Paying for groceries comes with some sticker shock these days. No matter what you fill your shopping cart with, you’re bound to feel some pain at the checkout aisle.
But creating a sensible grocery budget can help you take back control. Of course, the more realistic your budget is, the more likely you’ll be to follow it. So, identifying a reasonable amount to spend is your first step.
Next is learning a few smart ways to save, including knowing when and how to splurge. You can also explore getting rewards for the food you buy—like how a Discover® Cashback Debit account can provide a bonus for every dollar you spend.
It all comes together to make budgeting for groceries an achievable and helpful goal.
Earn cash back with your debit card
Discover Bank, Member FDIC
Rising costs hit your grocery budget where it hurts
It’s no secret that food costs have soared in recent years. According to the U.S. Department of Agriculture (USDA), food-at-home prices rose 5% from 2022 to 2023 and an even more significant 11.4% from 2021 to 2022—both increases are well above the prior 20-year annual average growth of 2.5%.
And high prices aren’t likely to go away anytime soon. The good news is that compared to eating out, preparing your own food already puts you one step closer to spending less. The next thing you need to decide is exactly how much you can afford to spend when you shop.
Unfortunately, there isn’t one figure for how much is typically budgeted for food. That’s because families vary in size, and individual grocery needs can fluctuate depending on diet, age, lifestyle, and location.
However, the USDA publishes annual reports on monthly food budgets based on gender and age. It also separates the plans into four cost categories: thrifty, low-cost, moderate-cost, and liberal.
For example, according to the USDA’s thrifty food plan for January 2024, the average weekly grocery budget (in the continental U.S.) for a single male ages 20-50 was $70.10 but only $55.90 for a similar-aged single female. For families, the thrifty food plan comes in at an average weekly cost of $225.20 for two adults and two young children.
While this USDA spending data isn’t a one-size-fits-all recommendation, it can be a helpful starting point for grocery shopping on a budget.
Your grocery budget is set; now stick to it
Going over budget on groceries is an unappetizing prospect for most shoppers. But, sticking to your budget can be difficult in certain situations—such as when you entertain guests or experiment with new recipes. That’s why it’s important to make these five key strategies part of your routine:
1. Create a detailed shopping list
Planning your meals in advance is helpful because it can establish a ballpark cost for each grocery run. If one or more of your recipes ends up breaking the budget, you can consider swapping it for a more economical alternative.
2. Check for deals and discounts
Yes, you can still use paper and digital coupons to help you save when you shop. Another option is to sign up for members-only deals at your local grocery store. Doing so can help keep costs down, and there’s usually no fee for being a member.
3. Buy in bulk
Opting to buy in larger quantities usually translates into a lower cost per item, which is handy for things you use frequently or items with a long shelf life. Jumbo packs of toilet paper can help you save (if you have the room), but big bags of fresh avocados will likely lead to waste—of both food and money.
Tip: If you find yourself frequently throwing out expired food or other items, check out this guide to a zero-waste lifestyle.
4. Don’t snub store brands
The quality of today’s store brands has come a long way over the past decade, and many of these lower-cost products are worth trying.
5. Pay with a debit card that pays you back
With the Discover Cashback Debit card, for example, you can earn 1% cash back1 on up to $3,000 in debit card purchases every month.
To splurge or not to splurge?
If you want to treat yourself to premium items now and then, you can probably snag a couple of luxury groceries without blowing your weekly budget. However, those few small indulgences can add up if you’re not careful—so scout for deals that still fit your grocery budget.
And remember, certain grocery items tend to inflate the tab even when you only purchase a relatively small amount. Think imported/specialty foods and alcohol. (Word to the wise: Taxes on spirits may be higher than on beer and wine.)
Proceed to checkout
Grocery shopping on a budget won’t look the same for every shopper. However, getting some practice for how to grocery shop on a budget can reduce stress when it comes time to pay for other necessities like rent, utilities, clothing, and transportation.
And like most things, the grocery budget you set isn’t carved in stone. Review and revise your grocery spending often to see if there are additional ways to save or cut back on food waste. Bon appétit!
If you’ve ever struggled to create a budget, you’re not alone. Check out these 5 basic budgeting tips that can help you get started, even if making (or sticking to) budgets hasn’t worked for you in the past.
The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover Bank or its affiliates.
1See Deposit Account Agreement for details on transaction eligibility, limitations, and terms.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.
Switching banks, or even just opening a new account, isn’t something people do on a whim. The decision can be driven by need, like moving to another state. Sometimes, it may result from learning more about different options. In other cases, the switch is about seeking better rates, lower or no fees, or digital access. In fact, 32% of retail banking customers nationwide say they are now open to changing their primary bank because of these concerns, per 2023 research from Rivel Banking Research.
If you’ve decided to switch to a Discover account, here’s what you need to know about getting it funded ASAP. Depending on the kind of account you’re opening—checking, savings, certificate of deposit (CD), or money market—your available options and the timing may vary.
1. Online transfer
Internal (from a Discover deposit account to a different Discover account)
If you have multiple eligible accounts at Discover (for example, a Cashback Debit and a Money Market Account), you can complete an online transfer between accounts. Just log in via the app or online banking portal and follow the simple prompts to make a transfer.
External (from an account at a different bank to a Discover account)
No minimum opening deposit is required to open a new Discover Cashback Debit or Online Savings Account. If you’re transferring funds from an account at another bank or institution and would like to initiate the transfer with Discover, we’ll need to verify you’re an owner of that account.
Here are three methods for completing the verification process with Discover:
Instant verification
With instant verification, you just need to provide details about your external account. These include your name, the account number, and the ABA routing number. With that information, Discover should be able to verify your account and transfer the funds.
Real-time verification
With this method, Discover will ask for your name, your account number, and the ABA routing number, and will also require your login information (user ID and password) that you use to sign in online to your external account. Discover will verify that your account is valid and transfer the desired amount.
Trial deposit
With trial deposit verification, Discover will request information about your external account and then make two small deposits to that account—typically a few cents each. It typically takes three to five business days for these small trial deposits to show up in your external account. You’ll then confirm the amounts of these deposits to successfully authenticate the account (once this happens, the deposits are reversed).
By going through any of the methods above, Discover will process the transfer of funds. If you opt to initiate an account transfer at your other bank, you’ll need to share Discover’s routing number—031100649—and your account number to add an initial deposit to your Discover account within 45 days of opening it.
Be aware that some banks may charge fees for outgoing transfers to other institutions. If you’re hoping to avoid that, check out other options for funding your account below.
2. Mobile check deposit
A smartphone and a paper check are all you need to make a mobile check deposit. First, you’ll download the Discover Mobile App (available for Android phones and iPhones, tablets, and smartwatches) and register for access to online banking. Once signed in, you can complete a mobile check deposit by following the prompts—which typically involve capturing a clear image of the front and back of the check made out to and endorsed by you.
3. Direct deposit
If you want to fund your new checking, savings, or money market account through direct deposit, you may be able to automatically enroll your Discover Bank account with Discover online or in the app. You may also be able to sign up directly through your employer or other payor, such as Social Security. Once you’re set up, please allow up to two pay cycles for your first deposit to appear in your account.
Tip: One perk of direct deposit through Discover Online Banking is Early Pay, which may allow you to have access to some or all of your qualifying direct deposits up to two days early.1
4. Add cash
If you’d like to fund your new checking or money market account with cash, you’ll need to wait for your debit card to arrive—usually up to 10 business days from account opening.
With your new contactless debit card and a minimum of $20 in hand, head to your nearest U.S.-based Walmart and ask a cashier to add cash directly to your account. You’ll insert or swipe your card, hand your money to the cashier, and receive a receipt. There is no fee for this service, and deposits are generally posted the same day.
Other funding options
If none of these options work for you, you can also fund a Discover Cashback Debit, Online Savings, CD, or Money Market Account by mailing in a check (payable to you) and deposit slip, or initiating a wire transfer.2
Now you’re ready to bank
You’ve funded your new account. Maybe you’ve even set up direct deposit or downloaded the mobile app. Regardless of how you bank, your bank should work for you, so make sure to check out all the benefits of a Discover Cashback Debit account.
Ready to make the switch? Click here to learn more about Discover’s Cashback Debit checking account.
1 The Early Pay feature is automatically available to checking, savings (excluding IRA savings) and money market customers who receive qualifying Automated Clearing House (ACH) direct deposits (such as salary, pension, or government benefits) from a business, government entity or other organization. At our discretion, and dependent on the timing of Discover’s receipt of the ACH direct deposit instructions, we may make funds from these qualifying ACH direct deposits available to you up to 2 days early. Certain ACH direct deposits are not eligible for Early Pay and other limitations and conditions apply – see our Deposit Account Agreement for more information. Deposits made by an individual using online banking or Peer-to-Peer (P2P) payments (such as Apple Pay Cash, Venmo®, Zelle ® and PayPal®) are not considered ACH direct deposits. There is no fee for Early Pay, and customers do not need to enroll in the feature.
2 Outgoing wire transfers are subject to a service charge. You may be charged a fee by a non-Discover ATM if it is not part of the 60,000+ ATMs in our no-fee network.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.
Personal loans are useful tools because you can use them for just about anything. From covering emergency car repairs to paying for home renovations to consolidating high-interest credit card debt, personal loans can be a game-changer for your finances. But, as with any kind of loan, personal loans typically come with fees.
But are loan fees bad? Not always. In fact, you may be able to secure a lower interest rate on your personal loan by paying a fee upfront — which will save you money in the long run.
Here, you’ll learn about personal loan options and the impact each can make on your finances so you can decide what suits you best.
Personal Loan Origination Fees, Explained
Personal loan origination fees serve as startup costs for initiating a loan. These are one-time fees that lenders charge to cover costs such as applications and underwriting. These fees often range from 1% to 6% but may go as high as 10%.
Not every personal loan has an origination fee, however. Often, borrowers with an excellent credit score can qualify for personal loans without fees (or at least much lower fees).
Some lenders make origination fees optional. At first glance, this might seem like a no-brainer. You might think, “Why should I pay a loan fee if I don’t have to?” But often, lenders may offer you a lower interest rate if you pay an origination fee upfront. This can save you money in the long run.
• A smart strategy: Look at the loan annual percentage rate (APR), which represents the true cost of the loan. The origination fee and interest rate are both bundled into this rate. This makes it easier to compare loans with and without origination fees to determine which is actually the better deal.
💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. SoFi personal loans come with no-fee options, and no surprises.
Personal Loan Origination Fee Example
To see how an origination fee affects your loan, here’s an example — one loan with an origination fee and one without.
In this scenario, your personal loan terms are as follows:
• Amount borrowed: $50,000
• Interest rate: 10%
• Loan term: 5 years
With an origination fee of 0%, you’d pay a total of $63,741.13 over the next 60 months, which is the term of the loan.
But what if there’s a 5% origination fee? You’ll still pay $63,741.13, but you’ll either pay $2,500 out of pocket upfront or have $2,500 deducted from the loan amount — borrowing only $47,500.
But remember, some lenders may offer you a lower interest rate in exchange for paying an origination fee. In this instance, in the scenario above, the lender may drop the interest rate from 10% to 7%. In that case, your total loan would look like:
• Amount borrowed: $50,000
• Interest rate: 7%
• Loan term: 5 years
The total payments over 60 months would be $59,403.60, or $4,337.53 less by paying the $2,500 origination fee. So that equals a savings of $1,837.53 once you deduct the fee. In this way, you can see why the answer to “Are loan fees bad?” may be “Not necessarily.”
Recommended: Personal Loan Terminology
How Are Loan Fees Determined?
Lenders consider a number of factors when calculating origination fees for personal loans, including:
• Credit score: Unsurprisingly, your credit score plays a big role in determining your origination fee. Lenders see borrowers with strong credit as less of a risk, so fees are generally lower.
• Debt-to-income ratio: The amount of debt you have compared to the amount of money you make is your debt-to-income ratio (DTI). This helps lenders determine how capable you are of meeting your monthly loan repayment commitment. The higher your DTI, the larger risk you are perceived to be — and that may be reflected in your origination fees.
• Cosigner: Even if your credit isn’t in great shape, you can still potentially lower your origination fee (and interest rate) by having a cosigner with stronger credit.
• Loan details: The amount you’re borrowing and the length of the loan can also impact personal loan origination fees.
💡 Quick Tip: Just as there are no free lunches, there are no guaranteed loans. So beware lenders who advertise them. If they are legitimate, they need to know your creditworthiness before offering you a loan.
How Are Loan Fees Paid?
If you choose a personal loan with an origination fee, you usually pay in one of two ways:
Taken Out of the Funds You Receive
In this scenario, you pay the whole amount of the origination fee at the start of the loan. Rather than dig in your pockets to come up with the cash, it’s usually subtracted from the amount you borrow.
For instance, if you borrow $20,000 and there’s a 5% origination fee, you’d owe $1,000. Lenders will typically instead give you $19,000, because they’ve taken the fee out of the funds they are lending you. However, you’ll have to pay back the full $20,000, plus interest.
Keep this in mind when taking out the loan. If you need the full $20,000, you should actually request a slightly larger loan so that, after the origination fee, you walk away with $20K.
Note: In some instances, a lender may require an out-of-pocket payment for the origination fee.
Rolled Into the Loan
Alternatively, lenders may simply roll the origination fee into the loan. In the example above, you’d receive $20,000 at the start of the loan, but with a 5% origination fee built into the loan, the personal loan principal (the amount you have to pay back) is $21,000.
Recommended: Where to Get a Personal Loan
How to Compare Loan Terms
No matter what you plan to use a personal loan for, it’s wise to comparison-shop carefully. Simply because one loan comes with an origination fee and another one doesn’t, that doesn’t mean you should go with the fee-free option. In fact, in the long run, a personal loan with an origination fee could be cheaper. Here’s how to find the best personal loan offer for you:
1. Shop Around
First and foremost, it’s a good idea to get quotes from multiple lenders. Most lenders allow you to get prequalified online, without impacting your credit score. Having a handful of offers allows you to weigh your options and make an informed decision.
2. Compare APRs
It can be tempting to see that one loan has a high origination fee, one has a moderate fee, and one has no fee at all — and simply choose the loan without the fee. However, origination fees are a part of a loan’s APR, which also includes the interest rate and gives you a better idea of the true cost of the loan.
To truly compare apples to apples, focusing on APR is your best bet.
3. Think about Loan Length
Shorter loan terms tend to have lower interest rates, but because you’re paying off the loan in a shorter amount of time, monthly payments will be higher. Conversely, you may find a lower monthly payment with an extended term, but then you’ll likely be paying more interest over the life of the loan.
It’s a good idea to play around with each loan you’re considering to see how various loan lengths will affect your monthly payments and the total amount you’ll spend over the life of the loan.
Other Types of Loan Fees
Origination fees may be the most common type of personal loan fee we consider, but there are other fees to review in the terms and conditions from a lender before signing on the dotted line. These fees may include:
• Prepayment penalties: Some lenders charge you for paying off the loan early. Why? When you pay it off early, the lender makes less money from interest, so it’s in their best interest to keep the loan active as long as possible. Many lenders, however, do not charge prepayment penalties, so shop around.
• Late fees: You have a monthly obligation to make your fixed payment on a personal loan. Just as with credit cards and student loans, you may be charged a late fee if you miss your payment date.
• Monthly service fee: Some lenders charge a service or payment processing fee, depending on how you pay each month.
The Takeaway
While the thought of paying fees on top of interest when borrowing money can be overwhelming, personal loan origination fees aren’t always a bad thing. In fact, many lenders with origination fees can offer you lower interest rates, meaning you may spend less money in the long run by choosing a personal loan with an origination fee. Experts suggest comparing multiple loans and their APRs, which reflect the total cost of the loan, to get a better idea of the right loan for you. That can help you answer the question, “Should I pay a loan fee?” by focusing on the big-picture cost of your loan.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
Photo credit: iStock/milorad kravic
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
If you know you can’t commit to a full year, subletting a room or living in a short-term apartment might be your best option.
Never subleased an apartment before? We’ll break it down for you!
What does it mean to sublet an apartment?
The legal definition of subletting is leasing or renting a part, or all, of your lease or rented property, to another person called a subtenant. Subtenants have responsibilities to both the tenant and the landlord, but the tenant is still responsible for paying rent to the landlord and for any damage done to the property.
In simpler words, a sublet, or sublease, is when the original tenant transfers the lease to a subtenant for the remaining duration of the lease period — typically less than a year.
While it varies case-by-case, it typically involves a lease transfer fee and does not require the full move-in costs that one-year leases usually have. Therefore, subletting a room or apartment is a great option if you value affordability and flexibility.
Who is involved when subleasing?
Landlord: The owner of the townhouse/apartment. They receive rent on a monthly basis from the tenants.
Tenant/Sublessor: The renter who signs the lease must pay monthly rent to become a resident of the apartment. The contract period is usually one year.
Subtenant/Sublessee: The person who may live in said townhouse/apartment and commits to paying the rent for their period of stay. However, they’re not officially on the lease. Their point of contact is the tenant (the person obligated to pay the landlord).
What are the legal and financial responsibilities?
Every lease differs, so you first need to figure out if it’s even allowed. If you’re the tenant, read your contract again to ensure that your landlord allows subletting. If you’re the subtenant, ensure that tenant is following the proper procedure.
Regardless of what the lease outlines, it’s a requirement to talk to your landlord about the fact that you want to sublease. If they allow it, they’ll inform you of the procedure that you must follow — it could involve either a transfer of lease and/or a subletting fee.
Alternatively, the landlord may not permit it at all. Tenants/subtenants must adhere to the decision of the landlord or they hold the right to sue/evict or charge hefty fines to both the tenant and the subtenant from the apartment.
Subleasing often involves a fee for processing the addition of the subtenant on the lease agreement. In case there is a lease transfer, there may be penalty fees for breaking the lease. The landlord may request a security deposit from the subtenant, as well. In certain rare cases, there is no fee.
Read the fine print in your subletting contract: Length of stay, utilities, rent amount, parking fees. These are important factors that all parties must agree on. It’s in all parties’ best interests to sign a sublease contract to make sure you’re protected and have the rules for both parties in writing.
Make sure you know what type of sublet you’re agreeing to
There are two main forms of subletting.
Both the sublessor and sublessee are jointly responsible for the apartment and all associated costs.
The original tenant is fully responsible for the lease and is thus responsible for complying with all rules and regulations. The original tenant is liable for any damages and missed payments on behalf of the sublessee.
Read more on the regulations here.
Benefits of subletting a room or an apartment
A sublet isn’t as much of a commitment. Now more than ever, signing on to a one-year lease is something to think twice about. Sublets are much more lenient, and allow you the flexibility during these unpredictable times.
Another pro is that sublets are much more affordable. People looking to transfer their lease will sometimes negotiate on rent. Even a small amount can certainly add up, making a large difference in your overall cost.
And finally, people seeking subletters typically leave their apartments completely furnished, or offer to sell their furniture at a discount. Not only will this save you money, but it also makes all the difference when you’re trying to move in furniture up a few flights of stairs. Definitely a huge perk of subletting!
Benefits of finding someone to sublet your apartment
You don’t have to break your contract. In most cases, breaking a lease is not an option. If you’re committed to a lease, then finding someone to sublet your apartment means you don’t throw money away. Nobody wants to pay for an apartment they aren’t living in.
Another perk is the ability to leave your apartment for a few months, but still move back in eventually. With subletting, you don’t need to give up your apartment.
And by subletting, you don’t need to urgently leave the apartment and pack up your entire life. We all know how difficult moving is in general, not to mention on short notice.
Drawbacks to subletting a room
While subleasing is a great option for someone looking for short-term housing, there are a few drawbacks to the process.
For the renter, it’s only temporary. If you find a great place to live, you know that you’re going to have to move out eventually. So don’t fall in love with your temporary digs.
For the tenant, there are always risks when having someone come into your place when you’re not there, especially if you have really nice things. Think of it like if you were to Airbnb your apartment, there’s always a chance something could get stolen. Also, if your sublessee bails on you or fails to pay the rent, your landlord will still come after you for that missing payment.
What to keep in mind while searching for sublet?
Make sure a sublet is the best option for your circumstances: Will you live in this apartment for less than a year? Do you want to avoid upfront costs that come with a full-year lease? Do you want flexibility? If you answered yes to these questions, you should definitely consider subleasing an apartment.
Make sure to start early. If you’re seeking a sublet for the spring semester, now’s the perfect time to start. It’s best to give yourself at least two months when starting your apartment search. Oftentimes, people with available apartments start searching for a subletter two months in advance, while others leave it until the last minute. To give yourself ample time to find an apartment that fits your budget, location and lifestyle, start your search early.
And remember, there may be a lot of competition. When you start early, you get in touch with more people looking for a place to sublet. That gives you more choices in terms of who you want to have living in your room. By giving yourself time, you’ll have the opportunity to get to know them. Ask them all the important questions: Background checks? Will they pay on time? Is your landlord OK with it? Will they keep your room clean? Are your roommates OK living with them?
How can I find a short-term rental?
Now more than ever, there are various platforms to use to search for sublets or short-term rentals.
Facebook is great if you want to write a short description of your apartment and post a few pictures for more elaboration. It’s also great for networking due to the sheer volume of people using the platform for the purpose of seeking/subletting an apartment. However, if you’re the one finding a room/apartment, you’re bound to spend hours on your Facebook timeline reading every little detail to find your perfect fit. This happens because, in the post format, the information is not standardized.
If you want an interactive experience, Hoamsy is a Boston-based platform that uniquely allows you to list and find sublets. Once you make a profile, you’ll get personalized leads based on your preferences. Once you find a match, you can directly connect with them through Hoamsy’s direct messaging feature. It’s a great resource for people looking to find sublets.
Apartment rental sites like Apartment Guide and Rent. are good platforms to use if you have a very specific apartment in mind. You can filter your search to show only properties that offer short-term rentals. They also have listings available in most major cities and give you a ton of guidance on all aspects of moving on their blogs.
Enjoy your freedom of subletting a room
It’s always good to have options and flexibility and subletting a room definitely gives you the opportunity to do that. Just much sure you understand the process before you get started, and get permission from your landlord before doing anything!
The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.
Clarissa Garza is a Product Marketing Associate at Hoamsy, a real estate tech platform, where she works on content creation, acquiring new users and copywriting. Clarissa is a student at Boston University with experience in marketing and journalism. Aside from Hoamsy, she is a Statehouse Correspondent at The MetroWest Daily News.
In a somewhat surprising move, Bank of America is ceasing its wholesale lending business amid the ongoing turmoil in the mortgage industry.
“While we are extremely proud of our strong track record in the wholesale business, we believe our long-term opportunity lies in maximizing our more competitive retail channels,” Floyd Robinson, Bank of America’s president of consumer real estate and insurance services said in a statement.
It is believed that Bank of America will shut the unit over the next couple months, likely at year-end, with a loan submission cutoff around the end of November.
Reports have said that Bank of America will continue to accept loan submissions until November 25th, 2007 and that all submitted loans must fund by December 31st, 2007.
Bank officials have noted that around 700 jobs will be affected by the decision, though they may have the opportunity to apply for open positions within the company.
Job cuts are expected at loan centers throughout the U.S., including locations in Brea and Rancho Cordova, CA, Dallas, TX, and Richmond, VA.
The news is another blow for mortgage brokers and loan officers who are finding many of their options disappear as banks and mortgage lenders continue to drop wholesale lending to focus on a retail push.
Recent moves to stamp out wholesale lending have left very few big players in the space, with Chase and SunTrust believed to the be the most popular options left.
There’s also Citi Residential Lending, a non-conforming wholesale lending unit offering Alt-A and subprime products which launched in September.
It appears Bank of America will focus on its network of over 10,000 personal bankers in nearly 6,000 banking centers throughout the U.S., along with its 2,200 loan officers serving 33 states.
The popularity of the Bank of America No Fee Mortgage seems to be very strong, and falls in line with their retail-centric strategy.
The no cost loan which was introduced in May has led to more than $50 billion in application volume in the past six months, according to the bank.
“We see a lot of opportunities in growing our retail business,” bank spokesman Terry Francisco said. “By exiting wholesale mortgage we are putting our full focus in one area, not splitting it.”
Look for more wholesale fallout as retail banks continue to squeeze out the competition.
Yesterday, Bank of America announced 3,000 job cuts in its investment banking division after record losses rattled investor confidence.
Shares of Bank of America (BAC) fell just over 1% to close at $47 a share, slightly above their 52-week low of $46.45.
Having a credit card unexpectedly declined can be frustrating and embarrassing. Often when this happens, the card has become restricted by the card issuer, usually temporarily. This restriction suspends your account, freezing your ability to make purchases.
If your Capital One card is restricted, you should first contact the bank to find out why. Depending on the reason, you may be able to use your card again in a matter of minutes.
Here’s what to know if your Capital One card has been suspended.
Stop fraud in its tracks
With a NerdWallet account, you can see all of your credit card activity in one place and easily access your credit report to spot any red flags quickly.
Why is your Capital One card suspended?
If your credit card gets declined and you aren’t sure why, start by calling Capital One at the number on the back of your card.
The primary reasons why your card may have been suspended include:
New card: If you’ve recently opened the account, or just received a new card in the mail, you may have forgotten to activate the card. It’s a simple fix — call the number on your card and follow the steps to activate it.
Fraud alert: Card issuers use algorithms to identify trends in your spending habits. You might receive a fraud alert if the system sees a spending irregularity, such as a big purchase, using your card in a new location or buying something from a foreign website. Fraud alerts are generally easy to clear and often can be done in real-time via text message or the card’s app. If your card is new or you’ve recently received a replacement card, you may need to take it slow with charges, at least at first. Rapid spending on a newly issued card can look like irresponsible credit management or fraud and lead to a restriction on your account.
Expired card: Be sure to check your card’s expiration date. It’s easy to overlook, and if your card is expired, transactions won’t get processed. Contact your issuer for a new card, and if you need a replacement fast, see if it has an option to expedite the new card.
Late payment(s): If you’ve missed one or multiple payments, your card issuer may suspend your ability to make new purchases until your account is brought up to date. Contact your issuer to see what exactly you owe and what it will require to clear the suspension.
Exceeding your credit limit:Your card may get declined if you attempt a charge beyond your credit limit. If you need more credit temporarily, you may be able to opt-in to over-limit purchases with Capital One. There’s no fee (though other issuers may charge a fee), and it will be up to the bank’s discretion whether to permit additional charges. If it declines your request, you’ll have to pay down the card’s balance to regain access to your existing credit line.
How to deal with a suspended credit card
If your Capital One card is suspended for a fraud alert, you may be able to clear the restriction by replying to an automatic verification text message or email sent by Capital One.
If your account is restricted due to another reason, you’ll likely have to call Capital One to figure out what the issue is. Be sure to ask why your account was restricted and what steps are required to clear the suspension. You may also want to ask Capital One what you can do to avoid future restrictions.
Will a suspended credit card impact your credit score?
Your credit score isn’t directly impacted by a suspended card, but the underlying cause of the suspension may adversely affect your credit score. A fraud alert won’t hurt your score. However, if you miss a payment or have a high credit utilization ratio, your credit score may be negatively impacted.
How can you avoid a credit card suspension?
Responsible credit management will help you appear as a lower risk to Capital One (or any card issuer). This is the easiest way to avoid a credit card restriction.
But things happen. If late payments are a problem, schedule an auto-payment to at least cover the minimum required amount each month to prevent your account from becoming delinquent. If you’re perpetually running up against your credit limit while otherwise making on-time payments, request a credit line increase to have more flexibility with your available credit.
If you know you’ll be traveling or making a large purchase, preemptively contacting Capital One with your plans can be a good way to avoid a potentially frustrating fraud alert and card suspension.
Bank of America was recognized as the top retail mortgage originator in the United States for the first nine months of 2007, as well as during the third quarter of 2007, according to a survey released by Inside Mortgage Finance.
The Charlotte-based bank and mortgage lender originated $119 billion in first mortgages and home equity loans via the retail channel for the first nine months of 2007, beating out both Wells Fargo and Countrywide.
Overall first mortgage funded production increased 27 percent in the third quarter of 2007 compared with the same period last year, with a 60 percent increase in funded mortgage originations through banking centers and a 26 percent increase in funded originations by loan officers.
The No Fee Mortgage PLUS loan program launched in April of this year played a key role in guiding the bank to the top spot.
“We’re very pleased with the success of No Fee Mortgage PLUS,” said Floyd Robinson, President of Bank of America Consumer Real Estate & Insurance Services Group, in a statement.
“We’ve achieved more than $50 billion in applications and established a competitive advantage that others simply cannot match.”
Bank of America’s retail channel is comprised of 10,000 personal bankers in nearly 6,000 banking centers, 2,200 loan officers, a phone channel known as LoanLine and the bankofamerica.com website.
“Our emergence as the market leader in retail mortgage originations underscores our focus on offering trusted mortgage products through the convenience of our banking centers, mortgage offices, call centers, and bankofamerica.com,” said Robinson.
“Despite the current disturbances in the financial markets, we stand ready to assist customers with innovative products like No Fee Mortgage PLUS, and the unmatched security of knowing that your mortgage is serviced by Bank of America.”
Bank of America announced earlier this year that it would exit the wholesale lending business by January 1.
Booking a flight used to be simple. Travelers had the option of booking a seat in either economy or first class. However, more recently, airlines like American Airlines have focused on “product segmentation” — adding in additional fare classes and cabins in an effort to maximize revenue.
Now, travelers have seemingly endless fare options when trying to book a flight. Should you book basic economy or “Main Cabin” — American Airlines’ new term for a standard economy ticket? And what the heck is Main Plus? Let’s dig into the American Airlines class codes, fare classes and more so you can make sense of it all.
American Airlines booking classes
American Airlines uses the following booking classes for revenue (non-award) fares:
Basic economy: B.
Main Cabin: O, Q, N, S, G, V, M, L, K, H, Y.
Premium economy: P, W.
Business class: I, R, D, C, J.
First class: A, F.
You’ll notice that there aren’t separate booking fare classes for Main Cabin Extra, Main Plus, Main Select or Flagship Business Plus as these are just add-on packages on top of the standard fare in that cabin.
American Airlines fare classes
At current count, American Airlines offers at least 11 different fare classes:
First class (domestic).
Main Select.
Main Plus.
Not every flight is going to have every one of these classes. For example, a domestic U.S. flight will typically offer first class, Main Cabin Extra and Main Cabin seating — with basic economy, Main Plus and maybe even Main Select fares sold on that flight.
Meanwhile, an international flight on American Airlines’ flagship Boeing 777-300ER will offer Flagship first class, Flagship business class, premium economy, Main Cabin Extra and Main Cabin seating — typically with basic economy, Main Plus, and sometimes Main Select fares sold in the Main Cabin and the option to buy Flagship Business Plus in business class.
American Airlines different classes of economy fares
Almost every American Airlines flight offers Main Cabin Extra, Main Cabin and basic economy fares. There are also two fare options — Main Plus and Main Select — that give you access to Main Cabin Extra seats and a few other perks.
So, let’s break down the differences between these American Airlines economy fare classes:
Fare Class
Basic economy
Main Cabin
Main Cabin Extra
Main Select
Changes allowed
Yes, with no fee.
Yes, with no fee.
Yes, with no fee.
Fully refundable.
Seat selection
For a fee.
Free for standard seats.
Complimentary for any extra-legroom seat.
Complimentary access to Main Cabin Extra and Preferred seats.
Complimentary access to Main Cabin Extra and Preferred seats.
Carry-on bag
1 personal item and 1 carry-on.
1 personal item and 1 carry-on.
1 personal item and 1 carry-on.
1 personal item and 1 carry-on.
1 personal item and 1 carry-on.
Boarding group (out of 9 groups)
Group 9 (Group 8 on certain international flights).
Group 7 and 8.
Alcoholic drinks
Available for purchase.
Available for purchase.
Complimentary beer, wine and spirits.
Complimentary beer, wine and spirits, when you select a Main Cabin Extra seat.
Complimentary beer, wine and spirits, when you select a Main Cabin Extra seat.
Eligible for upgrades
Base mileage earnings
2 miles per dollar.
5 miles per dollar.
5 miles per dollar.
5 miles per dollar.
5 miles per dollar.
Compared to other airlines — looking at you, United Airlines — American Airlines’ basic economy isn’t as punitive. Basic economy passengers still get a full-size carry-on bag, are able to purchase seats from the time of booking and AAdvantage elites are still eligible for upgrades to first class.
However, American Airlines passengers earn 60% fewer miles when booking a basic economy seat compared to a Main Cabin fare. Plus, you won’t be able to change your booking.
Purchasing a Main Cabin fare gets you a higher mileage earning rate, free changes (though a fare difference may apply), free seat selection and a slightly earlier boarding group. However, your seat and in-flight experience will be the same — unless you purchase a Main Cabin Extra seat.
Main Cabin Extra technically isn’t a different fare class. Instead, you score a couple of extra perks by purchasing a “Main Cabin Extra” extra-legroom seat — or selecting it for free if you have AAdvantage elite status. In addition to extra legroom, perks include an earlier boarding group and complimentary beer, wine and spirits. However, you still generally get the same seat type and service as Main Cabin.
Main Plus is essentially a fare class package that adds a free checked bag and Main Cabin Extra on top of a standard Main Cabin ticket.
Likewise, Main Select is a different type of fare package that makes your fare fully refundable, bumps you up to Group 4 priority boarding and lets you make confirmed flight changes the day of departure. However, you don’t get a free checked bag with this option.
Why do American Airlines class codes matter?
If you’re opting to earn AAdvantage miles on an American Airlines flight, your booking class generally doesn’t matter. If you booked basic economy, you’ll earn a base of 2 miles per eligible dollar spent. Otherwise, you’ll earn a base of 5 AAdvantage miles per dollar spent. And AAdvantage elites earn a bonus on top of those base earning rates.
However, your booking class matters if you booked a special fare (e.g. as part of a package), plan to apply a mileage upgrade or plan to credit your flight to another mileage program. In these cases, your American Airlines class codes will determine how many miles you earn or how much your upgrade will cost.
For instance, let’s take a flight from New York-John F. Kennedy to Los Angeles. Booking a $108 one-way basic economy fare will earn a base AAdvantage member 174 miles (2x the base fare of $87). If you book the flight as part of a package, it may code as a special fare and earn 248 miles (10% of the 2,475-mile distance). Or, you can credit this basic economy flight to British Airways to earn 619 Avios (25% of the 2,475-mile distance).
However, if you select the $153 Main Cabin fare instead, you’ll earn 645 AAdvantage miles (619 if booked as a special fare) or 619 Avios. Plus, you gain the ability to upgrade this fare to business class for 15,000 miles plus $75 — if there’s upgrade availability.
If you book at the last-minute or a flight is almost sold out, you’ll likely book into a higher American Airlines fare class. AAdvantage mileage earnings would still be calculated based on the cost, but you’ll earn additional miles when crediting to another mileage program.
How do I find my fare class on American Airlines?
When you’re shopping for a ticket on American, the fare classes are listed under “Details” under each departure time.
Click the “Details” button and a screen will pop up with class code info, broken out by ticket type.
For example, in the screenshot above, the flight from Chicago to Dallas has the following fare classes: B in basic economy, N in main cabin and I in first class.
American Airlines classes and fares recapped
American Airlines offers a large variety of fare classes and booking codes.
While the alphabet soup of booking fare codes has been a part of airlines for years, new American Airlines fare classes like Main Plus, Main Select and Flagship Business Plus add new complications when travelers are booking a flight.
However, knowing the differences between the fare classes and picking the right one can help you get the features you value most — whether that’s an extra legroom seat or higher mileage earnings.
(Top photo courtesy of American Airlines)
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:
There’s cautious optimism in the air among area real estate professionals looking into the 2024 home sales market.
If trends continue, they see mortgage rates going down and listings going up.
The key word is “if.”
“Looking ahead to 2024, we anticipate mortgage interest rates to settle in the 6% range, which will attract even more buyers into the market, especially come spring,” said Jeanette Schneider, president of Re-Max of Southeastern Michigan.
“Current homeowners who held onto their home due to a favorable interest rate may decide their interest rate isn’t worth keeping a home that no longer meets their needs, and that should bring a bit more inventory to the market.”
Adds Karen Kage, chief executive officer of Realcomp II Ltd., Michigan’s largest multiple listing service: “We are hopeful for interest rates to continue to trend downward in the new year and consumer confidence levels to rise. As we stand today and look ahead, those are, perhaps, the biggest factors in determining what we might see in 2024.”
Nationally, industry analysts and veterans offer a range of predictions for the upcoming year. Among those:
• Buying a new home will remain expensive, according to Zillow, while Redfin said the median sale price could retreat by 1% in 2024
• The market will still be challenging for first-time homebuyers, but an influx of new apartment units could help manage inflation, according to Lawrence Yun, chief economist for the National Association of Realtors
• Sales of existing homes will rebound in 2025, with home-buying costs leveling off in the second half of 2024, according to investment banker Goldman Sachs
• In Michigan, tech startup real estate tracker Houzeo predicted home sellers will return to the market in 2024 and interest rates will stabilize in the second half of the year.
Locally, Schneider predicted a “slight uptick in home sales in 2024, along with a steady, but moderate increase, in home prices.”
“As boomers consider downsizing, we expect to see more cash offers in the market, providing a challenge for first-time buyers,” she said.
The Press & Guide asked area real estate specialists — with a combined experience of more than seven decades — to size up the market for the next year.
Interviewed for this story are:
• Susie Armiak, Realtor, MBA Realty Powered by Real Estate One, Grosse Ile, three years experience as a licensed Realtor and more than 25 years as a residential home builder
• Eric Blaine, associate broker and branch manager, Dearborn Office, Real Estate One, 10 years experience
• Tracey Solomon, Realtor, Re/Max Masters, Davis/Solomon Realty Group, Flat Rock, more than four years experience
• Maria Starkey, Realtor, Starkey Team, MBA Realty, Grosse Ile, 24 years experience. Also contributing: Michael Starkey, Realtor
• Benjamin Welch, associate broker, Century 21 Curran & Oberski, Dearborn Heights, 18 years experience, including owning and operating Street Rock Management (property management) for five years
Susie Armiak
Eric Blaine
Tracey Solomon
Michael and Maria Starkey
Benjamin Welch
Here are edited excerpts of their comments about the year ahead:
Q: Strong demand and tight inventory have defined the real estate market in 2023. How do you see those factors and others shaping the 2024 home sales market?
Armiak: I believe we will continue to see that same trend. Specifically because the higher interests this past year had many sellers/buyers sitting on the fence and new home construction is still behind the demand.
Blaine: Inventory has begun to rise in many markets and is expected to continue that trend in 2024. We expect demand to remain high, as well, and rising inventory will help.
Solomon: Demand is still outpacing supply. Unless this changes, we can expect more of the same seller-weighted market. Election years are historically slower as buyers and sellers may feel unsure about changing economic policy. Post-election, the market typically stabilizes. I suspect that if demand remains high and inventory low, we may not see that expected slowdown. It would be offset by the continued supply/demand pressure.
Starkey: The current market of strong demand and tight inventory is expected to continue into 2024. More buyers than houses continue to be the trend. This is keeping prices in the Downriver market on the high end for homes that are well-maintained and updated. The year ahead will likely continue to be a seller’s market. Homes in need of updating or with deferred maintenance tend to sit on the market longer, resulting in lower noncompeting offers.
Welch: Predicting the 2024 housing market is like forecasting the weather in Michigan – it’s an assumption with a dash of optimism. If interest rates remain the same, the days a home is on the market will continue to increase.
Q: Mortgage interest rates exceeded 7% in 2023. Where do you see mortgage rates in 2024 and how will that affect sales?
Armiak: The most recent Fed meeting stated they would be dropping interest rates three times in 2024 and we are already noticing the benefits of the recently lowered rate, currently at 6.6% for a 30-year fixed rate. (That rate may vary for buyers based on credit score, income and down payment amount.) This rate drop will entice sellers and buyers to make their move. My advice is the sooner the better because it’s going to be crowded in the marketplace once again. Be prepared to make swift and decisive decisions.
Blaine: Rates have held steady for a while and even declined slightly. I expect rates to hold somewhat steady in 2024, allowing more consumers to get off the fence and jump back in the market.
Solomon: Mortgage rates seem to be slowly dropping, which is great news for buyers and sellers. If rates continue to decline, more buyers will enter the market and demand will (again) increase. That will mean a continued shortage of homes and continued pressure on buyers to offer incentives to encourage sellers to accept their offers (fewer contingencies, appraisal guarantees, etc.)
Starkey: Interest rates are anticipated to come down into the 6% range in 2024, which likely will bring more buyers into the market. This may encourage more sellers to list their homes for sale. However, I expect home values will stay steady as demand for homes is expected to continue.
Welch: Increasing interest rates have been a major topic of discussion this year. It appears the Federal Reserve is done with rate hikes and Fannie Mae announced that interest rates could drop into the 6% range by the second quarter. If that happens, I expect a flurry of buyers to hit the market and for home prices to continue to rise.
Q: What is your best advice to potential home sellers for 2024?
Armiak: Connect with an experienced Realtor now to generate your personal marketing strategy. There are multiple items that need to be addressed prior to listing your home. Being prepared will put you in the best position to achieve your goals.
Blaine: It is a great time to sell. Values are up and demand is high.
Solomon: Once you’ve found an agent you trust, listen to their advice. Prepare your home for sale, but don’t overdo it. Timing is everything. Waiting to list until it’s perfect can cost you thousands. Consult your listing agent to prioritize your timing and task list. Utilize a pricing strategy that’s proven effective.
Starkey: Consider taking care of any potential deferred maintenance that could bring down home value. Also, be proactive by having a private home inspection done in advance to address any issues that may come up in a buyer’s private home inspection. This can reduce obstacles throughout the transaction. Last, minimize clutter, reduce excess furnishing that may make the space look smaller and — most importantly — provide a clean home for buyers to tour.
Welch: My advice is to hire a professional so you know all of your options. A professional Realtor will provide guidance, resources and a proven plan to facilitate the sale.
Q: What is your best advice to potential home buyers in 2024?
Armiak: Connect with an experienced Realtor now and begin the pre-approval process with your mortgage lender. It generally takes three months from start to finish. The more prepared you are, the stronger your chances are of getting the home of your dreams. And remember, you can always refinance, but you can’t retrofit the home appreciation value as they continue to rise at an annual rate of 4.7%, per FHFA reports.
Blaine: With value rising — a trend we expect will continue — now is the time to buy before values rise more. Waiting will only cost more and interest rates will not drop enough to help overcome appreciation.
Solomon: Find an agent you trust and communicate your needs and wants. Be financially prepared; your pre-approval matters. Set a home budget that works for your life, not just your balance sheet. Love to travel? Eat out? Give charitably? Factor that in. Adjust your price point to accommodate. (Yes, I’m suggesting you spend less so you can live more.)
Starkey: Get into the market early. Homes are hitting the market every day — not just in spring. Buyers who get a head start should have less competition than those who wait for more homes to choose from. If potential buyers find a home they love, go for it. If interest rates come down, you can always refinance. There are mortgage companies that offer a “no fee” refinance within the first two years of purchase.
Welch: If you are waiting for interest rates to come down before buying a home, it’s time to rethink your strategy. It is best to buy now because if interest rates drop, the number of buyers competing for the home you want will increase significantly, making it more challenging to buy that home.
Q: What communities do you see as most active for home sales in 2024 and why?
Armiak: I believe all communities will enjoy accelerated activity with the promise of lower interest rates, including those looking for second homes and investment properties. We are already seeing an increase in new listings in what is typically known as a quieter time. However, driving factors will continue to be the usual suspects: marriage, family growth, job change, death and divorce.
Blaine: Southeast Michigan markets, including Dearborn, are going to continue strong sales in 2024.
Solomon: Flat Rock, Woodhaven, Wyandotte and Southgate. All show increased values and searches. “Most active” is a hard metric to use as a measurement. A small community won’t show big sales numbers. However, highly rising values and quick list-to-pending sales dates show they are desirable and likely selling at or above asking with appraisal guarantees. Grosse Ile is a good example.
Starkey: The current market of strong demand and tight inventory is expected to continue into 2024. More buyers than houses continue to be the trend. This is keeping prices in the Downriver market on the high end for homes that are well-maintained and updated. The year ahead will likely continue to be a seller’s market. Homes in need of updating or with deferred maintenance tend to sit on the market longer, resulting in lower noncompeting offers.
Starkey: All Downriver communities will be active for home sales in 2024. The communities with more affordable housing for first-time buyers may see more activity as those buyers get away from renting. Of course, we need homes to come up for sale. Many homeowners are getting older and either moving to warmer climates or looking for less housing maintenance. Investors also like to purchase homes to add to their rental portfolio or to renovate and sell. The “step up” housing may not be as active as many of those homeowners are enjoying 2% to 4% interest rates and are feeling very comfortable with their current housing costs.
Welch: During November in the Downriver area, the number of homes for sale declined by 32% compared with previous months. It’s still a competitive market. With interest floating around 7.5%, there are many buyers just sitting on the bench waiting for rates to come down before they make their move. Imagine what it will be like if, and when, that happens.
Both Bank of America and Wachovia Bancorp barely chalked fourth-quarter profits as a result of hefty mortgage-related writedowns and increased loan-loss provisions.
Bank of AmericaProfit Dives
Bank of America saw its fourth-quarter profit slip 95 percent to just $268 million, or 5 cents per share, compared to $5.26 billion, or $1.16 per share, during the same period last year.
Its earnings were severely impacted by a $5.28 billion writedown related to the flagging value of its CDOs, and $3.3 billion set aside for bad loans.
The bank’s fourth-quarter revenue fell a staggering 31 percent to $12.67 billion, from $18.49 billion last year.
The company saw home equity loan losses triple since the end of the third quarter, while charge-offs rose to 0.91% of the total portfolio from 0.82% and non-performing assets more than doubled to 0.68% of total assets from 0.26%.
On a positive note, first mortgage originations rose 22 percent to more than $104 billion from $86 billion a year ago, helped in part by the success of its No Fee Mortgage PLUS, which accounted for 16 percent of the company’s first mortgage production in the fourth quarter.
Bank of America plans to shore up more than $2 billion in capital to better position itself for the pending acquisition of Countrywide Financial, but said it doesn’t plan to cut its dividend.
For the full year, the banking giant reported earnings of $14.98 billion, or $3.30 per share, compared with $21.13 billion, or $4.59 cents per share, a year earlier.
Wachovia Barely Turns a Profit
Wachovia faired even worse, with profit dwindling 98 percent to just $51 million, or 3 cents per share, compared to $2.3 billion, or $1.20, a year ago.
Its fourth-quarter results included a $1.7 billion writedown tied to mortgage-related investments and $1.5 billion set aside for loan losses.
Fourth-quarter revenue at the bank and mortgage lender dipped to $7.2 billion from $8.62 billion in the same period a year ago.
Net charge-offs rose to $461 million, or an annualized 0.41 percent of average net loans, while non-performing assets climbed to $5.2 billion, or 1.08 percent of its loans, foreclosed properties and loans held for sale.
Despite capital concerns, chief executive Ken Thompson told investors during a conference call that the bank would not cut its dividend.
For all of 2007, Wachovia earned $6.31 billion, or $3.31 per share, compared to $7.79 billion, or $4.72 per share, reported in 2006.
Analysts surveyed by Thomson Financial, on average, forecast earnings of 18 cents per share for Bank of America and 33 cents per share for Wachovia.
Shares of Bank of America climbed $1.87, or 5.20%, to $37.84, while Wachovia gained 62 cents, or 2.01%, to $31.42.
National City Reports a Fourth Quarter Loss
In related news, National City reported a fourth-quarter loss of $333 million, or 53 cents a share, compared with year-earlier net income of $842 million, or $1.36 a share.
The results include $181 million, or 26 cents a share, in mortgage-related charges and a loan-loss provision of $691 million tied to the liquidation of portfolios containing non-conforming mortgages and home equity loans.
Net charge-offs for the quarter were $275 million, or 0.96% of average portfolio loans, compared with $128 million a year earlier, while nonperforming assets more than doubled to $1.5 billion, or 1.31% of loans, mostly linked to a larger number of delinquent residential mortgage loans.