If Your Mortgage Lender Is In Trouble, Are You?

Many may have thought this or even asked this question.  If you have a mortgage with a lender that is not doing so hot and their stock price has tanked, does that hurt you?  The answer is no.  You are not really at risk although it could be an inconvenience but not really a risk.

The number 1 lender out there getting lots of attention is Countrwide.  There was an article on USAToday.com talking about Countrywide and this question of whether any one with a Countrywide mortgage would be in trouble…

The other thing to keep in mind is your mortgage is considered an asset on Countrywide's books. If the company were to run into severe financial difficulty, which, again, there are no indications of currently, your mortgage could be sold. It's not something to be afraid of. Mortgages are routinely bought and sold. You'll want to keep your paperwork to make sure all your information was transferred correctly and there could be some inconveniences, but other than that, it's really not a big deal.

But I want to stress, again, there are no signs that Countrywide is in danger of vanishing. In fact, there's been evidence to the contrary as the company has been able to raise money from outside investors to weather the turbulence in the housing industry.

Read the complete USAToday article at:

http://www.usatoday.com/money/perfi/columnist/krantz/2007-09-27-countrywide-mortgage_N.htm

Kamaron Institute personal finance business references, tips and resources. 

Back To School Buying; Kids Key In Shopping Decisions

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With summer coming to a close, students will begin arriving at schools across the country in just a few short weeks.  This brings new hopes to the hurting retail industry who is hoping strong back-to-school numbers could bring Christmas a little early this year and with one-fifth of parents holding a portion of their stimulus checks for back-to-school packages, they could be right. This could be a huge jump for many retail establishments who have seen a decline in sales as gas prices continue to rise. 

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According to the recent NRF Back to School Consumer Intentions and Actions Survey, families with school aged children are expected to increase to $595. That is up over 5 percent to $625 or the equivalent of a cool new book bag.

 

The main reason for this jump is credited to household electronic spending like computers and cell phones.  Otherwise, the majority of categories such as clothing, shoes, and school supplies will see only small to moderate changes in spending habits.

 

The retail industry hoping that students wanting the advertised “must-have items

will continue to influence their parent’s purchasing decisions. Over half of parents admit that children influence at least 50 percent of back-to-school purchases.  National Retail Federation president says, “Strong promotions and must-have brands will help retailers stand out in the crowd as shoppers look for the best bang for their buck on back to school purchases this year.”

 

 

Don’t be deceived by the fact consumers plan on spending more money this year over last year.  With the gas prices pinching everyone’s pocket, parents are looking for deals and searching longer for good bargains.  “This year’s back-to-school shopper is a bargain hunter at the core. Though parents want to make sure kids are fully prepared for school, they will be comparing prices online and in stores before making any big purchases.”

 

Online shopping will be one way to avoid extra gas costs. A quarter of those shopping for back-to-school spending almost $4 billion online.

 

Parents are relying on discount stores for the majority of their purchases this year (73.0%).  Other big winners include department stores (56.6%), clothing stores (47.8%), electronic stores (21.4%) and office supply stores (41.8%).

 

Back-to-School spending continues to be one of retailer’s busiest times of the year.  In order to see strong results, retailers are going to have to start early with their deals to attract bargain hunting parents ready to spend their big bucks.

How To Have Sun Safe Kids

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As a kid, most of your summer is spent at the pool or outside.  The extra hours of sun mean extra hours of play time after dinner and you are sure to use every bit of it. It is part of being a kid.

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Dr. Vernon Sondak says that on average about three fourths of our total exposure to sun occurs by the age of 18 with the most of it being a long weekend here and a couple of days there.  But it is important that even during those hours of intermittent sun exposure you make sure your kids are being protected from the ultraviolet rays of the sun because this burning sun exposure correlates with early and dangerous melanomas.

 

 It has been proven that the prolonged exposure to ultraviolet rays (UV) in childhood is one of the most common causes of melanoma later in life.  Experts such as Dr. Mary Lein say that even one or two heavy sunburns can increase the risk of developing melanoma. “That’s why it is so important to emphasize prevention early in life.”

 

Teaching your children early about sun-safe techniques are key in reducing multiple blistering sunburns and decreasing their chances of developing skin cancer.  Dr. Lien recommends going indoors between the hours of 10am and 2pm when the suns rays are the worst. Also, you should regularly apply sunscreen, wear protective clothing, hats and not using tan beds.

 

Not all sunscreens though are created equal.  According to consumer report, while all sunscreens came within 10 percent of meeting their SPF (Sunburn Protection Factor), several products scored fair to poor on their UVA tests even if they passed the SPF claim test.

 

Things to remember when choosing sunscreen are choose a sunscreen with maximum protections against both UVA (Ultra-Voliet light, type A) and UVB (Ultra-Voliet light, type B) rays. Also pick one with the label that says very water resistant or waterproof and has an SPF of at least 30.  Sunscreens that tested the best are Neutrogena Ultra Sheer Dry-Touch SPF 45 and No-Ad Sunblock Lotion Maximum SPF 45.

 

Remember this summer while at the ballpark or at the beach, apply your sunblock to yourself and your kids every two hours or after swimming. Starting early in teaching your children about taking care when in the sun will create good habits for a long, happy future.

 

5 Tips for Preventing Skin Cancer:

 

The key to safety is common sense.

 

  1. Protect your skin and your children’s skin all year long by wearing sunscreen with an SPF of 30 or higher everyday. Use a waterproof sunscreen.
  2. Teach your children sun-protection habits at a young age.
  3. Avoid using sunscreens on infants younger than 6 months and keep infants out of the sun.
  4. Wear a wide brim hat that protects the face, nose, ears and back to neck. (Baseball cap is better than nothing but it doesn’t do the job.)
  5. Avoid the use of tanning salons.

 

Want to learn more about how to protect yourself from the sun? Check out these websites for more information.

  1. American Association of Dermatologist’s information on skin cancer and screenings: http://www.melanomamonday.org/
  2. American Cancer Society: http://www.cancer.org/docroot/LRN/LRN_0.asp?dt=39

Pods Suck Your Power?

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This summer travelers will be hitting the road with some of the top new gadgets available for cars making that drive to your favorite vacation spot more enjoyable and efficient. Human navigators sharing the front seat with giant paper maps, short tempers and reams of mapquest directions are being supplemented with gadgets. Car bingo and the license plate spotting game are being replaced with a plastic container filled with DVD movies. Thanks to new technology like navigation systems and DVD players, you can keep the kids entertained while an animated computer voice gives you step by step hassle free directions. “Bing! Take exit 223C in 1.4 miles,” says the GPS voice.

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But could these new conveniences be costing you more than you realize?  Does it seem like your car battery is dying sooner than it used to? You’re probably right!

 

According to AAA, the sale of replacement batteries has grown 100 times, up from 4,000 a year to a soaring 400,000 in 2007. Most of this is credited for an increase in the amount of power required by the average “modern” car and driver.

 

Since the 1960’s the world has relied on the 12-volt battery in their cars and sadly not much has been updated or changed since.  The car battery that used to last three to five years now has a life span of barely two years and much of that is due to the new gadgets you just can’t live without.

 

It’s not just what you have on in the car while you’re in it.  Items such as security systems and engine management tools draw from your car battery even while it’s parked in your driveway.

 

When choosing a new car battery, Consumer Reports has several recommendations. First, “fresh is best.” Make sure you that you choose the battery with the shortest shelf life. Next, know your battery size, batteries come in all kinds of sizes so make sure that the ones your looking at best fits your car. Remember to consider your climate and driving, warmer climates tend to be very tough on batteries. Lastly, dispose of your old battery safely.

 

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WARNING: 97 PERCENT OF LEAD CAN BE RECYCLED FROM LEAD ACID BATTERIES, SO MAKE SURE YOU PROPERLY DISPOSE OF THEM.

 

  1. Wear protective gloves and glasses. Your battery contains sulfuric acid. Wash your hands with soap and warm water, even if you wore gloves to handle your battery.
  2. Do not smoke near a battery or expose it to an open flame.
  3. If you are transporting your old battery, place it in a plastic container or a sturdy box. Your local auto supply or building supply store is likely to stock the plastic box.

 

Consumer Reports Battery

 

According to Consumer Reports, the top three choices for the group 65 batteries are NAPA Performance Select 8465, AutoCraf Titanium 65-2 and the Duralast 65-DL. For group 34/78 and 78 the winners are DieHard SUV, Turck and Van 39990 (South), NAPA Select 8434/78, AutoCraft Titanium 34/78-4.

 

Before heading out to the beach or to see relatives, check that the tires have enough air and your battery has enough power to get you there and back. Drive safely.

 

Youth Using Libraries The Most

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In the past decade, there has been a sharp increase in the number of youth using the internet as a mean of educational research. But does this mean death for brick and mortar libraries? Not at all!

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In a recent joint study with the University of Illinois at Urbana-Champaign and the Pew Internet and American Life Project, they found that surprisingly the youngest adults are the heaviest library users with twenty one percent of Americans 18-30 turning to public libraries as source of information.  The study also found that library usage drops gradually as people age with only 12 percent of the general adult population relying on public libraries.

 

Lee Rainie, Pew’s director said, “the notion has taken hold in our culture that these wired-up, heavily gadgeted young folks are swimming in a sea of information and don’t need to go to places where information is” but that “the age of books isn’t yet over.”

 

While the most youth are relying on libraries as a source for making decisions about schooling, paying for it and getting job training, many are also using libraries to solve problems.

 

Many libraries have created large spaces for more computers and have also started using places previously used as stack areas or warehouse areas and replacing them with group study areas so patrons can begin to interact. Loriene Roy, President of the American Library Association says, “Libraries are creating social spaces.”

 

“We know everyone has problems and needs for information, and libraries still need to reach out to make sure people know” about the resources available to them <?xml:namespace prefix = st1 ns = “urn:schemas-microsoft-com:office:smarttags” />Roy says.

Internet Reshaping the Classroom

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The internet has become a vital educational resource for <?xml:namespace prefix = st1 ns = “urn:schemas-microsoft-com:office:smarttags” />America’s youth.  A Pew Internet and American Life Project Study reports that 94 percent of online youth say they use the internet for school research, 71 percent of online teenagers cited the internet as the source they relied on the most in completing projects and 78 percent claim the internet helps them with school work.

Stuck on a homework assignment?  Now students are using the internet to get in touch with teachers and other students after school hours in order to get help on school assignments. Thirty-four percent of online youth report downloading an online study aids such as Cliffnotes or Sparknotes.

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Parents see the internet as a good educational resource for students with 87 percent of parents saying that the internet is helpful with schoolwork. Fifty-five percent of parents believe the internet has been a good thing for their children and 55 percent of parents go as far as saying how to use the internet is essential for children to learn in order to be successful.

 

With this easy access to information comes at the price of easy access to materials that help students cheat on assignments as well.  Eighteen percent of online teenagers report they have known someone who has used the internet to cheat on a test or a paper.

 

So what does this mean?  The internet is becoming a huge part of learning environments both inside and outside of the classroom.

The Outsourcing of Outsourcing in India

India has become the place for companies to outsource their work over the last several years.  Now Indian companies like Infosys Technologies are beginning to outsource some of their outsourcing work to other counties…

Some analysts compare the strategy to Japanese penetration of auto manufacturing in the United States in the 1970s. Just as the Japanese learned to make cars in America without Japanese workers, Indian vendors are learning to outsource without Indians, said Dennis McGuire, chairman of TPI, a Texas-based outsourcing consultancy.

In May, Tata Consultancy Service, Infosys’s Indian rival, announced a new back office in Guadalajara, Mexico; Tata already has 5,000 workers in Brazil, Chile and Uruguay. Cognizant Technology Solutions, with most of its operations in India, has now opened back offices in Phoenix and Shanghai.

Wipro, another Indian technology services company, has outsourcing offices in Canada, China, Portugal, Romania and Saudi Arabia, among other locations.

And last month, Wipro said it was opening a software development center in Atlanta that would hire 500 programmers in three years.

In a poetic reflection of outsourcing’s new face, Wipro’s chairman, Azim Premji, told Wall Street analysts this year that he was considering hubs in Idaho and Virginia, in addition to Georgia, to take advantage of American “states which are less developed.” (India’s per capita income is less than $1,000 a year.)

For its part, Infosys is building a whole archipelago of back offices — in Mexico, the Czech Republic, Thailand and China, as well as low-cost regions of the United States.

The company seeks to become a global matchmaker for outsourcing: any time a company wants work done somewhere else, even just down the street, Infosys wants to get the call.

Read more from this recent The New York Time article:

http://www.nytimes.com/2007/09/25/business/worldbusiness/25outsource.html?em&ex=1190865600&en=03ef2d6ec22ea827&ei=5087%0A

Kamaron Institute personal finance business references, tips and resources. 

More Subprime News (Not Surprised)

Well, it is no surprise that another financial institution is getting out of the subprime home lending business.  The latest news comes from Lehman Brothers, a leader in packaging subprime mortgages into securities.

Of course, by shutting down this arm of their business, they are also laying off employees.  The subprime shake up isn't done yet…

“Lehman Brothers announced today that market conditions have necessitated a substantial reduction in its resources and capacity in the subprime space,” the firm said in a news release.

Lehman’s decision to shutter the lending unit, BNC Mortgage, makes it the latest casualty in the subprime mortgage meltdown that started earlier this year and rippled into the broader credit markets starting in late July.

In recent weeks, several mortgage companies that specialized in risky home loans have stopped making loans, shut down or encountered other distress. Also today, Accredited Home Lenders, a subprime lender based in San Diego, stopped making loans through brokers and laid off 1,600 people, more than half of its staff. Earlier this month, Lone Star Funds, a private equity firm, pulled out of a deal to buy the company for $400 million.

On Monday, Capital One Financial shut down its GreenPoint mortgage business, which specialized in making loans to people who did not fully document their income and assets. And Aegis Mortgage, which is controlled by Cerberus, the private equity giant, filed for bankruptcy protection, last week.

If you would like to learn more, visit The New York Times article:

http://www.nytimes.com/2007/08/23/business/23lend-web.html?em&ex=1188014400&en=cf9aad34bb6a59a5&ei=5087%0A

Kamaron Institute personal finance business references, tips and resources. 

The Afternoon Yawns…

Unless you are one of those rare individuals, you probably experience the “afternoon dip.”  Most people do experience this after lunch some time however some feel it more than others.  Many workers may feel some guilt, thinking they are lazy for getting tired in the afternoon.  But it is a fact that most do experience the strong urge to just go to sleep in the afternoon.

The key is learning to manage it.  Some can take a quick 20 minute “power nap” and feel refreshed and ready to work.  Others need more time and a long nap isn't possible.  So some look to the good old fashion coffee for the answer.  That works for some.  Others may get up and move around and some even slip off to the gym during this time.  But not everyone's schedule allows for that.  The real key is finding what works for you.  Don't try to ignore it or think you are lazy.  Just figure out a solution.

One piece of advice that this article from The New York Times gives is to not work on your toughest projects during this time.  This is a great time to work on things that don't require as much focus.  Maybe just arranging your to-do-list and schedule will be the answer you need.

There is some great information on this matter on the The New York Times website.  You can read the complete article at: 

http://www.nytimes.com/2007/08/19/business/yourmoney/19career.html?em&ex=1187755200&en=58a30084c26999c5&ei=5087%0A

Kamaron Institute personal finance business references, tips and resources. 

Streaming Video More Popular Than Ever

When I think of streaming video I still sometimes have flash backs of a few years ago when I was connected on those crazy dial up connections!  Streaming wasn't fun back then.  But today with broadband taking over, it is quite different!  Many companies are starting to offer all kinds of shows and movies through streaming video.  And it will only grow from here.  It just makes sense that in the future everything we watch will be via the internet.  What's a TV?  Maybe we will still call the TV a TV but how it gets its content will be much different.  You can already start to see that…

However, the potential of new streaming video services — fast, full screen and in sharp resolution — is unleashing a torrent of movies and television shows, much of it aimed at narrowly defined audiences that can’t find niche programming even on cable systems with 500 or more channels.

The Independent Film Channel is streaming 22 short films called “Trapped in the Closet” by the R&B recording artist R. Kelly. The Jewish Television Network, a nonprofit television production and distribution company, is streaming music videos by Jewish performers, cooking shows and Israeli news programs. The network is also planning to stream religious services during the High Holy Days in September, the sort of broadcast that would be hard to find on mainstream television.

“There is extreme interest in streaming because it simplifies the process of getting video to the consumer,” said Ross Rubin, the director of industry analysis for the NPD Group, a market analysis company.

Streaming video, unlike downloads, never resides on a viewer’s computer. It usually cannot be replayed as a downloaded file can be, which is another reason that content creators like it.

To learn more on this subject, read the complete article below from The New York Times:

http://www.nytimes.com/2007/08/06/business/media/06stream.html?em&ex=1186632000&en=f5be43885bde277b&ei=5087%0A

Kamaron Institute personal finance business references, tips and resources.