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Reverse Point-of-Sale, Marketing and PR, TPO Products; Random TPO News; Ugly Insurance and Water News

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Reverse Point-of-Sale, Marketing and PR, TPO Products; Random TPO News; Ugly Insurance and Water News

By:
Rob Chrisman

4 Hours, 10 Min ago

While lenders are grappling with steadily increasing Agency repurchase requests, it’s National Donut Day! Someone had better offer those folks at State Farm Insurance a donut… maybe they’ll change their mind about cutting off insuring properties in California. Three thousand miles away, I wonder if Florida home owners should be happy of even having insurance despite it being four times cost of the national average. And good luck insuring anything built near the coast prior to 1992’s Hurricane Andrew. While we’re on the topic of Mother Nature and economics, it’s fine for the Biden Administration, or any politician, to call for more affordable housing, but what about where’s there’s no land or a community limiting development due to running out of water like in Phoenix!? (Today’s podcast can be found here and this week’s is sponsored by Lenders One, one of the largest mortgage co-ops in the country with a diverse mix of 250+ member companies and providers of an end-to-end solution independent mortgage professionals trust to drive profitability and growth. Listen to an interview with nCino’s Ali Maquet and Brett Dooies on why experience-driven automation should matter to financial institutions.)

Lender and Broker Products, Software, and Services

It’s time to schedule your firm’s 2023 MERS Annual Review and e-Annual Report with TENA! Every MERS member is required to complete a MERS Annual Review. If on March 31, 2023, your firm’s count of active MINs was 1,000 or more, then the 2023 MERS Annual Review for your firm must be completed by an independent third party, with the results submitted to MERS not later than December 31st. For significant savings, sign up early for a MERS Annual Review and provide TENA with all of the necessary documentation by August 31st. Avoid the last-minute rush! To ensure that your firm is in compliance, contact TENA today to initiate your firm’s 2023 MERS Annual Review. TENA also offers a full range of MERS reviews, including MERS Data Reconciliation and MERS Document Reviews. TENA Companies, Inc. has been the mortgage industry’s trusted source for Mortgage Quality Control Audit Services and Software since 1982.

“Experience for yourself what NexBank’s Wholesale, Non-Delegated Correspondent, and Delegated Correspondent clients have to say: ‘Everyone from AE to Underwriter and in between is amazing to work with all around.” and “I have been doing this a long time and have done a ton of loans and I finally feel like I found a team that cares about my clients as much as I do.’ NexBank’s goal is to make our TPO clients successful as we continue to roll out new, competitive products –> Announcing NEW pricing improvements on low loan balances to further promote affordable homeownership (< $275K) by introducing a Loan Balance Adjuster on Agency Conforming 30- & 25-year products, with certain restrictions. Plus, Escrow Holdbacks are now Eligible with Conforming Conventional, Mortgage Connect Full Doc and Non-QM, allowing our clients to close more loans in a timely manner. Contact us today. Member FDIC, Equal Housing Lender, NMLS 672886.”

Looking for Marketing and PR Assistance? The Seroka team has you covered! Seroka Brand Development, the mortgage industry’s leading marketing and PR firm, is here to provide the extra resources you need. With over 30 years of industry experience and strong media relationships, Seroka offers a complete turnkey solution to support your marketing and PR efforts. Whether you need project work, a new campaign, or to outsource your whole marketing department, Seroka can help. Seroka’s specialties include content marketing, digital marketing, social media, strategic planning, public relations, and campaign measurement. Its goals are to optimize your marketing spending and drive the best ROI. Seroka excels in boosting SEO, improving engagement, and generating more leads from your target audiences. If you’re stretched thin and need to achieve more with fewer resources, let Seroka Brand Development assist. Contact Seroka today to schedule a call and explore how their team can help you!

“Lenderful Solutions is excited to announce our latest release, with the support of Joe Rinner at Watermark Capital Reverse, a POS Solution specifically to guide borrowers interested in a Reverse Mortgage. This solution gives convenience and control to borrowers interested. A borrower can learn about their options, shop displayed calculate benefits based on their situation, determine their preferred payment options, and apply for a reverse mortgage in minutes. Data is delivered to lenders reverse mortgage LOS systems. Lenderful Solutions adding to our ability to digitize the process, so Loan Officers can continue to humanize the experience. Use automation tools like AVM, VOE, VOA, VOI, and Credit Pull to offer borrowers insurance for Home or Auto… without ever leaving your website. Our strong lineup of solutions including Mortgage with PreQual Express, Home Equity/HELOC, HE Turbo, Construction, Commercial, Consumer and more… clicking here or contacting us at (313) 910-3070.”

Wholesale and TPO News

Sometimes news from third party investors falls into neat categories, like conventional conforming changes, or government (FHA &VA & USDA) updates. Sometimes the news doesn’t, so with that in mind, let’s see who is doing what regarding policy and procedure changes.

United Wholesale Mortgage (UWM) announced PA+, a service that offers an additional level of loan processing support when needed. When an LO or processor orders PA+, they’ll get a dedicated UWM Loan Coordinator who will work with them and their borrower to help ease some of the most time-consuming parts of the loan process, from import to closing. UWM also announced UWM Portal, a bi-directional API that lets independent mortgage brokers who work with UWM seamlessly link their Loan Origination System (LOS) platform to UWM’s EASE system, further helping to streamline the entire loan process. This will allow brokers to sync their data to their LOS and eliminate the need to manually reconcile information during the loan.

On 5/25/2023, with Amendment No. 3 to DR-4699, FEMA granted individual assistance to Butte County impacted by California flooding.

After a thorough review of the most common reasons for the IRS rejection of the new Form 4506-C, AmeriHome provides some best practices and tips for successfully executing the new IRS Form 4506-C as another resource for its Sellers. See AmeriHome Product Announcement 20230503-CL for details.

Brokers, Kind Lending has extended CalHFA loan options to California homebuyers. Kind Lending offers CalHFA Conventional, Government and MyHome Assistance.

Rocket Pro TPO Partners have its new Home Equity Loan1 (HEL) product, helping clients achieve their financial goals. Clients can tap into their home equity without adjusting their first mortgage structure. Compare a Home Equity Loan to a cash-out refi with our HEL vs Cash-Out Calculators on PathfinderSM by Rocket.

Leverage another great tool from Rocket Pro TPO to win more business and potentially save clients thousands on their mortgage. Credit Upgrade, Rocket Pro’s free rapid rescore program, really works. In the first quarter of 2023, Credit Upgrade saved clients over $4 million on mortgage payments.

United Wholesale Mortgage (UWM) announced the roll out of Six Fixed-Rate Jumbo Products. Brokers now have access to more competitive jumbo pricing, along with transparent investor guidelines and loan qualifications. Additionally, UWM expanded its Conventional 1 percent Down product to 80 percent AMI. UWM supports independent mortgage brokers with industry-leading training, technology, and service.

Pennymac Correspondent Group posted three new announcements: Announcement 23-37: Navigating Form 4506-C: Insights and Tips for Completing, and Announcement 23-38: Fannie Mae SEL 2023-02 Required Use of Condo Project Manager.

Citi Correspondent Lending implemented changes to the CRA Schedule, effective for Best Effort locks completed on/after Tuesday, May 23, 2023. Two changes are being made related to MSA 35004 – Nassau. Agency LMICT premium is increasing to 1.50 from 1.00. MSA 35004 is being added to the Non-Agency Best Efforts grid.

Capital Markets

We had a massive amount of data for markets to digest yesterday, which, along with news that the House and Senate passed the bill to raise the debt ceiling, pushed investor sentiment and ultimately price movement toward the third consecutive day of gains (rates down) in the bond markets. That comes as a welcomed relief considering that mortgage rates jumped again last week to hit new year-to-date highs, according to the latest Primary Mortgage Market Survey from Freddie Mac.

In terms of economic data, the May ISM Manufacturing Index fell further into contractionary territory, the seventh consecutive month of general contraction in manufacturing activity. The Production Index climbed back into expansionary territory, giving some hope for an improvement in the coming months. The ADP Employment Change Report for May showed an estimated 278k jobs were added to private-sector payrolls, well above 160k expectations on the heels of a downwardly revised 291k in April. Job growth is still strong, but pay growth is slowing. The weekly initial jobless and continuing claims report both corroborated the ongoing strength in the labor market as businesses overall remain reluctant to cut staff size in large numbers, leaving the level of initial jobless claims well below what is typically seen in a recession environment.

The Revised Q1 Productivity and Unit Labor Cost report showed productivity was weak in the first quarter (declining 2.1 percent, better than expected), and unit labor costs were up 4.2 percent versus the advance estimate of up 6.3 percent. Total construction spending increased 1.2 percent month-over-month in April, better than expected after increasing 0.3 percent in March. Continued weakness in new single-family construction was overshadowed by strength in private and public nonresidential spending. On a year-over-year basis, total construction spending was up 7.2 percent.

We are 50 percent through the Signature and Silicon Valley Bank portfolio liquidations, at least in specified pools, and according to BofA’s Bill Bekery, by nearly every metric these have been “a resounding success in terms of execution, clearing level, and both dealer and customer participation. Given the performance and execution of the last ‘reverse inquiry’ auction, we would expect that an announcement is imminent for round two of reverse inquiry, which will further bring us closer to the end date of this sell program. 20-year pools have stood out to us as a standout performer, with payups outperforming. There has been strong customer demand for pools such as 100 percent Florida, Texas, and low FICO pools.

However, many other specified sectors are trading less well: REIT demand generally has underwhelmed as of late, and $200-275k balance pools as well as FICO/LTV/investor have struggled to find footing in production coupons. Loan balance 6.5 percent pools remain somewhat of a no-mans-land sector. 70 percent of Agency MBS outstanding is held by the Fed and banks, both of which are net selling. That continues to be an area of concern for mortgages, as does impatience by monetary policymakers regarding the lagged effects of 500 basis points of rate hikes and/or a resumption of the banking crisis resulting in additional bank portfolio liquidations.”

Today brings the all-important May jobs report. Nonfarm Payrolls increased by 339k versus expectations of +230k, up from the prior month of +253k, while the unemployment rate jumped from 3.4 to 3.7 percent when it was seen ticking up to 3.5 percent. Hourly earnings were +.3 percent, as expected, year over year +4.3 percent. There are no other economic releases of note scheduled for today. Despite yesterday’s rally to open June, the 2-year U.S. Treasury yield increased by 33 basis points over the month of May and the 10-year yield increased by 19 basis points. After the solid employment data we begin the day with Agency MBS prices worse about .125, the 10-year yielding 3.64 after closing yesterday at 3.61 percent, and the 2-year up at 4.40.

Employment and Transitions

“Equity Resources is independent and family-owned mortgage banker that is very proudly celebrating our 30th anniversary this year! While many lenders are reducing staff and are uncertain about their future, we are creating opportunities for our award-winning loan officer team! We are actively seeking career-focused loan officers throughout our footprint states. Equity Resources is currently licensed in 19 states along the east coast and mid-west. We are an agency direct lender that offers an exceptional marketing platform for our loan officers, including a media and video production team. We offer a full suite of loan products and programs (including several specialty lending programs.) If you are frustrated with the direction of your mortgage banking career and not getting the support you deserve; or simply would like to have a conversation about “Why Equity Resources”, please contact Tom Piecenski, Executive Vice President of Sales and Development (614.327.5353).”

A Louisiana based full-service, independent mortgage banker averaging $1 billion in production annually is searching for a proven retail sales leader to run all business development initiatives. The Sales, Recruiting, and Marketing departments will report directly to this head of business development role, and the role will report directly to the CEO. The ideal candidate will have a demonstrated track record of hiring and managing multiple production offices across several states. The IMB is well capitalized, has agency direct approvals, offers niche products, significant technology advancements and a world-class operations team with experienced, tenured sales and fulfillment employees. For confidential consideration, please email confidential resume to Chrisman LLC’s Anjelica Nixt.

The Loan Store, Inc. announced that Phil Shoemaker has assumed the role of chief executive officer. Shoemaker was named incoming CEO on April 7 when it was announced that The Loan Store had entered into a definitive agreement to acquire certain assets of Homepoint’s wholesale originations channel. Mark Lefanowicz, who has served as The Loan Store’s president and CEO since 2019, will continue as chairman of the board.

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

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You’ve put in an offer on your dream home and the seller has accepted. But before you get too carried away with celebrating, you may want to take some time to consider a mortgage rate lock.

A mortgage rate lock is a guarantee from a mortgage lender that the interest rate they’re offering you won’t change for an agreed period (typically from 30 to 60 days). This can prevent your lender from increasing your mortgage’s rate (due to changing market conditions) during the application and approval process. Depending on what’s going on with mortgage rates, a lock might save thousands of dollars over the life of your loan.

Below, CNBC Select breaks down how a mortgage rate lock works and what to consider before asking for one.

When should you lock in an interest rate?

Ideally, you want to lock in the rate when overall rates are low. But no one can predict the exact movements of mortgage rates — not even industry analysts possess that kind of crystal ball.

For that reason, it’s best to avoid the guesswork and lock in the mortgage rate after you’ve shopped around for a mortgage lender and compared the rates offered to you. Your rate has a huge effect on your monthly payments, as well as how much you’ll pay in interest over the life of the loan. It’s a good idea to compare offers from at least three lenders to ensure you’re getting the best deal.

CNBC Select recommends SoFi if you’re looking to save money through discounts and other lender incentives, Rocket Mortgage if your credit score is on the lower side and Ally Bank if you want to avoid lender fees.

SoFi

  • Annual Percentage Rate (APR)

    Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included

  • Types of loans

    Conventional loans, jumbo loans, HELOCs

  • Terms

    10 – 30 years

  • Credit needed

  • Minimum down payment

Terms apply.

Rocket Mortgage

  • Annual Percentage Rate (APR)

    Apply online for personalized rates

  • Types of loans

    Conventional loans, FHA loans, VA loans and Jumbo loans

  • Terms

    8 – 29 years, including 15-year and 30-year terms

  • Credit needed

    Typically requires a 620 credit score but will consider applicants with a 580 credit score as long as other eligibility criteria are met

  • Minimum down payment

    3.5% if moving forward with an FHA loan

Terms apply.

How a mortgage rate lock works

Mortgage rates move constantly. Many interconnected factors contribute to these movements, including changes in the Federal Reserve’s target rate, the overall state of the economy, conditions and trends in the housing market and the 10-year Treasury bond yield, to name a few. A mortgage rate lock is designed to protect the mortgage interest rate your lender offers you from the influence of these market forces. If you’re taking advantage of a mortgage rate buydown, you’ll also be locking in the cost of any discount points.

Usually, you can lock in your mortgage rate for 30 to 60 days. Certain loans, such as construction loans, may have longer lock periods to allow enough time to close. During this time, even if mortgage rates go up, the rate your lender has given you won’t change.

But what if the rates go down? Unfortunately, you may miss out on potential savings — unless your lock comes with a “float-down” option. This feature allows you to take advantage of a lower rate when it’s available, but you typically can only use it once and it usually comes at a fee. If your lock doesn’t have this feature, you may be out of luck. At the same time, the lock’s purpose isn’t to guarantee the best rate but to protect you from an increase in loan costs. And most of the time, that’s well worth the price.

A mortgage rate lock isn’t free. Even when there’s no official fee listed on your closing costs breakdown, the lender will factor it into the rate you’re receiving. Typically, you can expect to pay somewhere between 0.25% and 0.50% of your loan to lock in your rate. If you need to extend the lock period, you might have to pay an additional fee for that too — usually, 0.375% of the loan amount.

How to lock in a mortgage rate

To lock in a mortgage rate, you need the address of the property you’re interested in purchasing. Some lenders may allow you to lock in the rate once you’re preapproved, while others might require that the seller first accepts your offer.

Rate lock policies vary by lender, but usually, a loan advisor will offer you one once your application is approved and ready to go to underwriting. If they don’t, ask about the rate lock and how much it will cost you.

Can you change mortgage lenders after locking in your rate?

A mortgage lock doesn’t tie you to a lender. However, if you switch lenders, you’ll have to start the process again. This may result in closing delays that will force you to pay fees to the seller, or your deal might fall through altogether. Even if that worst-case scenario doesn’t occur, you may still need to pay expenses such as appraisal and credit check fees again. For that reason, it’s best to shop for a lender before you’re too far ahead in the process.

Your interest rate can still change after a mortgage rate lock

A mortgage rate lock protects your interest rate, but it’s not absolute. Certain situations may void your rate lock.

Your mortgage rate lock is tied to a specific property address. If your purchase contract is canceled, so is your lock. Once you find a new home, you’ll need to get a new rate.

Further, all the conditions of your mortgage contract, including your locked rate, are contingent on your financial profile staying unchanged. For example, if your credit score drops or you add to your debt, your lender will reevaluate your eligibility, which can affect what interest rate they’ll offer you. Because of this, avoid opening new credit lines or racking up balances on your credit cards until you close — otherwise, you might put your home purchase in jeopardy. Likewise, your interest rate may change if the appraised value of the property changes from the time you initially locked your rate.

Subscribe to the CNBC Select Newsletter!

Money matters —  so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.

Bottom line

Mortgage rates often fluctuate, but a rate lock can protect the rate your lender has quoted you from such fluctuations. While you may need to pay for it and it doesn’t guarantee the lowest rate, it provides the peace of mind that comes with knowing the cost of your mortgage won’t increase before you close.

Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

Source: cnbc.com

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Last updated – May 1, 2023

Using store coupons and manufacturer coupons together is called stacking.  It is a simple grocery savings strategy many couponers have used for years.  Learn how to stack coupons and even where you can try this out the next time you shop.

A woman uses a digital coupon. Image source: Getty Images.

Coupon Stacking. You may have heard this term before from other people who use coupons or even on other websites.  But, do you really know what this means?

Coupon Stacking is using both a store coupon and
a manufacturer’s coupon on a single item 

So now that you have the basic understanding of what a coupon stack is, how can you tell if your coupon is a store coupon or a manufacturer’s coupon?  That can be tricky.  Here are some tips which can help.

IDENTIFYING MANUFACTURER’S COUPONS

Most coupons you find will be manufacturer’s coupons.  They are distributed by the manufacturers themselves and usually found in your Sunday newspaper or printed from sites like Coupons.com.

When you redeem your coupon at the store, that retailer is reimbursed the face value of the coupon PLUS a small handling fee. Here are some common manufacturer’s characteristics:

  • Says “Manufacturer’s Coupon” on the coupon (usually at the top).
  • Includes a redemption address in the fine print on the coupon.  This is where the retailer will submit the coupon so that they can be reimbursed.
  • It may say things such as “Redeemable at” or “Available At” on them, but they are still manufacturer’s coupons and should be accepted anywhere.  However, keep in mind that some stores will not accept any coupon with another store’s logo on it, even in this instance.

This coupon shows the manufacturer’s wording at the top. It is usually easily located
near the coupon expiration date or along the side of the coupon.

This coupon shows the Walmart store logo and says, “Redeemable at Walmart”
on it, however, it is a manufacturer’s coupon and can be redeemed anywhere.

This coupon clearly lists the address where the retailer can
send the coupon in order to be reimbursed.

HOW TO TELL IF IT IS A STORE COUPON

Store or Retailer coupons are issued by the store themselves.  They are basically a store sale, just issued in coupon format.  These are completely funded by the store — no manufacturer reimbursement is listed on the coupon.  These are very common at national retailers such as CVS, Walgreens, and Target.

These can be found in the weekly ad or even on racks directly inside of the store.  You may also be able to print them from the store’s website (such as Target). Your store may also load them as a digital coupon directly onto your rewards card (Hen House does this automatically each week).

You might even be able to log into your store rewards account and select the coupons you want to use (such as the HyVee Fuel Rewards program). You can usually identify a store coupon by the following:

  • Includes the store’s logo.
  • Does not include any redemption information on the coupon (the store will not be reimbursed for the coupon, so this information is not needed).
  • Usually says “Store Coupon” — where the store is the store name — i.e. Target Coupon.

This is a Target store coupon as it clearly states “Target Coupon” at the top.

Coupon includes the store logo.  It also does not include any address redemption details.

Also see: Treasure hunt of where to find the best coupons

HOW TO STACK COUPONS AT YOUR STORE

Now that you know how to identify the coupons, you are ready to try your hand at coupon stacking!  While most computer systems are smart enough to correctly credit your purchase in the right order, that may not always be the case.

It is usually best to always hand over the store coupons before you hand over your manufacturer’s coupons.  This usually creates less hassle and having to hear those annoying beeps.

Here is an example of how it may look:

Shampoo, $4.00
Use Store coupon to save $1.00
PLUS
Use the Manufacturer’s coupon to save $1.00
Final price: $2.00

So now that you know how you can stack coupons let’s share the stores where you can put your stacking skills to work!

NATIONAL CHAINS WHERE YOU CAN STACK COUPONS

CVS

At CVS, you can do what is called a Triple Stack.  That means you can use a CVS store coupon + a manufacturer’s coupon + Extra Care Bucks (earned on prior transactions).

Dollar General

You can use both a Dollar General store coupon + a manufacturer’s coupon.

Kohl’s

You can use a value off coupon with a percentage off coupon.  However, you can not combine multiple percentages off coupons.   In addition, you can use Kohl’s cash with any other additional coupon (but Kohl’s cash comes off before any discount is calculated).

Michael’s

You can use multiple coupons as long as the barcodes are all different.

Rite Aid

You can stack use coupon stacking here as well.  You can use a manufacturer’s coupon + a Rite Aid store coupon.

Target

Target allows a triple stack!  You can combine a manufacturer’s coupon + a Target store coupon + a Target Circle offer.

Walgreen’s

Walgreen’s will allow you to stack one of their store coupons, called an Instant Value Coupon, with a manufacturer’s coupon.    You can also combine Register Rewards (earned on prior purchases), but the total coupons cannot exceed the number of purchased products.

GROCERY STORES THAT ALLOW STACKING COUPONS

Hen House

You can use a digital coupon or store coupon + a manufacturer’s coupon.

HyVee

You can stack a HyVee store coupon with a manufacturer’s coupon

Price Chopper (Kansas City metro area)

You can use a store coupon with a manufacturer’s coupon.

Publix

When shopping here, you can stack your Publix store coupons with the manufacturer’s coupons.

Safeway

You can use a Safeway store coupon with a manufacturer’s coupon.

Whole Foods

They will allow you to use a store coupon + a manufacturer’s coupon.

Source: pennypinchinmom.com

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Chelsea Dehner

  • Published Oct 8, 2019
    – [Updated Apr 26, 2021]
  • 1 min read

  • Sources

  • The views expressed on this blog are those of the bloggers, and not necessarily those of Intuit. Third-party blogger may have received compensation for their time and services. Click here to read full disclosure on third-party bloggers. This blog does not provide legal, financial, accounting or tax advice. The content on this blog is “as is” and carries no warranties. Intuit does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. After 20 days, comments are closed on posts. Intuit may, but has no obligation to, monitor comments. Comments that include profanity or abusive language will not be posted. Click here to read full Terms of Service.

    • When we think of things that will save the environment we think of taking the bus to work or buying local food — both expensive actions. Yet going green doesn’t have to cost you a ton of time or money. In fact, many of the eco-smart habits also help you save money by reducing excess and getting more use out of old things.

    We all know the phrase: Reduce, Reuse, Recycle. However straightforward it may sound, it can still be hard to incorporate environmentally friendly actions into your everyday. Becoming familiar with the sustainability of every company and brand you support can be time-consuming and difficult. It can be confusing to determine which kinds of plastic can be recycled and which can’t.

    Thankfully, there’s technology out there that can make helping the environment a bit easier — all while saving money. There’s apps that help us monitor our energy and water usage to help us make smarter choices, and apps that make it easy to upcycle old clothes and electronics.

    Check out the infographic below for a full list:

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    Last week, I wrote about a conversation with my investment adviser. In the article, I mentioned that my current income roughly covers my current spending except that I’ve been spending an average of $2,000 per month on travel. Because of that spending deficit, I’ve been drawing down my medium-term savings, which should last me until the end of 2014. Meanwhile, I’m exploring a variety of options to bring the income and spending into equilibrium.

    Some GRS readers were taken aback by this.

    “Maybe the name of this blog should be changed to Get Poor Quickly,” Marsha wrote. Brian from Debt Discipline expressed the common concern that withdrawing from my investments seems like a step in the wrong direction. And Greg wrote that this blog must be losing its way if I’m writing about “stealing from the future to maintain a current lifestyle of travel.”

    Other readers, however, took a different view.

    Frugal Scholar noted that there’s nothing wrong with taking withdrawals if my total savings can support them. The always-perceptive Sam wrote, “If J.D. is living a life of semi-retirement, which it seems to me he is, then it would make sense to pull money from investments as that is what one does in retirement.” And EMH was even more direct: “Why have all those investments and not use them?”

    I spent a lot of time replying to comments on last week’s article. In doing so, I noticed that I’d done a poor job of sharing all the facts about my situation. I’ve been timid about total transparency, which means readers don’t have all the info they need to make a judgment. Today, I want to change that.

    It also occurred to me that there are differing opinions about what savings are for. On some levels, those differing opinions are a result of each of us having different plans and priorities. But I think something that gets missed is that money is used differently at different stages of life.

    The Stages of Personal Finance

    In February 2009, I wrote a meditative article about the stages of personal finance. This then led to a series of articles on the subject. Here’s how I defined them:

    • In the zeroeth stage of personal finance, we’re fumbling in the dark. We have no financial skills and has no idea how to best use our money. We live impulsively, reacting to life around us.
    • In the first stage of financial development, there’s a candle in the darkness, and we’re drawn toward the light. We become aware that certain actions produce better financial results. We learn basic skills like frugality and saving and debt reduction. We still make many mistakes, but we now have some idea of where we ought to be headed.
    • During the second stage of personal finance, we can see the light at the end of the tunnel. We’ve moved beyond the basics to create a solid foundation for future growth. We’ve eliminated debt, built up our savings accounts, established emergency savings, and begun to set aside money for retirement. We learn that we are in control of our financial future and not at the mercy of some vast, uncaring universe.
    • In the third stage of financial aptitude, you light the way for others. (Boy, my metaphors were strained!) Our foundation is solid, and we now spend years (or decades) constructing a financial edifice that will support us for the rest of our lives. That generally means paying off the mortgage, supercharging our income (and thus, our saving rate), and preparing for the ultimate goal…
    • The final stage of money management is financial independence. At this stage, we no longer need to worry about money. We have enough saved to do whatever we please. Because we each have different goals, strengths, and weaknesses, financial independence means different things to different people. Financial independence is really just another way to say “retirement.”

    When I started this blog, I had just progressed from the zeroeth stage of personal finance to the first. Over the next few years, I documented my progress as I achieved greater knowledge and control of my money. Today, I am fortunate to be in that final stage of personal finance. I am financially independent.

    What do I mean by financially independent?

    Some people believe you’ve achieved financial independence only when you can live off the dividends or interest your savings produce. Others — including me — take the stance that you’re financially independent if, given reasonable assumptions (4 percent inflation, 6.5 percent long-term real return on stocks, 4 percent withdrawal rate, etc.) you’ll also draw down your principal.

    As I shared in the comments last week, I could stop working today and live off my savings for the rest of my life. In essence, I could choose to retire early — if I wanted. But I don’t want to, and for several reasons:

    • By continuing to work, I earn more money, which does two things. When my income exceeds my expenses, I add to my stockpile. When my expenses exceed my income — as they do now — income mitigates how much I need to draw down my savings.
    • Work gives me meaning. I enjoy writing about personal and financial freedom. It’s fun. Plus, the emails I get indicate I’m able to help other people pursue their dreams as well. So long as work gives me purpose, I’ll continue to work.
    • For me, work creates social connections. I get to meet readers and colleagues and financial professionals, which helps me expand my knowledge and learn about lots of other things.
    • And so on.

    When people choose to continue working even though they could call it quits, they’re said to be semi-retired. I think that’s an apt term, and that’s how I classify my current state. I am semi-retired.

    What Are Savings For?

    Saving is a key part of personal finance. In fact, I’ve come to believe it’s the key part of personal finance. When we save money, we build smart habits today while protecting and providing for our future.

    That said, saving plays different roles in different stages of personal finance.

    For instance, when you’re accumulating or repaying debt, saving ought not be a high priority. Aside from a minimal emergency fund (of $500 or $1,000), your money is better directed elsewhere. That’s why in my beloved Balanced Money Formula — which urges folks to spend less than 50 percent of after-tax income on Needs, more than 20 percent on Saving, and the rest on Wants — debt repayment is actually classified as saving. There are few uses for money that provide a better return than paying down credit cards and other high-interest loans.

    Once debt is eliminated, however, saving becomes a high priority. During the second and third stages of personal finance, we work to build three types of saving:

    • Short-term saving, such as in an emergency fund. Most experts urge people to save between three and twelve months of their current spending so that they’re prepared if something unexpected happens, such as a job loss or catastrophic illness.
    • Long-term saving for retirement. This is why we save in a 401(k), Roth IRA, and other retirement accounts. We’re saving for the far future when we’ll be unable to produce income at the level we can today.
    • Medium-term saving is what I commonly call targeted saving. For most folks, this takes the form of saving for a car or a house or a vacation or for college education. But other people use medium-term saving as a way to fund sabbaticals and mini-retirements. Others use this money to quit their job and take a chance on a new business or a new career.

    We save money for two purposes: To protect against an uncertain future and to help us fulfill our dreams.

    Short-term savings and long-term savings are generally defensive. They’re a form of self-insurance to shield us from the slings and arrows of outrageous fortune. Medium-term savings is used more for offense; it’s to pursue the things that provide us pleasure and purpose.

    There seems to be a subset of people, however, for whom it’s never acceptable to spend savings. We’re all familiar with folks who spend too much and never save, but there are also people who save too much and never spend. They’re mocked in books like A Christmas Carol and Silas Marner. They’re demonized in movies like It’s a Wonderful Life. But for some reason, in real life, these types are often considered heroes. This puzzles me.

    I see nothing heroic about dying with a fortune. I see nothing noble about saving and saving and never spending. Money is a tool. Its purpose is to provide comfort and pleasure for ourselves and for others. Saving isn’t an end in and of itself. We accumulate savings so we can do the things we want to do.

    My Own Situation

    In the past, I’ve been close to the vest regarding my financial situation. My attorney, my accountant, and my ex-wife all wanted me to keep things quiet. However, after some recent conversations — including one with Pat Flynn — I’ve decided to be more transparent. I can’t (and won’t) reveal everything, but I’ll share some broad info.

    I’ve already shared that I’m currently outspending my income by about $2,000 per month because of travel. That’s what got some people riled up last week. I’ve also shared that I have enough medium-term savings to maintain this deficit until the end of 2014 (meaning I have about $25,000 saved for this purpose). I also have about $5,000 in emergency savings. Plus, I’m fortunate to have over a million dollars in long-term retirement savings.

    Note: Yes, it’s true: While writing a blog about how to get rich slowly, I got rich quickly. This irony is not lost on me. One commenter last week suggested that this could cause problems since I didn’t have time to build the necessary mindset to manage the money. This is a valid concern, and one reason I’m trying to be cautious and make only “small moves.” I’ve read plenty of horror stories about people who squander sudden wealth.

    In an ideal world, I’d be earning an income that meets my expenses. And, in fact, that was the whole point of last week’s article; I’m looking for ways to bring earning and spending into alignment. At the same time, I feel no shame about outspending my current earnings by $2,000 per month. Why not? Because that’s what my money is there for.

    If I were still in debt, this $2,000 monthly deficit would be a concern. If I had only minimal savings, it would still be a problem. But I’d argue that even for somebody in the third stage of personal finance, deficit spending for a short time is perfectly acceptable. And if you’re in the final stage of personal finance? Well, then that’s actually how you’re expected to be living. When you’re retired, you’re drawing down your capital.

    Note: Last week I wrote that Mr. Money Mustache would probably advise me to be more frugal. I was wrong. After reading the article, MMM e-mailed me to say: “Just enjoyed your latest post on GRS. I think you might be underestimating your passive income from savings…Since this is more than your spending by a wide margin, I would feel very confident that all your work income is 100% optional. Of course, you should still do enjoyable work because it makes you happy just as it makes me happy. But the paycheck is really just some icing on the cake.”

    In fact, the fundamental problem of personal finance is figuring out how much to save so that you can live off your investments in retirement and die with a zero balance. (Or, if it’s your intention, to leave money to others.) A quick calculation (using conservative assumptions) shows that I could choose never to work again and even if I lived until 80, my assets would allow me to live on about $4,000 per month for the rest of my life. If I sold my condo, that number would climb to $5,000 per month.

    And if I chose to spend $2,000 per month, which was the idea that created such a fuss last week? According to FIRECalc, my money will probably never run out! And, in fact, because of the extraordinary power of compounding, my savings will continue to grow forever.

    The Bottom Line

    Last week’s discussion was fascinating. If I were to draw down my savings in one fell swoop in order to buy a car or to purchase a house, I doubt anyone would object to my actions. After all, that’s how we think savings should be spent. But because I’m choosing instead to use my savings to fund travel and to buy time while I look for additional ways to make income, some people think I’m being foolish.

    I suspect that even after this long discussion of saving and retirement, there will still be folks who believe it’s irresponsible for me (or anyone else, for that matter) to draw down savings for this sort of thing. If that’s you, tell us what you find objectionable. Under what conditions do you believe it’s okay to draw down savings? Does it matter which phase of personal finance you’ve reached? How do you decide when it’s okay to use the money you’ve saved to do the things you want to do?

    Source: getrichslowly.org

    Apache is functioning normally

    This guest post from Ian is part of the “reader stories” feature at Get Rich Slowly. It’s the extended version of the story he shared in his prize-winning entry to this year’s GRS video contest. Some reader stories contain general advice; others are examples of how a GRS reader achieved financial success — or failure. These stories feature folks from all levels of financial maturity and with all sorts of incomes.

    It dawned on me in college, having experienced several different summer jobs, that I really didn’t like being employed. Sure, the money is nice — but it’s just no fun at all to spend your days working to reach some boss’s plans or goals. I’m sure there are some folks out there who find a 9-to-5 job fulfilling, but that sure ain’t me. There’s too much fascinating stuff out there to learn and do to spend 40 years in a cubicle. The mere thought makes me shudder, and I wanted nothing to do with a career.

    Most of the financial advice out there is geared towards building up a big account to retire on. I figured that I would enjoy taking a different route — reducing the total income I needed to live on. With a significant reduction in expenses, it becomes feasible to live very comfortably on a part-time income, or even just income from hobbies. How do you reduce your expenses that much? Live off the grid.

    [embedded content]

    Planning

    By “live off the grid”, I don’t mean abandoning all your possessions to live in a shack in the woods. I mean taking control of your necessities and providing them yourself instead of relying on other to do it for you (and paying them to do so). Going offgrid requires a greater up-front payment, which is rewarded by great benefits in the long term (sound familiar?). Building a house yourself is a huge investment in time, sweat, and cash — but it allows you to enjoy freedom from rent or mortgage for decades. Like cooking at home instead of going out, but writ large (hundreds of thousands of dollars large).

    Note: My decision to follow this path was not purely a financial one — I simply am happiest out in the boonies. There are too many people in the city, and it’s just not enjoyable for me. I want some space. You may be different — and probably are.

    The more I looked at the offgrid option, the more financial advantages I saw in it. By choosing an earth-bermed home design, I could minimize heating and cooling expenses, as well as exterior maintenance. Having my own well and septic system eliminate the water bill, and having my own photovoltaic system for electricity cuts out another bill. My consumable fuels for the home are limited to some wood for winter heating (easily collected from the property) and propane for cooking (for which a couple hundred gallon tank is nearly a lifetime supply). Add some food production on the land, and you can also reduce grocery expenses.

    Does this mean intentional poverty? Absolutely not. It means that I can have great quality of life, make $10,000 per year with a part-time or online gig, and have more disposable income than most middle income debt-ridden wage slaves.

    Execution

    At the time I put this notion together, I was in the middle of getting a fancy engineering degree from a fancy university. I had been losing interest in engineering as a field to work in, and opted to jump to a more hands-on field of study and get the fastest two-year degree I could. I judged that it would be better to leave with some sort of diploma than drop out altogether.

    At the same time, I started looking for affordable rural land. I had a small inheritance from a great grandparent that I had been saving for something significant and meaningful, and a piece of land seemed like the perfect use for it. I eventually found a 40 acre parcel in the Southwest for less than $500/acre. I ditched school for a week to camp out on it, and fell in love. It had a good southeast facing slope for my passive solar house plan, and everything else I wanted in a parcel.


    Ian’s parcel of land

    On the third day, I signed a bill of sale, wrote a check for the price (10% off since I wasn’t financing it) and made it mine. And then (sadly) headed back to school. A year later, I came out with my degree and a $35,000 bill from Sallie Mae. That student loan was my only debt, and it meant a monthly payment of something like $250. Not bad at all, by most standards.

    I packed all my belongings into my truck (a paid-for beater of a 1970s Chevy) and embarked to find a job in the little windblown town nearby and build my house. Jobs were sparse, though, and I wound up making less than minimum wage as a commission mechanic. That $250 loan payment was a massive chunk of my income, and it became clear that I wouldn’t make any progress unless I changed my situation. So I packed up again, and moved to the big city (ugh). Not what I wanted to do, but it was necessary. After a couple false starts, I landed a bartending job that paid pretty darn well. Now that I was finally making more than I needed to just scrape by, I set about making some real progress.

    Saving was immediately gratifying, because I brought home my day’s earnings in cash every night. I budgeted out what I needed to live on (rent, gas, food), and put that much in my living expenses envelope each evening. The loose change (a couple bucks worth usually) became my “fun” spending money, and everything else went into the student loan envelope. Every time the envelope crossed the $1000 threshold, I took it down to the Post Office and sent a money order to Sallie Mae. I didn’t eat out, I didn’t go to bars, I replaced my big beater truck with a little beater truck that got much better gas mileage, I didn’t have a TV, and I split an internet connection with a neighbor in my apartment block. I grabbed every extra shift at the bar that I could manage. It paid off. In 53 weeks, I zeroed out that student loan. (I have the closure notice from Sallie Mae framed.)

    Then came a big moment of truth. I’d been focusing intensely on paying off that debt, and the house plan was a bit of a nebulous thing that I would do later, after the loan. Well, now the loan was gone, I had the good-paying job, and I was used to living on not very much. I could go do anything now! I could buy a slick new car, or a bunch of cool gadgets, or anything I wanted. Or I could make the earth-bermed, offgrid house a reality. It didn’t take much reflection to conclude that the house was what I really wanted. So I replaced my “Loan” envelope in the closet with a “House” envelope and went right on with the same budget. Soon the envelope filled up, and I replaced it with a shoebox. Eventually the pile of cash in the shoebox started making me a bit nervous, and I got a safety deposit box at my bank.

    When my second year on the budget netted me as much as the first, I crunched some numbers and concluded that a third year would be enough to get me enough money to build the house. I informed my manager at the bar that I would be leaving on May 31st of the next year, when it had warmed up and I deemed that building season was in full swing.

    During that third year, I started spending some of my savings to pay for some initial infrastructure that I had to hire out, like the installation of my well and septic system and the kit for my house (purchased from Performance Building Systems — a company I highly recommend). When I finally quit the bartending job (on exactly the day I’d selected a year earlier), I headed back to the property with a wad of about $40,000 in cash and a sturdy pair of work boots.


    Ian has his work boots on

    I spent that summer living in a neighbor’s barn and building. The house I’d decided on was a monolithic concrete arch, 24 feet wide and 36 feet deep. It came to 800 square feet total, and would be covered with 2-4 feet of earth when finished. The sides would be completely underground, and the front wall would be fully exposed, with a lot of glazing to let in light and warmth (you can see photos of a bunch of these homes at earthshelter.com). I first needed to dig into my hillside and lay a slab foundation, then construct the framework of the the house, build the front wall with concrete block, and then have the main framework shotcreted (concrete sprayed with a high pressure air hose, to form rounded structures). Once the shotcrete set, I began building wall framing inside, and running water and electrical lines.

    It’s not finished yet — some things cost more than I’d expected, and by the time winter really set in, I had a lot of interior work still left to do and had run out of savings. So I moved back to the city to find another job, and I continue to work on the house on my weekends.

    However, the house is complete enough that I could live in it if I had to. I’m working my current job (I leveraged my offgrid experience into a position in the solar power industry) because of a conscious decision that the income is worth the time, and I have an alternative option should I decide that I really dislike the employment. That option makes a big psychological difference.

    I can reflect on my job and know that I’m working it for a specific goal. I already have enough saved up again to finish the house interior, and what I’m doing now is saving up to build and stock a good workshop. With a good selection of woodworking, metalworking, and automotive tools I will be able to indulge in fairly technical hobbies. I can easily live on the proceeds of custom niche machine work, or have fun restoring and selling an antique vehicle from time to time. In addition, things like building my own furniture and maintaining my own vehicles will save a lot of money, and be more rewarding than hiring others to do the work for me.

    Thanks to the planning and hard work, I will retire by the age of 30 — if not sooner. That doesn’t mean I’ll spend my time watching TV and playing golf, it means I will be able to actually live life instead of sacrificing all my time to a job making money.

    Questions About the House

    Living off the grid isn’t what many people expect. With the dramatic recent reduction in solar power costs, you can really have every modern convenience without a power pole. You really can’t tell an offgrid home from the inside. The keys to doing this effectively are putting more attention into efficiency, and choosing the right power sources. Electric heat, for example, is extremely inefficient. Propane is a far cheaper way to cook, and a wood stove is a great inexpensive, renewable source of heating. Thoughtful home design to utilize solar exposure, prevailing wind currents, and other environmental factors can significantly reduce the amount of artificial heating and cooling needed in the first place. Modern efficient appliances and lighting further reduce electrical needs.

    Because of my high altitude and sunny climate, I chose to use a solar hot water heater instead of an electric or propane type. It’s a simple system with an 80-gallon tank (which should be able to supply comfortable hot showers through 3 days without sun), and it reduces my propane needs to just cooking. Internet can be provided by either satellite or wireless broadband (my cell phone reception is iffy at the house, but my Blackberry can get a pretty decent signal).

    What about my social life? Am I going to be some sort of loner hermit? The answer is definitely not.

    I’m not someone who needs constant social interaction, but you get plenty of it in the boonies. It’s clear from both my own experience and talking to other folks living in similar situations, that there is much more community socialization when there aren’t many people than when there are lots. I’ve never known more than one or two neighbors when I’ve lived in a city with dozens of people within shouting distance. But when there are only five families in a square mile, you know all of them, and their dogs, and often their friends and relatives who occasionally visit. It’s true for my house now — there are a few permanent residents and a few weekenders and we all socialize regularly.

    The other question I always get is about family. The short version is that I have no desire for marriage or children. The house isn’t big enough for a family, and it wouldn’t be feasible to put on an addition. If I wake up one morning and suddenly can’t live another day without offspring, I’ll just have to build a new house. But I don’t envision that happening.

    Tips

    If you’re considering doing something like this, I’d like to offer a couple quick tips from my experience. Just as a good financial decision now can have magnified implications down the road, time spent planning a house can prevent huge problems in construction. An hour spent fixing something in the foundation can prevent a day’s work in construction or a week’s work in finishing.

    My other suggestion is to not let the traditional rule your decisions. If you’re putting this much work into a place to live, you clearly plan to be there for a long time. So don’t worry about building a house that will be easy to sell — build the house you really want to live in. My bedroom is minuscule by most folks’ standards, because I like the idea of a cozy sleeping space. (I also ran a small water line and drain to the bedside table, so I don’t have to get out of bed for a drink of water at night.) The pantry is huge, though, because I will be growing and preserving food. I’m building a house to live in, not to sell, so I don’t care if it appeals to a real estate agent or bank loan officer.

    Most of all, if you have a dream, you should do it. Stop fantasizing and start planning. No matter how many years it might take, it won’t ever happen until you start. And once you do start, you’ll be amazed at what perseverance and dedication can do for you. There’s no better feeling in the world than deciding how you want to live and making it happen.

    Source: getrichslowly.org

    Apache is functioning normally

    WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) permanently banned RMK Financial Corporation, which does business as Majestic Home Loans, from the mortgage lending industry by prohibiting RMK from engaging in any mortgage lending activities or receiving remuneration from mortgage lending. In 2015, the CFPB issued an agency order against RMK for, among other things, sending advertisements to military families that led the recipients to believe the company was affiliated with the United States government. Despite the 2015 order’s prohibition on these and other actions, the company engaged in a series of repeat offenses, including disseminating millions of mortgage advertisements to military families that deceptively used fake U.S. Department of Veterans Affairs (VA) seals, the Federal Housing Administration (FHA) logo, and other language or design elements to falsely imply that RMK was affiliated with the government. In addition to the ban, RMK will also pay a $1 million penalty that will be deposited into the CFPB’s victims relief fund.

    “Even after the 2015 law enforcement order, RMK continued to lie to military families by falsely implying government endorsement of its home loans,” said CFPB Director Rohit Chopra. “Our action reflects our commitment to weed out repeat offenders, and we are shutting down this outfit for good.”

    RMK is a privately held corporation with its principal place of business in Ontario, California. RMK is a nonbank that is licensed as a mortgage broker or lender in at least 30 states and Puerto Rico. RMK originates consumer mortgages, including mortgages guaranteed by the VA and mortgages insured by the FHA. However, RMK is affiliated with neither government agency.

    In 2015, the CFPB took action against RMK to end its use of deceptive mortgage advertising practices, including advertisements that led potential homebuyers to believe that the company was affiliated with the VA or FHA. RMK sent these deceptive advertisements to tens of thousands of military families as well as to other holders of VA-guaranteed mortgages. In addition to paying a fine, RMK was required to end its illegal and deceptive practices.

    The CFPB has previously warned about VA home loan scams. Many servicemembers, veterans, and military spouses receive fraudulent calls and mailers from companies claiming to be affiliated with the government, the VA, or their home loan servicer.

    In the case of RMK, the CFPB found that the company disseminated millions of mortgage advertisements to military families that made deceptive representations or contained inadequate or impermissible disclosures in violation of the 2015 order, the Consumer Financial Protection Act, the Mortgage Acts and Practices Advertising Rule, and the Truth in Lending Act. Specifically, the company harmed military families and other consumers by sending millions of advertisements for mortgages that:

    • Tricked military families about the government’s role in sending the advertisements or providing the loans: RMK sent advertisements that misrepresented that RMK was, or was affiliated with, the VA or the FHA, that the VA or FHA sent the notices, or that the advertised loans were provided by the VA or FHA. Military families or others who view such advertisements may decide to purchase the advertised mortgage based on the trust they have in the government agencies.
    • Deceived borrowers about interest rates and key terms: RMK’s advertisements illegally disclosed a simple annual interest rate more conspicuously than the annual percentage rate, illegally advertised unavailable credit terms, and used the name of the homeowner’s current lender in a misleading way. Consumers who view such advertisements may be misled about the terms being offered or mistakenly believe their current lender is sending the advertisement.
    • Falsely misrepresented loan requirements and lied about projected savings from refinancing: RMK’s advertisements misrepresented that the benefits available to those who qualified for VA or FHA loans were time limited. Additionally, RMK’s advertisements misrepresented that military families could obtain VA cash-out refinancing loans without an appraisal and without incurring the cost of an appraisal, that an appraisal was not a condition of qualifying for VA cash-out refinancing loans, and that no minimum credit score and no income verification were required to qualify for VA cash-out refinancing loans. Finally, RMK’s advertisements misrepresented the amount of monthly payments, the annual savings under the advertised loans, and the cash available in connection with the advertised loans.

    Enforcement Action

    Under the Consumer Financial Protection Act, the CFPB has the authority to take action against institutions violating federal consumer financial protection laws, including the Truth in Lending Act, which is intended to ensure that consumers can compare credit terms more readily and knowledgeably. Today’s order requires RMK to:

    • Exit the mortgage lending business: RMK is permanently banned from engaging in any mortgage lending activities, including advertising, marketing, promoting, offering, providing, originating, administering, servicing, or selling mortgage loans, or otherwise participating in or receiving remuneration from mortgage lending, or assisting others in doing so.
    • Pay a $1 million fine: RMK must pay a $1 million penalty to the CFPB, which will be deposited into the CFPB’s victims relief fund.

    Today’s action is one in a series of actions the CFPB is taking to halt repeat offenders, particularly those that violate agency and court orders. The CFPB recently proposed a registry to detect repeat offenders in the financial marketplace. The action also complements broader efforts, including rulemaking by the Federal Trade Commission, to deter government and business impersonator scams.

    Read today’s order.

    Read I am a servicemember or veteran and I have decided to purchase a home. How do I know if a VA loan is the right fit for me?

    Read more about VA loans.

    Learn more about mortgage protections for veterans.

    Consumers can submit complaints about financial products and services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).

    Employees who believe their companies have violated federal consumer financial protection laws, including the Truth in Lending Act, are encouraged to send information about what they know to [email protected]. To learn more about reporting potential industry misconduct, visit the CFPB’s website.

    ###

    The Consumer Financial Protection Bureau (CFPB) is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit www.consumerfinance.gov.

    Source: consumerfinance.gov

    Apache is functioning normally

    Save more, spend smarter, and make your money go further

    Your beautiful, food-bearing refrigerator, sad to say, will not last forever.

    They certainly last longer than, say, a light bulb, but expect to go fridge shopping every dozen years or so.

    Before that time comes, you’ll want to start saving up, so you don’t wake up one day to a warm fridge full of rapidly-rotting food, and no money to replace the thing.

    As with most things in life, there’s a best time to buy your refrigerator, and it turns out that might well be the month of May.

    Semi-scientific analysis (like the kind Beakman used to do, only with better hair) has shown that refrigerators, unlike pretty much every other appliance on the planet, regards May as its Happy New year.

    That’s the month when manufacturers will roll out the latest models, meaning the old ones need to go, and FAST.

    So you’re far more likely to get a nice, steep discount on last year’s perfectly good fridge models during the month of flowers than any other time of year.

    This might be surprising to you, since general knowledge states that most appliances are cheapest in September and October, when the latest models come out to play.

    Why Big Fridge decided to do it in May, we have no idea.

    Maybe they knew with the warmer months, we’d need something good and sturdy to store all those cold, refreshing drinks that’ll keep us going through the hot summer?

    Or maybe they just chose the month out of a hat and ran with it. You never know with those faceless industry leader types.

    OK, so you’ve committed to making a new refrigerator the perfect Mother’s Day gift.

    Here are some other money-saving tips to keep in mind, so as to drive that price down as far as possible:

    Go Shopping on a Weekday

    As anybody who’s braved claustrophobic parking lots on the weekends knows, that tends to be the time most people do their shopping.

    You, though, should be different.

    Pick a random Wednesday, use a personal day at work (or hack mightily into the phone and complain of the Plague, that works too), and hit the local appliance store.

    Prices may not be advertised as cheaper, but there’ll be much less rush, less competition to buy the best model on the sales floor, if you catch the right salesperson at the right time, you might just get yourself a bit of an “I like you” discount.

    Memorial Day Super Sale

    Memorial Day is a special time of year, when we celebrate our veterans by hitting the mall and drooling over anything with a 50% off tag attached to it.

    This goes for major appliances like refrigerators as well, especially since the sale already occurs in a month where the old models are on semi-liquidation.

    That one-two punch could net you hundreds, and possibly thousands of dollars in savings.

    The End of the Month

    If you can’t get away from your barbecue long enough to take advantage of a great Memorial Day sale, at least try to get to the store sometime at the end of May.

    That’s when appliance dealers will be at their most desperate, because those shiny new models are coming in just days from then, and the last thing they want is to write off the old stuff as a 100% loss.

    If they can get at least SOME money from you in exchange for them, that’s infinitely preferable than getting none.

    Time it just right, and you could be walking about with a $1500 fridge for under $500. Now that’s how you save.

    For those last two suggestions, by the idea, just hand Mom on IOU on her special day, and deliver the fridge later.

    She’ll understand, especially if you stick flowers in the crisper drawer.

    Mary Hiers is a personal finance writer who helps people earn more and spend less.

    Save more, spend smarter, and make your money go further

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    <img width="600" height="577" src="https://blog.mint.com/wp-content/uploads/2012/03/Stocksy_txp3bf5357bNVj000_Small_660159.jpg?w=600&h=577&crop=1" class="rkv-card__media" alt decoding="async" loading="lazy" data-attachment-id="3200" data-permalink="https://mint.intuit.com/blog/male-butcher-hands-purchase-to-customer-looking-at-camera/" data-orig-file="https://blog.mint.com/wp-content/uploads/2012/03/Stocksy_txp3bf5357bNVj000_Small_660159.jpg" data-orig-size="865,577" data-comments-opened="0" data-image-meta=""aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"" data-image-title="Is Buying a Side of Beef Worth It? MintLife Does the Math" data-image-description data-image-caption="

    Series on an English butcher shop. Images on poster in background taken by Kirsty Begg, also available to licence on Stocksy http://www.stocksy.com/gourmetphotography/gallery/butcher

    ” data-medium-file=”https://blog.mint.com/wp-content/uploads/2012/03/Stocksy_txp3bf5357bNVj000_Small_660159.jpg?w=300″ data-large-file=”https://blog.mint.com/wp-content/uploads/2012/03/Stocksy_txp3bf5357bNVj000_Small_660159.jpg?w=865″>

    • Financial Planning

    How Much Is a Side of Beef Per Pound?

    Source: mint.intuit.com

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    Current is a digital banking app designed to simplify banking in the modern world. It also includes features for teens and young adults that can help them learn to manage money.

    So, how does Current work and what does it cost? We’ll answer all of these questions and more in the Current review below.

    What is Current?

    Current is not a bank. It’s different from other financial institutions in that it’s a financial technology with a mission to help people make smart decisions about money.

    It comes with several perks, like faster paycheck access, savings pods, spending insights, and cash back rewards. Best of all, there are no minimum balance requirements or overdraft fees.

    Founded in June 2015 by Stuart Sopp, Current has raised over $400M and landed big name partners and investors, including Mr. Beast, the well-known YouTube star.

    Its banking services are provided by Choice Financial Group and Metropolitan Commercial Bank, Members FDIC. In addition, the Current Visa Debit Card is issued by Choice Financial Group and Metropolitan Commercial Bank.

    To date, there are about 4 million Current users. Current accounts are currently mobile only as there is no desktop account access or in-person branch network. You can download the Current app on your Android or iOS advice.

    Current Features

    Current offers several account features that you might find useful, including:

    Faster Paycheck Access

    Sometimes, you can’t wait until payday and need your hard earned money sooner. That’s where Current’s paycheck access comes in. It will deposit the funds from your paycheck up to two days faster than the typical direct deposit.

    Current is unique in that it disregards the date your employer intends to release your paycheck funds. Instead, it works like a prepaid debit card and credits your account immediately after receiving it.

    Gas Hold Feature

    There’s no denying that the price of gas has skyrocketed. As a result, many gas stations have begun placing holds on the cards of customers. For example, a gas station might place a $100 hold on your card, even if you only purchase $50 worth of gas.

    This will ensure you’ll have enough funds to cover the total cost. It can take anywhere from a few hours to a few days for the gas station to release the hold. Current will remove the hold right away so that the funds are readily available to you and you don’t have to wait.

    Teen Banking

    Current offers a teen account that enables parental supervision and strives to educate teens about proper money management. Its parental features include cashless convenience, instant transfers to teen cards, purchase notifications, and the ability to block specific merchants.

    Parents can also use Current’s teen account to set spending limits and chores as well as automate allowance payments. In addition, multiple family members may add funds as they wish.

    Savings Pods

    With Current’s savings pods, you can meet various saving goals. Here’s how it works: You name a savings pod and deposit money into it from your account or qualifying direct deposit.

    You can also add money through the round up feature where you round up to the nearest dollar from any debit card purchases you make.

     At the time this article was written, Current offers 4% APY on $6,000. To take advantage of the interest feature, transfer money from your spending balance to your savings pods.

    Note that the type of membership you have will determine how many savings pods you can open. If you’re a basic customer, you’re limited to one pod whereas premium customers get up to three pods.

    Cash Back Rewards

    Current members can reap the benefits of a generous rewards program. As a member, you can earn up to 15x points on purchases you make at over 14,000 retailers. These retailers include Rite Aid, Cold Stone Creamery, Rite Aid, Subway, Forever 21, Burger King, and others that are listed in the Points tab in the Current app.

    You may redeem these points for cash back in your Current account. You’ll receive the points right after you make a qualifying purchase and can redeem 100 points per dollar.

    According to Current, its members have the potential to earn $165 cash back per year by simply using their card at participating gas stations. Keep in mind that Premium customers have the potential to earn more points and cash back than Basic customers.

    Instant Cash Deposit

    Current lets you easily deposit cash into your account. You may instantly add cash at over 60,000 at convenient places like local grocery and convenience stores, including Walmart and CVS. This is a huge selling point.

    To deposit cash with Current, find a nearby cash deposit location, tap “view barcode” from the map, show the barcode to a cashier, and give them the funds. You can add up to $500 per transaction or up to $1,000 per day and $10,000 per month. The money will show up in your Current bank account immediately.

    Overdraft Protection

    The app does more than eliminate overdraft fees. If you overdraft your account by accident, you’ll get a free pass. The Overdrive feature offers a fee-free overdraft of up to $200 on in-store and online purchases.

    To qualify for it, you must be 18 years or older and receive $500 or more in eligible direct deposits each 30-day period. A qualifying deposit can be an ACH transfer from your employer, payroll company, or Social Security. Unfortunately, mobile check deposits and peer-to-peer transfers don’t count.

    Cryptocurrency

    With Current, you can buy and sell cryptocurrency from the same app. Fortunately, you don’t have to worry about any trading fees or wait days for your trade to settle. You can purchase 27 popular coins, like Bitcoin, Dogecoin, Ethereum, and Shiba Inu. Once you sell a coin, you’ll notice the cash in your Current account immediately.

    Money Management

    Current’s money management tools can come in handy if you’re looking for a way to take control of your personal finance and make the most out of your money. The Spending Insights feature, for example, is available on your home screen.

    It lists your recent purchases and assigns them a spending category so you can easily see where your cash is going. You may also sign up for real-time notifications that will appear any time you make a debit card purchase.

    While the Spending Insights feature is designed to help you track your spending, the Budgets tool if your goal is to prevent overspending. You can create budgets for various categories. As you approach your budget or spending limit on an account ownership category, you can receive updates and make changes accordingly.

    Current Pay

    Current Pay works a lot like Apple Pay, Venmo, Zelle, and PayPal. If you know others that use the app, you can pay and request money from them instantly. Best of all, the process is easy and doesn’t involve any fees.

    Does Current Have Transaction Limits?

    Despite all of Current’s handy features, the app does impose transaction limits you should be aware of. These include a $500 daily maximum in ATM withdrawals, $2,000 daily maximum in card purchases, and $5,000 maximum transaction amount for peer-to-peer payments through Current Pay.

    Are There Any Fees?

    Now it’s time to discuss Current review fees. You may be surprised to learn that Current doesn’t charge monthly maintenance fees or have any minimum balance requirement requirements.

    Additionally, there are no overdraft fees, or money transfer fees for money transfers from an internal bank account or external bank account or ATM fees at 40,000+ Allpoint ATMs. This is great news if you’d like to try it out with no strings attached.

    But keep in mind that you may face out-of-network or third-party fees. For example, if you use Current at an out-of-network ATM, you’ll get charged $2.50. International withdrawals cost $3 each.

    In addition, if you’d like, you can upgrade from the Basic membership plan to the Premium account or membership plan. While this will come with an additional monthly fee of $4.99, you’ll get access to more features, like additional savings pods and the chance to earn more cash back.

    Who is Current best for?

    Current might be worth exploring if you don’t mind mobile banking. It can help you meet smaller savings goals with a high interest rate. It’s also ideal if you use your credit card frequently and hope to earn generous cashback rewards.

    In addition, you may benefit from Current if you’re a parent or guardian that wants an account for your teen and wishes to instill healthy money habits. We also recommend Current if you’re unable to qualify for a traditional banking account and are looking for a viable, cost-effective alternative.

    Current Pros and Cons

    Just like any digital banking app or online bank, Current comes with several benefits and drawbacks, including:

    Pros

    • No monthly fees: You can use Current without committing to monthly usage fees.
    • Generous APY: Current offers 4% APY on up to $6,000 in savings to help you expedite your savings goals.
    • Cash back: Unlike most debit cards, Current rewards you with cash back every time you make a purchase at 14,000+ participating retailers.
    • Early paycheck access: You may access the money from your paycheck up to two days sooner.
    • Instant gas hold removals: If a gas station places a hold on your account, Current will remove it immediately.
    • Teen features: Current comes with plenty of features you can use to help your teen become responsible with money.

    Cons

    • No online or in-person banking: You can only use Current on your iOS or Android device as Current’s mobile app currently doesn’t support online or in-person banking at a local branch.
    • No checks: The Current app doesn’t offer checks so you’ll have to find an alternative payment solution.
    • Email-based support: If you have a question or concern, Current will only be able to help you via email support is not available.
    • Mobile check deposit feature is slow: It can take up to 5 business days for a check deposit to clear.

    How to Use Current

    If you’d like to sign up for Current, follow these easy steps.

    • Download the app on the Google Play Store or Apple App Store. You can also enter your phone number on Current’s website and receive a download link.
    • Share basic personal information including your name, phone number, email address, residential address, and Social Security number.
    • If you’d like, connect Current to a debit card or bank account to fund your account.

    Once you sign up, you’ll receive a Current debit card by mail. It should arrive via USPS within 7 to 10 business days but you can use Current before then. Current will give you a virtual card you can add to your digital phone wallet while you wait for your physical card.

    Current Reviews

    Before you go ahead and sign up for the Current app, you might be wondering what other Current account holders have to say about it. Here’s an overview of the various reviews we found online.

    TrustPilot

    On TrustPilot, Current earned 3.8 out of 5 stars. Most reviewers praise the app but there are several complaints about Current customer support and challenges with disputes.

    Apple App Store

    Current users gave it a 4.7 out of 5 stars on the Apple App Store. There are over 84K reviews and any of the negative ones relate to customer service.

    Google Play

    When it comes to the Google Play Store, Current ranked well as well with 4.8 out of 5 stars from over 89K reviews. Again, the negative reviews are about customer service and resolving disputes.

    It’s no surprise that customer service is Current’s most noteworthy downfall as it’s only available via email and in-app chat that sometimes doesn’t work. If you have an urgent question while using the app, you won’t be able to make a phone call and receive a quick response. Depending on when you send the email, you may have to wait a few business days or even longer to hear back.

    Speaking of customer service, you might want to know how to go about it. You can use the in-app chat feature or fill out an email form and wait for an email response. As stated, there’s no way to call the Current team for faster support.

    The good news is the app is fairly intuitive and you shouldn’t come across too many issues while using it, especially if you consider yourself tech savvy. Plus you can check out Current’s frequently asked questions on its website for answers to simple, less urgent questions.

    Current Alternatives

    While Current is a solid online banking app for many adults, teens, and young adults, it’s not for everyone. If you find that Current isn’t right for you or are wondering about alternative options, here are a few to consider.

    Chime®

    Just like Current, Chime is a financial technology company or fintech company with modern features you may not find at a traditional bank, credit union, or brick-and-mortar financial services company. It offers early direct deposit2, savings roundups, and no-fee overdrafts5.

    Compared to Current, it’s more like a high yield savings account8 in that it lets you earn a better APY on your savings on your entire balance, rather than just up to $6,000.

    In addition, there’s a Credit Builder7 account you can use to boost your credit without a credit check. Just keep in mind that Chime doesn’t offer a teen account like the Current teen account.

    Read our in-depth Chime review here.

    See also: Chime vs. Current: Which Is Better?

    Greenlight

    While Current is intended for teens and their parents, Greenlight’s online banking services are geared toward younger children in elementary school. Both apps come with parental controls and features such as spending limits, chore rewards, transaction monitoring, and the chance to blacklist set retailers. Greenlight also lets you invest in the stock market.

    Bottom Line

    Current offers a long list of features that make it a smart choice if you want a digital banking platform with no monthly fees or hidden fees. You can enjoy early paycheck deposit, no overdraft fees, teen savings accounts, cash back rewards, savings pods, and more.

    As long as you’re okay with limited customer service and don’t mind using the app on your mobile device, it’s certainly worth exploring.

    Current FAQs

    Here are a few of the most common questions that many people ask about the Current digital banking app.

    Is Current safe?

    It’s a risk to use any type of mobile or online banking platform. But Current checking accounts and teen accounts are backed by FDIC insurance of $250,000 in the event of a bank failure. Plus just like many reputable online banks, the app uses bank-level data security measures and you can sign up to receive push notifications any time current detects account fraud.

    Does Current have any physical branches?

    At this time, Current does not have any physical branches. This means you won’t be able to receive in-person service. The good news, however, is it does offer fee-free cash withdrawals at over 40,000 Allpoint ATMs throughout the country.

    Can you deposit cash into your Current account?

    Yes, Current lets you deposit cash. However, cash deposits aren’t free and you will have to pay $3.50 for every cash deposit transaction.

    What happens if you overdraft your Current account?

    Thanks to the Overdrive feature, it’s no big deal if you overdraft your account.  You can enjoy a fee-free overdrive of up to $200 on any purchase you make in-store and online.

    Can you earn rewards or bonuses with Current?

    Absolutely! As long as you use the Current Visa debit card at participating retailers, you can earn cash back. Plus you can earn $1 every time you refer a friend who signs up for a Current account.

    Is Current worth it?

    If you’re looking for a free checking account with plenty of bells and whistles or a teen banking account, the Current mobile app should be on your radar. But if you prefer a more traditional banking experience, you might be better off with an account at a local bank or credit union.

    Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.

    2. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. Chime generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

    5. Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each at least once every 34 days. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.

    7. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

    8. A Chime Checking Account is required to be eligible for a Savings Account.

    Source: crediful.com

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    The Offer

    Direct link to offer

    • Sign up for the AAdvantage Aviator Red World Elite MasterCard and receive a signup bonus of 70,000 AAdvantage miles after you make your first purchase in the first 90 days and pay the $99 annual fee


    Card Details

    • No foreign transaction fee
    • Annual fee of $99 is not waived the first year
    • First checked bag free, for the primary cardmember and up to 4 companions on eligible bags when traveling on domestic itineraries operated by American Airlines
    • Group 5 boarding, for the primary cardmember on domestic itineraries operated by American Airlines
    • 25% inflight savings on food, beverages, and headsets on American Airlines-operated flights
    • Earn 2x miles on all eligible American Airlines purchases
    • Earn 1x points on all other purchases

    Our Verdict

    We recently had on-and-off a 60,000 offer with annual fee waived. This 70,000 offer without the fee waiver will be a better deal for some people. This is probably the best offer on a card with no minimum spend.

    We’ll be adding it to our best credit card bonus list. Read through these things you should know about Barclaycard credit cards before asking any basic questions in the comments.

    Source: doctorofcredit.com