World of Finances

If you qualify, here’s how Mortgage rates are at their lowest levels ever, making this a great opportunity to refinance. However, those who want to refinance in today’s tough lending environment face hurdles. Credit scores must be higher than they used to be. Debt loads must be smaller. Employment must be documented. The biggest obstacle is a lack of home equity. Some people owe more on their mortgages than their homes are worth. They’re considered “underwater.” Banks aren’t inclined to lend to them. But for those with stable jobs, extra cash, little debt and some home equity, low rates could allow for sharply reduced mortgage payments.   When refinancing is impossible The lowest rates are generally reserved for those with credit scores of 720 or more, said Mark Goldman, a Southern California mortgage broker who lectures at San Diego State University. About 40 percent of US homeowners have scores that high. Full Article…

Months ago we posted an article about impending debit card fees. Well  folks, here they are. At least at Bank of America and several other large banks. A consequence of the Durbin Amendment to the Dodd- Frank Act, Bank of America, and many other large banks are rolling out monthly fees for debit card users. There is a huge backlash going on about this claiming it is unfair. There are protests, petitions, lawsuits and all sorts of paperwork being thrown around.

Well, at risk of sounding like a fan or apologist for the banks (and I am not, I am a mere consumer, and pro consumer all the way) I only ask one question: Does the company in this case a bank, provide me with a service that I find reasonable for the price I pay? That is the only viable question here.

The banks will lose a huge amount of money due to this amendment, and the lower fees they were able to charge the retailer for debit card use. The retailers benefited from the difference.

Full Article…

Share Don’t mess with Texas…or do? As is well known by now, the $269 million dollar bill sent by Texas Comptroller Susan Combs to Amazon for failure to collect and remit sales tax from 2005-2009 triggered state efforts on a national scale to hold the online retailer accountable for lost revenue. The debate has mostly focused on whether or not affiliates should be considered “physically present,” as exemplified by recent showdowns in North Carolina, California, New York, and Rhode Island. This focus stems from the 1992 Supreme Court Case Quill Corp. vs. North Dakota ruling which legally requires retailers that have a physical presence (nexus) in a state – i.e. distribution centers, plants, warehouses, storefronts, etc. – to collect and remit sales tax. Many states have adopted legislation defining nexus at the state level. In the case of Texas, there was a fully operational Amazon distribution center in Irving during the period for which the giant retailer was billed, in addition to thousands of local affiliates. Full Article…

Although opponents won a victory in the battle, the war is far from over. In fact, the most controversial aspect of the original rule including IRAs will return when the agency issues a revised regulation early next year.

IRAs will continue to be part of the re-proposed rule, Assistant Labor Secretary Phyllis C. Borzi wrote in an e-mail. The rule is designed to provide the strongest possible protections to business owners and retirement savers in plans and IRAs.

The department argues that the Employee Retirement Income Security Act of 1974, known as ERISA, must be updated to ensure that advisers act in the best interests of workers and retirees as they build their retirement nest eggs often working on their own through 401(k)s and IRAs.

Critics said that the proposed rule was too expansive and would subject broker-dealer IRA advisers to fiduciary duty for the first time. They said it would curtail commissions, raise compliance and liability costs and drive broker-dealers out of the IRA market, thus limiting small investors’ access to IRA advice.

Full Article…