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Whether you’ve stockpiled them over the years or are just on the hunt for an innovative way to redefine your space, rugs might be the most versatile and underused weapons in the interior design toolkit. Read on to learn how you can unlock the full potential of your rental with a little help from the lowly, humble rug.

Upgrade your upholstery

Not all rugs are created equal. But the comfortable ones are great for repurposing into a chair or ottoman upholstery. If you’re working with a more durable fabric, think about reupholstering something like an ottoman. If the material is more comfortable and luxurious, think about applying it to a chair or barstool.

Be aware, that some fabrics will be easier to work with on a larger-scale project like this. If you’re a novice DIY-er or simply looking for a little extra guidance, make sure you know what you’re doing or reach out to someone at your local hardware store. There are also a number of YouTube videos that will help you based on the specific project you have in mind.

Throw some shade

On a smaller scale, an old or currently unused rug can also be repurposed into a lampshade. This striking design choice will act as a statement and conversation piece. Beyond that, applying rug material to a lampshade is a practical way to dim an overbearing light. Less light will penetrate through the shade with the extra rug covering it up.

Respect the wood around your apartment

If you have a near-new rug that’s just lying around with no place to go, take on a fun DIY project and turn that rug into a matching set of placemats and coasters. Lay your rug face down and draw out your plan on the bottom beforehand. Then, you can make all of your cuts confidently and know that your finished product will turn out exactly as planned.

Note: Do not try this with an old and well-worn rug. Dinner guests may find this off-putting.

Create the headboard of your dreams

Fabric headboards have been in vogue for a while and there’s no sign of that changing anytime soon. Create your own custom headboard by repurposing a rug into a uniquely upholstered and artistically inspired headrest. What better way to sleep at night than under one of your creations?

This project, like the chair and ottoman mentioned above, may require an elevated level of handiness, but again, your local hardware store and YouTube are your best friend for these larger DIY projects.

Think beyond the floor

Whether a rug is handmade, factory produced or anything in between, if you find it as aesthetically pleasing as a piece of art, you should treat it that way. Don’t be afraid to reframe the way you think about rugs. Some rugs are meant for more than the floor. Some rugs, (pause for dramatic effect) are meant to be used as art and displayed on the wall.

Large or small, there’s no limitation to the ways in which you can approach displaying your rugs as art. If you have a blank wall and a great-looking rug either lying around or awaiting in an online shopping cart, now’s the time to bring that piece of art to its full glory. Display that beautiful rug on the wall and enjoy the compliments that come your way for your design savvy and ingenuity.

Center yourself

Few activities align more with the principles of yoga than creating your own yoga mat. Channel your inner-DIY expert and create your own at-home yoga mat out of a lightly used or new rug. A roll-up-size rug can be a great alternative to a traditional (and expensive) yoga mat.

Because rugs absorb moisture more than the average yoga mat, it’s best to limit the use of your rug yoga mat to just yourself. That said, if you’re looking for a home yoga mat that is always ready for you when you need it, consider a rug.

Note: Regardless of the condition of the rug when you start its transformation into a yoga mat, it will be worth giving it as thorough of a clean as possible before putting it to use.

Pamper your pet

One great way to put an older rug to use is to repurpose it as a bed for your pet. Cat, dog, ferret, bunny or anything in between, it doesn’t matter. Your pet will love cozying down on something that feels like “people furniture” to them.

Do you know how your pets love scratching the things they aren’t supposed to? Use that to your advantage and create a custom scratching post for your cat out of your used carpet. Your feline friend already loves tearing into the material, so why not give them a designated place to do so? Save the rug you love now and let the cat go to town on one that has already served its purpose for you.

Don’t brush these tips under the rug

Regardless of the exact aesthetic, you wish to achieve, if you are looking for a change of scenery that doesn’t involve packing up and moving to a new place, consider throwing a rug at the problem. Whether you’re reupholstering a chair, creating coasters for your breakfast nook table or making a throne fit for a king for your furry friend, a simple rug can accomplish it all without asking you to break the bank.

A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.

Source: rent.com

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Source: geekestateblog.com

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These reviewers are industry leaders and professional writers who regularly contribute to reputable publications such as the Wall Street Journal and The New York Times.

Our expert reviewers review our articles and recommend changes to ensure we are upholding our high standards for accuracy and professionalism.

Our expert reviewers hold advanced degrees and certifications and have years of experience with personal finances, retirement planning and investments.


Why You Can Trust GoodFinancialCents®

GoodFinancialCents® partners with outside experts to ensure we are providing accurate financial content.

These reviewers are industry leaders and professional writers who regularly contribute to reputable publications such as the Wall Street Journal and The New York Times.

Our expert reviewers review our articles and recommend changes to ensure we are upholding our high standards for accuracy and professionalism.

Our expert reviewers hold advanced degrees and certifications and have years of experience with personal finances, retirement planning and investments.

Passive income refers to earnings derived from an enterprise in which a person is not actively involved on a daily basis.

Unlike active income, where earnings are directly linked to the amount of work performed, passive income flows whether you are working, sleeping, or vacationing.

As Robert Kiyosaki (2017) explains in his best-selling book “Rich Dad Poor Dad,” passive income can be a way to achieve greater financial independence.

Unlike the typical income that requires constant work, passive income typically flows with less hands-on involvement. However, this doesn’t mean no work is involved; it’s often the initial setup that demands considerable time, effort, or capital.

If you’re looking for more passive income ideas, click below:

Purpose and Importance

The purpose of passive income is broad, spanning from financial cushioning to the possibility of early retirement. By generating continuous revenue without daily effort, it offers a means to enhance one’s lifestyle, build financial security, or pursue other interests and hobbies.

The significance of passive income goes beyond mere monetary gain, as it also provides a pathway to greater control over one’s time, a diversified income stream, and potential long-term growth.

EXPERT TIP:

Consider starting small and gradually building your passive income portfolio.

By investing in a diverse array of income-generating opportunities tailored to your risk tolerance and financial goals, you can create a resilient and sustainable revenue stream.

As emphasized by many financial experts, including those mentioned in “The Intelligent Investor” by Benjamin Graham (2003), careful planning and consistent monitoring of your passive income sources can lead to greater financial freedom and control over your time.

This step-by-step approach allows you to learn and adapt, maximizing the potential benefits of passive income without overextending your resources.

How Passive Income Works

Table of Contents

Sources of Passive Income

Passive income can stem from various sources, such as rental properties, investments in stocks or bonds, a wide of array of apps, and royalties from intellectual properties like books or patents. Each source has its unique characteristics, risks, rewards, and requirements.

While some sources, like savings accounts interest, are readily accessible, others may need significant financial investment or specialized knowledge, like creating a successful blog that earns ad revenue.

Source of Passive Income Characteristics Risks Requirements
Rental Properties Steady Income, Property Growth Market Fluctuations Initial Investment, Maintenance
Dividend Stocks Potential Growth, Regular Dividends Market Volatility Investment Capital
Peer-to-Peer Lending Interest Earnings Default Risk Platform Registration
Royalties Income From Intellectual Property Contractual Risks Creative Skills, Legal Agreements

Automation and Minimal Active Involvement

Passive income often involves an automated process where money is earned with minimal active involvement. This includes setting up businesses that run themselves or investing in dividend-paying stocks that provide regular income.

Though these may require substantial initial setup, the ongoing maintenance is often minimal. But it’s worth noting that these ventures must be monitored and sometimes adjusted to ensure continued success.

Tax Considerations

Tax implications for passive income differ from those of active income. Passive income may qualify for different tax rates or deductions, depending on jurisdiction and the type of income. For instance, rental income may be subject to specific property tax rules.

Understanding these rules or consulting a tax professional is vital to maximizing after-tax returns and compliance with tax laws. You can read more about here about how passive income is taxed.

Active vs Passive Income

Understanding the difference between active and passive income is essential for anyone looking to diversify their income streams and work towards financial stability or even independence.

What is Active Income?

Active income refers to earnings that require consistent and direct effort. This includes wages from a job, salaries, hourly payments, commissions, and tips. Essentially, active income requires trading time for money.

This type of income is what most people rely on to pay bills, purchase necessities, and maintain their current lifestyle. The major limitation of active income is its direct correlation to time; you can only work a certain number of hours in a day, thus capping your earning potential.

Passive Income Contrasted to Active Income

Contrastingly, passive income is earned with little to no daily effort to maintain, after the initial setup or investment. It includes revenue from rental properties, dividends, royalties, or even a business that doesn’t require daily involvement.

Passive income provides a means to break free from the time-for-money trade and opens doors to greater financial growth and freedom.

Comparison and Significance

The main distinction between active and passive income lies in the involvement and time required to generate revenue. While active income necessitates ongoing work, passive income aims to create sustainable income streams that flow regardless of daily activities.

Active income offers stability but often lacks scalability. Passive income, though requiring initial effort and possibly capital, offers the potential for long-term growth and diversification.

By combining both active and passive income streams, individuals can create a more resilient and flexible financial portfolio, allowing for the pursuit of broader life goals and interests, such as early retirement, travel, or investment in hobbies and personal development. The insights from Kiyosaki (2017) in “Rich Dad Poor Dad” emphasize this balanced approach to building wealth and achieving financial freedom.

The inclusion of both active and passive income in one’s financial strategy offers a multifaceted approach to wealth building. It’s an essential concept for anyone aiming to enhance financial security, diversify income, or explore new financial opportunities.

Feature Active Income Passive Income
Effort Required Daily, consistent effort needed Little to no daily effort after initial setup
Time Dependency Directly tied to hours worked Not tied to hours; can earn 24/7
Income Type Wages, salaries, commissions, tips Rental properties, dividends, royalties
Scalability Limited by time and energy Potential for growth without proportional time input
Financial Growth Potential Often stable but limited in growth Potential for long-term growth and diversification
Risks & Challenges Job loss, income stability Market risk, initial investment required

Benefits/Advantages/Pros of Passive Income

Financial Independence

Financial independence means having enough income to cover living expenses without needing to actively work. Passive income is often vital in this quest, allowing people to live comfortably without a regular paycheck. It offers an escape from the traditional work routine, opening doors to new opportunities, hobbies, or even early retirement.

“If you don’t find a way to make money while you sleep, you will work until you die.”

Warren Buffett

Flexibility and Freedom

The freedom granted by passive income extends to various life aspects. Whether it’s spending more time with family, traveling, or engaging in hobbies, the financial flexibility offered by passive income can significantly enhance life quality. It also provides an opportunity for strategic investments, exploring new ventures without the financial strain that might come without this income cushion.

Diversification of Income Streams

Having multiple income streams reduces the risk of financial hardship if one source diminishes or fails. By diversifying across various passive income avenues, financial stability is often enhanced.

Whether it’s investment in different market sectors, rental properties across various locations, or a mix of bonds and stocks, diversification is a fundamental risk management strategy in financial planning.

Potential Long-Term Growth

Some passive income sources offer potential for substantial long-term growth. Investments like stocks may appreciate over time, generating not only regular income but also an increase in underlying asset value. This growth potential can substantially contribute to financial goals, whether saving for children’s education, building retirement funds, or other long-term planning.

Benefit Description or Example
Financial Independence Reduced Dependence on Active Employment; Flexibility in Lifestyle Choices
Income Diversification Spreading Income Sources; Reducing Financial Risk
Potential Long-Term Growth Opportunity for Compounding Returns Over Time

Drawbacks/Disadvantages/Challenges/Limitations/Cons of Passive Income

Potential Risk and Volatility

The potential risks and volatility in passive income sources must not be overlooked. Market fluctuations can significantly impact investment returns, while real estate investments can be influenced by economic conditions and property market dynamics. Careful risk assessment and strategic planning are vital to mitigate these risks and ensure consistent income streams.

High Initial Investments or Skills Required

Some passive income streams necessitate significant initial investments or specific skills. Purchasing real estate, developing software, or creating a successful YouTube channel, for example, may require substantial money, time, and expertise.

These barriers must be considered and planned for, as they can deter or delay the successful implementation of a passive income strategy.

Regulatory and Compliance Challenges

Different passive income streams come with varying regulatory and legal considerations. Landlords must adhere to housing regulations, while stock investments may involve understanding complex financial laws. Failing to comply with these regulations can lead to legal troubles or financial losses. Professional guidance may often be required to navigate these complexities.

Maintenance Requirements

While often touted as ‘set and forget,’ passive income streams usually require ongoing attention. Whether it’s maintaining a rental property, adjusting an investment portfolio, or updating a mobile app, these tasks, though generally minor, are essential.

This continuous oversight ensures that passive income sources remain lucrative and aligned with financial goals.

Drawback Description or Example
Potential Risk and Volatility Subject to Market or Economic Changes
High Initial Investments May Require Significant Capital or Effort to Start
Regulatory Challenges Must Comply With Various Laws and Regulations
Maintenance Requirements Ongoing Management or Oversight May Be Necessary

Building a Passive Income Portfolio

Choosing the Right Passive Income Streams

Identifying the right mix of passive income sources is a tailored process that considers individual risk tolerance, financial goals, and personal preferences. Whether it’s the stability of government bonds or the potential high returns of startup investments, these choices should reflect the individual’s unique circumstances. Proper research, planning, and professional advice can ensure a balanced portfolio that serves both current needs and future aspirations.

In Vanguard’s Four principles for successful investing they stress:

The best way to work toward an investment goal is to start by defining it clearly, take a level-headed look at the means of getting there, and then create a detailed, specific plan. Being realistic is essential to this process: Investors need to recognize their constraints and understand the level of risk they are able to accept.

Vanguard

Strategies and Planning

Creating a successful passive income portfolio isn’t just about choosing the right investments; it requires a well-thought-out strategy and continuous planning. Factors to consider include risk diversification, liquidity needs, time horizons, and long-term goals. Regularly reassessing and adjusting this strategy ensures that it stays aligned with evolving needs and market conditions, safeguarding the financial future.

Monitoring and Adjustments

Regular monitoring and necessary adjustments are key to maintaining a robust passive income portfolio. The landscape can change due to market conditions, new laws, or personal circumstances. Regular assessments and prompt adjustments ensure that the strategy remains relevant, meeting its objectives while maximizing potential returns.

The exploration of passive income is not a simple undertaking but rather a multifaceted approach to building a sustainable financial future. The understanding of various sources, the recognition of benefits, and the consideration of potential drawbacks are essential components in the effective management of passive income streams.

From aspiring to retire early to simply wanting a more flexible lifestyle, passive income provides opportunities and challenges worthy of thoughtful exploration and careful planning.

The Bottom Line – Passive Income Explained

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Passive income might seem like a complex idea, but it’s really about making your money work for you instead of the other way around. From investments to side businesses, there are ways to create a steady stream of cash that doesn’t tie you down to a 9-to-5 grind. Mixing active income from your regular job with passive income can lead to a more relaxed and secure financial life.

It’s not a get-rich-quick scheme, but with some thought, effort, and patience, passive income can be a valuable part of your financial picture. Whether you’re aiming for early retirement or just some extra spending money, understanding passive income is a good first step.

FAQs – What is Passive Income?

What is Passive Income, and How Does It Differ from Active Income?

Passive income is earnings derived from investments, properties, or business ventures where a person is not actively involved daily. Unlike active income, where constant work is required, passive income generally flows with minimal ongoing effort, often after an initial setup phase.

Can Anyone Create a Source of Passive Income, or Does It Require Special Skills?

While some sources of passive income might require substantial initial investments or specialized skills, there are various opportunities available for different skill levels and financial capabilities. Proper research, planning, and sometimes professional guidance can help in successfully establishing a passive income source.

What Are Some Common Sources of Passive Income?

Common sources of passive income include rental properties, dividend-paying stocks, bonds, royalties from intellectual properties, and interest from savings accounts. The choice of sources often depends on individual risk tolerance, financial goals, and personal preferences.

Is Passive Income Taxed Differently Than Other Types of Income?

Yes, passive income may be subject to different tax rules depending on jurisdiction and the specific type of income. It’s advisable to consult with a tax professional to understand the applicable tax laws and ensure compliance.

About the Author

Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance book Soldier of Finance. He was a financial planner for 16+ years having founded, Alliance Wealth Management, a SEC Registered Investment Advisory firm, before selling it to focus on his passion – educating the masses on the importance of financial freedom through this blog, his podcast, and YouTube channel.

Jeff holds a Bachelors in Science in Finance and minor in Accounting from Southern Illinois University – Carbondale. In addition to his CFP® designation, he also earned the marks of AAMS® – Accredited Asset Management Specialist – and CRPC® – Chartered Retirement Planning Counselor.

While a practicing financial advisor, Jeff was named to Investopedia’s distinguished list of Top 100 advisors (as high as #6) multiple times and CNBC’s Digital Advisory Council.

Jeff is an Iraqi combat veteran and served 9 years in the Army National Guard. His work is regularly featured in Forbes, Business Insider, Inc.com and Entrepreneur.

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Source: goodfinancialcents.com

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Decorating the house that we always wanted can be quite stressful. You might wonder, how do I make my place aesthetically pleasing and also reflect my particular style? If done right, you will have the house of your dreams. If not, you will wind up with a mishmash of furniture, fabrics, and paint colours that never gel into an attractive whole. You will have a far better chance of success if you plan ahead of time and follow the same processes that experienced interior designers do.

 If you like experimenting with trends, in 2023, earthy tones are the way to go. Thanks to their calming effects and associations with nature, they increased in popularity during the pandemic, and still rule. Silver and iron accents have also become quite popular in recent times as they add a rustic look to your home decor.

For all latest news, follow The Daily Star’s Google News channel.

Another popular trend this year is to use a single fabric for everything in a space. You might think this would make a room feel crowded, but it actually provides a soothing, cosy, and stylish impact. Try to pick a pattern or a colour that is not too loud and you will be amazed by the difference that it will make to the ambience of the entire house.

Experts predict that another interior design trend that is here to make its mark is sustainability. Using natural, non-toxic materials is getting priority in designs now, this also helps reduce harmful chemicals in the air. Wood and stones are some great examples of natural materials that can help maintain the quality of indoor air.

For all the DIY home decor enthusiasts, easy DIY projects like creating a gallery wall with photos of your loved ones, creating an accent wall or even as simple as adding some LED lights behind your bed can revamp the look of your home. And these DIY tips will not be dreadful for your pocket either.

Your home is a reflection of who you are. And decorating your home is a way of self-expression these days. So, if buying a new throw cushion or a piece of art makes you happy, then go ahead and do it. By building an environment that allows you to be your best self, you are making an investment that you will cherish forever.

Source: thedailystar.net

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A landslide struck Laguna Beach’s Bluebird Canyon in 1978 — smashing cars, buckling streets and destroying 24 homes. An adjacent swath of earth broke loose in 2005, wiping out 12 more homes.

That wasn’t enough to keep Scott Tenney away. In 2010, Tenney and his wife, Mariella Simon, bought a 15-acre hillside ranch near the disaster area despite the listing warning that the property was on the site of an ancient landslide.

“We knew we’d have to do a bit of terracing and retaining, but California is what it is,” Tenney said. “It’s a dynamic place not just culturally, but geologically.”

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From an outside perspective, his might seem a confounding decision. But in Southern California it’s an extremely common one, because that geological diversity, as Tenney calls it, is not just the danger. It’s the allure.

Elevation has long been aspirational here — an escape from the urban flats.

Since settlers first started pouring in from the relative flatness of the East Coast and Midwest, they were captivated by California’s vertiginous landscape. Plein air painters flocked to capture the light of the arroyos. Health seekers sought the clean air of the San Gabriel foothills. Folk rockers found inspiration in Laurel and Topanga canyons. And the moneyed elite started building their houses higher and higher above the basin, forever seeking the trophy perch with the show-off view.

But that perch has always come at the risk of catastrophe. Homes slide into a gulch in Palos Verdes. Fires roar over the Malibu hills. A debris flow kills 23 people and destroys 130 homes in Montecito. Heavy snow traps thousands in the San Bernardino Mountains. And winter storms pull fragile bluffs into a rising sea.

These natural disasters so often occur where the tectonic plates collided and folded into beautiful vistas.

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While other regions may face only one main disaster threat — tornadoes in the Midwest, hurricanes on the Gulf and East coasts — California’s extreme topography brings siege from all sides: the ocean, the trees and brush, the sky above and the ground below. And oftentimes, the most attractive areas are some of the most dangerous.

A land of disasters

More and more people are crowding into the Wildland Urban Interface — the zone of transition between unoccupied land and human development. It’s where properties mingle with undeveloped (and often steep) land, and it’s uniquely susceptible to natural disasters.

According to the U.S. Fire Administration, this area grows by 2 million acres a year as people fan out to the edges of wilderness in search of affordable houses, more space or simply a break from life in the city. And California holds more homes in this dangerous zone than any other state in the country.

And prices keep soaring. It doesn’t matter if a house sits on stilts on the side of a cliff, if it’s a landslide complex slowly sliding toward the sea, or if it’s predicted to be knee-deep in water in a couple of generations — there will always be a buyer.

As Californians flock to risky areas, disasters take a greater toll. Over the last decade, the state has experienced 20 disasters that each cost at least $1 billion in damage from flooding, wildfire and extreme heat. Those 20 alone combined for 783 deaths, according to National Centers for Environmental Information.

According to the real estate listing database Redfin, the trend is nationwide. Last year, the country’s most flood-prone, heat-prone and fire-prone counties all saw more people move in than out. Redfin researcher Sheharyar Bokhari blames one primary factor: the housing affordability crisis.

“L.A. and most other coastal cities are expensive. With remote work becoming more of an option, people are finding they can have more space and finally afford a home if they move to riskier areas,” he said.

Bokhari said another L.A.-specific factor is development — mainly that there’s not as much being built in the city compared to the more rural areas surrounding it.

He points to the Inland Empire, which is typically more affordable than L.A. County. In Riverside County, roughly 600,000 homes face a high risk of wildfire, the most of any of the 306 high-fire-risk counties in the country. Despite that, the county’s population grew by 40,000 over the last two years.

Even if experts — and common sense — say to stay away from certain areas, Bokhari said that won’t likely happen because local governments aren’t incentivized to push people out.

“These disaster-prone cities need revenue and people paying taxes,” he said. “They just claim that they’ll be more resilient and take more safety measures going forward,” he said.

Where else would I go?

Since moving onto the ancient landslide zone, Tenney and his wife founded Bluebird Canyon Farms, which offers workshops and grows food for local markets. His time is split between that and taming the erosion-prone land beneath the farm.

To combat sliding land, Tenney installed a gravity wall, 200 feet long and 9 feet tall, to retain the hillside. In addition to grading the terrain to make the slopes gentler, he added powerful drainage systems and timber-and-concrete cribbing to keep structures in place.

The work never stops, and Tenney keeps a monthly schedule to keep up with tasks. Clear brush in spring. Clean storm drains in September. Inspect terracing every few months.

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“You can run but you can’t hide,” he said, adding that urban centers such as L.A. have their own laundry lists of things to worry about: crime, homelessness, etc. “You won’t experience a wildfire in downtown L.A., but there are plenty of other things to be concerned with.”

Cribbing systems used by Tenney have become commonplace in Portuguese Bend, a small coastal community on the Palos Verdes Peninsula situated on a slow-moving landslide complex. Land moves up to 8 feet a year, and at that rate residents would rather ride the sliding earth toward the sea than sell and move somewhere else.

“I’ll be here until I can’t be here anymore. I’ll slide away with the land,” Claudia Gutierrez told The Times in July after a nearby landslide in Rolling Hills Estates sent a handful of homes careening down a canyon.

Peter James Cavanna, a resident of the private community of Portuguese Bend, is dealing with the shifting foundation of his home. He intends to stay.

(Carolyn Cole / Los Angeles Times)

You’d think the real estate market in disaster-prone areas would eventually slow down, but there are no deals to be found for house hunters. Longtime residents often stay put post-disaster, and incoming residents consistently pay a premium to live in a scenic, though potentially dangerous, area.

In cities tucked among the foothills of the Verdugo and San Gabriel mountains such as Altadena and La Cañada Flintridge, buying in a high-fire-risk zone might be ever-so-slightly cheaper than buying in a safer place. And buyers pounce.

“My clients try to choose low-fire-risk zones, but if the house in the fire zone is the right price, that is more important,” said Brent Chang of Compass.

When Lisa and Michael McKean got home to Malibu Park from their honeymoon on Nov. 8, 2018, they were so exhausted that they went straight to sleep. The newlyweds didn’t even bother unpacking their suitcases of swimsuits still wet with Caribbean saltwater.

When they woke up, Lisa looked out her back window and saw a 10,000-foot cloud of billowing black smoke.

The Woolsey fire was ravaging the Malibu hills.

The pair grabbed their still-packed suitcases and fled to the Zuma Beach parking lot, where they spent the day surrounded by horses, dogs, cats and neighbors all wondering if their homes would survive.

Theirs, built a year earlier, did not.

“The entire neighborhood burned,” Lisa said. “Everything was black, scorched earth.”

Michael and Lisa McKean’s Malibu house burning during the Woolsey fire in 2018.

(Lisa McKean)

Devastated, the pair spent six months crunching numbers on the cost of rebuilding versus moving. The home that was destroyed had taken four years to approve and three years to build. Their next one could take even longer.

Despite the damage, and despite the ceaseless, inescapable risk of a future fire, they ultimately decided to stay and rebuild.

Cheryl Calvert has lived in Malibu since 1985 and has adapted to a life of fire. To her, the flames are nearly routine.

“Once you make it through your first one, you realize it’s manageable. But you have to plan ahead,” Calvert said.

She keeps two bags packed at all times: one full of goggles and N95 masks and one with dog supplies.

Calvert has experienced plenty of fires during her time in the coastal community, but the worst was the Corral fire in 2007. She was in the driveway as the flames arrived, and she sprayed the corner of her wooden home with a hose as it ignited. Her guesthouse and garage burned down, but the house was saved.

She never considered leaving. Instead, she became more prepared, installing an extra water tank and leaving a pair of shoes by the front door at all times for quick escapes.

“We have to do crazy things, but it’s only crazy for an hour or two every five or 10 years,” she said.

She ran down the usual list of reasons why people move to Malibu: the beautiful landscape, the ocean breeze, the sweeping views. But she said the main reason her and so many of her neighbors stay is because of the community.

“We’re all living near like-minded people who are willing to risk themselves for each other,” she said. “It’s a bunch of hippies. Rich hippies.”

The psychology of staying

A life among the trees, coasts and cliffs is often what lures Californians to disaster-prone communities, but according to experts, the factors that make them stay after a disaster strikes are much more complicated.

Age, race and class can all indicate whether someone is more or less likely to move after experiencing a disaster. For example, Zhen Cong, professor of environmental health sciences at the University of Alabama at Birmingham, found that in the wake of tornados, the middle class might be the most inclined to move since the upper class has the resources to stay and rebuild, while the lower class is often trapped and has no other choice but to stay.

Other relocation factors include the level of damage to the home and whether the person owns the place or rents. But often the most important factor is one that can’t be easily quantified: “People who have a strong sense of place and a strong sense of community are less likely to move,” Cong said.

Ironically, some disasters can even encourage people who otherwise would have left to stay.

In studying post-tornado relocation decisions across the country, Cong found that after a disaster, people increase their disaster preparedness. Part of that includes gathering supplies, but it also includes social engagement: talking to neighbors, sharing information on social media and attending meetings. That engagement, which might not happen if a tornado doesn’t strike, brings a greater sense of community, leading people to stay in that community.

Anamaria Bukvic, an assistant professor at Virginia Tech who studies coastal hazards and population displacement, found that after Hurricane Sandy struck the East Coast in 2012, non-geophysical factors mattered the most in deciding whether to stay or leave. For example, confidence in adapting to future disasters was a more relevant indicator if someone would stay than how close they lived to the ocean.

“The experience of flooding can be emotionally disturbing and traumatic,” Bukvic said. “When facing problems, some people try to avoid them. Others try to resolve them.”

She added that confidence in government plays a major role as well. If a person believes the government responded well to the disaster and will keep them safe during the next disaster, they’re more likely to stay.

That’s something that Malibu Mayor Bruce Silverstein thinks about when overseeing the city’s disaster response plan. Although L.A. County is responsible for physically fighting the fires that plague the area, Malibu has instituted a free service in which residents can request a fire-hardening expert to inspect their property to better prepare them for the next blaze.

The city also outlaws certain types of vegetation susceptible to fire and tries to prevent excessive population growth in order to make evacuation from hills and canyons easier during emergencies. It’s the main reason accessory dwelling units (ADUs) are harder to build in Malibu than L.A.

“Unlike L.A., we don’t have standards that encourage growth,” Silverstein said. “We maintain the status quo and try to keep space between properties so if one catches on fire, it doesn’t extend to the neighbors.”

A fire crew walks through a field charred in the Agua fire in north Los Angeles County on July 26, 2023. The blaze burned more than 400 acres in Angeles National Forest.

(Myung J. Chun / Los Angeles Times)

Michael Dyer, a former Santa Barbara County fire chief who now serves as public safety director for Calabasas, said safety became a top priority for the city after Woolsey, energizing the community into forming multiple volunteer commissions that plan for disaster preparedness.

“We have to provide that service as a government,” Dyer said while monitoring a brush fire in Topanga from his front porch. “No one has forgotten Woolsey yet. And as long as I’m here, we won’t.”

No simple fix

As the climate crisis worsens and the Wildland Urban Interface grows in size, experts are eyeing ways to mitigate the effects of natural disasters to save both the environment and human lives.

L.A. is currently considering an ordinance that would limit development in the Santa Monica Mountains. Using recent wildfires and the Rolling Hills Estates landslide as examples, supporters said the measure would make it harder to build mansions and large hillside homes as a way to limit damage caused by disasters, as well as protect open space and wildlife.

In addition, national insurers such as State Farm and Allstate are no longer selling insurance policies in wildfire-prone areas after a series of catastrophic fires raised premiums. Without insurance, people might be disincentivized from buying and building homes in risky areas.

Redfin is also tinkering with a way to warn people of a home’s potential dangers. The company conducted an experiment in which it showed a listing’s flood risk score to certain users but not others and found that those who were shown the scores were less likely to bid on the home.

The scores have since expanded to show risk for fire, heat, drought and storms.

In the meantime, Californians continue to build, and rebuild, in disaster-prone areas. Lisa and Michael McKean, whose home burned down in 2018, moved back into Malibu Park in 2021.

As neighbors slowly filter back into the neighborhood, they walk around to measure progress and congratulate those who have returned.

“We used to hate cement trucks and jackhammers, but now we celebrate them,” Michael said. “The cheery sound of construction.”

Source: latimes.com

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Sad news folks.  On April 27, Bank of America will re-brand Countrywide Financial to “Bank of America Home Loans,” according to a report today in the WSJ.

Now it’s unclear if they’ll have a ceremony or hang an old jersey on the wall, but it’s surely the end of the Countrywide brand as we know it.

Barbara Desoer, the B of A executive in charge of the mortgage unit, implied that the move will allow the bank to separate itself from the former mortgage lender’s not-so-stellar reputation.

The name change is also aimed at improving its customer relationship, using a name that’s more associated with “responsible lender” and “accountable,” as opposed to say “fraud” and “ripoff.”

Desoer said the new integrated unit plans to hire 1,000 new employees and move another 500 to mortgage processing from home-equity processing in light of the recent refinance bonanza.

Of course, 7,500 employees are still set to lose their jobs as a result of the merger, which was completed last July.

Since then, Bank of America has been working around the clock to settle scores of lawsuits and customer complaints.

In early October, the Charlotte-based bank announced a loan modification program aimed at helping 400,000 former Countrywide borrowers get into more sustainable loans.

And just last week, Countrywide settled with the Colorado Attorney General, agreeing to provide roughly $6 million in aid to eligible borrowers who were pushed into unaffordable, high-cost loans.

While the name Countrywide Financial may be absent from future marketing materials, it’s likely a name we won’t soon forget.

Source: thetruthaboutmortgage.com

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A bank capital proposal issued by the Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency has many in the housing policy community concerned that revised risk weights for bank-held mortgages could further erode banks’ market share in residential mortgages.

Bloomberg News

Many components of the capital rules that federal regulators proposed last month last month have elicited questions and concerns from in and around the banking sector, but none more than the treatment of single-family mortgages.

Trade groups representing banks and various parts of the mortgage industry have come out against the rules, as have housing affordability advocates. These groups say the impact of the proposed rule changes would be felt by the housing sector more so than the banks themselves.

“In the housing sector, which has just been in a sort of boxing ring getting punched, one after another, and getting exhausted from all that’s coming at them, this one is pretty incredible,” said David Stevens, a long-time mortgage executive who now heads Mountain Lake Consulting in Virginia. “We thought the current Basel rule made sense, but this one’s going to have downstream effects that are going to be very broad in the housing system.”

The change is expected to have at least a moderate impact on banks’ willingness to originate. While banks have been steadily ceding market share to independent mortgage banks and other nonbank lenders since the subprime mortgage crisis, they still play a key role in the so-called jumbo mortgage market, which consists of loans too large to be securitized and sold to the government sponsored enterprises Fannie Mae and Freddie Mac.

“The big, traditional mortgage lending banks have largely exited the field and that’s been going on for some time. This is the next nail in the coffin,” said Edward Pinto, director of the AEI Housing Center at the American Enterprise Institute. “This nail will make it harder for banks to compete with Fannie and Freddie, generally, and then take the one market they’ve had left to themselves, the jumbo market, and make it harder to originate because of the capital requirements.”

Some policy experts say the bigger impacts could come from the second-order effects of the regulation. In particular, they point to the treatment of mortgage servicing assets — the salable right to collect fees for providing day-to-day services to mortgages — as a change that could crimp the flow of credit throughout the housing finance sector and lead to higher costs being passed along to individual households.

“With potential borrowers already facing record high interest rates, steep home prices, and supply-chain issues, increased fees and scarcity of bank lenders could be another brick in the wall stopping Americans from obtaining meaningful homeownership and wealth creation,” said Andy Duane, a lawyer with mortgage-focused law firm Polunsky Beitel Green.

The proposal, put forth by the Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller on the Currency, notes that the rule change could result in second-order effects on other banks, but it largely focuses on benefits that large banks could enjoy relative to smaller banks as a result of the new rules. It notes that such risks are offset by a requirement that banks adhere to both the new framework and the existing one, to ensure they do not see their regulatory capital levels dip below that of the standardized approach. 

Still, the regulators are aware that the change could have unintended consequences on the mortgage industry and housing attainability. Because of this, their proposal includes several questions about the subject. 

“We want to ensure that the proposal does not unduly affect mortgage lending, including mortgages to underserved borrowers,” Fed Vice Chair for Supervision Michael Barr said while introducing the proposal in an open meeting last month. He added that housing affordability was one of “several areas that I will pay close attention to and encourage thoughtful comments.”

However, the proposal dismissed the idea that the new risk weights on residential mortgages would have a material impact on bank lending in that space. Citing various policy papers, academic studies and regulatory reports, the agencies assert that the risk-weight changes would lead banks adjusting their portfolios “only by a few percentage points.”

Stevens — who served as an assistant secretary in the Department of Housing and Urban Development in the Obama administration, a commissioner for the Federal Housing Administration and president of the Mortgage Bankers Association — said he is not convinced regulators have done sufficient analysis to rule out the type of sweeping, negative implications that he and others fear. He noted that the 1,087-page proposal includes fewer than 20 pages of economic analysis.

“I just don’t think they’ve thought through the downstream effects and the lack of analysis, in terms of actual financial estimates of the implications, is really concerning,” He said. “This will be a really big change, and that’s why you see everybody up in arms and the trade groups aligned against this proposal.”

Like other components of the bank regulators’ Basel III endgame proposal, the components related to mortgages would create standardized capital rules for large banks and do away with the ability for large institutions to use internal models. It also extends these requirements to all banks with more than $100 billion of assets, rather than only the largest, global systemically important banks.

The key provision in the package of proposed rules is the use of loan-to-value, or LTV, ratios to determine risk-weights for residential mortgage exposure. 

The change could allow banks to hold less capital against lower LTV mortgages, though there is some skepticism about much of a reduction in capital that change will ultimately entail, especially for GSIBs that previously relied on internal models, said Pete Mills, senior vice president of residential policy for the Mortgage Bankers Association. 

“Those risk weights aren’t published, so we don’t know what they are, but they are probably lower than 50% for low-LTV products,” Mills said. 

The Basel Committee’s latest regulatory accord, which was finalized in December 2017, envisions LTV ratios as a means of assigning risk weights. But Mills said many in the mortgage banking space were caught off guard by how much further U.S. regulators went beyond their global counterparts. The joint proposal from the Fed, FDIC and OCC calls for a 20 percentage point increase across all LTV bands, meaning while mortgages with LTVs below 50% are assigned a 20% risk-weight under the Basel rule, the U.S. proposal calls for a 40% risk-weight. Similarly, where the Basel framework maxes out at a 70% risk-weight for mortgages with LTVs of 100% or more, the U.S. version has a top weight of 90%.

Under the current rules, most mortgages in the U.S. are assigned a 50% risk weight, so loans with LTVs between 61% and 80% would see their capital treatment stay the same, and any mortgages with LTVs of 60% or lower would see a lower capital requirement. Loans with an LTV of 80% or higher, meanwhile, would likely see a higher capital requirement.

“For GSIBs, that’s probably an increase in capital throughout the LTV rank,” Mills said. “For the rest, it’s a higher risk weight for higher-LTV mortgages and maybe slightly lower in other bands, but, in aggregate, that’s not good for the mortgage market. It’s a higher risk weighting for most mortgages.”

Approximately 25% of first-lien mortgages held by large banks began with an LTV of 80% or higher, according to data compiled by the Federal Reserve Bank of Philadelphia. Roughly 10% have an LTV of 90% or higher, while half were 70% or lower. 

Mark Calabria, former head of the Federal Housing Finance Agency, said he is not surprised by the proposed treatment of mortgages, calling it a “natural evolution” of where regulators have been moving. He added that some elements of the proposal resemble changes he oversaw at Fannie Mae and Freddie Mac in 2020. 

Calabria said mortgage risk is an issue in the financial system in need of regulatory reform, but he questions the methods being considered by bank regulators.

“I worry that they’re making the problem in the system worse by driving this risk off the balance sheets of depositories, which is probably actually where it should be in the first place,” he said. “I’m not opposed to them tinkering in this space they just need to be more holistic about it.”

The proposal also notes that the new treatment of residential mortgages is aimed at preventing large banks from having an unfair advantage over smaller competitors.

“Without the adjustment relative to Basel III risk weights in this proposal, marginal funding costs on residential real estate and retail credit exposures for many large banking organizations could have been substantially lower than for smaller organizations not subject to the proposal,” the document notes. “Though the larger organizations would have still been subject to higher overall capital requirements, the lower marginal funding costs could have created a competitive disadvantage for smaller firms.”

Yet, while regulators say the proposed rules promote a level playing field, some see it giving an unfair advantage to government-backed lenders. 

Pinto sees the proposal as a continuation of a decades-long trend of federal regulators putting private lenders at a disadvantage to the governmental and quasi-governmental entities. He noted that if securities from Fannie and Freddie and loans backed by the FHA and Department of Veterans Affairs, which tend to have very high LTVs, are not given the same capital treatment as private-label mortgages, the net result will be the government playing an even larger role in the mortgage market that it already plays.

Pinto said despite these government programs targeting improved affordability, their provision of easy credit only drives up the cost of housing even further. He added that he hopes regulators reverse course on their treatment of mortgages in their final rule. 

“They should just back off on this entirely. It’s inappropriate,” Pinto said. “They need to look at the overall impact they’re having on the mortgage market, and the housing and the finance market, and the role of the federal government, and the fact that the federal government is getting larger and larger in its role, which is inappropriate.”

The other concern is a lower cap on mortgage servicing assets that can be reflected in a bank’s regulatory capital. The proposal would see the cap changed from 25% of Common Equity Tier 1 capital to 10%. 

Mills said the capital charge for mortgage servicing rights is already “punitive” at a risk weight of 250%. By lowering the cap, he said, banks will be forced to hold an additional dollar of capital for every dollar of exposure beyond that cap. He noted that regulators had raised the cap to 25% five years ago for banks with between $100 billion and $250 billion of assets to provide some relief to large regional banks interested in that market. 

If the cap is lowered, Mills said banks will be inclined to shed assets and shy away from mortgage servicing assets. Such moves would force pricing on servicing rights broadly, a trend that would ultimately lead to higher costs for borrowers.

“MSRs are going to be sold into a less liquid, less deep market, and there are consumer impacts here because MSR premiums are embedded in every mortgage note interest rate,” Mills said. “If MSR values are impacted by this significantly, that rolls downhill through the system. An opportunistic buyer might be able to buy rights at a depressed value, but that depressed value flows through to the consumer in the form of a higher interest rate.”

The proposal will be open to public comment through the end of November, after which regulators will review the input and incorporate elements of it into a final rule. Between the questions raised in the proposal, the acknowledgement by Fed and FDIC officials that the changes could hurt housing affordability, and the strong negative response to the proposal, there is optimism that the ultimate treatment of residential mortgages will be less impactful.

“Nobody seems to be pushing for this, and nobody other than the Fed seems to like it,” Calabria said. “If I was a betting man, it’s hard for me to believe that this is finalized the way it is now in terms of mortgages.”

Source: nationalmortgagenews.com

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Secondary Marketing, Broker Delivery, Outsourcing Products; Conv. Conforming News; Rates, Inflation, and the Fed

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Secondary Marketing, Broker Delivery, Outsourcing Products; Conv. Conforming News; Rates, Inflation, and the Fed

By:
Rob Chrisman

5 Hours, 35 Min ago

For anyone attending the California MBA’s Western Secondary starting this weekend, here’s a challenge too good for any tennis players to pass up. Augie Del Rio, CEO of Gallus Insights, and I will play doubles against anyone Sunday afternoon from 2-4PM across the street from the Waldorf. The loser of 2 out of 3 sets pays $500, the winner gets to decide the charity. First two to email Augie snags the opportunity. (I don’t know Augie’s skill level, but I am old… it’ll be like shooting fish in a barrel.) Speaking of the Western Secondary Market Conference, the California MBA uses the financial resources derived from this to support advocacy efforts in Sacramento. No “lobby rats!” If you’re going, sign up. Support the organization! (Today’s podcast can be found here and this week’s is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology and other services to the mortgage industry for almost four decades. Hear a short chat between Robbie and me on the Western Secondary Conference and its impact over the years on the industry.

Lender and Broker Software, Products, and Services

Even if you haven’t entered the world of online dating, no doubt you’ve heard the phrase “swipe right.” Online dating profiles provide a person’s quick summary and those viewing can swipe right in hopes of a match and the chance to learn more. Similarly, Mobility Market Intelligence (MMI) has released its new LO Quick Profiles tool, providing a summary of an LO’s production and top referral partners, allowing lenders to evaluate LOs based on real-time, accurate transaction history. With the click of a button, you can view production volume metrics including loan production volume, transaction types, loan types, top buy-side & list-side agent partners and top regions based on performance. MMI’s LO Quick Profiles also arm recruiters with the concrete performance data they need to decide whether or not to “swipe right” on potential candidates. Learn more about your potential matches with MMI’s LO Quick Profiles today.

For independent mortgage banks coping with shrinking production volumes and rising costs per loan, outsourcing accounting is an elegant solution to what’s become a very common challenge. Whether you have no accounting expertise in-house or you have a new team with no mortgage experience, you can tap the Richey May Client Accounting and Advisory Services (CAAS) team for the support you need. This team is stacked with mortgage industry experts who can tailor your solution to meet your most pressing needs in a volatile time, with no training needed. Need help transitioning to loan level accounting? Need a fully outsourced function? You got it! Need industry training for your controller? We can do that. In this article, Richey May’s expert Kim Dittmer answers all your most frequently asked questions around outsourced accounting as a mortgage bank.

“Brokers can now shop, lock, and deliver on one platform that seamlessly connects brokers, lenders, and originators. In this market, hustle is everything. You can’t afford to waste a single deal… Or a single minute. That’s why ReadyPrice has launched its innovative new Shop, Lock & Deliver loan exchange platform, designed to help independent mortgage brokers like you save time and money. Now you can shop competitive loan offerings from multiple lenders, get rate lock guarantees in real time, receive underwriting findings, and deliver the borrower’s complete loan file to lenders, and all on a single platform, at no cost to brokers. It’s the industry’s most powerful universal delivery portal, and it’s already helping thousands of brokers around the country thrive and compete in even the toughest market environments. Multiple lenders. One platform. Zero b.s. Come check us out today.”

Capital Markets and Secondary Marketing Products

“The author Charles R. Swindoll wrote: ‘The difference between something good and something great is attention to detail.’ At Optimal Blue, we echo that spirit in our CompassEdge pipeline hedging and loan trading platform, which has the most granular and accurate real-time position and gain/loss reconciliation tools available. At a time when every basis point matters, you can’t afford a black box approach to these critical aspects of monitoring and improving your hedge performance. CompassEdge analytics provide the ability to drill down on the loan and trade level, with interactive tools that are also integrated with real-time pipeline and market data. Other systems just can’t match the analytics performance that is at the core of CompassEdge. You deserve detailed information and insights to improve financial performance. With margins razor thin, why settle for something less than great? Speak with one of our capital markets experts to learn more.”

“After little movement within the Secondary technology space, there have been a lot of new and exciting updates recently. Between new product and pricing engines, new API capabilities, transition to new hedge management firms, the sunset of GinnieNet, and massive shifts in servicing, the need for strong technology and data experience within the Secondary department has never been greater. Combine this with M&A, a flurry of branch movement, a loss of talent due to RIFs and Secondary Manager transitions, there is no rest for the weary. Junior staff is now suddenly senior. New technology partners and platforms are rolling out for the first time in 5-10+ years for many and pipelines are in transition from platform to platform. 2023 is the year of ‘do more with less’ for those in Secondary leaving technology as the platform to streamline processes, maximize revenue and minimize risk. Matchbox is the only consulting company that can translate Secondary requirements into new technology offerings and workflows to ease the transition for companies. From assisting in Ginnie Mae SFPDM programming and testing to protecting locked pricing and COCs to implementing new technology partners or even building a suite of automated workflows via APIs, matchbox has all aspects of Secondary Marketing/Capital Markets support covered. We’ll even find some margin crumbs along the way so contact Frank Fiore to discuss your Secondary needs today.”

Conventional Conforming Changes

The FHFA acts, and the Government Sponsored Enterprises follow. The GSEs act, and aggregators follow. The aggregators act, and lenders follow. News announcements have slowed somewhat, but let’s see who’s doing what.

FHFA released a report providing the results of the annual stress tests that Fannie Mae and Freddie Mac (the Enterprises) are required to conduct under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).

Freddie Mac implemented changes to edits and feedback messages in Loan Closing Advisor® on August 8 to assist you as you prepare and test for the Uniform Closing Dataset (UCD) Phase 3B Critical Edits transition. Access release notes and updated resources to help guide your critical edits transition from the Loan Closing Advisor webpage and UCD webpage.

Freddie Mac launched CreditSmart® Essentials free financial education curriculum in Spanish. Expanded content, design, and platform to better meet the needs of Spanish-speaking consumers to help bolster educational efforts around the importance of building, maintaining, and using credit.

Pennymac is aligning with Freddie Mac’s Project Assessment Request (PAR) enhanced capability, announced in Bulletin 2023-15. Details are available in Pennymac Correspondent Announcement 23-52

Capital Markets

Yes, inflation is coming down somewhat. Yes, the FDIC driven sales of mortgage-backed securities prompted by the bank failures earlier this year are wrapping up. But mortgage rates haven’t done much on the downside. Let’s dive into why.

Last week’s economic data was focused on inflation, which remains well above the Fed’s preferred 2 percent target. Consumer prices rose during July at both the headline and core levels although the gains were widely forecasted. While core inflation was 4.7 percent over the prior twelve months, the last three months’ annualized gain slowed to 3.1 percent, an encouraging sign that the annual rate will continue to fall. It is encouraging to see inflation continue to ease without a significant contraction in the overall economy, increasing optimism that the Fed may achieve its desired soft landing. While costs for shelter and services continue to put upwards pressure on overall inflation, goods prices have been contracting. Core goods declined 0.3 percent in July, the largest monthly drop since March 2022. Costs for more expensive items, where consumers typically rely on financing, such as cars and household furniture, contributed to the decline in prices. Additionally, the percentage of small businesses reporting the need to increase prices fell to 25 percent in July, the lowest percentage since February 2021.

Mortgage and Treasury rates, however, rose after the release of a hotter than expected Producer Price Index (PPI) report for July on Friday. The report showed headline and “core” (ex-food and energy) PPI (actual 0.3 percent, expected 0.2 percent) were a touch on the high side. Core PPI accelerated to 0.8 percent year-over-year from 0.2 percent in June, representing the first sequential increase in 13 months.

To sum things up, the much-anticipated consumer inflation report on Thursday showed that the headline and core consumer price index was unchanged from June, bolstering bets among market participants that the Federal Reserve would hold off on further rate hikes. But hotter-than-anticipated producer inflation data on Friday played spoilsport for risk-on appetite, with both the headline and core producer price index for July rising from the previous month. Still, the overall picture points to a slowdown in inflation, and has even led to hopes of disinflation. There is a rising consensus among traders that the Federal Reserve will be able to deliver a so-called “soft landing.”

This week? The U.S. Census Bureau will issue the July Retail Sales Report, which is forecast to show a slight acceleration from the pace seen in June. Traders will also be watching the release of Federal Open Market Committee Minutes from the Fed’s July meeting for more clues on the direction of interest rates after the July CPI print calmed some nerves. Throw in some regional Fed surveys, business inventories, housing market data, industrial production / capacity utilization, as well as leading indicators, and that’s the week. Scheduled Fedspeak is currently light, though the minutes from the July 25/26 meeting will be released on Wednesday. Pertinent to mortgages, MBS Class B and C 48-hours are on Tuesday and Thursday. The week gets off to a quiet start with no scheduled economic releases of note today, and we begin the week with Agency MBS prices roughly unchanged from Friday night and the 10-year yielding 4.15 after closing last week at 4.17 percent. (Back in October the 10-year hit 4.34.)

Employment

“Stronghill Capital, LLC, an Austin, TX-based Wholesale and Correspondent Lender is hiring! If you are an Account Executive with 3+ years of experience and an existing book of Correspondents and/or Brokers that you want to introduce to a dynamic company with a responsive management team that strives to provide world-class service levels, sharp price execution, and is committed to building the Non-QM ‘private money’ space, contact Matt Brammer. As we continue to expand, we are open to discussions throughout much of the United States.”

“Feel like you’re on an island? If you’re a business manager leading a hardworking staff and want more strategic guidance and additional resources to thrive, look no further. Nations Lending offers a full suite of tailored support for Producers. Our marketing services include social media management and personalized content creation, including video editing support, all at no cost to you. We also offer LO-friendly programs like Direct Submit, which allows loan files to be submitted directly to Underwriting, and ACE (Accelerated Competitive Edge) Approvals, our comprehensive preapproval program saving you time. If you’re interested in excelling with a company that is credited with multiple awards, including three-time Inc. 5000 winner, eight-time winner of Scotsman Guide’s Top Mortgage Lenders, and three-time winner of Top Workplaces for Millennials by Fortune Magazine, then join our family. Become part of our nation and mission to make ‘home loans made human™’ and visit Nations Lending to learn more.”

The Department of Housing and Urban Development (HUD), in Washington DC, has an executive level vacancy for a Director of Single-Family Housing Program Development. The person selected will direct and manage three divisions: Home Mortgage Insurance Division; Valuation Policy Division, and Program Support Division. The Divisions share responsibility for the development of policy related to origination of single-family FHA-insured mortgages and loans. All applications must be received via USAJOBS.

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

Source: mortgagenewsdaily.com

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Inside: Are you moving into your first apartment? Planning a move can be daunting, but with this checklist, everything will be ready for your bed and bathroom you arrive. From a mattress, pots and towels to cleaning supplies and furniture, this list has it all. This is a huge deal!

Moving into your first apartment is an exciting time!

You’re finally out on your own, and you get to decorate and furnish your space however you want.

But before you can start shopping for all the cute home décor, there’s one very important task that needs to be taken care of first: creating a First Apartment Checklist.

This comprehensive checklist will ensure that you don’t forget any essential items when furnishing your new place. From kitchen supplies to bathroom necessities, we’ve got you covered.

So what are you waiting for? Let’s get started!

My First Apartment Mistakes

Moving into your first apartment indeed marks an exciting milestone in life.

However, it is also a moment of awakening when realizing that filling the apartment with all the necessities is not child’s play. My lesson learned the hard way.

It requires great planning and acute mindfulness of one’s budget. While the thrill of setting up your own place can easily lead to overspending, it’s important to keep the budget in check and be judicious about your purchases.

Here are some aspects to consider:

  • It’s easy to forget that there’s a huge list of big and small things you’ll still need to buy to fully equip your space. However, the keyword here is “need” and not “want”. I should have been better at differentiating between what is absolutely necessary for your immediate living situations and what can be procured later.
  • Define what you can spend right away by considering the moving costs and other related expenses. After setting the budget, the next most important step is to stick with it. You will be tempted to stretch your limit, but remember that financial restraint is key.
  • Moreover, remember that you don’t need to get everything right away, certain things can wait. Spend wisely, and stick to immediate needs. You might be surprised to find out that some items you thought were essential, in fact, can be comfortably lived without.

Your home is meant to give comfort, not financial stress.

The above statement is a lesson that stick with you for a long while. Keeping track of your expenses and making wise decisions can help establish your first apartment without breaking the bank.

Learn is $5000 enough to move out?

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

Big Items for Your First Apartment Checklist

You’re finally out of your parents’ house and ready to start your own life. Congrats!

This is an important step when you want to move out at 18.

Moving into a new place is both exciting and daunting. To help you make sure you have everything you need for your new digs, we’ve put together a first apartment checklist of all the big items you’ll need to buy.

This is where to focus your money or look to find free items.

1. Mattress

Living in your first apartment?

Do not underestimate the importance of a good mattress.

It’s the foundation for quality sleep, which is crucial for your health and daily performance. Investing in one is non-negotiable even if budget is a constraint.

Personally, this. is the one item I would say to buy new! Thankfully you can find affordable mattresses now.

2. Bed Frame & Headboard

You may be tempted to skip the bed frame in your first apartment, but it’s a key piece that offers myriad benefits.

In full honesty, I didn’t get a headboard for my mattress until well after I was married. But, it was one small thing that made me happy.

Popular bed frame options vary in price from $60 for a simple metal frame to over $200 for wooden or upholstered models. Make sure to evaluate your needs and budget before buying.

3. Couch

Your first apartment is exciting, and the right couch can really set the tone. It’s not only a seating arrangement but also a place for relaxing, entertaining, and unleashing your personality.

When setting up your first apartment, you might be conflicted about whether to buy a new couch or look for a used one. Here are some factors to consider:

For those living by themselves:

  • A new couch can be a significant investment, but it is worth the cost if you value personal comfort, hygiene, and aesthetics.
  • Utilize discount stores to find quality furniture that is within your budget. A new couch often comes with warranties or protection plans that can give you peace of mind for any potential repairs or damages.
  • Investigate measurements and delivery options thoroughly to ensure your new couch comfortably fits your apartment layout.

If you are planning to live with a roommate:

  • You can consider getting a used couch. This is a great way to cut costs during a time when budgeting and saving money are important.
  • To make sure the couch you’re acquiring is clean and pest-free, buy or get it for free from trusted sources. Friends or family are often the best people to approach when looking for used furniture.
  • Look into garage sales or online platforms like Craigslist for options. However, always inspect the couch thoroughly before purchasing it from these sources.

Whether you choose new or used, ensure that the couch fulfills your needs.

4. End Tables and Lamps

End tables and lamps are essentials you need in your first apartment. They offer functionality along with a touch of class to your space.

There are many reasons why they should be on every first apartment checklist.

  • Versatility: Side tables can be used in various ways, from serving as a coffee holder, providing a place for books and magazines, or showcasing photo frames and indoor plants. It can also function as an extension of your workspace when you need to create an impromptu office setup.
  • Convenience: Having a side table next to your bed or sofa allows you to have important items within easy reach. This may include your phone charger, eyeglasses, or remote controls.
  • Decorative Value: Side tables contribute to the aesthetic appeal of your living space. They come in different styles, shapes, and designs that can complement various types of interior décor themes.

More than likely with lamps, you will notice where you need them the most after you move. So, it is okay to wait and buy them.

5. Dining Room Table

Your first apartment isn’t complete without a dining room table. It’s the multi-tasking hero of your living space, essential for meals, socializing, and possibly working or studying.

Finding the right dining room table for your apartment can be a fun and rewarding experience. However, it may be daunting for some, given the myriad of options available in the market.

Here’s a step-by-step guide to help you find your ideal fit:

  • Determine the Size Needed: The first step in finding the right dining room table is to measure the space it will occupy. Knowing the size helps narrow down the options and ensures a comfortable fit. Consider the number of people you plan on hosting on a regular basis – that should dictate the size of the table you need.
  • Consider the Shape: Dining tables come in various shapes, including square, rectangle, round, and oval. Identifying the shape that suits your space and lifestyle is crucial. Rectangular tables are the most common, but circular ones are great for maintaining an intimate dining experience, while an oval one can be a middle ground between a square and a round table.
  • Decide on Style: Whether you lean more towards a modern, contemporary, or rustic look, there are countless styles of dining tables to choose from. Ensure that the style of the table resonates with the rest of your home decor for a harmonious look.

Remember, choosing the right dining table is a balance of both form and function. Considering these aspects will surely help you find the dining room table that fits your lifestyle and space.

A good friend of mine had great luck finding a dining room table at a Restore resale shop. Something to definitely check out!

6. Kitchenware

Moving into your first apartment often comes with the challenge of equipping your kitchen efficiently.

To help guide you in making thoughtful purchases without breaking the bank, here are some important kitchen items you should consider investing in.

  • Basic Cooking Equipment: A Starter kitchen at the bare minimum requires at least two pots and a frying pan. These should be supplemented with necessary cooking utensils like a ladle, spatula, whisk, etc. You also need a high-quality knife set, at least one cutting board, and measuring cups and spoons to help you prepare and portion your meals accurately.
  • Food Storage & Serving Items: Get microwave-safe food storage containers to store leftovers efficiently. Additionally, invest in a good set of plates, bowls, glasses, and coffee mugs.
  • Countertop Appliances: While these can be a bit costly, consider getting a microwave, an InstantPot, and a coffee maker. These can vastly simplify and speed up your daily meal prep.

These are the basic items for a minimalistic kitchen.

7. Patio Furniture

Patio furniture can be an excellent cost-effective addition to your first apartment. Often overlooked, patio furniture can provide advantages for a first-time tenant:

Getting patio furniture as hand-me-downs or buying used ones can save you lots of expenses.

Plus patio furniture can be easily refurbished or painted to match your apartment’s interior design. You can showcase your creativity and add a personal touch without spending much.

8. Grill

One must-have in your first apartment is undoubtedly a grill. Nothing beats the flavor of a good grill and it’s perfect for friendly gatherings or quiet evenings.

Having a grill can add a sense of fun and adventure to your living situation. It allows for new culinary experiences and outdoor entertaining, especially during warmer months when you can have a delightful barbecue party in your yard or balcony.

Grilling can also act as a social catalyst. Whether it’s a relaxed summer evening cookout with neighbors or a gathering of friends for a sporting event, grilling can bring people together in a fun and casual way.

Thanks to websites like Craigslist, eBay, and Facebook Marketplace, second-hand grills in good condition are often available locally and at a much lower cost than brand-new grills.

9. Storage Items

Stepping into your first apartment, huh? The organization will be your closest ally.

Crisp and neat storage items can help you stay clutter-free and make your space feel like home.

This is something I would wait to buy until you are in your space and know what you need. There are so many storage ideas and organization items.

10. Decor

Making your first apartment feel like home is both exciting and challenging. Decor plays a crucial role, transforming an empty space into a cozy, personal refuge.

You want the decor to reflect your style, but the cost may be more than you can afford.

Enter thrift shopping for some of your favorite items.

You can always splurge on that one item you want!

How do I prepare for my first apartment?

Getting your first apartment can be incredibly thrilling, but let us guide you through a smooth transition.

Before making any purchases, it’s critical to create a budget that takes into account moving costs and other associated expenses.

Additionally, make a checklist of essential items to ensure a smooth move, but remember to prioritize immediate needs as some items may not be necessary initially.

Being prepared and methodical about your approach can help significantly in making your first apartment feel like home. It’s all about spending wisely and sticking to your plan.

First Apartment Checklist for Bedroom

Ready to move into your first apartment and need help setting up your bedroom?

This checklist will ensure you won’t miss any essentials.

  • Bed: Choose a full or queen-size bed to maximize space.
  • Mattress: Select the right firmness for your sleep style. Don’t forget a mattress pad and bedding.
  • Nightstand: You need this to place essentials like a reading lamp and a glass of water.
  • Dresser: An essential piece of furniture for your clothing storage.
  • Lamp: A softer lighting option for your bedroom. Don’t forget light bulbs!
  • Closet Organizers: Invest in baskets or cloth storage cubes for easy organization.
  • Desk and Chair: A small workspace if your room allows. Opt for a stool or folding chair to save money.

Remember every space is unique, tailor this list to your needs and budget.

First Apartment Checklist for Kitchen

As you embark on your solo living adventure, setting up your kitchen shouldn’t be a brain tease.

Here’s a lifesaver list of must-haves:

Remember, your kitchen is not just for cooking, but for hosting toasts and storing eats. Cheers to your new apartment kitchen!

First Apartment Checklist for Living Room

When setting up your first apartment living room, remember to shop for these essential items:

  • A Cool Lamp or Two: Lighting is crucial. Pick unique lamps that add both light and character to your space.
  • Side Tables: Grab a couple; these provide additional surfaces for decorations or mugs of tea.
  • Storage Solutions: Think TV cabinets or bookshelves where you can neatly store your belongings.
  • Extra Seating: More seats for more guests.
  • Window Treatments: Curtains or blinds not only offer privacy but can also tie a room together.
  • Decorative Pillows and Throw Blankets: For aesthetics and comfort.
  • Decor Items: This includes wall art, picture frames, coffee table books, houseplants, candles and vases. Make your space you.

Be smart in your selections, ensuring each item marries functionality with aesthetics. Holistic harmony is key in a living space.

Technology for Your First Apartment

In today’s digital era, modern apartments are nearly incomplete without a range of essential tech items.

These add convenience, entertainment, and a sense of security to your cozy abode.

  • Smart TV: This is essential for entertainment and relaxation. It can be a source of news, sports, movies, and shows that make your apartment a much more enjoyable living space.
  • Roku Stick: If you opt for a basic TV, then these devices enable you to stream content like Netflix, YouTube, and Hulu directly to your TV. This is much needed if you prefer digital streaming over traditional network channels.
  • Computer / Laptop: This is useful for work, learning, entertainment, and communications in the current digital era. It helps you stay connected to the world and perform various tasks easily.
  • Wifi Router: A Wi-Fi router is a must-have in this age as it provides an internet connection for all your devices. It enables you to stay connected to the world, shop from home, stream entertainment, or work remotely.
  • Chargers: Chargers for phones, laptops, and other electronics are essential. They keep your devices powered up and ready for use at any moment.
  • Speakers: They enhance your entertainment experience by providing high-quality sound for music, TV shows, and movies. They can also be useful for work or study, for instance when participating in video conferences or online courses.

Thankfully prices have dropped significantly on TVs since I bought my first one!

First Apartment Checklist for Bathroom

One key area to consider is your bathroom – it’s essential to have all the basis to make your daily routines smooth and simple. Here’s what you’ll need:

Cleaning Your First Apartment

Ready to take that first crucial clean sweep in your very first apartment? Here’s how you’ll nail it!

Start with unpacking your cleaning essentials, preferably even before you start arranging your furniture. This will make it easier to spot dust, stains, and dirty spots that are usually hidden.

Now, let’s dig into your basic apartment clean-up kit:

Honestly, these frugal green items are perfect to keep things clean and on budget.

Things you need for an apartment that you wouldn’t think of

Moving into your first apartment is an exciting milestone, but it’s also full of small details that are easy to overlook.

Some essential items might not make it on your moving checklist, leaving you scrambling on your first day in your new place.

  • Basic Handyman Tools: A Leatherman or small toolkit is essential for assembling furniture and making minor repairs.
  • Hangers: You’ll need more of these than you think for your wardrobe.
  • Extension cords and surge strips: You’ll need these to plug in all your electronics in spaces with limited outlets.
  • Drawer organizers: Helps keep your belongings categorized and easy to find. Especially important in small spaces where efficient storage is key.
  • Flashlight: You never know when a power outage may happen. A flashlight is a crucial tool for safety and navigation in the dark.
  • Batteries: Handy for various gadgets like remote controls, flashlights, and smoke detectors.
  • First aid kit: Accidents can happen anywhere, and having a first aid kit handy can make dealing with minor injuries easier and more efficient.
  • Light bulbs: Essential for maintaining good lighting in your apartment. You don’t want to be left in the dark when a bulb burns out.
  • Matches and/or lighters: Useful not only for candles and gas stoves but also a necessity in case of a power outage.
  • Pen and paper: Although we live in a digital age, pen, and paper are still handy for jotting down quick notes, lists, or reminders.
  • Fire Extinguisher: Better to be safe than sorry!
  • Carbon Monoxide Detector: Extremely important to have in your apartment
  • Duct Tape: It solves every DIY project – while almost any.
  • Security Cameras: It bums me out completely to add this to the list, but in today’s society it is a must-have.

Renter’s insurance is instrumental for various reasons

It provides financial protection in case of unforeseen circumstances like theft, damage due to disasters like fires, or liability if someone gets hurt in your apartment.

Additionally, considering the value of electronics, furniture, clothing, and other personal belongings, investing in renter’s insurance helps safeguard one’s possessions, making it invaluable, especially for first-time renters.

How do I budget for my first apartment?

Managing your expenses while moving into your first apartment is crucial since it’s usually an expensive endeavor with many large and small essentials needed to fully complete your home.

Having a budget not only helps you to control your finances effectively but also assists in prioritizing immediate needs, avoiding unnecessary items, and managing moving costs and related expenses.

Step 1: Make a Budget

Budgeting is, unquestionably, a crucial strategy to manage your personal finances efficiently, particularly while setting up a new apartment.

  1. Begin by detailing your annual net income.
  2. Subsequently, list down all your essential expenditures, such as food, household supplies, phone bills, car payments, credit card bills, clothing, transportation costs, internet charges, healthcare expenses, school loans, and entertainment.
  3. Don’t forget to add a section for “miscellaneous” to cover any unanticipated expenses.
  4. Make sure your expenses are less than your income.

While rent will be your biggest expense, you want to make sure you can truly afford the amount without going broke.

If you observe that your expenses are relatively high, it’s time to analyze your spending patterns and cut down on unnecessary spending.

Step 2: Save Money

Saving money and living frugally requires strategic thinking and discipline.

Honestly, the simplest thing you can do is to set aside 20% of your income each paycheck. That will ensure you are on your way to becoming financially independent.

Simply remember, frugal living doesn’t equate to deprivation, it’s about making informed choices to optimize your resources.

The 100 envelope challenge is extremely popular!

Step 3: Start a Side Hustle

Side hustles can be a flexible and rewarding way to supplement your income, and they’ve become much more popular in recent years.

Manage your time wisely and ensure the side hustle is something you enjoy or are passionate about. It should be a source of additional income without causing stress or burnout.

Here are ways to make money online for beginners.

First Apartment Tips

Embarking on the journey of renting your first apartment can be both exciting and daunting, hence having some essential tips can be quite handy.

1. Make a list of apartment essentials

A list of apartment essentials plays a crucial role, particularly for first-time movers.

The benefits and significance cannot be overstated. Here’s why:

  • Prevents Overspending: Moving into a new apartment is already expensive. There are lease deposits, rent due, utility set-ups, and other hidden expenditures that can easily catch first-time movers off guard. Having a list of apartment essentials can keep your spending in check, ensuring that you only purchase what’s necessary and avoid unnecessary or impulsive purchases.
  • Minimizes Stress: The task of moving can be overwhelming, and missing essential items only adds to the stress. A well-thought-out list can not only help you keep track of what you’ve already acquired but also what you need to purchase or source.
  • Ensures You’re Prepared and Organized: By carefully creating an apartment checklist, you’re ensuring that you have everything you need in your new home, from cleaning supplies and toilet paper to the necessary items for your furry friends.
  • Saves Time: A concise and focused list saves you time by clearly stating what needs to be acquired, allowing you to focus on other important matters related to the move.

Follow this approach, and you’ll have a comfy, well-equipped apartment in no time.

2. Consider your budget

Experts advise rent shouldn’t exceed 25-30% of your income. But, don’t forget to include your other costs like food, bills, loans, etc

Remember, your dream apartment isn’t worth it if it’s a financial nightmare. Think smart, save hard, and enjoy your new home’s comforts without breaking the bank.

Learn the ideal household percentages.

3. Research apartments

Researching apartments requires careful consideration of numerous factors such as the proximity to vital facilities like workplaces, grocery stores, hospitals, and entertainment joints.

Try to physically tour potential residences where possible to examine amenities and gauge the atmosphere of the neighborhood.

Don’t forget to make inquiries and view the apartment personally or through a floor plan, all these will help you make a wise decision.

4. Check apartment listings for features and amenities

When searching for the perfect apartment, consider features and amenities that align with your lifestyle.

If there is a sym space, you could eliminate your monthly gym membership.

Just make sure the cost of the upgraded amenities is worth the price tag.

While checking apartment listings, ensure to evaluate the location, amenities, available space, and physical integrity.

5. Think about the size and layout of the apartment

Understanding the size and layout of your new apartment is crucial before you start styling and furnishing it.

Acquire a floor plan from the apartment management, and if possible, tour the apartment physically to note the positioning of rooms, doorways, hallways, and stairwells. Take measurements of these areas and visualize the kind of furniture and fixtures they can accommodate fittingly, taking into account maneuverability around corners as well.

Moving to your first apartment is exciting, yet demands careful consideration of the size and layout.

6. Look for apartments with good security

When you’re hunting for your next apartment, don’t forget to check out its security features. This is crucial for your peace of mind.

  • Ensure the apartment is in a safe neighborhood, close to amenities like hospitals or public transport.
  • Ask if the apartment complex has features like controlled access gates, security guards, and CCTV surveillance.
  • Check the apartment for proper alarm systems, well-functioning locks on doors and windows, and that fire safety measures are in place.
  • Verify the cell phone reception inside the apartment for any emergency calls.
  • Lastly, always ensure that the parking area is secure and well-lit.

Remember, your apartment isn’t just a place, it’s your sanctuary. It should feel like one, too.

7. Make sure you get a good deal

Before signing a lease, it’s crucial to ensure the rent price is a good deal.

According to the U.S. Census Bureau, the median gross rent from 2015-2019 was approximately $1,097 per month.

8. Talk to the management and make sure you understand the rules

Get to grips with your apartment’s rules by thoroughly reading your lease. Take note of any restrictions, and don’t fear to ask for clarifications. Data indicates that understanding lease terms significantly reduces tenant-landlord conflicts.

It is important you understand your lease as it is a binding contract.

First Apartment Checklist PDF

Moving into your first apartment is exciting but daunting. The First Apartment Checklist PDF helps simplify the process.

Take it at your own pace—don’t rush. This is your journey to your new home. Enjoy!

FAQ

Moving into a new apartment can be quite exciting yet daunting. It’s crucial to carefully inspect the space to ensure it meets your needs and is in optimal condition.

  • Check the overall cleanliness. Despite initial cleaning, apartments often accumulate dust while vacant. Ensure you have cleaning supplies handy to tackle any overlooked dirt or grime.
  • Inspect the utilities. Ensure the availability of necessary technology setups and provisions for all your electronic gadgets. And make sure no wires are hanging from the ceiling.
  • Verify the safety features. Always have a working lock on the door as well as a well lit entrance.
  • Examine appliances. Make sure essential household appliances like washers, dryers, and a dishwasher are provided and in working condition.

The comfort and safety of your new apartment rely hugely on these checks.

When determining how much you should spend on rent, it’s generally suggested that your allotment should be no more than 25-30% of your after-tax income.

For instance, if your yearly income after taxes is $40,000 per year, your rent should be about $833-$1,000 per month.

Keep in mind, this amount should cover:

  • Your rent
  • Utilities (unless they’re included in your rent)
  • Rental insurance

It’s essential to create a realistic budget by considering your other necessary expenses like food, transport, healthcare, and entertainment. If needed, find ways to cut some of these costs to afford your dream apartment.

Now Get Moving with your Apartment Shopping List!

In conclusion, creating and managing a first apartment checklist requires a judicious mix of prudence and patience.

It’s an exciting journey of setting up your first independent space but it’s also a test of properly managing your resources without compromising on your basic needs.

It’s crucial to remember that you do not need to get everything at once, and it’s okay to take your time to gradually fill your apartment.

Remember, be mindful of your budget and prioritize based on your specific needs and preferences.

And don’t forget, you’re not just setting up an apartment, you’re creating your own unique sanctuary.

With patience and careful planning, you’ll soon have an apartment that’s not only functionally equipped but also a reflection of your personal style. The experience, in the end, will prove to be as rewarding as it is educational.

Know someone else that needs this, too? Then, please share!!

Source: moneybliss.org

Apache is functioning normally

SVB Financial Group had $15 billion of outstanding loans from the Federal Home Loan Bank of San Francisco at the end of 2022—it had none a year earlier—and pledged collateral of almost three times what it borrowed to back the advances.

The loans helped shore up SVB’s liquidity and appear to have coincided with a $25 billion, or 13%, decline in deposits at SVB during the final three quarters of 2022.

SVB shares dropped 60% Thursday after the bank said it would book a $1.8 billion loss on sales of securities and seek to raise $2.25 billion of fresh capital. The news sparked a broad selloff in bank stocks. SVB’s stock continued to plunge in pre-market trading Friday as investors await word on the share sale and after reports of large venture-capital firms advising companies to pull their money from the bank.

Source: wsj.com