10yr yields are now decisively below the levels seen BEFORE the last CPI report (the one that caused a jump from the 4.1’s to the 4.3’s). This has been accomplished without any shockingly downbeat econ data, and without the market ramping up bets on a friendlier rate trajectory from the Fed. In other words, it’s some combination of supply/demand technicals (Treasury auction composition and Fed QT tapering effects) and, more importantly, a legitimate belief that economy is not at risk of reigniting inflation concerns. On that note, Friday’s jobs report is in a position to undo much of the recent improvement if it makes a strong counterargument. The recent data and the bond market response are essentially daring the jobs report to surge.
Jobless Claims
217k vs 215k f’cast, 217k prev
Continued Claims
1906k vs 1889k f’cast, 1898k prev
08:37 AM
Stronger on data and ECB announcement. 10yr down 3.9bps at 4.069. MBS up 5 ticks (.16) before accounting for roughly 2 ticks (.06) of illiquidity.
11:49 AM
Gains erased in moderate, steady volume, and before Powell testimony. MBS up only 2 ticks (.06) and 10yr unchanged at 4.108.
02:37 PM
Weakest levels just before 1pm and holding modest gains since then. 10yr down half a bp at 4.104. MBS up 3 ticks (.09).
03:30 PM
Near best levels in MBS, up an eighth of a point. 10yr down 1.6bps at 4.092. Shorter-term Treasuries are doing even better.
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Inside: Secure your financial future with insights into the top appreciating assets. Find the best appreciating assets and learn how to grow wealth with strategic investments.
Asset appreciation isn’t just an economic term; it’s the fuel that powers wealth creation. Think of appreciating assets as the golden geese, steadily laying valuable eggs that grow in size over time.
This is a crucial concept that triumphs and what you own can become the cornerstone of your financial success.
Asset appreciation isn’t just a buzzword; it’s the driving force behind significant wealth accumulation.
Whether you’re just starting or looking to expand your portfolio, understanding the role appreciation plays can mean the difference between mediocrity and staggering success.
Now, let’s dig in and help move your net worth higher.
What Are Appreciating Assets?
Appreciating assets are the golden geese of the investment world. They are the powerful engines that drive your net worth higher over time.
When you invest in assets like real estate, stocks, and even fine art, you’re placing a bet on their future value.
Unlike the car that loses value the moment you drive it off the lot, these assets typically gain worth, supernova-style, expanding your financial universe with every passing year.
How do assets appreciate in value?
Appreciation, at its core, is an asset’s journey from ‘worth X’ to ‘worth X and beyond’. But how does this magical wealth-building happen?
Several factors can give assets a financial boost.
For starters, the traditional law of supply and demand plays a huge role—if more people want it and there’s not enough to go around, the value goes up.
Toss in the influence of interest rates, economic growth, and geopolitical stability, and you have a mix that can push asset value into new echelons.
Even inflation can be a friend to assets, increasing their nominal value over time.
Remember, appreciation isn’t a given; it’s a hopeful trajectory bolstered by market forces and wise decision-making. You want to hop onto the appreciation train with assets that offer the promise of increasing in value, not just for now, but well into the future.
How to increase net worth with appreciating assets
Increasing your net worth with appreciating assets is like laying bricks for a financial fortress—it requires strategy, patience, and a mix of assets that have a history or strong potential for growth.
Start by assessing your current holdings and considering where you can diversify with assets that shine in appreciation prospects. It’s a game of balance, where you mix higher-risk, high-reward options with stable, gradual growers.
Make a habit of routinely re-evaluating your assets, keeping in mind economic trends and your personal goals. Sometimes, this may mean letting go of underperformers in favor of assets with brighter horizons.
Consider leveraging tax-advantaged accounts and investment strategies to maximize your wealth growth.
Most importantly, ensure liquidity so you can capitalize on new opportunities. Having liquid assets means you won’t miss out when the next big appreciating asset comes knocking.
Top 5 Appreciating Assets You Must Own
#1 – Stocks with High Growth Potential
Stocks are the daredevils of the investment world, particularly those brimming with high growth potential. They’re the kind that can catapult your net worth to the stratosphere if chosen wisely.
Tech giants like Nvidia, Microsoft, Google, Amazon, and Meta are testament to this—their growth over the decades has turned modest investments into fortunes.
Investing in high-growth potential stocks is like spotting a gem in the rough – if you spot the right ones, your financial prospects could shine brightly. You must learn how to invest in stocks for beginners.
Personally, I cannot stress how important it is to learn how to invest in the stock market as I can attest this is how you quickly grow your net worth.
Best For: Investors with a higher risk tolerance who are aiming for greater returns or dividend stocks and have the patience to weather market fluctuations.
#2 – ETFs to Streamline Investments for Optimal Performance
Exchange-Traded Funds (ETFs) are the investment world’s multitaskers, pooling the potential of various assets for optimum performance. By offering a diversified portfolio within a single share, they allow investors to spread their risk while reaping the growth benefits of different markets and sectors.
ETFs provide an easy and efficient way to diversify investments, reducing risk while still offering growth opportunities. They’re especially game-changing for those who prefer a “set and forget” strategy, as many ETFs are designed to passively track indexes or sectors. Many track the S&P, so you can easily invest in the overall market.
They’re cost-effective, often having lower fees than traditional mutual funds, and are accessible to investors with varying levels of experience.
Best For: Both beginners and experienced investors looking for a blend of simplicity, cost efficiency, and diversification in their investment strategy.
#3 – Real Estate: A Staple in Appreciating Assets
Real estate has long stood as a bulwark in the investment community, a reliable appreciator that doubles as both a tangible asset and a potential home. It’s a market marked by stability and a historical uptrend in value, making it a classic choice for those seeking long-term wealth growth.
Owning property is synonymous with the very concept of asset growth, with the power to withstand economic ebbs and flows. Location continues to be the drumbeat to its rise in value – a prime spot can transform a simple parcel into a gold mine.
Plus it is a tangible asset that provides utility and can serve as a hedge against inflation.
Whether it’s through REITs, crowdfunding platforms like Fundrise, or direct ownership, real estate can anchor your investment strategy on solid ground.
Best For: Investors seeking a tangible asset with a dual aim of long-term capital appreciation and passive rental property income. Ideal for those ready to manage properties or hire management, and for those who can handle the responsibilities of ownership.
#4 – Your Own Business: Betting on Your Entrepreneurial Spirit
Your own business isn’t just a job, it’s a reflection of your passion and an opportunity to control your financial destiny. When successfully executed, a business can become one of the most valuable appreciating assets, offering unparalleled autonomy and potentially substantial economic rewards.
Starting a business can lead to exponential wealth growth as the company expands and becomes profitable.
Your business’s value can significantly increase over time, making it a formidable asset in your net worth.
Owning a business is not just about the profits; it’s a journey of personal growth, resilience, and the triumph of turning passion into paychecks. It’s a path that can lead to great wealth, especially when one approaches it with clear strategy and unquenchable enthusiasm.
Best For: Individuals with entrepreneurial spirit, a viable business idea, and the readiness to invest time and capital into a long-term venture. Suitable for those who are tenacious and willing to face the challenges of entrepreneurship head-on.
#5- Self-Investment: The Ultimate Asset with Infinite Returns
Investing in yourself is like planting a seed that grows into a sturdy, towering tree, sheltering your financial future.
This investment can unlock doors to better opportunities, higher incomes, and greater job satisfaction. Whether it’s through education, health, or personal development, the returns on self-investment can be limitless.
Personal development often correlates with higher levels of personal and financial success.
Remember, when you invest in yourself, you become capable of crafting a life that not only brings in wealth but also contentment and a deeper sense of success.
Best For: Any individual seeking to enhance their career trajectory, entrepreneurship potential, or personal satisfaction. This approach is ideal for those who are committed to lifelong learning and self-improvement.
Other Examples of Appreciating Assets You Can Own
The Role of Bonds in a Diverse Securities
Bonds, those steadfast soldiers of the investment world, offer a buffer of safety amid the high-flying volatility of other assets. In a diversified portfolio, bonds contribute stability and predictable income, making them an essential element for many investor’s strategies.
They provide a fixed income stream with less volatility than stocks, acting as a cushion in economic downturns.
Bonds can offer a balance in investment holdings, mitigating risk and providing steady returns. Just make sure the returns are higher than an interest-bearing money market account.
Best For: Investors seeking to balance their portfolio with a lower-risk asset or those nearing retirement who prioritize income and stability over high growth.
Cryptocurrencies: The Digital Gold of Tomorrow?
Cryptocurrencies have emerged as the mavericks of appreciating assets, offering a wild ride with the allure of high-stakes jackpot payouts. As the “digital gold” of the modern era, they encapsulate the spirit of decentralization and technological innovation.
While their volatility can stir up investor heartbeats, their dramatic price appreciation stories make them impossible to ignore for those seeking the thrill of potentially explosive gains.
Even as the cryptocurrency markets continue to ebb and flow, they offer a unique proposition in wealth growth strategies—a high-risk, high-reward horizon that has many gazing toward the future with wallets in hand.
Best For: Tech-savvy investors with a high risk tolerance, seeking to diversify with a modern asset class that has considerable growth potential.
Fine Art and Collectibles: Value Beyond Beauty
Fine art and collectibles are not just a feast for the eyes; they’re also a banquet for your investment portfolio.
These assets bring value that transcends their aesthetic appeal, becoming cherished as cultural treasures and financial boons alike. With the intrinsic charm of rarity and historical significance, art pieces and collectibles can appreciate substantially over time, especially when curated with an expert eye.
For instance, this rare portrait of George Washington is expected to fetch $2.5 million at an upcoming auction.1
Best For: Connoisseurs with a passion for the arts or history, and investors looking for long-term, value-holding assets that also serve as cultural and personal investments. Ideal for those with substantial capital ready to navigate the less liquid markets.
Precious Metals: Why Gold and Silver Remain Attractive
Gold and silver aren’t just the treasures of lore—they’re enduring staples for those looking to fortify their wealth. Their allure lies in their history, intrinsic value, and the stability they can provide when economic tides turn tumultuous. Gold and silver are known for their resilience during economic downturns and inflationary periods. As such, learn how to invest in precious metals.
They are tangible, finite resources with universal value, often resulting in consistent demand.
Best For: Investors looking to hedge risks or seeking a stable store of wealth.
Prospects of Private Equity in Upcoming Markets
Private Equity (PE) forms the backbone for the next wave of market disruptors and innovators. Investing in private companies, especially in emerging markets, can yield substantial capital appreciation as these businesses grow and mature, sometimes well before they hit the public sphere.
This has significant potential for appreciation as companies scale up their operations and increase their market footprint.
Best For: Sophisticated investors with a high-risk tolerance and a long investment horizon. They typically have a significant amount of capital to invest and are looking for opportunities outside of public markets to achieve potential high returns.
Venture Capital’s Role in Shaping Future Wealth
Venture Capital (VC) is the financial catalyst that turns innovative startups into tomorrow’s industry leaders. By injecting capital into early-stage companies, VC not only generates the potential for staggering returns but also plays a critical role in shaping future markets and consumer trends.
It plays a critical role in shaping the business landscape of tomorrow by investing in innovation today. With its penchant for high-risk ventures, VC remains an appealing asset class for those with a futuristic vision who are keen to be part of the next big thing.
Venture capital isn’t merely about capital gains; it’s an embrace of progress, a stake in the evolution of industries, and a partnership with the brightest minds of a generation.
Best For: Investors who have a deep understanding of emerging markets and technologies, a high-risk tolerance, and the patience for long-term investment. Also ideal for those who wish to actively participate in the entrepreneurial process and impact the future direction of new businesses.
The Thriving Market for Vintage Automotive Collectibles
Vintage automotive collectibles are revving up the collectibles market with a roar.
Car enthusiasts and investors alike recognize that certain classic models don’t just retain their charm; they accelerate in value over time. The emotional connection, the engineering legacy, and the nostalgia factor turn these vehicles into appreciating assets with a personal touch.
Plus they offer a tangible investment that can be appreciated both visually and through the driving experience.
Best For: Auto enthusiasts who appreciate the craftsmanship of vintage models and are prepared for the hands-on involvement required. Most may see them as a collectible rather than an investment.
Sports Memorabilia as Lucrative Investments
Sports memorabilia takes you on a trip down memory lane, connecting you to pivotal moments and legends of the past. This nostalgia mixed with exclusivity propels their value, making them sought-after assets in the realm of investing.
The emotional and sentimental value tied to sports icons and historical moments can drive considerable investment interest and demand.
Best For: Sports fans who want to combine their passion with investment potential and like to show off their memorabilia.
Land: The Original Real Estate Investment
Land is the progenitor of all real estate investments, offering a blank canvas for potential development or holding value as a scarce resource. With an appeal that has stood the test of time, land remains one of the most fundamental appreciating assets in the investment portfolio.
It is a finite resource; they’re not making any more of it, so demand can only go up as supply remains constant.
Increases in development, population growth, and changes in land zoning can significantly enhance land value over time.
Best For: Investors seeking to hedge against inflation and looking at long-term growth prospects. Land is best for those who have the capital to invest without the need for immediate returns and can wait for the right opportunity to maximize their profits.
Commodities: A Staple in Diverse Investment Portfolios
Commodities offer a slice of the global economic pie, essential for their role in everyday life—from the grain in your breakfast cereal to the petroleum powering your car. As tangible assets, commodities can provide a buffer against inflation and diversify investment portfolios. A similar case could be made for trading currencies.
Commodities, including metals, energy, and agricultural products, often increase in value with inflation and global demand. They provide an investment route less correlated with the stock market, adding portfolio diversification.
Best For: Diversification seekers and those comfortable dealing with market fluctuations who understand global economic trends. Ideal for investors who wish to hedge against inflation and have an interest in tangible or sector-specific assets.
Navigating the High-Yield Savings Landscape
High-yield savings accounts have emerged as essential vehicles for preserving and modestly growing wealth.
In 2022-2024, with interest rates eclipsing their traditional counterparts, these accounts are more relevant than ever for savvy savers seeking to keep pace with inflation. They provide a safe haven for emergency funds or short-term financial goals while offering better returns than a typical savings account.
They provide a low-risk option to grow savings with the added convenience of liquidity. Just like certificates of deposit or CDs.
Best For: Individuals aiming for a secure, accessible place to save money with a better yield than traditional banking products. Especially well-suited for those starting to build their emergency funds or setting aside cash for near-term expenses.
Peer-to-Peer Lending – A Trend to Watch for Asset Growth
Peer-to-peer (P2P) lending shakes up traditional banking by directly connecting borrowers with investors through online platforms. This asset class is gaining traction, providing a novel way to potentially generate higher returns compared to traditional fixed-income investments.
P2P lending platforms offer higher returns on investment over standard savings, as you’re effectively acting as the bank.
It’s a cutting-edge way to diversify your investment portfolio beyond traditional stocks and bonds.
Best For: Investors looking for alternative income streams and who are comfortable with the risk associated with lending money.
Intellectual Property and Patents: An Overlooked Avenue for Wealth Creation
Owning the rights to an invention or unique creation can lead to a wealth of opportunities, with patents often being a gold mine for inventors and savvy investors alike.
Patents, in particular, hold the promise of a decade-long fruitful life, offering the potential for significant monetary returns through licensing or sales.
Best For: Inventors, entrepreneurs, and investors who are versed in industries where innovations are rapidly commercialized. It’s well-suited for those able to navigate the intricacies of patent law and capable of investing in the enforcement and marketing of their IP.
Alternative Investments: Unique Opportunities for Accredited Investors
Accredited investors have the advantage of accessing a broader range of alternative investments that may not be available to the general public, offering potentially higher returns and portfolio diversification. These can include private equity, hedge funds, and exclusive real estate deals.
It’s crucial, however, for accredited investors to conduct thorough due diligence and assess their risk tolerance when allocating a portion of their portfolio to these alternative assets.
Best For: Seasoned investors looking for diversification and higher risk-reward ratios and qualify as an accredited investor.
Luxury Goods: When Opulence Equals Investment
Luxury goods are not only symbols of status and opulence but can also solidify your investment game. High-end watches, designer handbags, and exclusive jewelry collections often see their value climb, defying the usual wear-and-tear depreciation.
They resonate with collectors and enthusiasts, transforming personal indulgence into a viable investment strategy.
Best For: Investors with a penchant for the finer things in life and enthusiasts looking to blend personal enjoyment with financial gain.
Secrets of the Antique Trade: Seeking Out Hidden
The antique trade is akin to a treasure hunt, where seasoned savvy meets the thrill of discovery. Unearthing hidden gems within flea markets, estate sales, and auction houses not only provides a historical connection but can also reveal investment diamonds in the rough.
Antiques carry the potential for significant bottom line appreciation due to factors like rarity, provenance, and desirability among collectors.
Like finding this antiquated nautical map at an estate sale and now listed for $7.5 million. 2
Best For: Collectors with a passion for history and an eye for value.
What If You Have A Depreciative Asset?
If you’re holding onto a depreciative asset, it’s like grasping a melting ice cube: time can whittle away its value.
Consider selling to repurpose the capital into something that appreciates, upgrading to a more efficient model, or simply using it fully before its value dips too low. Each depreciative asset requires a tailored strategy, balancing between cutting losses and extracting maximum utility.
It’s a strategic financial dance — knowing when to hold on and when to let go of depreciative assets can ensure they serve your bottom line more than they hurt it.
FAQs
Appreciating assets are financial powerhouses that grow your wealth over time. They combat inflation and can provide additional income streams.
By increasing in value, they enhance your net worth, creating a more robust financial foundation for your future endeavors.
Appreciating assets are typically categorized based on their nature and the way they generate value. Common categories include tangible assets like real estate and collectibles, financial assets like stocks and bonds, and intangible assets like patents and copyrights.
The assets that don’t often depreciate include real estate, precious metals like gold and silver, and certain collectibles such as fine art or vintage cars. These assets maintain value or appreciate over time, resistant to the typical wear and tear or technological obsolescence that affects other assets.
Which Asset that Has Appreciation in Value Interests You
In conclusion, adding appreciating assets to your portfolio is a strategic move towards achieving financial security and building long-term wealth.
These assets combat inflation by potentially increasing in value over time, providing an opportunity to earn returns that exceed the average inflation rate.
However, these assets are not considered to be part of your liquid net worth. With all appreciating assets, you must consider the potential taxes on your various investments.
To facilitate this wealth-building strategy, it’s vital to practice saving diligently—consider automating your savings, cutting unnecessary expenses, and increasing income streams. By consistently setting aside funds, you can gradually invest in diverse appreciating assets such as stocks, real estate, or retirement accounts.
This is how you start forming a life consistent with financial freedom.
Source
Barrons. “Rare Portrait of George Washington Could Fetch $2.5 Million at Auction.” https://www.barrons.com/articles/rare-portrait-of-george-washington-could-fetch-2-5-million-at-auction-e2f19134. Accessed February 20, 2024.
Los Angeles Times. “A $7.5-million find: Overlooked Getty estate sale map turns out to be 14th century treasure.” https://www.latimes.com/california/story/2023-10-25/map-dealer-discovers-14th-century-portolan-chart-getty-estate-sale. Accessed February 20, 2024.
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A judgment is an order issued by a judge or jury to settle a lawsuit. This decision details the rights, responsibilities, and obligations of each party. For example, if you fail to pay a debt, the lender can take you to court. In this case, the judge may order you to pay the other party as part of the court’s final judgment.
The order can be issued in one of two forms:
A monetary judgment: A judgment that orders one party to pay the other party a specific amount of money.
A nonmonetary judgment: A judgment that involves a nonmonetary type of resolution, such as the exchange of property or services. For example, a contractor may be ordered to complete a service for a client.
There are several classifications for judgments, including:
In personam: This is the most common civil judgment classification. It occurs when one party is liable to another.
In rem: Rather than involving personal liability, in rem judgments hold liability over a specific item, such as property.
Quasi in rem: Quasi in rem judgments consider the legal rights of individuals and not necessarily all parties involved.
Ultimately, if you don’t pay a debt, the lender or bill collector can file a lawsuit against you to recoup the money. The judge or jury determines if and how much money you owe. These terms are laid out in the final judgment.
What Is a Judgment on Property?
Your property includes both physical items and money. That means judgment creditors can seek debt payment from more than your wages and bank accounts. They may also take back a car you financed or other personal property. Another option is placing a lien on some of your property, such as your home.
What Property Can Be Taken to Settle a Judgment?
Creditors must follow the law when applying a judgment to take, or seize, your property. Some things are exempt—which means they can’t touch those items or properties. Some examples include the home you live in, the furnishings inside it, and your clothes. State laws identify these items and set limits based on their value.
Non-exempt property can be taken to help meet a judgment debt. Your creditor can take or leverage these possessions in the following ways:
Wage attachments. This is known as wage garnishment. When your employer receives the proper legal notice, they must withhold a percentage of your wages. These payments are sent to the judgment creditor until your debt is paid. The Consumer Credit Protection Act caps these types of garnishments. The limit is 25% of your disposable weekly wages or the amount you earn that’s above 30 times the minimum wage. The lessor of these two amounts applies. Some states set the cap even lower.
Nonwage garnishment. If you’re retired, unemployed, or self-employed, your bank account may be garnished instead. Here, too, there are exemptions. Veterans payments, social security, and disability benefits are not eligible for nonwage garnishment. Some states add even more restrictions to the garnishment of bank funds.
Property liens. If you own real estate, your judgment creditor may file a legal claim against it. These liens notify lenders of the creditor’s rights to your property. That way, if you sell your real property, the debt must be paid out of the proceeds. In many states, liens are placed automatically when a judgment is entered.
Property levies. Judgments may also allow some of your non-exempt personal property to be taken through a levy. Law enforcement may seize things like valuable collections or jewelry to be sold at auction. Sales proceeds are applied to your debt.
What Are the Types of Judgments?
Judgments come in many forms. Below is a look at the five types of judgments.
Satisfied judgment: A satisfied judgment means the debt is settled. This doesn’t necessarily mean you have paid the debt in full. It could mean there’s a new payment arrangement and you’re making regular payments.
Unsatisfied Judgment: An unsatisfied judgment means the debt is not settled yet. You’re expected to follow the court order and make payments on the outstanding debt. Until you make your final payment or come to another agreement with the other party, it will remain an unsatisfied judgment.
Vacated Judgment: If you don’t agree with the court’s initial judgment, you have the right to appeal that decision. If the judge decides to dismiss the case, the initial order becomes a vacated judgment.
Summary Judgment: If both parties agree to the basic facts of the case, either party may request to skip the trial and go straight to a summary judgment. The judge issues this final judgment without going through the process of holding a trial.
Renewed Judgment: Some states allow creditors to seek a new judgment for specific reasons. If this happens, the judge may issue a renewed judgment. This judgment may void the initial judgment or serve as an additional order.
Three Ways of Getting a Judgment
There are several ways a civil judgment can be determined.
1. Judgment After Trial
As the name suggests, a judgment after trial is a decision that occurs only after a trial. Once the judge or jury hears all the evidence and makes a final decision, the judge issues a formal judgment in the case.
2. Consent Judgment
A consent judgment occurs when both parties negotiate a final settlement. The judge must approve this final agreement, which is done by issuing a formal consent judgment.
3. Default Judgment
A default judgment occurs when the defendant fails to respond to a summons and complaint. In this case, the judge issues a default judgment in favor of the plaintiff without hearing any evidence from the defendant.
Can Judgments Affect Your Credit?
Judgments can’t directly impact your credit because the details of these orders aren’t part of your credit report. However, it’s likely that issues leading up to the final judgment could affect your credit. For example, your payment history can remain on your credit report for up to seven years. If you have any missing or late payments that led to the judgment, this history can impact your credit score.
A judgment could also have a positive effect on your credit. For example, once the debt is paid, the account balance should change to zero on your credit report. This could help lower the amount of debt you owe, which could impact your credit utilization rate.
Once the judge issues a judgment, you can use Credit.com’s Free Credit Score service to see if it had any effect on your score. As you work to rebuild your credit, you can enroll in Credit.com’s ExtraCredit® program to monitor your credit score over time.
What Is a Judgment on a Credit Report?
Judgments aren’t reported on your credit report and don’t directly impact your credit score. However, judgments are public records, so lenders could still have access to this information. This could affect your ability to secure credit in the future.
What Happens After a Judgment Is Entered Against You?
Once the judge enters a judgment, both parties must abide by the order. For example, you must pay the amount of money ordered by the judge, and the creditor must mark the account paid in full once payment is made. If you can’t pay the amount all at once, you may be able to set up a payment arrangement. You’re legally obligated to make these payments.
What Happens After a Judgment Is Entered Against You?
The court enters a judgment against you if your creditor wins their claim or you fail to show up to court. You should receive a notice of the judgment entry in the mail. The judgment creditor can then use that court judgment to try to collect money from you. Common methods include wage garnishment, property attachments, and property liens.
State laws determine how much money and what types of property a judgment creditor can collect from you. These laws vary. So, you need to look to your own state for the rules that apply. A consumer law attorney can help you understand your state’s laws on judgment collections.
What Is the Difference Between a Civil Judgment and a Criminal Judgment?
There’s a major difference between civil court and criminal court.
A civil court typically involves disputes between two parties. For instance, it could involve a case between two individuals, two organizations, or one organization and one individual. These cases often pertain to a breach of contract, an unsettled debt or a lack of services.
Unless both parties agree to the facts of the case, the judge gives each party the opportunity to present evidence. For example, if a debt collector takes you to civil court for an unpaid bill, you can provide evidence of any payments you made. After hearing the evidence, the judge issues a final judgment, known as a civil judgment.
On the other hand, criminal court involves someone accused of breaking the law. The federal, state, or local government charges the accused party. If, after holding a trial, the defendant is found guilty or the defendant pleads guilty prior to the trial, the judge issues a criminal judgment. A sentence is issued later, which could include jail time or some other form of punishment.
What Can You Do to Avoid a Judgment?
Heading off a lawsuit is the best way to avoid a judgment. To do so, don’t ignore calls and correspondence from your creditor. Reach out to learn if they’ll accept suitable payment arrangements. Educate yourself on smart ways to pay debt collectors, and consider using the services of a debt management agency.
What if the loan company or debt collector has already started the lawsuit? Don’t skip court. Show up and fight. You may win if the statute of limitations has expired.
If you haven’t made a payment on an old debt for many years, you may have a successful legal defense. Most states set the time frame between four to six years. Collectors often still file suit because they win by default if you don’t show up. So, it’s important that you go to court with proof of your last date of payment.
If you successfully defeat or avoid a judgment, don’t stop there. Take some sensible steps to help you get out of and stay out of debt. Adopting these smart financial habits can also help prevent future judgment actions.
Additional FAQs about Judgments
How Long Can the Judgment Creditor Pursue Payment?
The answer depends on where you live, since state laws differ. Some states limit collection efforts to five to seven years. Others allow creditors to pursue repayment for more than 20 years. With the right to renew a judgment over and over in many states, it may last indefinitely.
Judgment renewals may be repeated as often as desired or limited to two or three times. This is another state-specific issue. Judgments can also lapse or become dormant. The creditor must then act within a specific time frame to revive it.
What Happens When You Can’t Pay a Judgment Filed Against You?
If you own a limited amount of property, it may all be exempt from judgment collection efforts. Also, you may not work or only work part-time. With the CCPA cap, that may mean you don’t earn enough for garnishment.
This inability to pay your debt is called being judgment proof, collection proof, or execution proof. While these circumstances exist, the judgment creditor has no legal way to collect on the debt. It’s not a permanent solution. The creditor may revisit collection efforts periodically for many years.
For a more permanent solution, you may want to consider filing bankruptcy. This process can discharge or eliminate most civil judgments for unpaid debt. Exceptions apply for things like child support, spousal support, student loans, and some property liens. Speak with a bankruptcy lawyer to learn whether this will help your situation.
Can You Settle a Judgment?
If you can afford to pay a decent lump sum, you may be able to negotiate a settlement. The judgment creditor may be willing to settle if they fear you will otherwise file bankruptcy. Get the terms and settlement amount you agree upon in writing. Be sure the creditor agrees to file a satisfaction of judgment with the court after they receive your pay off.
Can a Judgment Be Challenged or Reversed?
Challenging and overturning a judgment is difficult but not always impossible. This is the case if there were errors. Perhaps you weren’t notified of the suit or it was never your debt to begin with. Consult with an attorney to find out whether you have grounds to challenge the decision.
If you want to challenge a judgment, act fast. If you received prior notice of the case, you may have up to six months to reopen it. If you weren’t notified, you likely have up to two years to appeal. By reopening the case, you have the opportunity to fight the claim anew.
Do Credit Reports Still Include Judgments?
For many years, credit reports included judgment information. But that changed in 2017. The National Consumer Assistance Plan is responsible for creating more accurate credit data requirements. These changes resulted in the removal of civil debt judgments from credit reports.
Judgments are still a matter of public record. But the NCAP now requires that there be identifying information on these records for more accuracy. That data includes a social security number or date of birth along with the consumer’s name and address.
Public records cannot include this type of identifying information. It would violate privacy laws. This is the reason these judgments are no longer reported on credit files.
How Do You Find Out if You Have Any Judgments Against You?
You should receive a summons when you’re being sued. So, you can expect a default judgment will follow if you don’t show up in court. You can also expect a notification when a judgment is entered against you.
Mistakes happen, though. You may have missed the notice or moved to a new address. If that happens, you may not learn of the judgment until collection actions start.
What if You Find a Judgment on Your Credit Report?
Take action if you learn that judgments are still being reported by Equifax, Experian, or Trans Union. The NCAP eliminated this practice, so if there’s a judgment on your report, this is definitely something that you should dispute. Credit repair services, like Lexington Law Firm*, can help you challenge the errors on your behalf with the credit bureaus and request that they correct your report.
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Disclosure: Credit.com and CreditRepair.com are both owned by the same company, Progrexion Holdings Inc. John C Heath, Attorney at Law, PC, d/b/a Lexington Law Firm is an independent law firm that uses Progrexion as a provider of business and administrative services.
Automation, Pre-Approval, QC Products; Rent vs. Buy; More Proposed Paperwork for Lenders
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Automation, Pre-Approval, QC Products; Rent vs. Buy; More Proposed Paperwork for Lenders
By: Rob Chrisman
7 Hours, 10 Min ago
Saturday was George Thorogood’s 74th birthday, and fans know that he wrote the classic tale of rent collection, land ladies, and payment avoidance. Time flies, but that may change. We’re faced with an actual five-day workweek this week, with no Federal holidays until Memorial Day, May 27th, two months away! Yikes. Here in Houston at the TMBA’s Southern Secondary Conference, the attendees are already making use of what time they have, discussing best execution procedures, warehouse tactics, management strategies, economic trends, the market for servicing, and operational efficiencies. I’m a capital markets guy, so arguably learned math good. But I didn’t learn math like this! MBS versus cash sales pick-ups is always a favorite topic, although last year the market was deluged by excess servicing trades. Flow and bulk purchasers of HELOCs and 2nds is search being undertaken by some, as well as climate change and insurance cost increases. (Found here, this week’s podcast is brought to you by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite’s three core products – nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics – unite the people, systems, and stages of the mortgage process. Today’s has an interview with Yardsworth’s Matt Lucido on creative ways that homeowners can leverage their tappable equity, and how we can see more supply hit the market.)
Lender and Broker Services, Products, and Software
Promising Updated MBA Forecast: The MBA released their recent forecasted predictions on mortgage originations (1 to 4 family). A welcome sight is that they predict a 25+ percent increase in 2Q over 1Q 2024 and a 13 percent increase in 3Q over 2Q 2024. In addition, the 3Q 2024 prediction is nearly 22 percent higher than the same quarter in 2023’s actual originations. As volumes continue to rise quickly, having a solid quality control program is as important as ever in order to continue to produce quality loans while mitigating risk. Quest Advisors has nearly 30 years of experience in assisting mortgage lenders with their quality control needs. Examples of services Quest Advisors provides, are Post-Closing and Prefunding loan QC reviews, along with Servicing, HMDA, and MERS audits. To find out more information on how Quest Advisors can help, please reach out to Matthew Reich at (336) 404-1409.
Tired of paying costly Agency LLPAs for non-owner occupied (NOO) and second home loans? More than 150+ originators have signed up to receive daily mandatory bids and MAXEX is currently winning more than 10 percent of loans bid! Get competitive pricing from five leading non-agency buyers and underwrite to Agency guidelines while avoiding Agency LLPAs. It all seamlessly integrates with your existing bulk trading process. Visit maxex.com/conforming to learn more.
Get a Sweetheart Deal with Loan Stream’s February Specials on FHA/VA and Non-QM price improvements! Get 37.5 BPS Price Improvement on all FHA and VA, Low Balance, and High Balance >=680 FICO, excludes DPA and 25 BPS Price Improvement on FHA Streamlines/IRRRLS. Plus, a Non-QM Price Improvement of 50 BPS on all Non-QM, not including Closed End Seconds and Select Programs. Valid for loans locked 2/1/2024 through 2/29/2024. Terms/Conditions apply see our site and talk with your Account Executive.
“Everyone wants to make their borrowers sticky and we’ve got the Krazy Glue. I’m talking ‘gotta get to the emergency room to get your fingers unstuck’ kind of glue. It’s called QuickQual, it integrates with Encompass® by ICE Mortgage Technology™ and once you pre-approve your borrower, they’re coming back.
Just as Morpheus offered Neo the ultimate choice between reality and illusion in The Matrix, Dark Matter Technologies invites you to choose between the past and the future of mortgage lending in its “Choose Your LOS Experience” ad campaign. Take the blue pill and stay the course with old-school thinking and technology. Or take the red pill and join DMT to revolutionize your business with cutting-edge technology, unparalleled automation, and relentless innovation, as evidenced by the Empower® LOS and the AIVA® artificial intelligence solution. When it comes to your future, “choose wisely.” Schedule a demo with the Dark Matter team today to explore how the Empower LOS can transform your business.
Is More Paperwork Heading Our Way?
Do we need more rules and regulations and paperwork, or better rules and regulation and paperwork? The federal bank regulatory agencies announced their first of a series of requests for comment to reduce regulatory burden. The Economic Growth and Regulatory Paperwork Reduction Act of 1996 requires the Federal Financial Institutions Examination Council and federal bank regulatory agencies to review their regulations every 10 years to identify any outdated or otherwise unnecessary regulatory requirements for their supervised institutions.
To facilitate this review, the agencies divided their regulations into 12 categories and are first soliciting comments on their regulations in three categories: Applications and Reporting, Powers and Activities, and International Operations. Comments on the relevant regulations will be accepted for 90 days after publication in the Federal Register.
But Ballard Spahr reports that on February 16, the Financial Crimes Enforcement Center (“FinCEN”) published a Notice of Proposed Rulemaking (“NPRM”) regarding residential real estate. The final version of the NPRM published in the Federal Register is 47 pages long. We have created a separate document which more clearly sets forth the proposed regulations themselves, at 31 C.F.R. § 1031.320, here.
“FinCEN also has published a Fact Sheet regarding the NPRM, here. The Fact Sheet, slightly over four pages long, is helpful and walks through the basics of many of the proposed requirements. The NPRM proposes to impose a nation-wide reporting requirement for the details of residential real estate transactions, subject to some exceptions, in which the buyer is a covered entity or trust. Title agencies, escrow companies, settlement agents, and lawyers need to pay particular attention to the NPRM because, based on FinCEN’s “cascade” approach to who should be responsible for complying with the reporting requirements, these parties are the most likely to be responsible.
”Rent Versus Own” Economics
If you’re still paying off your mortgage, renting is likely cheaper than owning in each of the nation’s 50 largest metros. Median rent costs are lower than median homeowner costs for those with mortgages but higher than costs for homeowners without mortgages. LendingTree analyzed housing data to compare monthly rental and housing payments for homes with and without mortgages in the 50 largest metros in the U.S.
The difference between median housing costs for homes with a mortgage and median gross rent is $563 a month. The spread in costs between renting and owning a home with a mortgage is widest in the San Jose, Calif., San Francisco, and New York metros. The difference between the median monthly housing costs for homes with a mortgage and the median monthly gross rent in these metros is $1,341, $1,303, and $1,289, respectively. Phoenix, Orlando, Fla., Jacksonville, Fla., and Atlanta have the narrowest gaps between renting and owning a home with a mortgage. In Phoenix and Orlando, median gross rent costs are $87 and $145 less than median monthly housing costs for homes with a mortgage. In both Jacksonville and Atlanta, the difference is $216.
That said, Barron’s reports that, “Prospective buyers spent the President’s Day holiday last week window shopping, early data suggest. ‘Showing activity was strong,’ says Orphe Divounguy, a senior economist at Zillow, citing data from home tour software company Showingtime. Home touring activity was up 19.4% from the start of the year, pointing to a strong seasonal ramp-up.”
Capital Markets
Markets are known for “getting ahead of themselves,” and the latest example may be the “insatiable demand” for Nvidia’s artificial intelligence chips. The stock has shot up, resulting in the company briefly surpassing a $2 trillion valuation. But other equity prices have tagged along, boosting the general stock market.
That said, investors have been walking back expectations for Federal Reserve rate cuts. Goldman Sachs, for example, has pushed back expectations for a Fed rate cut to June. If you like rates where they are, fine. If you’re hoping for lower rates to jump start your business in the near future, well…
The dominating market narrative recently has been that while interest rate cuts may be appropriate at some point this year, it is not likely to be anytime soon. Resilient economic growth and optimism that inflation will continue to fall in the face of high interest rates has fostered household demand, bolstered expectations the U.S. will avoid a downturn in the near term and forced investors to ratchet back bets on early rate cuts. Philadelphia Fed President Harker warned against betting on early rate cuts late last week, saying “I will signal my belief that we’re ready for a rate decrease when all the data, both the hard and the soft, give me that signal.” Pricing in fed funds futures has all but erased the chance of a March rate cut, and the chance of a cut in June is currently a coin-toss. Economists now see a 40 percent chance of recession in the next year, the lowest reading since mid-2022.
Last week was fairly quiet in terms of economic releases and the few that came out did nothing to change the current narrative of U.S. economic conditions. The Leading Economic Index declined 0.4 percent versus a -0.3 percent forecast and is now just two points above its April 2020 low. Historically, the prolonged decline observed in this data set predates a recession, but at the moment, it appears this recession signal is out of step with current economic conditions. Elsewhere, existing home sales rose 3.1 percent in January thanks in part to declining mortgage rates in December.
Since then, rates have moved back up towards 7 percent. The FOMC has repeatedly indicated it is in no hurry to begin reducing the fed funds rate until they are fully confident inflation is sustainably moving towards their 2 percent goal.
This week opens with $169 billion in month-end supply over the first two days along with the usual $309 billion in Treasury bills. There are several important economic releases with the highlight being the Fed-favorite PCE price index for January is on Thursday. We will also receive durable goods for January, home price indexes for December, consumer confidence for February, the second reading on Q4 GDP, Chicago PMI for February, January construction spending, and final February consumer sentiment.
The deadline for Congress to avert a partial government shutdown is Friday. Today starts quietly with new home sales for January, expected to register 680k versus 664k in December, Dallas Fed manufacturing business index for February, and remarks from the new Kansas City Fed President Schmid. The Treasury will auction $63 billion 2-year notes, $70 billion 6-month bills, $63 billion 5-year notes, and $79 billion 3-month bills. We begin the week with Agency MBS prices roughly unchanged from Friday’s close and the 10-year yielding 4.24 after closing last week at 4.26 percent. Helping ARM rates, the 2-year is down to 4.68 percent.
Jobs and Transitions
Logan Finance is hiring! Non-QM Account Executives are in high demand at Logan Finance, especially those of you in Florida. Contact us today to learn more. Speaking of hiring, Logan is happy to announce that Ryan Rathert and Sarah Gonzalez have joined the executive team as Chief of Staff and Chief Operating Officer, respectively. Ryan is a proven mortgage finance wizard and Sarah a renowned industry maven, so put your sunglasses on, because the future at Logan is bright! And the spotlight will be on Logan’s SVP Business Development, Paul Jones, as he presents “Discover the DSCR Difference with Logan Finance”, session #2 in the monthly series, “The Modern Non-QM Experience”. Join Paul on March 6 at 2pm ET. Register here. If you’re looking for a Non-QM career boost, send your resume or check out LoganWholesale.com and LoganCorrespondent.com for more information. Join Logan and become a #LoganLeader today.
“Don’t just close loans, close the gap on your potential. Kind Lending is seeking mortgage professionals with an entrepreneurial spirit and KIND mindset. We will provide a comprehensive catalog of loan products to serve your clients, along with advanced marketing and tech tools to grow your brand and exponentially expand your reach. You will be empowered to rewrite your success by leveraging the powerful tools available at your fingertips. It’s your business. We are here to fuel it. If you are ready to build win-win relationships with a company that values you and your growth, contact Traci Miller, National Talent Acquisition Manager.”
Click n’ Close, a multi-state mortgage lender serving consumers and mortgage originators through its wholesale and correspondent channels and formerly known as Mid America Mortgage, announced Polly Cracchiolo has joined the organization’s third-party originator (TPO) sales team as an account executive.
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Rates Testing Ceilings After Bond Auction and European Weakness
By:
Matthew Graham
Wed, Feb 21 2024, 4:57 PM
Rates Testing Ceilings After Bond Auction and European Weakness
Bonds managed to start the day in modestly stronger territory, but it’s just as fair to say “sideways.” Things didn’t start moving until after 10am when European bond market weakness spilled over to Treasuries. Yields drifted several bps higher into the 20yr bond auction and popped to the highs of the day after the lackluster auction results came out. The 4.32+ ceiling remained intact despite a bit of volatility surrounding the release of what was a mostly uneventful reading of the Fed Minutes. If the proof is in the pudding, consider that Treasury volumes were much higher after the auction than the Fed minutes, and the latter only caused about 1bp of movement. Translation: the Fed Minutes contained no surprises.
09:57 AM
Modestly stronger overnight despite weakness in EU bond market. 10yr down half a bp at 4.27. MBS up 2 ticks (.06).
12:06 PM
2 mini waves of selling into the PM hours. MBS down 5 ticks (.16) and 10yr up 2.8bps at 4.303.
01:07 PM
Sloppy 20yr auction. 10yr up 4.8bps at 4.323. MBS down a quarter point.
02:49 PM
Sideways after Fed minutes, but losing some more ground into 3pm close. 10yr up 5.4bps ta 4.329. MBS down 9 ticks (.28).
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Precious metals have captured the attention of investors for centuries, not only for their alluring beauty but also for their potential as a valuable asset. Whether you’re intrigued by the gleam of gold, the sheen of silver, or the rarity of metals like platinum and palladium, the world of precious metals investing offers a diverse and captivating landscape to explore.
While investing in precious metals may seem intimidating at first, understanding the basics can help you make informed decisions about your investment strategy. From the different types of precious metals available to the various investment vehicles and strategies, this beginner’s guide will provide you with a solid foundation to begin exploring this captivating investment opportunity.
Precious metals have held an allure for thousands of years, treasured not only for their beauty but for their unique physical properties. The high economic value of these metals, coupled with their distinct characteristics, makes them essential in various sectors, including the jewelry industry, electronics, industrial products, and the computer industry.
Gold
Gold is perhaps the most well-known precious metal, treasured by civilizations across history for its malleability, beauty, and resistance to tarnish. Today, gold is not only used in jewelry but also in electronics and other industrial applications due to its excellent conductivity.
Silver
Silver, while less expensive than gold, is highly valued for its unique properties. It has the highest electrical and thermal conductivity of all the elements, making it indispensable in the electronics industry. Silver is also used in solar panels, batteries, and various industrial applications.
Platinum and Palladium
These are part of the platinum group metals, prized for their exceptional resistance to heat, chemical attack, and electrical erosion. They are used extensively in the automotive industry, jewelry making, and numerous industrial applications.
Investing in precious metals provides several potential benefits, making them an enticing addition to any personal finance strategy.
Hedge against Inflation: Precious metals, particularly gold, have been used as a hedge against inflation for centuries. When fiat currencies are losing value due to inflation, gold prices often rise, preserving the purchasing power of the investor’s capital.
Wealth preservation: Precious metals, being tangible assets, have been used for wealth preservation across history. Unlike paper money, physical gold or silver cannot be devalued by government actions or economic downturns, making them a valuable asset in times of economic uncertainty.
Market volatility buffer: Precious metals often move counter to the stock market, making them an ideal investment for mitigating risk during times of turbulence.
Investing in precious metals can provide balance to your portfolio, potentially offering protection and positive performance during periods of economic stress.
There’s more to investing in precious metals than buying gold bars or silver coins. Here are some of the ways you can add precious metals to your portfolio:
Physical Bullion
Physical bullion includes gold and silver coins, bars, and rounds. When you buy physical precious metals, you’re making a direct investment and gaining ownership of a tangible asset. This option appeals to many investors who appreciate the security of holding their wealth in a physical form that has intrinsic value.
However, owning physical metals comes with considerations such as storage and insurance costs. You’ll need to secure your investment either in a home safe or a deposit box at a bank or private facility, each option with its advantages and disadvantages.
Precious Metal ETFs and Mutual Funds
Precious metal exchange-traded funds (ETFs) and mutual funds offer a way to gain exposure to the precious metals market without the need to physically store the metals. These funds typically track the price of a specific metal or a group of metals.
Mining Stocks
By buying shares in a mining company, you’re investing in the operation that extracts the precious metals from the ground. Mining stocks can offer higher potential returns than investing in physical metals or metal-tracking funds, but they also come with greater risk.
These risks include operational risks at the mining site, geopolitical risks in the countries where mines are located, and market risks related to fluctuations in the prices of the underlying metals.
Futures Contracts and Other Financial Instruments
Futures contracts allow you to buy or sell a specific amount of a precious metal at a predetermined price at a set date in the future. These instruments can be used to hedge against price fluctuations or to speculate on future price movements.
Other financial instruments, such as options and certificates, can also be used to invest in precious metals, but these can be complex and are typically recommended for more experienced investors.
Buying and Storing Precious Metals
When it comes to buying precious metals, the process can be as simple as visiting a local coin shop or making a purchase online. However, there are several key factors to consider:
Choosing a Dealer
Reputation is critical when choosing a dealer for your precious metals purchase. Look for businesses with a long track record, positive customer reviews, and a commitment to transparency in their pricing. Keep in mind that while precious metals themselves are not subject to counterfeiting, the products made from them can be, so it’s essential to buy from reputable sources.
Understanding Premiums Over Spot Price
When you buy precious metals, you’ll often pay more than the current market price, or “spot price,” of the metal. This difference is known as the “premium” and covers the dealer’s expenses and profit margin. Premiums can vary depending on the product; for example, a gold bullion coin may have a higher premium than a gold bullion bar of the same weight due to the additional cost of minting the coin.
Buying Process
Depending on the dealer, the buying process may involve placing your order online or over the phone, followed by payment through bank transfer, check, or credit card. Be aware that using a credit card may involve additional fees. After payment, the dealer will ship your precious metals to you, with the shipping method and insurance coverage varying by dealer.
Storage Options
If you’re investing in physical precious metals, you’ll need to consider where to store them. At home, a high-quality safe can provide protection, but it may also make your home a target for thieves. Storing your precious metals in a bank deposit box provides an extra level of security, though access to your metals is limited to the bank’s hours, and the contents of the box may not be insured by the bank.
Private storage facilities, sometimes called private vaults or depositories, offer another option. These facilities offer high-security storage for precious metals, often with 24/7 monitoring, insurance coverage, and the option to visit and inspect your holdings.
Selling Precious Metals
Knowing when and how to sell your precious metals is just as important as knowing how to buy them. Here are a few points to keep in mind:
Timing Your Sale
While there are many theories about the best time to sell precious metals, the reality is that the optimal timing depends on your individual circumstances and financial goals. It can be helpful to set a target price or return percentage at which you’ll sell your metals and to review this strategy regularly based on market conditions and your financial situation.
Finding a Buyer
Most precious metals dealers also buy metals, and selling to a dealer can be a convenient option, particularly if you’re selling a common product like a gold coin. However, dealers will typically offer to buy your metals at below the spot price, as they need to account for their costs and a profit margin when they resell the metals.
Online marketplaces and auction sites can offer another way to sell your metals, potentially allowing you to reach a larger pool of buyers and secure a higher price. However, these platforms also involve fees and potentially longer transaction times.
Tax Implications
In many jurisdictions, selling precious metals can trigger capital gains tax implications. The tax treatment can depend on several factors, including the type of metal, the form of the metal (coin, bar, etc.), how long you’ve held the metal, and your total gain or loss on the sale. It’s essential to consult with a tax professional to understand the potential tax implications of your sale.
Risks and Challenges in Precious Metal Investment
While investing in precious metals can offer several benefits, it also comes with its own unique risks:
Price volatility: Like other commodities, precious metals can experience significant price fluctuations. While these fluctuations can offer the potential for high returns, they can also lead to substantial losses.
Lack of cash flow: Unlike stocks that may pay dividends or bonds that pay interest, precious metals do not generate cash flow. Any return on your investment will come from selling the metal at a higher price than you paid for it.
Storage and insurance costs: If you choose to invest in physical precious metals, you’ll need to consider the costs of storing and insuring your metals. These costs can eat into your returns, particularly if you’re investing a small amount.
Counterfeit products: Although it’s rare, there is a risk of counterfeit products in the precious metals market. This risk can be mitigated by purchasing from reputable dealers and having your metals tested by a professional if you’re unsure of their authenticity.
Despite these challenges, many investors find that the potential benefits of investing in precious metals make them a valuable addition to a diversified investment portfolio.
Precious Metals in Portfolio Diversification
Precious metals can play a key role in a diversified investment portfolio. Their tendency to move independently of other asset classes can provide a buffer against market volatility. While the percentage of precious metals in a portfolio can vary greatly depending on individual investment objectives and risk tolerance, some financial advisors suggest an allocation of between 5-15% towards precious metals.
It’s important to remember that diversification does not ensure a profit or protect against a loss, and past performance of precious metals is not indicative of future results. It’s always a good idea to consult with a financial advisor to help determine the most appropriate asset allocation for your individual circumstances.
Precious Metals and Global Industry
The demand for precious metals extends beyond individual investors and central banks. These metals play a crucial role in various industries globally.
Gold, for instance, is highly valued in the electronics industry for its excellent conductivity and resistance to tarnish. Silver’s unique properties make it indispensable in the production of solar panels, batteries, and various industrial applications. Platinum and palladium are critical in the automotive industry for their use in catalytic converters, helping to reduce harmful emissions.
As technological advancements continue, the industrial demand for precious metals may potentially increase, influencing market prices.
Precious Metals and Retirement
Precious metals can also play a role in retirement planning. Certain types of Individual Retirement Accounts (IRAs) allow for the inclusion of physical precious metals, known as “Gold IRAs” or “Precious Metals IRAs.”
These IRAs can provide a way to gain the potential benefits of precious metals while enjoying the tax advantages of an IRA. However, there are specific rules and regulations regarding which precious metals can be included in these IRAs, and how they must be stored.
Before adding precious metals to a retirement account, it’s important to understand the potential risks and rewards and to consult with a financial advisor and a tax professional.
Final Thoughts
Investing in precious metals can be a valuable part of your overall financial strategy. As with any investment, it’s crucial to do your research, understand your investment objectives, and consider consulting with a financial advisor.
In the ever-evolving world of precious metals, continual learning and staying abreast of market trends is key. While no investment is risk-free, these rare metals, with their rich history and diverse industrial uses, offer unique opportunities for those willing to pursue their lustrous allure.
Whether it’s the glint of gold, the shine of silver, or the rarity of other metals like platinum and palladium, the precious metals market offers a fascinating way to diversify your portfolio. And they can potentially protect against volatile markets and inflation, and invest in a tangible asset with enduring value.
In the end, the choice to invest in precious metals is a personal one. It’s about understanding the market, acknowledging your risk tolerance, and aligning your investment strategy with your financial goals. The key to investing in anything successfully lies in knowledge, diversification, and patience.
No matter your interest rates or cash flow, your retirement account or your credit risk, the world of precious metal offers a robust platform for investment purposes. Remember, past performance is not indicative of future results, and every investment strategy comes with its own unique risks. But with careful planning and wise decision-making, you can make the most of what precious metals have to offer.
Whether you’re buying gold bars, investing in mining companies, tracking the gold industry, or just diversifying your portfolio with a valuable asset, there’s a place for you in the world of precious metals investing.
From gold coins to silver prices, from market volatility to economic uncertainty, the precious metals sector offers a world of opportunities. And as the world continues to evolve, so too will the role of precious metals in our lives and in our portfolios.
Investing in precious metals is not just about protecting against potential economic collapse, but also about participating in the growth and technological advancements of global industries. It’s about owning a piece of history, a tangible asset that has served as a symbol of wealth and power for thousands of years.
So, as you contemplate whether to invest in precious, remember the words of ancient Greek playwright Aristophanes, “Gold bestows honor, gold inspires deeds, gold characterizes the highest.” May your journey into investing in precious metals be a golden one.
In AD PRO’s monthly Having a Moment column, AD senior design editor Hannah Martin reports as a weathervane for fads big and small, documenting the patterns and home decor trends she’s clocked in the pages of AD and beyond. Here, enjoy a look back at 2023’s most defining moments.
From nostalgic styles making a comeback to innovative responses to how we live today, there were many stand-out moments in the world of interior design this year. Reviewing them retrospectively, the selections sum up the past year’s tentpole memories—from the design fair debuts we’re still thinking about to the interiors that will inspire well into the new year. Before diving into the design forecasts and color predictions for 2024, take a minute to reflect on the home decor trends that ruled interiors this year.
Forget the subtlety of travertine (last year’s surface du jour) or the always-in elegance of snow-white Carrara. This year was all about an eye-popping specimen—strong veining, unusual colors, and (for the ultra-daring) perhaps a graphic mix of both. Surfaces need not blend into the background; they can say something too. Let’s call it personality marble—that essential dose of pattern that can make any interior pop. Take, for instance, the freestanding onyx bar Roman and Williams turned into a showstopping moment in Gwyneth Paltrow’s Montecito living room, or the all-over marble bathroom of Tinder founder Sean Rad and his wife, Lizzie Grover Rad, conjured by designer Jane Hallworth. Consider it a new kind of conversation piece for the home.
Jaxx Red Marble Side Table
“With a rise in midcentury-modern home remodels and an increased nostalgia for retro furnishings, we’re seeing more customers favoring color,” says Alyssa Wilterdink, senior marketing manager at Kohler, which relaunched a duo of vintage hues for its plumbing fixtures in honor of the American manufacturer’s 150th anniversary this year. Designers are indeed leaning in: Virginia Tupker recently ordered custom colored Water Monopoly sinks in pale pink and blue for a family home in Connecticut; color fiend Frances Merrill installed a cobalt blue sink in the powder room of a Cape Ann, Massachusetts, home; and designer Oliver M. Furth opted for a vintage pink toilet from Kohler for artist Mary Wetherford’s midcentury-modern abode in LA.
Lookin’ Good Shower Set
This year, we witnessed a surge in designers adding color, pattern, and artistic flair to their projects with hand-painted tile. “I’ll tile just about anything,” says interior designer Jessica Jubelirer, who applied the treatment to the hearth, the bathrooms, the baseboards, and, most memorably, inset in the closet doors in a lakeside Wisconsin family home. Meanwhile, in a historic Connecticut family home designed by Virginia Tupker, Delft and Portuguese tiles create a sort of wainscoting in the entryway and bathrooms, as well as fireplace surrounds. In the kitchen of that project, hand-painted tile adds a splash of pattern (drawn from a William Morris motif) as a backsplash. Practical and durable with an artisan flair, hand-painted tile adds visual interest wherever needed. Adds Jubilerer: “Kitchens, bathrooms, and fireplaces can all benefit from its practicality and beauty.”
São Dinis 88 Portuguese Tile
This spring’s design fair circuit hinted at a return to the industrial minimalism, high-tech style of the ’70s and ’80s—an industrial revolution of the interior, if you will. In April we returned from Milan with notes about a minimalism resurgence, with a particular emphasis on industrial materials. Knoll had reissued some of high-tech star Joe D’Urso’s super-adaptable and sleek low tables from the ’80s. Ledongil Workshop’s experimental lighting and furnishings, on display at Ordet gallery, felt like an elevated take on track lighting. And at Drop City, designer Daisuke Yamamoto showcased a collection of clean-lined chairs made of the most frequently trashed construction material: lightweight gauge steel. Indeed, industrial materials and minimalist silhouettes were the protagonists of this year’s debuts.
Hector Small Dome Clip Light
“We’re blowing the dust off moire,” says Raffaele Fabrizio, creative director of Dedar, while showing off the Italian fabric house’s newly expanded Amoir Libre textile. Cue the ripple effect. As of late, a handful of brands and interior designers have redirected their gaze to the historic textile that oozes opulence, repackaging it for today’s quiet luxury. Interior designer Sophie Ashby, who recently wrapped a dressing room in a pale pink Dedar moire, praises the home decor trend for its ability to expand space: “When used in the right way it can really enhance a space, enveloping the interior with tactility whilst also subtly playing with light to make smaller spaces—such as dressing rooms or hidden nooks—appear larger.”
Quadratic Rug in Burgundy by Objects of Common Interest for CC-Tapis
Before there was photography, botanists—or anyone wishing to document flora—created detailed illustrations, known as botanical studies, intended to convey the plant’s physical appearance and other qualities. Unsurprisingly, such botanical studies have long been used to decorate. Lately, the botanical studies trend—a longtime hallmark of traditional, even preppy interiors—is blooming anew. In Lauren Dupont’s Connecticut home, designed by Stephen Sills, a pair of antique botanical prints purchased at auction hang in her dressing room, and in her Palm Beach kitchen, Aerin Lauder mounted a grid of floral prints in the service pantry. Sure, there’s nothing innately groundbreaking about florals when it comes to home decor trends, but perhaps that’s just what gives them eternal life.
Nasturtium Wall Tray
In the bedroom, gone are the piles of decorative pillows and fussy, overstuffed duvets. Back is a simple coverlet that is perfectly happy not to take center stage. You know this super-simple look: a flat coverlet is laid across the bed, folded down a little at the top, and then back over a pair of standard pillows. “It always felt a bit traditional and almost religious,” says Colin King, the stylist and longtime AD contributor, who favors the minimalist bed. “It’s clean and tidy, simple but elegant. It gives the room the feeling you want your bedroom to have—serenity.” The back-to-basics look has been spotted in a restored Brooklyn Heights apartment by Augusta Hoffman, John Legend and Chrissy Teigen’s California bedroom designed by Jake Arnold, and Andre Mellone’s Manhattan sleeping quarters too.
Repose Heavyweight Bedcover
In Germany and Austria between 1815 and 1850, when the Napoleonic wars had ended and a burgeoning middle class emerged, a new style of furniture was created to suit their needs: streamlined versions of more opulent Empire furniture, characterized by strong lines, warm local woods, and simplified shapes—though, notably, not totally stripped of ornament. Biedermeier furniture, as it would later be named, has regained appeal in contemporary interiors for its chameleon qualities. It brings a calculated hit of classicism to a cool, minimalist interior, but it can deliver streamlined modernity to one that is layered and super decorated. These days, says Campbell-Rey’s Charlotte Rey, it’s all about the mix: “It is important to not be afraid to mix them with color and other periods. Perhaps you place a Memphis Milano lamp on top of a Biedermeier sideboard? Being too respectful can make it feel overly polite.”
After several days of heavy volatility, the bond market is drifting into a sideways daze, lulled to sleep by the repetitive tones from multiple Fed speakers. One after another, they’re saying the same version of the same thesis (good progress on inflation, but need more, might cut in 2024, but not yet, surprisingly strong econ gives us time to decide, etc). Bonds have clearly heard it all before, which is why they didn’t care about Powell saying this stuff last week. NYCB headlines were worth temporary volatility, but not lasting changes. The largest ever 10yr auction passed without a trace.
09:11 AM
Initially stronger overnight on NYCB downgrade, but steadily weaker into domestic hours. Pushing back modestly now with MBS down 3 ticks (.09) and 10yr yields up 1.8bps at 4.108.
09:47 AM
10yr yields are quickly down a a few bps at 4.073 after new NYCB headlines. MBS up 2 ticks (.06).
11:46 AM
NYCB gains erased fairly quickly. 10yr now back to 2bps to 4.11. MBS down 3 ticks.
01:05 PM
Uneventful 10yr auction. 10s up 2bps at 4.11. MBS down 6 ticks (.19) on the day in 5.5 coupons.
02:26 PM
10yr unchanged from previous update. MBS tightening up a bit, now down only 3 ticks (.09).
04:42 PM
Weakest levels of the day with MBS down a quarter point moments ago. 10yr up 2.7bps at 4.117
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Bonds Increasingly Look Like They’re Waiting For CPI
By:
Matthew Graham
Thu, Feb 8 2024, 3:30 PM
Bonds Increasingly Look Like They’re Waiting For CPI
It wouldn’t be the first time and probably won’t be the last that the bond market finds itself in a lull during a week that separates the most significant top tier economic data. Last Friday’s NFP swung for the fences (in a bad way for rates), but it’s not game over unless next week’s CPI proves to be a bash brother. Between one and the other, it’s a great time to hit the concession stand. This isn’t to say exciting things can’t happen outside of NFP and CPI-type reports, only that there’s nothing on the calendar of scheduled events that demands attention until Tuesday morning at 8:30am ET.
Jobless Claims
218k vs 220k f’cast, 227k prev
08:20 AM
Modestly weaker overnight with losses led by Europe. MBS down 5 ticks (.16) and 10yr up 2bps at 4.135
10:47 AM
modestly weaker drift with MBS now down 7 ticks and 10yr yields up 4bps at 4.154
12:49 PM
Very flat through mid morning hours. MBS down 5 ticks (.16) and 10yr up 4.5bps at 4.16%.
01:08 PM
Slightly stronger 30yr bond auction and a decent reaction in Treasuries. 10yr now up only 2.7bps at 4.142. MBS down an eighth of a point.
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Economists have their favorite indices to measure the health of the economy. GDP, if men are buying underwear, CPI, RV shipments, GDP, plastic surgery appointments, PCE, hemlines… tomorrow on The Mortgage Collaborative’s Rundown Skylar Olsen, the Chief Economist of Zillow, will discuss some of this, and more, for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. Meanwhile, lenders are shifting the focus from things they can’t change to things they can: changing regional managers comp plans to incorporate profits instead of volume. Or honing marketing systems now, not when rates drop further and opening up refi opportunities. Or shifting to paying less for a refi and putting the difference into rate sheet pricing. And who’s buying the properties we’re lending on? Women. Okay, that was a bold generalization, but still… (Today’s Commentary podcast can be found here and this week’s is sponsored by Vesta, the new, modern Loan Origination System (LOS) which helps lenders reduce their costs to originate and improve their ability to integrate with new technologies in the ecosystem. Hear an interview with Ally Home’s Glenn Brunker on what’s happening in the housing market and what to expect going into spring homebuying season.)
Lender and Broker Software, Products, and Services
Matic, a digital home insurance platform built for the mortgage industry, recently announced an exclusive partnership with PRMG to extend their marketplace of over 40 A-Rated carriers into PRMG customer offerings. PRMG joins over 100 mortgage lenders, servicers and banks, representing 20 percent of home loans processed in the U.S., that partner with Matic to integrate the insurance shopping experience into the homeownership lifecycle. Now more than ever, mortgage leaders are turning to Matic to help them offer value to customers, generate revenue, and reduce costs in a tough housing market. Mortgage leaders, don’t miss out: book a demo with Matic to discover how to add an ancillary revenue stream that removes friction from the insurance process and keeps customers within your existing systems. And if you’re attending MBA’s Servicing Solutions Conference in two weeks, stop by booth 806 to learn more! Book a demo with Matic.
Only 60 days since launch and already 150+ mortgage originators have signed up to receive daily mandatory bids from MAXEX on bulk pools of Agency-eligible non-owner occupied (NOO) and second home loans. Moreover, we’re currently winning more than 10 percent of the loans bid! Why? Because our unique loan exchange model provides access to competitive pricing from five leading institutional buyers, allows you to underwrite to agency guidelines, and helps you avoid costly Agency LLPAs—all within a single contract and through a single, standardized clearinghouse. This seamlessly integrates with your existing bulk trading process. Visit here to learn more.
We live in a world of autopay, Apple Pay, Venmo, Uber Eats… the list goes on. If borrowers can pay for a pizza online, why are we still asking them to share their credit card info over the phone? Get with the times and collect upfront fees via text with Fee Chaser by LenderLogix.
TPO Products for Broker and Correspondent
“Button Finance is a leading home equity lender specializing in HELOCs and Closed-End Seconds, offering lucrative opportunities for our partners. Correspondent partners can earn 7.85 percent of the loan balance, while brokers can make 5 percent. Additionally, we offer an attractive 3.5 percent Lender Paid Compensation on Texas 50a6 loans. Our services extend to lending against investment properties for brokers, ensuring a broad spectrum of lending solutions. With competitive 8 percent note rates on Closed-End Seconds and no appraisals up to a $250k loan balance, Button Finance is your go-to partner for all home equity lending needs. Email us for more information.”
Eighty percent of homeowners have first mortgage rates less than 4 percent. However, they are sitting on over $10 trillion of tappable equity. HELOC originations provide an outstanding opportunity for lenders and their LOs. Every homeowner receives HELOC solicitations. If it’s not from YOU, then WHO? Depending on YOUR borrowers, this may be the ideal time for them to make home improvements or pay off credit card debt. Or it may be the right time for that dream vacation. NFTYDoor, a division of Homebridge, is a proprietary digital HELOC platform that provides on-demand access to YOUR borrower’s equity. Customers want an experience that is simple and fast, and through NFTYDoor, HELOCs can close in a few days, not weeks or months. Embrace the “Customer for Life” strategy with NFTYDoor’s platform that is 100 percent branded to you. Stay in front of your customers and recapture future business. Contact NFTYDoor today.
STRATMOR and Operations
Forecasters are predicting modest growth in new and existing home sales in 2024, which means we can all look ahead with cautious optimism. Now’s the time to review your operations and prepare for this modest shift back toward normalcy. Senior Operations Executives: STRATMOR Group is hosting its virtual Operations Workshop next week, February 14-16, to help you do just that. Interact with STRATMOR advisors and your peer lenders to discuss improving operational efficiency, overcoming recent challenges and pain points, and current trends in mortgage operations. Contact STRATMOR Group to learn more and sign up.
Conventional Conforming News
The Federal Housing Finance Agency’s 2024 scorecard for the government-sponsored enterprises included a new provision for representations and warranties. “Explore opportunities to harmonize the enterprises’ processes supporting the single-family selling representations and warranties framework, including defect identification, remedies and repurchase alternatives,” the scorecard states.
Fannie Mae’s (FNMA/OTCQB) December 2023 Monthly Summary is now available and contains information about Fannie Mae’s monthly and year-to-date activities for our gross mortgage portfolio, mortgage-backed securities and other guarantees, interest rate risk measures, and serious delinquency rates. There’s also Fannie’s Home Purchase Sentiment Index® (HPSI) which increased to its highest level since March 2022, due primarily to increased consumer confidence in job security and another significant jump in the share of consumers expecting mortgage rates to decrease. An all-time survey-high 36 percent of respondents indicated that they expect mortgage rates to go down in the next 12 months, while 28 percent expect them to go up, and 35 percent expect rates to remain the same. (Seems pretty even to me.)
Fannie Mae is updating the Uniform Loan Delivery Dataset (ULDD) to provide further guidance on implementation and mandate dates associated with the data enhancements included in the ULDD Phase 5 specification published on Sept. 12, 2023. Review the announcement for an overview on the implementation and mandate dates associated with business-critical and UAD 3.6 alignment data enhancements for the Phase 5 data requirements.
Pennymac is aligning with Freddie Mac Bulletin 2023-19, announcing updates to their rental income requirements. The updates are effective with loan deliveries on or after 03/15/2024. Details are available in Pennymac Correspondent Announcement 24-06.
National MI announced updates to the TrueGuide which include the following changes and clarifications: AUS Loans Automated Tools have been updated as follows: Fannie Mae Appraisal Waiver has been updated to reflect the name change to “Value Acceptance.” Fannie Mae Income Calculator for self-employment income has been added as an approved income and asset tool. Non-AUS Loans have been updated as follows: Jumbo and Medical Professional Program loan limit increases. Verbal Verification of Employment updated to align with the GSEs’ requirements. Underwriting Guidelines detailing these changes and clarifications will be posted to nationalmi.com in the near future.
AmeriHome Mortgage Announcement 20240111-CL summarizes previously published changes made during January, additional changes made with this announcement, and recent Agency and regulatory news.
Citizens Correspondent National Bulletin 2024-02 includes information on Value Acceptance + Property Data – DU (Delegated Transactions only). Effective February 1st, Conventional Conforming Updates and Disaster Tax Filing Relief. See the bulletin for additional information and all lock, delivery, and purchase by dates, if required.
Capital Markets
Need a crash course in Assignment of Trade (AOT) executions? In this blog post, Assignment of Trade Executions 101, MCT experts delve into the process of AOT executions, the impact of bid tape AOT on to-be-announced (TBA) positions, and how automation is moving the industry forward. The blog also reviews the cost savings associated with bid tape AOT executions and the MCT Marketplace technology used to complete these transactions. To learn more about MCT Marketplace, view the recent video with MCT’s CEO & President, Curtis Richins. In the video, Mr. Richins reviews key features of MCT Marketplace, opportunities within the platform for buyers and sellers, and a roadmap for the future.
Even with all the selling in the bond markets last Friday after January’s payrolls data came in much stronger than expected, yields have merely moved back to where they had been for most of the year so far. Most security prices are determined by supply and demand, and yesterday witnessed a strong sale of 10-year Treasuries at the record $42 billion 10-year Treasury auction.
But bonds barely budged! Sentiment was dominated by fears surrounding NY Community Bank. Do you remember when the spreads between Treasury securities and MBS “blew out” last March with the banks having to sell MBS? We may see that again with the NYCB possibly selling part or all of Flagstar’s billions in mortgage holdings. In news of interest to loan originators, FNMA’s Home Purchase Sentiment Index recorded another impressive gain for the second straight month to post the highest level since March 2022.
Today’s calendar kicked off with weekly jobless claims (218k, about as expected, 1.871 million continuing claims… the job market continues to be strong). Later are wholesale inventories and sales for December, several Treasury auctions that will be headlined by $25 billion 30-year bonds, Freddie Mac’s Primary Mortgage Market Survey, and remarks from Richmond Fed President Barkin. We begin the day with Agency MBS prices about .125-.250 worse, the 10-year yielding 4.13 after closing yesterday at 4.15 percent, and the 2-year is at 4.44.
Jobs and Transitions
“Direct nationwide lender Kwik Mortgage, based out of Parsippany NJ, is hiring Distributed Retail Sales. We have outstanding support, and our platform is built for you, featuring Blend, Encompass, HubSpot, Loan Vision and Optimal Blue! We offer a full suite of correspondent buyers inclusive of Fannie Mae and Freddie is on the table for 2024! From FHA and VA to Non-QM we have it all! We have a very flat leadership structure which means customers are not paying for more and getting less! We invest in our people and our process, and we have 27 years of company owned and operated success! We are always competitively priced. Don’t worry about fulfillment execution we owned and operated one of the best loan fulfillment for pay businesses in the country, Equilibrium Mortgage Solutions! Contact Paul Campbell, EVP of Lending, (760-774-7704), Paul Campbell, LinkedIn! We are connected: a Fannie Mae diverse minority advisory board lender, The Mortgage Collaborative lender board member, MBA Policy, Servicing and Compliance committee participant! A Depository DE&I advisory board member! Get Kwik come join us! NY, NJ, PA, CT, MA, RI originators welcome.”
Stronghill Capital, LLC, an Austin, TX-based Wholesale and Correspondent lender, is NOW HIRING across the country! If you’re a relationship-focused Account Executive with experience in Non-QM and Investor Financing, including multi-family and mixed-use properties, we’d love to speak with you! Stronghill’s Account Executives enjoy open territories, multi-channel opportunities to work with clients as correspondents or brokers, and consistent communication and collaboration with the Executive Leadership team. If you’re looking to join a rapidly-growing, dynamic organization with a focused commitment to growth and expansion in Non-QM, reach out to our SVP of Sales, Matt Brammer at 440.382.3183 to learn more.
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