Upside Down Mortgage

Archive for July, 2009

Crise Subprimes

The National Association of Software and Service Companies (Nasscom) report said while the industry clocked a combined growth rate of 28.2 percent in 2007-08, this is expected to slow down to between 21-24 percent in the next fiscal.

But even the projected growth rate of 21-24 percent is "robust" and in sync with the industry target of achieving $60 billion of exports by 2010, Nasscom president Som Mittal told reporters.

He said the industry was "right on target" to achieve the 2010 export goal.

"In the last eight years the average growth rate has been 33.7 percent. We have had as much as 50 percent growth in a single year initially. But it is natural for the growth to stabilise as the industry grows," he said.

The gross revenue from domestic as well as export markets increased to $52 billion in 2007-08 as compared to $39.6 billion the year before.

However, the growth rate fell from around 33 percent in 2006-07.

Exports of information technology (IT) services alone grew by 28.2 percent to gross $23.1 billion, while the BPO sector showed an increase of 30 percent, fetching $10.9 as compared to $8.4 billion the previous fiscal.

Mittal said the industry handled the subprime mortgage crisis in the US well by venturing into industries that were not affected, such as transport, telecom and healthcare.

He, however, admitted that 2007-08 was a "difficult" year because of slowdown in the US economy, the oil and food crises, and currency fluctuations.

Mittal said the full impact of the situation in the US is yet to be felt by Indian companies, and that corporates would have to find ways to cut costs and enhance productivity.

"The cost-cutting measures can have an impact on recruiting process of these companies and the pay-packages offered to fresh graduates," he added.

IT services and the BPO sector has a two million-strong workforce that is increasing by 26 percent annually, the Nasscom report stated.

Mittal brushed aside concerns about the future of outsourcing as it has become a major issue in the run-up to the presidential elections in the US.

"In 2003-04 elections also, offshoring had become a major issue, but the industry has only grown ever since. It is more of an emotive issue. Barack Obama, (the Democratic hopeful) who once voiced his concerns about outsourcing recently acknowledged its importance and referred to it as 'inevitable'," he said.

About the Author:

hi, i am john parker , visit us at a1technology.com/blog

Source - Software, Bpo Industry Growth Will Slow Down Next Year

Les ravages de la crise des "subprimes"-Reporters

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Subprime Gps

Many people believe that top bank executives today earn way too much. Nearly everyone is further enraged when these overpaid bankers appear to have made significant mistakes and have been blamed for their part in the collapse of the economy, and yet still get substantial bonuses. The Attorney General of New York has even gone so far as to issue a subpoena to Bank of America to get a copy of their most well-rewarded employees. Perhaps knowing the public outrage, the ousted CEO of UBS, Peter Wuffli, has decided to return about $10m in bonuses.

What Banks Are Doing

Bankers are doing everything they can to pacify their critics. Golden Sachs announced that they would not be giving bonuses this year to their top executives. The same thing happened to other major banks such as Barclays, UBS and Deutsche Bank. Other banks are expected to follow.

Limiting the bonuses of senior executives may seem to be the easiest solution. However, the real headache is the bonuses for employees below the senior management. Although their individual bonuses cannot compare to the top executives’, they still make up the bulk of the bonus pool. Even though Goldman’s top brass will go without a bonus this year, the rest of the employees will still get about $11.4m in bonuses.

What the Public Is Saying

It doesn’t seem to matter that this amount is almost 35% below last year’s total bonus pool. It doesn’t seem to matter that the bonus rate is expected to decrease by at least 30% every year until the economy gets back on its feet. It doesn’t seem to matter that the actual people who made the risky bets in subprime mortgages have long resigned, and the people left in the bank are those who are cleaning up the mess that was left behind. Hearing that a bank – especially a distressed bank that received federal funding to rescue it – is giving out millions in bonuses to its employees could be very unnerving at the very least. The public is decrying this seeming waste of taxpayers’ money.

What the Bank Must Do

The problem is that banks cannot afford not to pay bonuses this year. First of all, not giving the agreed reward for meeting targets is just wrong, and would cause employee morale to plunge down to even lower levels. Top performers would be tempted to jump ship and transfer to a more stable, more financially rewarding position in another company which is in better shape. In addition, there are departments in the bank which are still performing well, and it is very unfair to punish them for the mistakes of people from other departments.

What the Bank Must Do

Like UBS, banks must negotiate a better payment scheme for their employees, which will closely link performance and pay. However, when analyzing an employee’s performance, the long-term results should be considered and not just the short-term consequences. The problem with focusing on the short-term is that people would tend to take in risky investments that would probably pay off within a year, but may not be profitable or wise to have in the long run. GP

About the Author:

Wilson Field specialise is business recovery and personal debt solutions such as IVAs, CVAs and Liquidation. If you have taken out payment protection insurance on any of your loans then Real Claims specialise in PPI Claims which could win your thousands back from the loan companies.

Source - The Deal about Bankers’ Bonuses

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Loan Modification Capital One

A mortgage loan modification is something you’re going to hear a lot about in 2009. This program, not fully invented yet, is a process whereby the lender agrees to modify the existing terms of your loan. Many times there is an interest rate reduction, reinstatement and often-missed payments are forgiven. 

You can apply for a Mortgage Loan Modification yourself, but it’s grueling work. Even professionals like us have a hard time negotiating with these lenders and an emotional attachment to the property in question would make an already stressful situation that much harder.

Lenders have a Loss Mitigation Department, which handle these requests, but trying to get through to them is nearly impossible, unless you have already missed a payment. Then, the keen interest is triggered and all of a sudden they want to speak to you.

I encourage you to open and to keep current, a dialogue with your lender. Be honest with them and explain to them the reasons for your economic downturn. They may request that you submit a Free Hardship Letter, a sample of which is available on our website. This letter details succinctly the details of your hardship. 

Has somebody lost his or her job? Is  there an illness in the family? Medical bills? Perhaps another mouth to feed? All these are hardships that may lead to economic stress and your inability to keep current on your existing loan.

The lender will require that you submit documentation as well as a stack of paperwork proving what you have told them. This will include tax returns, pay stubs, bank statements etc. And there in no guarantee that they will actually go ahead and modify your loan. If you are too far underwater, they may suggest a short sale.

If the lender sees that you can’t afford a modified mortgage, they will not go through the process and work to adjust your mortgage. Why should they if you’re going to default in another six months anyway? That’s why it is important not to hide income from your lender. They want to see that you can keep your home and if you are receiving rent money or other income that isn’t documented, reveal this to your lender. Isn’t false representation of the truth what caused a lot of this distress we’re going through?

A short sale situation occurs when you owe more than your home is worth. In that case, a lender will agree to take a loss by accepting a sale price for less than you owe. Why would they do this? The reason for the lender’s sudden generosity is that they are trying to stay afloat themselves. Too many non performing assets on their books means they don’t have this tied-up money available for lending. Without loans, a bank is dead in the water.

If you want to try to modify your own loan, get the Hardship Letter sample on our website. If you want to trust the process to an attorney-led team, please consider CMA Capital Funding Inc as your representative.

About the Author:

Chuck Machado is a partner with CMA Capital Funding Inc and is considered a commercial mortgage specialist. He is currently working with homeowners in and their lenders in Loss Mitigation and Loan Modifications

Source - What Exactly is a Loan Modification

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