HELOCs Face Several Challenges Today from American Borrowers
In the years leading up to the 2008 meltdown, the HELOC (Home Equity Line of Credit) was a fairly popular source of cash for many American homeowners. It helped a lot of homes to become a veritable ‘piggy bank’. However, over the past decade or so, HELOCs have suffered considerably; much of this is due to the meltdown backlash. Also, paperwork for this type of LOC is considerable, not to mention the average 45-day wait time for closing. What are some other stumbling blocks for the HELOC? Read here for more information.
Top Education Official Proposes Debt Forgiveness to Help the Nation’s $1.5 Trillion Borrowed Debt
A. Wayne Johnson, who is leaving the Department of Federal Student Aid to run for the Senate, says this move would help a lot of the country’s students. The Center for Responsible Lending figures that providing $10K debt relief to all borrowers would wipe out 60% of borrowers in default. This would particularly help black Americans, who generally have a more difficult time with student debt — often because of more limited resources and predatory lending from for-profit schools. To learn more about solutions from presidential candidates, click here.
Only 57% of American Adults Can be Considered Financially Literate — And Some People are Taking a Stand
Charles Schwab Foundation, together with DonorsChoose.org, has created the Innovation Challenge, an experiential learning program. The program is designed to give students a hands-on immersion in financial literacy, with exercises like visiting a virtual bank — or starting and running a small business. While nearly all teachers say financial education is important, only 12% actually implement it due to lack of funds. Read here to find out more how the program is manifesting itself throughout the country.
Scanted Stock Trading Has Risen in Popularity in Light of Securities Increase
Odd lot trades — or stock trades involving fewer than 100 shares — are becoming more commonplace, making up nearly half of all trades in early October, according to New York Stock Exchange data. The causes of this change are due in large part to by a steady rise in average share prices — and the rise of algorithmic trading. Trading programs often break up transactions into smaller segments, since expensive stocks require more cash for high-volume trades. For more numbers and stats on the odd-lot trend, click here for the WSJ article.