In response to some of the financial reports posted yesterday all of the major stock indices showed a nice gain. The Dow Jones Industrial Average, the NASDAQ and the Standard and Poor’s 500 all went on a rally, signifying that U.S. stocks are on the rise.

One of the main reasons for the high levels of support for the markets is the Federal Reserves promise that it will do whatever is necessary to support the economy.

The housing market also appears to be getting support due to the record low mortgage interest rates. With the 30 year fixed rate mortgage as low as 4.36 many people are taking the opportunity to re-finance their existing mortgages. Interest levels have not been this low since before mortgage industry giant Freddie Mac began keeping records.

Many people are hoping that these historically low interest rates will help to push-start a sluggish housing market that has been back in decline after the end of the Federal governments’ $8,000 first-time home buyers’ tax credit. The factors that are holding people back from taking advantage of the low interest rates include fear of job loss in an economy that has not yet fully recovered and the much tighter requirements needed post-economic-crash to qualify for a mortgage.

The late fees imposed on credit card is to be reduced in accordance with the new laws which will be enforced. Companies who issue credit cards are on the hot seat as they are forced to cut down late fees on credit cards. Credit card users will be charged at the rate of 25 dollars in case they pay their dues late.

The existing rate of 39 dollars will be done away with when the new law is enforced. However, it is likely that credit card issuers could make up for the lost revenue with new measures. The loss due to the reduction in the late fee could cost the credit card companies around three billion dollars. These statistics were revealed by the cardhub.com web site which monitors such matters.

In 2008 an estimated 11.4 billion dollars was levied on credit cards users by way of late fee and other penalties. The new law allows imposing heavier fines on credit card users who violate the time frame repeatedly. Credit card holders will have to pay at the rate of 35 dollars under the new laws. This new law named the Credit Card Accountability Responsibility Disclosure of 2009 could ease the burden of the public. There could be a drop of 29 percent income for the credit card companies which could amount to about 8.1 billion dollars.

In spite of so many economic plus unemployment difficulties throughout this country, lots of people are already taking care of their financial situations quite well. Consumers might be simply looking for the ideal time to secure those low interest rates mortgage loan offers for years to come.

Those individuals are probably not looking for a desperate refinance loan to combine financial debt or cash out equity. Consumers would probably only refinance their home mortgage loan by saving capital and perhaps settle their mortgages sooner. Their credit rating could be decent as well. Going through the amount of refinance applications, several appear to believe that this can be their opportunity. Record low interest rates bring out home owners to consider taking advantage of the excellent possibility.

The fees have decreased enough for refinancing to become good for quite a few. This is among the best periods for home owners with excellent equity in their property and a great credit rating to help refinance. Actually, it could certainly be ideal for many who don’t have equity in their home and wish to reduce their home loan nevertheless. Bank saving premiums are usually so minimal that lots of home owners might not notice any reason for maintaining their funds in the bank any longer. They might put that capital to better use plus capture the reduced rates. This can reduce their regular payment as well as permit them to settle their mortgage loan much sooner, should they decide to accomplish this.

NEBRASKA- On Friday student loan company Nelnet agreed to pay $55 million considering that a whistleblower alledged that Nelnet wrongly benifited from a student loan subsidy program by defrauding the government.

This lawsuit had been produced by previous U.S. Education Department specialist Jon Oberg and sought $3 billion in losses from Nelnet as well as some other companies. During a press release Nelnet mentioned that the lawsuit allegedly increased to $407 million in improper earnings within the subsidy, placing their possible liability, with three times the damages, in excess of $1.2 billion. Declining to comment on Friday, Oberg’s attorney, Bert Rein, mentioned that it was unknown if any additional companies had reached similar settlements who were named as defendants in the lawsuit..

A spokeswoman for the accused Sallie Mae declined to provide feedback. U.S. District Judge John F. Anderson, who is handling the case pertaining to the Eastern District of Virginia, submitted the order Friday eliminating a trial set to start Tuesday in addition to staying any additional motions in the case. Anderson’s order states there won’t be any additional pleadings in the case unless of course they are based on

“the resolution of claims by the parties.”

He arranged a status conference for Oct. 1

“in the event there has not been a resolution of the claims with all the current defendants.”

These parties were in settlement conference required via the court ever since Wednesday. Oberg submitted a suit towards Nelnet, Sallie Mae plus several additional loan companies within provision with the Federal Civil False Claims Act enabling private citizens to file a lawsuit within the name of the U.S. government, charging fraud. Besides the $3 billion in losses, this lawsuit also sought civil fines of $11,000 for every infringement of civil law.

Being employed as a examiner with the federal Department of Education, Oberg, a University of Nebraska-Lincoln scholar as well as former assistant to Nebraska Sen. Jim Exon, worked as a examiner with the federal Department of Education when he revealed the flaw which permitted student loan companies to take advantage of a govt subsidy plan to a 9.5 % rate on their loans.

Home owners are enjoying some of the cheapest mortgage rates in a long time. Most of them are re-financing into shorter-term financial loans and saving a lot of money simultaneously

As outlined by mortgage loan giant Freddie Mac virtually 33 % of debtors re-financing 30-year financial loans in April through June selected financial loans with 15- or 20-year terms.. It had become the greatest share since 2004 while near weekly drops have been a suprising trend that has been happening all summer. As mentioned by Freddie Mac, common rates on set 15-year loans dropped below 4% for the first instance the previous week, falling to nearly 4%. Last year, the common 15-year rate was 5%.

On the other hand, any premiums on set 30-year loans now average 4.44%, Freddie Mac discovered. At present day premiums, a consumer having a 30-year loan with a 6.5% rate of interest plus a $200,000 principal balance might decrease some $70,000 in interest covering the life of a reduced 20-year mortgage loan. Peter Iche, president of Carthage Federal Savings and Loan Association in Carthage, N.Y., claims he has noticed a slight increase with those who are nearing retirement re-financing to shorter-term loans. The majority of the consumers attempting to refinance on a shorter-term loan typically meet the criteria, he tells. And even with prices being affordable like it is now.

Having quotes at record levels, a larger amount of refinancings will be anticipated, says Mark Zandi of Moody’s Analytics.com. Yet, high unemployment and messed up home equity are blocking a number of borrowers from accomplishing this, he saysl Application levels for each home-purchase mortgages and refinancings have been tepid due to the fact that a number of potential borrowers lack high credit ratings, adequate earnings or even sufficient collateral in their properties to be eligible for a new loan.

Across the country, credit card debt between consumers that have a charge card diminished by 1 % ever since June 2010. On the other hand, credit card debt increased nearly 14 percent since this summer 2009.

Through July, the typical consumer having a bill experienced $7,752 in credit debt, $176,042 for home mortgage loans, $51,807 for home equity, $15,080 in auto loans and $28,301 in student loans.

Country wide, credit ratings continued to be steady at 668, reduced by a single point by the end of January as well as down 5 points since July 2009. Below are a few additional important results:

In South Carolina and Nevada customers lowered their credit card amounts the best in July 2010. Throughout each state and since June of this year, credit card debt were reduced to greater than 5 percent. Within the state of New Jersey, consumers overtook Massachusetts and California as the state with the greatest credit scores.

The typical buyer within the state of New Jersey carry a credit rating of 687. Buyers within California as well as Massachusetts have credit ratings of 685. Throughout Oklahoma, in July, buyers witnessed the greatest increase to their credit ratings with credit scores improving 4 points to 652. Arkansas shoppers experienced the best credit ratings country wide in July 2010 with the typical credit rating staying thirty points under the nation’s average at 638.

Debt relief is without a doubt a giant business, yet at some point companies who provide debt relief will need to live by new guidelines in which a few expect will help consumers. These modifications will get rid of advance costs.

The challenge with debt settlement companies could be the advanced cost. These modifications may put pressure on firms to truly eliminate credit card debt prior to agencies getting compensated. As soon as Samantha Hicks planned to restore her credit, she considered an agency which guaranteed achievement for a price.

“It would be $175 initially and they said it could take up to two months so it may be an additional $99 and that’s it, that’s all the cost and they said yes,” said Hicks.

Samantha claims the agency she chose failed to fix her credit score making things even more difficult.

“Lo and behold, they turned me into a collection agency,” she said.

Hicks has complained to the Houston Better Business Bureau in regards to the firm. Any time you are looking at debt relief grievances, Hicks isn’t really by her self.

“Nationwide we have actually received over 2,600 complaints from consumers regarding these debt settlement companies,” said Monica Russo of the Houston BBB.

Russo claims customers report paying advanced charges from debt settlement companies but then notice zero benefits. However , before long that’ll be a subject put to rest because of emerging regulations approved through the Federal Trade Commission. Beginning in October, debt settlement companies will not be capable of collecting expenses until an arrangement has in fact been reached on at least part of a consumer’s debt.

Starting in September, the companies must supply customers with in depth lists involving most charges as well as guaranteed solutions. Remember, debt settlement companies require your creditors to consider far less money than an individual owes. If the company concurs, the idea will get outlined on your credit report that you failed to come up with a complete payment which winds up harming your credit rating.

The mortgage rates seem to be just as stubborn now as they were over the summer and there seems to be no light at the end of the tunnel. Unpredictable rates are still projected over the next few months and that leaves buyers and sellers in a constant battle with whether or not to proceed with buying or selling their home.

The mortgage rates over the summer were surprisingly low and as far as any one could predict they were going to see a raise in rates but it never happened. Although the unemployment rates were at a high 9.5% the rates for an outstanding loan were at 5.979% and the 3 year fixed rate loans were at an incredible 4.75% which made refinancing a great choice for a lot of homeowners that wanted to take advantage of the lower rates. The only thing these homeowners were finding out that refinancing was not a choice. Since home values fell, homeowners found themselves with little equity or none at all or a mortgage that has to be paid on a house that isn’t even worth the mortgage price.

With the changes that President Obama made, there was a prediction that 2 million homeowners would be able to get the new refinanced loans within the first 16 months when reality showed that only just over 2,000,000 were able to refinance, the HARP program was extended. That was a surprising disappointment for homeowners that saw the banks getting their bail out but were not passing savings along to them. Along with industry regulations, the sellers are able to contribute up to 3% of the home purchase price to the buyer as an incentive for moving or other expenses.

The rate was 6% is years past but the FHA had to lower it to meet industry standards. Experts thought the one thing that was keeping FHA alive may now be the straw that breaks it. There are so many an assumption going around no-one dares to guess about rates any more. There are also a few changes seen in the larger loans which have been rare and a person would have to come up with 30% at times to qualify.

Now these loans are being seen for 20% down payments and this is with a fixed loan whereas in the past these lenders were offering the loans but with the 5/1 ARM and high down payments or equity already applied. We are now in the 3rd week of great low rates. The 30 years fixed rate loans have fallen to a surprising 4.11% and this is the 3rd week that these rates are being seen. While adjustable loans may be slightly higher, they are still at 4.8% and that is a good sign.

Homeowners today are extremely frustrated as mortgage refinance seems impossible even though historically the interest rates are at its lowest.

Even Wall Street seems to agree with the need for people getting refinance. They see it as a way to increase the spending of money. The analysts and economists are expressing the need for a mortgage reset and says it can be done by the government who is in control of Freddie Mac and Fannie Mae, huge mortgage lenders. They can have them lower standards so that fees may be less and more people would then qualify for refinance.

According to the Obama administration this idea will only have a short term effect while the economy will have long term consequences. Having this refinance boost would only lower the standards of loans which is one aspect which got the country in the current situation that it is in.

It would also introduce higher rates for new borrowers and push U.S taxpayers to endure more risks as their money is what technically runs Fannie and Freddie. Left leaning Center for Economic and Policy Research co-director Dean Bakers stated that soon will would have to think of how much more can taxpayers be asked to help support people in having housing. RAtes for home loans are at its lowers at 4.49% which hasn’t been seen since 1971 yet millions of people are still not able to benefit from it.

According to the CEO of Humana Louisville, Michael McCallister, until today inertia have been able to keep various large companies from completely canceling their health insurance coverage.

This may not be the case for very long. Companies will be calculating their best options to see how cost effective it may or may not be to either cancel or continue offering coverage as the health care reform will be in action in 2014. Addressing a crowd of over 250 people on Tuesday at Xavier Cincinnati USA Regional Chamber seminar he stated that the bias and pressure would be towards the sending of people to the exchanged due to health care costs rising faster than inflation.

According to McCallister it is not yet known whether Humana be selling products to the insurance exchanges which would be something of a clearinghouse with plans for those who are uninsured or have small businesses. Humana in its medical plans have 358,000 people enrolled and is known as the 3rd largest insurer in the Tri-State. McCallister also said that costs will only stabilize after the country has dealt with the health care system and make a effective shift to promoting health care instead of treating symptoms. Insurance companies have focused in managing their health population according to McCallister but most companies tend to not stay for a long period with one particular insurance company to achieve the full effectiveness of their efforts. He also said that even small and larger insurance carriers the issue will likely fade away.