we will take a close look at the details of the Santander car loan and customer ratings to give you a better picture of the lender.

To find the best loan deal for your budget, you will need to compare the options of several lenders. Discover our opinion on the best auto loans for our best recommendations.

In this article:

About Santander

Based: 1902

Headquarter: Boston, Massachusetts

Santander Bank is a 100% subsidiary of the Spanish group Santander. Among its many banking services, Santander customers can apply for new and used car loans. Santander does not offer auto refinancing, lease buyouts, or personal sales loans.

New car loans are guaranteed directly by Santander or by Chrysler financing, with which Santander is a partner. Used car loans are handled by Vroom, a New York-based online used car retailer.

Benefits of the Santander auto loan Disadvantages of the Santander auto loan

Offers loans to bankrupt clients

and poor credit scores

Bad reputation of customers
Easy application process History of deceptive lending practices

Can apply for financing and shop

for a used car via the same platform (Vroom)

High interest rates

Santander car loan details

Santander uses what he calls “simple interest loan contracts”. Interest on these contracts accrues daily and follows a monthly payment schedule. There is no penalty for making your prepayments. Indeed, if you make advance payments on your Santander car loan, you will accumulate less interest and be able to repay your contract sooner. However, if you miss payments, your interest can snowball and become an unmanageable sum.

Santander car loan details
Loan amount range $ 5,000 to $ 75,000
APR As low as 1.9%
term of the loan Up to 72 months

While Santander advertises rates as low as 1.9%, many customers have reported Annual Percentage Rates (APRs) of up to 20% and more with their Santander loans.

Santander auto loan application process

The Santander auto loan application process is different for new and used car purchases. New car financing is handled by Santander Consumer USA, Inc. or Chrysler Capital, while used purchases go through Vroom. Borrowers with bad credit can also apply on, Santander’s direct lending platform.

Santander Consumer USA partners with more than 14,000 dealers across the country to provide auto loans. To find a loan under this program, you must first visit a participating dealer and then apply for financing there.

With Chrysler Capital, you can browse the online inventory of any FCA dealership, apply for financing, and purchase a vehicle online. When you go to the site, you can see local offers for your zip code and national offers. The FCA brand includes all Alfa Romeo, Chrysler, Dodge, Fiat, Jeep and Ram models.

Potential borrowers can complete an online application for pre-approval and receive a response in as little as 60 seconds. After receiving the pre-approval, you will need to contact a reseller to complete the transaction. Be aware that getting pre-approved will require a thorough investigation of your credit report. This is because pre-approval can be used to start a loan, where a simple prequalification cannot.

You can also apply for financing in person at participating Chrysler dealerships.

Chrysler Minimum Capital Requirements

Santander recommends that potential applicants have a minimum credit score of 650. Preference is also given to those who have at least one year in their current residence and one year with their current employer.

Many lenders do not serve borrowers who have already filed for bankruptcy or have bad credit, but if you are in this situation, you may still be eligible for a Santander car loan through RoadLoans. This is Santander’s online direct lending platform.

The RoadLoans process involves submitting a complete credit application for pre-approval. If approved, you have the bargaining power of a cash buyer to negotiate a good price with a dealer of your choice.

Minimum RoadLoans Requirements

RoadLoans specializes in credit borrowers. RoadLoans does not state a minimum credit score, but you will need to earn an annual income of $ 21,600 or more. Many people who have poor credit or past bankruptcies have found financing through RoadLoans. Be aware that interest rates can be high for those with low scores.

Santander offers used car shopping through Vroom, an online used car retailer. Vroom allows customers to browse available vehicles and even have their new cars delivered right to their homes.

Vroom has 12 different lending partners, including Santander, Capital One and TD Bank. This means that you have more funding options when you apply on the site.

With Vroom, you can submit a short application to be prequalified. This process does not affect your credit score. This is useful for seeing what amount of finance you qualify for before you shop. You will then choose a vehicle and complete a five-minute online application for financing.

Minimum Vroom Requirements

Vroom does not list a minimum credit score, but if you have a low score you should expect to prove some type of regular income. According to Vroom, his lending partners can work with most borrowers.

Santander Auto Loan Reviews and Reputation

Santander has a bad reputation when it comes to auto loans. It is currently the subject of a class action lawsuit, and 34 state attorneys general have filed allegations that Santander granted unfair auto loans with excessive interest rates.

Santander has a Better Business Bureau (BBB) ​​B rating and a 1.1 out of 5 star rating based on less than 250 reviews. On Trustpilot, the company has a 1.4-star rating based on more than 3,500 reviews.

Not everyone is unhappy with Santander and some customers report a satisfactory experience. Here is a positive review of Santander Auto Loans that we found:

“This bank is great. I have a car loan with them. Recently I started a business and it delayed me a bit. They were very understanding and very enthusiastic for me … on top of that, they even deferred a payment for me in order to help cover the costs of the business. ”

– Ryan B. via BBB

Unfortunately, most customers are unhappy with Santander because of the high fees and deceptive practices. Common complaints are about poor customer service, poor pricing structure, and excessive interest rates.

“I would not recommend doing business with [Santander]. I’ve been paying my lease for almost seven years, and every time it looks like the payment is dropping, they find a way to add a fee.

– Reynaldo B. via BBB

“[I] messaged for someone to review my account due to the extremely high interest rate. [I] bought the car in 2016. It’s a 2013 Avenger, and [I] have already paid over $ 20,000. [I] owes another $ 11,000 with the sticker price of $ 9,999.

– Debra B. via BBB

Our opinion on Santander car loans: 2.5 stars

The fact that Santander has recently been the subject of a class action lawsuit over auto loans with very low loan-to-value ratios indicates that this lender is not on the right track. Overall, we don’t recommend getting a Santander auto loan. Even if you have bad credit or open bankruptcy, you can probably find bad credit auto loan offers from more reputable lenders.

Our assessment 2.5
Loan details 2.0
Loan availability 3.5
Application process 3.5
Customer service 1.0

Faq: Santander car loan

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Electric utilities hope to get approval of the full loan amount from PFC by the end of March Tue, 09 Mar 2021 10:57:57 +0000

The electric utilities hope to receive the full sanctioned loan amount from the Power Finance Corporation (PFC) before the end of the fiscal year.

The PFC has sanctioned 14,868 crore for the current fiscal year, of which 10,395 crore has been released until the end of the third quarter ending December 31. The state, however, has not received the full amount of the sanctioned loan amount for the last four years except 2018-19.

According to the information available, the releases in Telangana were 8,367 crore against 15,991 crore in 2017-18 and 14,313 crore were released in 2019-2020 against the sanctioned loan of 21,506 crore. However, the year 2018-19 saw the release of 16,742 crore, more than 2,500 crore more than the sanctioned amount of 14,229 crore.

The State is among the first beneficiaries of the PFC in the form of loans representing nearly 20% of the total loans sanctioned by the company during the period. Officials attributed the delays in releasing loan amounts to the long gestation periods of projects undertaken in the state, which span four to five years.

“As the projects have long gestation periods, releases will be made accordingly based on complaints submitted on the progress of work in progress,” said a senior official. The hindu. In addition, loans were not limited to major projects like Yadadri and funds were also raised for some components of the prestigious Kaleshwaram project. “Sanctions have been given for undertaking work such as installing the project’s pumping systems that involve electromechanical components,” the official said.

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Banks pile up in treasury bills, helping finance government borrowing frenzy Tue, 09 Mar 2021 10:57:56 +0000 Rising deposits and falling lending are pushing banks to dramatically increase their holdings of US Treasuries, providing significant support to the bond market in an era of massive government borrowing.

Holdings in U.S. Treasury commercial banks and agency securities other than mortgage bonds have risen by more than $ 250 billion since late February, as their total deposits have jumped by more than $ 2 trillion, data shows from the Federal Reserve. Commercial and industrial loans first increased when companies used their credit facilities, but many have since paid off bank indebtedness and the volume of loans and rentals has declined.

Analysts say the surge in deposits was due to several factors, including government stimulus programs and the cautious behavior of many people and businesses in the midst of a pandemic. Banks, on the other hand, have been less willing to lend because they worry about the economic outlook, which gives them more liquidity to invest in assets like treasury bills.

Larger factors also contribute to lower Treasury yields, which fall when bond prices rise. Inflation has been low for years, investors want a safe place to put their money, and the Federal Reserve has both bought bonds and promised near-zero short-term interest rates for years to come.

Despite this, demand from banks and other sources like money market funds has played a critical role, analysts say, allowing the government to issue more than $ 3 trillion in debt since February without pushing up yields. significantly, as some had feared. The yield on the 10-year benchmark bond stood at 0.694% on Friday, compared to 1.909% at the end of 2019.

Investor appetite for Treasuries will be tested again this week as the government lines up an additional $ 155 billion in new note auctions. Traders will also watch for Fed Chairman Jerome Powell to appear before congressional panels on Wednesday and Thursday, and will keep an eye on stocks after the major indices posted their third straight week of decline.

“The accumulation of treasury bills by the banks has helped a lot to finance the government’s increased deficit needs,” said Mark Cabana, head of US interest rate strategy at Bank of America.

Banks typically buy treasury bills with maturities between one and five years, analysts say. Longer-term bonds are generally less attractive because they are more volatile, while shorter-term debt offers barely more interest than what banks can get from their own reserve accounts with the Fed.

Money market funds have also received a huge influx as many investors have shifted from riskier investments to cash. Most of this has been invested in government money market funds, which invest only in treasury bills and other government-guaranteed securities.

But blue-chip money market fund managers, who can buy a wider range of short-term debt securities, have also increased their holdings of government debt. Together, the two types of money market funds have increased their holdings of short-term T-bills, with maturities of up to one year, by more than $ 1.3 trillion since the end of February.

So much liquidity flowed into these funds that shortly before the Treasury began issuing new debt, the yields on Treasury bills turned negative. Certain public money market funds, such as those managed by Fidelity Investments, stopped taking money from new investors because of concerns about where they might invest it.

Blake Gwinn, head of interest rate strategy at NatWest Markets, said money market funds’ need for short-term bills helped keep yields within a narrow range even as the Treasury began to pump down. new vouchers. These securities represented $ 2.5 trillion of the $ 3.3 trillion net issued from the Treasury between late February and late August.


How do you see the relationship between banks and the Treasury market evolving? Join the conversation below.

Banks and money market funds were so important that some began to wonder how the market would react if either source of demand became less reliable. Bank lending, for example, is expected to increase as the economy improves, likely supplanting some bond purchases. Investors also tend to withdraw liquidity from money market funds once they move away from major market shocks, a trend that has shown signs of repeating recently.

“There is definitely a risk that you will see continued outflows of money market funds,” Cabana said. Likewise, he said, there are indications that bank deposits, excluding reserves, are stabilizing and “as long as it is, it increases the risk of a hike in overall Treasury rates.”

Yet most analysts, including Mr. Cabana, are not yet affected. One reason: The Fed helped boost deposits by buying both treasury bills and agency mortgage securities, currently at a rate of $ 120 billion per month. These purchases essentially inject money into the economy, which ends up in deposits. If the Fed repeats its game plan after the 2008-09 financial crisis, it could be years before it stops hoarding more bonds, let alone cutting holdings.

Very short-term bond yields should also be constrained by the interest rates explicitly set by the Fed. Some banks may not want to buy bonds that earn only 0.01 percentage point more than the yield on their central bank deposits, but they would jump at the opportunity to buy bonds that offer an additional 0 yield. .08 percentage point, said Jon Hill, an interest rate specialist. strategist at BMO Capital Markets.

Some analysts say the Treasury will increasingly want to replace short-term bills with longer-term bonds to provide the government with more stable funding. This is to appeal to foreign investors, whose taste for US Treasuries has waned in recent years, as well as traditional asset managers.

One concern: Some investors have started to question whether government bonds are still playing their traditional role of natural hedging against the stock markets. Historically, bond prices have risen — and yields have fallen — as stock prices fall. With returns already so low, this traditional relationship didn’t work out consistently, and it broke down completely during the sell-off of Everything in March.

“There is currently some doubt as to the usefulness of Treasuries as a hedge against riskier assets,” said Andrey Kuznetsov, senior credit portfolio manager, international operations at Federated Hermes. “It seems more likely that we will see market indigestion with a supply of longer-dated T-bills.”

Write to Sam Goldfarb at and Paul J. Davies at

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This plastic bag turns into fertilizer (or you can eat it) Tue, 09 Mar 2021 10:57:56 +0000

Plain plastic is a stubborn and angry thing. From its inception, its sole purpose is to exist, for about 1,000 years. Neptune Plastic, by comparison, is “a pretty cold and understanding thing,” says Marx Acosta-Rubio, one of the three students behind Neptune Plastics Inc.

The startup recently won an award from the Massachusetts Institute of Technology for bringing its marine degradable, wildlife-digestible, and back-compostable single-use plastic to market. Acosta-Rubio loves to show off how good this plastic is (made from food grade material) by putting a piece in its mouth.

The startup’s initial product is a polybag, and the group plans to target the transportation and packaging industry.

Take a look at all plastic inside the next shipping box you receive and consider what can and cannot be recycled. That’s a lot of air cushions that could go in your compost bin instead of the trash if the folks in Neptune have what they want.

For starters, Acosta-Rubio’s Neptune team, Grant Christensen, and Hal Jones, all undergraduates at Brigham Young University in Utah, received $ 10,000 through the program. Lemelson-MIT Student Prize 2020 for what the contest organizers call a “uniquely designed biodegradable invention”. Acosta-Rubio says the material is unique in its composition as well as a few technical aspects, including heat sealability.

The co-founders of Neptune plastics plan to use the funding for product and process development and hope to bring Neptune Plastic to market in two to three months or “as soon as possible,” Acosta-Rubio said.

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Neptune’s team say they suffered the negative effects of plastic pollution while serving as missionaries for their church.

“I did missionary work in Miami and rode a lot,” Acosta-Rubio recalls. “It didn’t take long for me to notice huge amounts of garbage on the floor. One day we were riding a bike somewhere and I was wondering why this plastic pollution was still there. I felt like this was something that should have been resolved now.

Christensen had seen similar dire situations in Brazil. Jones saw them in Peru.

The group first started working on an environmentally friendly single-use water bottle, but turned to developing a film, which landed them. second place in an innovative student of the year competition. They were then invited to the university’s acceleration program and spent two semesters working on product development.

Neptune is the god of water in mythology.

Acosta-Rubio says they chose the name because it sounded good. Also cool: their plastic dissolves in water within days, much better than regular plastic which ends up turning into tiny pieces of microplastics that can harm fish and humans.

“The material (Neptune) is made up entirely of components that can be found in food… we have done some testing to make sure it breaks down the way we would like,” Acosta-Rubio said.

The startup has also carried out pilot batch tests with its polybags, and the co-founders now say they are ready to move on to larger corporate partnerships.

“Right from the design stage, (our material) understands its role,” he says. “It is to stay strong and protect its contents until it is time to let go and return to the land from which it came.” He knows when to relax depending on the circumstances he finds himself in.

“When it encounters a situation like a landfill or a body of water, that’s when it starts to degrade, leaving no microplastics behind. Other uses depend on the direction of development. We have optimized the material for a specific use case (polybags) so far. There are a few directions that we feel are easily accessible, mostly things that are similar to polybags, but that’s really just the beginning.

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Report: Nets to sign All-Star Blake Griffin six times Tue, 09 Mar 2021 10:57:55 +0000

Over the past two days, there have been rumors that the Brooklyn Nets will sign six-time All-Star forward Blake Griffin.

Once Griffin was officially bought by the Detroit Pistons at the end of last week, Brooklyn was considered the overwhelming favorite to land the big man. It is now done.

“Blake Griffin has cleared free agency waivers and the six-time NBA All-Star is expected to sign with the Brooklyn Nets,” Shams Charania from The Athletic reported on Sunday.

Despite interest from both Los Angeles teams as well as the Golden State Warriors, rumors from the Nets have been hinting at the eventuality for some time now.

It makes sense. After acquiring James Harden in a successful trade earlier this season, Brooklyn suffered a serious blow from a depth perspective. The team had been linked with multiple players, both in the buyout market and on the trading block until the March 25 deadline.

One of the biggest needs of these nets has been in the frontcourt. By acquiring Griffin, Brooklyn is able to pair him with former Los Angeles Clippers teammate DeAndre Jordan. It could end up being the roster of one of the most notable starting five in modern league history along with Griffin, Jordan, Harden, Kevin Durant and Kyrie Irving.

Griffin, 31, is a far cry from the player he was earlier in his career with the Clippers. The six-time All-Star averaged 12.3 points, 5.2 rebounds and 3.9 assists on 36.5 percent of shots from the field with Detroit before the two sides opted to go their separate ways.

There is another intriguing backdrop to all of this. By adding Griffin to the buyout market, these Nets didn’t use up the capital it would take to close a deal before March 25.

Earlier indications were that other teams had interest in injured goalkeeper Spencer Dinwiddie. The impending restricted free agent is lost for the season due to a partially torn ACL.

Having said that, it has good value in the trade market. Dinwiddie, 27, averaged 20.6 points and 6.8 assists for the Nets last season. He is also expected to take the $ 12.3 million option on his contract for the 2021-22 season.

Any team taking a step for Dinwiddie would do so with the hope that he would be able to get back into shape next season. In turn, that could give Brooklyn more depth as the team goes all-in for a championship next summer.

At this point, a second backup goalie or someone who can play the two forward positions are the most likely targets for Nets general manager Sean Marks. Purely hypothetical, but someone like Orlando Magic goalie Evan Fournier or PJ Tucker of the Houston Rockets might make sense.

Either way, Griffin’s acquisition could be the start of a rather busy three-week spell in the Big Apple as Brooklyn looks to improve its 24-13 start to the season.

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