Bad Credit Indiana Mortgage

Equitable solution

Her finances were skidding out of control until she shifted into reverse. The Northwest Side woman found a solution in a home loan that pays her a reverse mortgage on the modest home she bought in 1986. Tapping her homes equity, the loan provided Jackie Thomas money to pay off debts and will continue to provide money monthly. She is not required to pay anything toward the loan as long as she lives in the house. She or her heirs will repay the loan after the house is sold. The 81-year-old is among a growing number of older homeowners who have embraced reverse mortgages. Since January, the number of reverse mortgages nationwide has increased 77 percent from the 27,186 loans issued during the same period last year. In the 2005 federal fiscal year (October 2004 to September 2005), the Federal Housing Administration endorsed 43,131 reverse mortgages.

Loan arrangers abroad

PERSONAL and car loan providers are expected to continue a booming trade despite increasing bad debts and high petrol prices, a report says.

KPMG's 2005-06 Financial Institutions Performance Survey says spending on bad debts increased 35.3 per cent among the pool of eight finance companies surveyed.

Finance companies spent 0.45 per cent of their assets on bad debts, compared with just 0.21 per cent spent by major banks.

"Any significant decline in credit quality will impact the profitability of the sector due to its greater exposure to unsecured loans," the report says.

Finance companies have injected intense competitive pressures into the lending market, which was previously the exclusive realm of banks. As a result, lenders have cut rates and taken on customers of higher risk to maintain market share.

Bank of America Leads US Regional Bank Profit Gains on Loans

July 19 (Bloomberg) -- Bank of America Corp., the No. 2 U.S. lender by assets, led U.S. banks reporting higher second-quarter profits fueled by a boom in loans and credit-card fees.

Bank of America, based in Charlotte, North Carolina, today said earnings rose 18 percent to a record $5.48 billion, or $1.19 a share, as its acquisition of MBNA Corp. buoyed in revenue from credit cards. SunTrust Banks Inc. and PNC Financial Services Group Inc. led regional banks reporting higher profits, while Bank of New York Co. led gains at custody banks.

U.S. banks' earnings are rising in part because of a drop in bad loans after last year's new bankruptcy law made it tougher for Americans to seek protection from creditors. JPMorgan Chase & Co., the No. 3 U.S. bank, said profit more than tripled to a record $3.54 billion as fewer credit-card customers defaulted on debts and trading revenue rebounded.

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