Not all aspects of finance will ever apply to you but personal finance is something you have to deal with everyday–whether you think you are or not. It’s important that you know some personal finance basics so you understand what’s going on with your money. Here are seven very basic terms that everyone should know:

madamenoire.com

Net Worth
Your personal net worth is the difference between your assets and debt. A positive net worth means you have more cash flow from your resources than liabilities. A negative net worth means you owe more than you bring in.

Article source: http://madamenoire.com/178349/7-personal-finance-terms-you-should-know/

WASHINGTON — Thousands of condo unit owners and buyers around the country could soon be in line for some welcome news on mortgage financing: Though officials are mum on specifics, the Federal Housing Administration is readying changes to its controversial condominium rules that have rendered large numbers of units ineligible for low down-payment insured mortgages.

The revisions could remove at least some of the obstacles that have dissuaded condominium homeowner association boards from seeking FHA approvals or recertifications of their buildings for FHA loans during the past 18 months. Under the agency’s regulations, individual condo units in a building cannot be sold to buyers using FHA insured mortgages unless the property as a whole has been approved for financing.

According to condominium experts, realty agents, lenders and builders, FHA’s rules have become overly strict and have cut off unit buyers from their best source of low-cost mortgage money, thereby frustrating the real estate recovery that the Obama administration says it advocates.

Christopher L. Gardner, managing member of FHA Pros LLC, said barely 25 percent of all condo projects that are potentially eligible for FHA financing are now approved. FHA Pros is a national consulting firm based in Northridge, Calif., that assists condo boards to obtain FHA approvals.

This low approval percentage for condos is despite the fact, says Gardner, that FHA financing is the No. 1 mortgage choice for half of all condo buyers and is crucial to first-time and minority purchasers.

Moe Veissi, president of the National Association of Realtors and a broker in Miami, says FHA’s strict rules “have had an enormous impact on individuals” across the country, especially residents of condo projects who suddenly find they are unable to sell their units because their condo board has not sought or obtained approval from FHA as the result of objections to the agency’s strict criteria. This, in turn, depresses the prices unit owners can obtain and ultimately, said Veissi, harms their equity holdings and financial futures.

FHA officials defend their requirements as prudent and necessary to avoid insurance fund losses, but have expressed a willingness to reconsider some of the issues that have upset condo owners and the real estate industry. Among the biggest areas of criticism of FHA’s rules are its limitations on:

• Non-owner occupancy. The agency requires that no more than 50 percent of the units in a project or building be non-owner-occupied. This rule alone has made large numbers of condominiums in hard-hit markets ineligible for FHA financing, where investors have purchased units for cash to turn into rentals.

• Delinquent condo association fee payments. FHA refuses to approve a project where more than 15 percent of the units are 30 days or more behind on payments of condo fees to the association. Given the state of the economy, this has been a problem for thousands of associations, even in relatively prosperous markets. Steve Stamets, a loan officer with Apex Home Loans in Rockville, Md., says some unit sellers and buyers have been so frustrated by the rule that they have offered to pay the amount of delinquent fees needed to bring the overall project into compliance “just to get the deal done. This is a ridiculous situation,” said Stamets, who added: “When somebody calls up now and says they want to buy a condo with an FHA loan, I cringe.”

• Nonresidential space usage. FHA has set a cap of 25 percent of the total floor space in a project for commercial use. Critics say this is too low and unrealistic for condo projects in urban areas, where retail and office revenues can be important to overall financial feasibility.

The agency has imposed a long list of other requirements on insurance and reserves, plus a highly controversial rule that associations interpret as creating severe legal liabilities for condo board officers if applications for FHA approvals contain inaccuracies. Andrew Fortin, vice president for government and public affairs at Dallas-based Associa, one of the country’s largest homeowner association management firms, says that many boards, whose members face the prospect of up to 30 years in prison and heavy financial penalties, have refused to apply solely because of this personal liability requirement.

FHA is expected to clarify the personal liability language and make other modifications in its forthcoming rules. Whether the changes will be enough to convince condo boards to apply for approvals in large numbers is uncertain, but industry experts say they — and condo unit owners — are likely to welcome whatever loosening of the current restrictions FHA can offer.

• Write to Ken Harney at P.O. Box 15281, Chevy Chase, MD 20815 or via email at kenharney@earthlink.net.

© 2012, Washington Post Writers Group

Article source: http://www.dailyherald.com/article/20120518/entlife/705189977/

Syracuse, NY (PRWEB) May 18, 2012

On May 17, 2012, Nichols Kaster, PLLP filed a class action lawsuit in the Northern District of New York on behalf of Plaintiff Gordon Casey and other borrowers with mortgages serviced by Citibank or Midland Mortgage. The Complaint alleges that Citibank and Midland Mortgage routinely force-place excessive amounts of flood insurance on borrowers, and improperly arrange for commissions for themselves or their affiliates on force-placed policies.

Casey’s story was the subject of a recent article in the Syracuse Post-Standard. According to the Complaint, Citibank unlawfully required Casey to carry flood insurance coverage that exceeded the amount of his loan balance by more than $100,000. After Casey’s mortgage was acquired by Midland, Midland required Casey to carry an even greater amount of flood insurance ($237,349). Midland’s requirement was approximately fourteen times Casey’s small loan balance of less than $17,000.

The lawsuit further alleges that both Citibank and Midland Mortgage purchased expensive “force-placed” insurance coverage out of Casey’s escrow account to meet their onerous flood insurance requirements, which are inconsistent with the terms of Plaintiff’s mortgage, HUD requirements, and federal law. In connection with this force-placed coverage, the lawsuit alleges that both lenders and/or their affiliates received improper kickbacks or commissions.

“In today’s economic environment, many homeowners are struggling to make their mortgage payments, and it is wrong for lenders to add to their burden by demanding wholly unnecessary and unauthorized flood insurance that is not required by borrowers’ mortgages or federal law.” said Richter. “It is particularly egregious for lenders to arrange for commissions for themselves or their affiliates in connection with force-placed coverage.” continued Richter.

On the same date that the lawsuit was filed, the New York Department of Financial Services began three days of hearings in connection with its own investigation of the force-placed insurance practices of several banks, including Citibank. The very first witness who testified was a Citibank borrower from Staten Island, New York.

In his class action Complaint, Casey seeks relief on behalf of himself and other borrowers across the country who have been similarly affected by Citibank’s and Midland’s alleged conduct. Based on this alleged conduct, the Complaint asserts claims against Citibank and Midland for (1) breach of contract/breach of the covenant of good faith and fair dealing; (2) unjust enrichment; (3) breach of fiduciary duty in connection with mortgage escrow accounts; (4) violation of the New York Deceptive Practices Act; and (5) violation of the federal Truth-In-Lending Act.

The case is entitled Casey v. Citibank, N.A. et al., No. 5:12-cv-00820-DNH-DEP (N.D.N.Y.). Plaintiff is represented by Donald Nichols, Kai Richter, and E. Michelle Drake from Nichols Kaster, PLLP. Nichols Kaster has offices in Minneapolis, Minnesota and San Francisco, California, and is currently pursuing similar cases against JPMorgan Chase Bank, N.A., Bank of America, N.A., Wells Fargo Bank, N.A., U.S. Bank, N.A., and RBS Citizens, N.A. Additional information is located at http://www.nka.com or may be obtained by calling Nichols Kaster, PLLP at 877-448-0492.

Kai Richter
Nichols Kaster, PLLP
612-256-3278
Email Information

Article source: http://news.yahoo.com/nichols-kaster-pllp-files-class-action-against-citibank-185614971.html

Fixed mortgages for 30-year loan dips to 3.79 percent; 15-year loan averages. 3.04 percent. But record low rates on fixed mortgages have not ignited home sales.

By

Marcy Gordon, AP Business Writer /
May 18, 2012

A San Jose, Calif., home sits empty as it is put on the market for sale in this April file photo. The average rate for conventional fixed mortgages fell to new lows this week.

Tony Avelar/Staff/File

Enlarge

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Article source: http://www.csmonitor.com/Business/Latest-News-Wires/2012/0518/Fixed-mortgages-new-lows-for-15-30-year-loans

Even the hottest initial public stock offerings can lose steam after their first day of trading.

Sure, company insiders will make money selling at the opening price. And investors who used connections or big bucks to score shares at the IPO price will profit if they sell after a first-day “pop.”

For everyone else, the wildly mixed record of other ballyhooed IPOs beyond their first trading session offers a lesson. It’s one that should remind us that buying Facebook stock Friday provides a chance to lose money.

It’s understandable that everyone wants to get in early on what could be the next Google. Shares of the Internet search leader had an initial offering price of $85 in 2004, started on the stock market at $100 and climbed above $700 by 2007. Even after moving sideways for more than four years, they’re still above $600.

But odds are against hitting a grand slam like that in the current market.

Cautionary points to weigh if the Facebook frenzy is tempting you to buy stock on Day 1:

YOU’LL PAY MORE FOR YOUR STOCK THAN THE SMART MONEY DID.

The vast majority of average investors couldn’t get in at the $38-per-share offer price. Those shares went largely to company insiders, the deal’s underwriters or their fat-walleted clients. The price almost always shoots quickly higher by the time orders to buy at the market price kick in.

SEVERAL OF LAST YEAR’S “MUST-HAVE” IPOS AREN’T ANY MORE.

- Pandora, an Internet radio company, went public June 15 at $20 a share. You could have bought the stock during the day for $26. It’s now trading under $11.

- Groupon, the online daily deal company, priced its stock at $20 a share in its Nov. 4 IPO. The stock traded above $31 the first day. Now it’s under $13.

- Zynga, the developer of “FarmVille” and other Facebook games, went public at $10 a share on Dec.16. The stock traded as high as $11.50 on its opening day. Lately it’s around $8.

- Even one of last year’s IPO stars isn’t a huge winner when you factor in the risk. LinkedIn more than doubled from its $45 offer price within minutes of hitting the market last May 19 and reached $122.70 before closing the first day at $94.25. It’s back to around $105 after a turbulent year, with a modest overall gain of 11 percent since the first day.

Buy-and-hold investors who want to make money off Facebook should hold off on the first day of trading. Maybe later they can think about buying.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Article source: http://www.cbs8.com/story/18553353/why-you-shouldnt-buy-facebook-stock-today

I don’t: How debt affects your marriage prospects
Women are a lot less open than men to marrying to someone with big money troubles. So get your debts squared away before you propose, guys.

Blaming the bankers
This video, in which a 12-year-old scathingly critiques the Canadian banking system, has gone viral online. Interesting perspective, but don’t swallow it whole.

Parents, here’s why you’re feeling poorer
The cost of kids is rising fast, according to statistics gathered by a U.S. government agency.

How to save money on currency exchange
A blogger reviews XE Trade, an online currency exchange service that offers better rates than you’ll typically find at banks and foreign exchange offices.

More money
Join the 13,000+ people who subscribe to my Facebook personal finance community for talk about investing, retirement, real estate, banking and other financial matters. I’m also on Twitter.

Follow us on Twitter: @globemoney

Editor’s note: If you don’t receive Rob Carrick’s newsletter twice weekly by email, you can sign up to get it for free at The Globe and Mail. All you need to do is register for the site, or if you’ve already registered, log in and go to your profile at the top of the homepage. Once you’re in your profile, look under Newsletters and Alerts and look for the Personal Finance Reader and other newsletters. Other financial newsletters include: Business Ticker, a summary of the day’s top business stories; and Berman’s Market Update, a summary of the markets at the open, noon and close.

Article source: http://www.theglobeandmail.com/globe-investor/personal-finance/personal-finance-reader/rob-carricks-reader-i-dont-how-debt-affects-your-marriage-prospects/article2436827/?utm_medium=Feeds%3A%20RSS%2FAtom&utm_source=Report%20On%20Business&utm_content=2436827

Asia Markets

Asia stocks sink, erasing billions in market value

3.

Article source: http://www.marketwatch.com/news/story.asp?guid=%7B6D8CD5F3-EA89-483B-BD31-CE7554782BEE%7D&siteid=rss&rss=1

The Mail Online reports that the Bank of England has issued a warning, apparently UK lenders are being hit by higher borrowing costs, families have to prepare to pay more as such increase is passed down to customers. Looking more into this we see that The Guardian are reporting that the first-time buyer mortgage lending has risen to 74% before stamp duty axe, this adds up to a staggering 24,000 in March for the number of mortgages advanced to first-time buyers with 98% taking out repayment loans, please visit the sources above for the full details.

Now back to the UK Mortgages app via the App Store, this application has everything you need to make life easier and manageable. It is very fast and key features include the most comprehensive mortgage product data, which allows users to find, out which mortgages are currently available, this is updated twice a day for accuracy. It also comes with a find a broker in your local area, and many different calculators to help you work out costings.

The calculator’s offer: How much can I borrow? How much will it cost me? What happens if interest rates change? How much will stamp duty cost me? What are the effects of overpaying my mortgage? And Can I save money by remortgaging?

The latest update now includes the Stamp Duty calculator; this has been updated to reflect the recent Government changes to First Time Buyers and properties over £2m.

Please do hit the link above and let us know what you think of the UK Mortgages app.

Article source: http://www.phonesreview.co.uk/2012/05/18/new-uk-mortgages-product-data-and-calculators-app/

RECORD LOWS: The rate on the 30-year mortgage, the most popular, dipped to 3.79 percent. That’s down from 3.83 percent last week and the lowest since long-term mortgages began in the 1950s. The 15-year, an option for refinancing, declined to 3.04 percent from last week’s previous record low of 3.05 percent.

HOUSING OUTLOOK: Cheaper mortgages haven’t done much to boost home sales. Rates on the 30-year loan have been below 4 percent since early December, yet sales of previously occupied homes fell again in March after picking up in January and February. They remain well below healthy levels.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Article source: http://www.msnbc.msn.com/id/47469601

Gold and silver tumbled down again during yesterday along with other commodities prices. The new elections in Greece will be held on June 17. In the meantime the ECB temporarily stopped lending to several Greek banks. Did the minutes of the recent FOMC meeting suggest another QE program on the way? I don’t think so, but you will be the judge of that. The U.S housing starts rose by 2.6% in April. On today’s agenda: U.S. Jobless Claims Update, Philly and Fed Manufacturing Survey.

Gold declined again on Wednesday by 1.32% to $1,536.6; silver also tumbled down by 0.96% to $28.08. During the month gold fell by 7.67% and silver by 12.32%.

FOMC Minutes

Yesterday the minutes of the April FOMC meeting were released; it didn’t reveal much. The FOMC members didn’t think another stimulus plan is needed for now as the U.S economy is progressing from the GDP and Labor market perspective. On the other hand some investors might consider the following statement as an indication of another QE program on the way:

“Several members indicated that additional monetary policy accommodation could be necessary if the economic recovery lost momentum or the downside risks to the forecast became great enough.”

I think it is not sufficient evidence to determine another QE program on the way, at least at this stage. If the U.S labor market will show signs of slowdown it might put back on the table the QE3 path.

On Today’s Agenda

U.S. Jobless Claims Update: in the previous report the jobless claims edged down to 367,000; this upcoming weekly update may affect the direction of the U.S dollar and consequently bullion;

Philly Fed Manufacturing Index: In the previous April survey, the growth rate moderately declined from +12.5 in March to +8.5 in April 2012. If this trend will continue this index may adversely affect gold (the recent Philly Fed review);

U.S. Treasuries / Bullion– May

The U.S. 10-year Treasury yield remained unchanged on Wednesday at 1.76%. This decline in LT securities yields may indicate that the demand for “secure investments” continue to rise. During May there was a mid-strong positive correlation between U.S. long term Treasury yield and gold. The recent rise in demand for U.S. 10-year Treasury might be stem from the high anxiety levels in Europe. The chart below suggests that if the LT U.S. treasury yield will continue to decrease, it might indicate that gold will further decrease.

Daily Outlook

Bullion rates sharply declined again yesterday and thus both metals completed a four day consecutive fall. But currently bullion prices are rising. This might be stems from further speculation of the FOMC’s next step and perhaps even the possibly of another QE program. I think it’s too soon to determine whether there will be QE3 in the near future and the current progress of the U.S economy from the GDP and Labor point of view doesn’t seem to warrant another stimulus plan. The progress in Japan’s economy might also play a role in the rally of commodities prices. Finally the upcoming U.S reports mainly the Philly Fed and Jobless claims may affect bullion.

This gold and silver prices forecast was first presents in Trading NRG

For further reading:

Gold and Silver Weekly Outlook for May 14-18

Gold and Silver Outlook for May 2012

By: Lior Cohen, M.A. in Economics, Commodities Analyst and Blogger at Trading NRG

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Article source: http://finance.yahoo.com/news/guest-commentary-gold-silver-daily-131500341.html