New Jersey Mortgages – Sun National Bank Center http://sunnationalbankcenter.com/ Mon, 20 Jun 2022 15:00:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://sunnationalbankcenter.com/wp-content/uploads/2021/05/sun-national-bank-center-icon-150x150.png New Jersey Mortgages – Sun National Bank Center http://sunnationalbankcenter.com/ 32 32 Reviews | A generation of homeowners encounters a strange new market https://sunnationalbankcenter.com/reviews-a-generation-of-homeowners-encounters-a-strange-new-market/ Mon, 20 Jun 2022 15:00:00 +0000 https://sunnationalbankcenter.com/reviews-a-generation-of-homeowners-encounters-a-strange-new-market/
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As recently as March, a 30-year fixed mortgage seemed like a pretty good deal. The average interest rate was below 4%, even though inflation was more than double.

This divergence could not last forever, and it did not. Just last week, mortgage rates jumped more than half a percentage point, ending at 5.78%. This is the biggest one-week increase in more than three decades, and it will push the housing market into uncharted territory. Buyers, sellers and the Federal Reserve are all going to have to learn to navigate this strange new landscape.

Most American homeowners have only known a world where mortgage rates were generally steadily falling — rising slightly when markets crashed or the Fed got choppy, but still falling over time. Rates hit an all-time high in the early 1980s, when Fed Chairman Paul Volcker dramatically reduced the money supply to bring America last great inflation to a standstill. After that, however, came a long downtrend that accelerated after the financial crisis, thanks to ultra-loose monetary policy that the Fed never really unwound even after the economy recovered.

Now suddenly we’re seeing the kind of push that hasn’t been seen since the 1970s. Rates are thankfully still lower than they were then, but they’re rising fast – they’ve more than doubled since January 2021. The last time mortgage rates were this high was in late 2008, meaning nearly 15 years of homebuyers likely got a better deal than what is now available.

Some of these people would no doubt like to move – to downsize or increase in size, to bring growing kids to a bigger yard or better school district, to shorten their commute, or to add an actual home office. But mortgage rates complicate this decision.

Take an average middle-class household with a $240,000 mortgage on a $300,000 home they bought in 2018. If homeowners have decent credit and refinance at 3% during the pandemic, they would have a payment of approximately $1,000 per month. If that family is now moving to a house at roughly the same price, their new monthly payment will likely be just over $1,400.

Those who have money to spend will move anyway, as will those who really need it; if your new job requires you to be in California, you’ll sell the New Jersey house and take the damage. But many who come want to moving will likely choose to stay put, instead.

A 2012 paper by economists Fernando Ferreira, Joseph Gyourko, and Joseph Tracy estimated that “for every additional $1,000 in mortgage debt servicing costs, mobility was about 12% lower.” The homeowners in the example above would see an increase in their debt service of nearly $5,000 per year.

Now, not all households will find themselves in this position. Older households often paid off their mortgage as a down payment or a refund; others will have adjustable rate mortgages or older loans at higher rates that they weren’t able to refinance for one reason or another. Still, the effect is likely to be large – and that means we face not just falling house prices, but falling homeowner mobility.

The last time the United States faced this kind of “lock-in” dynamic, in the 1970s, the effect was mitigated by a feature few mortgages have today: the ability for a buyer to “assume” the loan from the current owner, taking on the payments with the property. Since buyers would pay a premium for a property with a low-interest loan, homeowners could monetize their lower rate and use that money to help finance a new purchase.

Banks, of course, didn’t like to sit on those old low-rate loans when inflation drove up the rates they had to pay on savings accounts, so they started inserting “due on sale” clauses that pretty much ended the assumable mortgage. Government loans made through Veterans Affairs, the Federal Housing Administration, and the United States Department of Agriculture still offer this option, but they represent only a relatively small fraction of outstanding loans.

This will make life difficult for owners, of course, and for employers trying to attract desirable employees from distant locations. But it will also complicate the life of policy makers, who cannot easily predict the effects of their interventions on a key sector like housing. This will make it more difficult for the Fed to stage the soft landing we all hope for.

And this, in turn, is just one example of a broader challenge for policy makers and ordinary citizens. The best comparison we have for where we are today is to the 1970s, but the economy has changed in all sorts of ways since then.

Taxes and government benefits are indexed to inflation, which exacerbates inflationary pressures. More people now work in services, fewer in capital-intensive and heavily indebted manufacturing. Larger parts of the economy are exposed to trade, which means being subject to the actions of other governments and central banks. And as noted above, we are now more than a decade into an unprecedented Fed balance sheet expansion, which has undoubtedly contributed to inflation – and will limit the Fed’s options if we end up in a recession.

So, as familiar as this may sound to those of us with memories of the 1970s, we are actually on new ground. And unfortunately, no one has a good roadmap telling us exactly what’s next.

]]> Cryptocurrency markets continue to live in flux as Bitcoin hits $20,000, Celsius bankruptcy looms https://sunnationalbankcenter.com/cryptocurrency-markets-continue-to-live-in-flux-as-bitcoin-hits-20000-celsius-bankruptcy-looms/ Thu, 16 Jun 2022 21:07:41 +0000 https://sunnationalbankcenter.com/cryptocurrency-markets-continue-to-live-in-flux-as-bitcoin-hits-20000-celsius-bankruptcy-looms/

Despite rising only marginally after yesterday’s Federal Reserve rate hike of 75 points, cryptocurrencies are once again feeling pressure from a myriad of factors, including destabilized markets, fears of an impending recession, the previous depeg of TerraUSD and the slow collapse of Celsius.

As of this writing, Bitcoin price sits at $20,891, a whopping 7.41% drop in the last 24 hours. Ethereum also fell around 11.35% and is now at $1,096, a record drop from a price of $4,426 set in November 2021 of Ethereum’s all-time high. Ethereum Classic isn’t faring well either, down 4.9% for the day at a price of $15.40 and is down 71.92% year-on-year.

Smaller, lesser-known cryptos are also feeling the chill of the crypto winter, best expressed via Polygon, which is currently trading at a low of 0.39 cents, down 73.87% for the year. Solana ($30.84), Dogecoin ($0.05) and Avalanche ($16.17) are all in the red, recording price drops of 2.3%, 4.79% and 5.04% respectively .

These continued pressures swirling around crypto news lately are largely due to the heightened panic associated with the Fed’s interest rate hike yesterday, affecting not only securities and digital assets, but everything from mortgages. to air fares. Beyond that, Bitcoin and Ethereum both determine the values ​​of several cryptocurrencies in the market, which means that many other assorted risky assets are tied to the highest prices, making any decline an event on the downside. market scale.

Related article: Crypto Lender Celsius Halts Withdrawals and Transfers Amid Market Crash

Additionally, recent events surrounding cryptocurrency lending platform Celsius have caused major fears within the market, heightened by the previous disaster known as TerraUSD. Acting as a sort of digital asset bank, which was posting impeccable gains of around 18.6% per year, Celsius had no sooner started to lose ground in the current climate of fear.

In October 2021, Celsius Network CEO Alex Mashinsky pointed out that the lending platform’s total assets amounted to $25 billion, more than enough capital to meet both lenders and borrowers for all their DeFi needs. Last month, according to Celsius’s website, its assets stood at $11.82 billion. Riddled with poor crypto investments and massive withdrawals, Celsius was hit with a rather bleak future, forcing the firm to halt all withdrawals and transfers on Monday, June 13, citing the need to “stabilize liquidity.” This very decision is currently under investigation by various securities regulators from New Jersey to Texas.

TerraUSD, the algorithmic stablecoin attached to its sister coin Luna, set the crypto markets on fire several months ago, costing the industry a recorded loss of $400 billion. Fears still reign supreme after the demise of stablecoins, and yet a new entity has risen from the ashes of TerraUSD, called Luna 2.0, which has had its own mess of failures since its launch.

According to cryptocurrency research firm Kaiko, Celsius has few options to climb out of the gutter. Conor Ryder, the crypto analyst under Kaiko, relayed these sentiments in the firm’s official report released on Wednesday, June 15.

“Even if they survive this onslaught, I don’t see how anyone can trust Celsius to protect their assets in the future. Perhaps in a few years we will see this as a watershed moment for the adoption of decentralized finance. , but that’s probably just the optimist in me.”

Read also : Bill Gates Throws Shade at Crypto and NFT, Saying “They’re ‘100% Based on Superior Fool Theory’

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This is the state with the most foreclosures – 24/7 Wall St. https://sunnationalbankcenter.com/this-is-the-state-with-the-most-foreclosures-24-7-wall-st/ Sun, 12 Jun 2022 19:06:58 +0000 https://sunnationalbankcenter.com/this-is-the-state-with-the-most-foreclosures-24-7-wall-st/

Special report

The US real estate market has gone through a period of unprecedented house price increases over the past two years. At the pace of recent months, the only period that corresponds to it is 2005-2006, just before the implosion of the real estate market and the Great Recession. When the housing bubble burst, foreclosures across the country increased. Currently, the state with the highest foreclosure rate is Illinois.

National house prices have risen almost 20% in recent months compared to the previous year’s figure. In some markets, this number has been well above this level. (This is the most expensive house for sale in your state.)

The surge in home prices has been fueled by several factors. The first of these is the record level of mortgage rates. Last year, these fell below 3% for a 30-year fixed rate mortgage. Unfortunately for buyers, mortgage rates have jumped above 5% in recent weeks. It is too early to tell if this will slow the upward trend in house prices.

Another reason for the jump is that people have decided to leave expensive coastal cities like New York and San Francisco for less expensive places. Finally, Americans have become more mobile. The COVID-19 pandemic has caused many companies to close their offices and tell their employees to work from home. (Here is 25 cities where homes are selling the fastest.)

Foreclosure rates have been exceptionally low since the housing market began to recover in 2011. Banks have become more cautious about who they offer loans to. Creditworthy buyers replaced those who took out subprime mortgages.

But after this long period of low seizures, they started to rise again. According to ATTOM, a research company and parent company of RealtyTrac, there were “a total of 78,271 U.S. properties with foreclosure records during the first quarter of 2022.” This is a 132% increase over the same period a year ago.

There are a few explanations ready for the change. Rick Sharga, Executive Vice President of Market Intelligence at ATTOM, commented: “Foreclosure activity has continued to gradually return to normal levels since the expiration of the government’s moratorium and enhanced mortgage servicing guidelines from the CFPB.” CFPB stands for Consumer Financial Protection Bureau.

To identify the state with the most foreclosures, 24/7 Wall St. reviewed the report US lockdown activity hits post-pandemic highs in first quarter of 2022 from ATTOM Data Solutions. States are ranked by foreclosure rate — the total number of properties with foreclosure filings per housing unit, from lowest to highest.

Nationally, there was a foreclosure for 1,795 dwellings. The state with the highest foreclosure rate was Illinois, where one in 791 homes was foreclosed, followed closely by New Jersey at 1 in 792. South Dakota, meanwhile, had the highest rate of lowest seizure, at 1 in 17,724 homes. units.

California, the most populous state, leads all states with 5,378 properties that entered the foreclosure process in the first quarter, out of a national total of 50,759. The total number of foreclosures in California during the quarter was also the highest of any state at 8,243, or 1 in 1,746 – the 12th highest foreclosure rate.

Click here to see the state with the most seizures

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$1.5m Zayat settlement will make small dent in overall debt of $19m https://sunnationalbankcenter.com/1-5m-zayat-settlement-will-make-small-dent-in-overall-debt-of-19m/ Tue, 07 Jun 2022 20:35:00 +0000 https://sunnationalbankcenter.com/1-5m-zayat-settlement-will-make-small-dent-in-overall-debt-of-19m/ By

The trustee in Ahmed Zayat’s personal bankruptcy case negotiated a $1.5million settlement to be paid by the debtor’s brother, Sherif Zayat, which a court document said he would ‘resolve all claims and Causes of Action” related to the multiple mortgages on Zayat’s home.

The motion to approve this settlement, if ordered by a federal bankruptcy court judge in New Jersey on July 6, does not mean the end of the complicated Chapter 7 motion, which has now been dragging on for 21 months, per the allegedly insolvent former Thoroughbred owner. and breeder.

But that means some of that $1.5 million could trickle down to creditors once the case is fully settled.

As a lawyer for trustee Donald Biase said in his June 6 court filing, the settlement “will provide a benefit to the debtor’s estate, which was otherwise uncertain.”

The settlement papers were filed exactly seven years and a day after Zayat superstar American Pharoah won the 2015 Triple Crown.

The issue of the $19 million in debt for Thoroughbred trainers, horse farms, blood businesses, veterinarians and equine transportation companies who are among the 132 entities listed as unsecured creditors still has no not changed much.

This is because the money owed to them is in the form of “unsecured non-senior debt”, which puts these people and companies very far down the pecking order for the repayment of Zayat’s debts.

Under Chapter 7 bankruptcy laws, non-priority unsecured debt sits at the bottom of the hierarchy to be paid – if paid at all – after a trustee liquidates the assets and discharges the debts. They are ranked behind “secured” loans in which property is given as security, such as liens and mortgages.

The June 6 filing said there were five first, second and third mortgages secured by Zayat’s 7,714-square-foot home and two adjacent lots in Teaneck, New Jersey.

However, the same document stated that three of these mortgages – which were granted by friends and family members and not by lending institutions or banks – would be considered by the trustee as “avoidable transfers”, which means that they can be canceled and the product returned. to the estate for distribution to creditors. Avoidable transfers can also lead to charges of fraud.

One such property-backed loan that Biase wrote of as “avoidable” was $500,000 from Egypt-based Sherif Zayat.

That loan was registered as a mortgage with a New Jersey county clerk on Sept. 2, 2020 — six days before Ahmed Zayat filed for Chapter 7 bankruptcy while claiming he didn’t. only had $300 in cash and $14.22 in two checking accounts.

On September 14, 2020, an involuntary bankruptcy petition was filed against Zayat’s family racing business, Zayat Stables, LLC. This case is separate from this personal bankruptcy case, although many race-related creditors overlap in the two cases.

In a ragged wealth case brimming with allegations of fraud since its inception, Biase’s filing said he attempted to trace the tangled web of Zayat family finances via “the issuance of numerous subpoenas in under the 2004 Rule, reviewing thousands of pages of documents, including bank statements and tax returns, and making depositions under the 2004 Rule and extensive motions practice, including numerous motions to obtain access to the debtor’s real estate and its contents, by my appraisers. »

In addition to not having his Chapter 7 bankruptcy protection granted by the court if he does not tell the truth, Zayat faces a possible federal investigation and/or charges if the US Department of Justice believes that crimes have been committed.

Biase has repeatedly claimed that the Zayat and his family hampered his investigation through evasive tactics and non-compliance.

Zayat has always denied engaging in any illegal activity or hiding any money. He also insisted that neither he nor his family members were trying to interfere with the work of any of the administrators in charge of controlling his personal finances and business operations.

The June 6 filing revealed a new nugget about Ahmed Zayat that had not previously been disputed: “The debtor has a stake in a farm located in Egypt,” the Biase filing states.

If true, it is unclear whether this alleged ownership interest could also be seized as an asset to pay creditors. The record did not specify either way.

The settlement document, which was signed by all parties on May 26, stated that “the debtor, parties Zayat and Sherif, and any entity in which they have an interest waive all claims against the debtor’s estate. [and] the parties are released from all claims and causes of action and the trustee is deemed to have abandoned the interest of the debtor’s estate in the NJ property pursuant to section 554 of the bankruptcy code. »

Biase’s filing said this type of settlement was preferable to continuing to fight the case in court and/or forcing the sale of the property.

“While the trustee believes it would likely prevail over the claims against the debtor, parties Zayat and Sherif, the trustee wishes to settle the claims, in order to save the debtor’s estate time and money that would otherwise spent in litigation of the claims,” the filing reads.

“With respect to the NJ property, even if the trustee could get a $4.8 million offer and avoid [the three mortgages with individuals] after deducting the first and second mortgages totaling $3.4 million and the broker’s commission of $240,000, there would be a non-exempt net worth of approximately $580,000…,” the filing states.

“This amount also does not include the debtor’s potential homestead exemption, cost and time to seek approval under [the] Bankruptcy code to sell NJ property, and the time and cost to avoid the [individual mortgages]“, indicates the file.

“The $1.5 million settlement amount greatly exceeds the potential non-exempt equity in the NJ property,” the filing summarizes.

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Trustco will mark its 120th anniversary where it began, on State Street in Schenectady – The Daily Gazette https://sunnationalbankcenter.com/trustco-will-mark-its-120th-anniversary-where-it-began-on-state-street-in-schenectady-the-daily-gazette/ Sun, 05 Jun 2022 00:58:00 +0000 https://sunnationalbankcenter.com/trustco-will-mark-its-120th-anniversary-where-it-began-on-state-street-in-schenectady-the-daily-gazette/

SCHENECTADY — One of the region’s oldest companies will celebrate a milestone anniversary on Thursday with 70 times more employees than when it started and an 82,000% increase in assets.

One thing that hasn’t changed is the address. Trustco’s long history began at 320 State St. on June 9, 1902, and as of June 2022, the community bank’s main branch is still operating behind the Royal Facade.

The company will celebrate its 120th anniversary there from 9 a.m. Thursday, with the mayor of Schenectady handing over a key to the city and marking the bank’s longevity.

It was a memorable journey for the bank originally chartered as Schenectady Trust Company.

The city’s population nearly tripled, then contracted sharply; two major pandemics struck a century apart; and two world wars have shaken the economy.

The bank survived the Great Depression, in which 9,000 other banks failed, and it remains independent amid the wave of consolidation that has halved the number of U.S. community banks so far in the 21st century .

The Schenectady Trust Company eventually shortened its name to Trustco and added 150 branches in five states as its assets grew from $762,578 to $6.3 billion in 120 years. The 11-person operation now has 750 employees.

But it retains the same fundamental role in the community – keeping people’s money safe and lending it out to buy homes.

RICH HISTORY

“Trustco is certainly an institution in Schenectady County,” said county historian Bill Buell.

“There were only three banks in Schenectady in 1886 when Thomas Edison brought Edison Electrical Works here, and soon the town of 14,000 grew to 32,000 by the turn of the century and would more than double over the next 20 years “, he added.

“Schenectady Trust Co. was one of those banks formed to help manage the population boom at that time, and when it opened in June 1902, it became Schenectady’s fourth bank.”

Mark Eagan, president and CEO of the Capital Region Chamber, said Trustco is notable not only for its survival, but also for its growth and integration into the fabric of the community.

“At first it was the town of Schenectady, then they spread to other parts of the county, then to other parts of the capital region,” he said. “They have a ton of branches.

“And they have a very strong niche in real estate. There are so many people whose dreams of home ownership have come true. [Trustco] made it happen.

Eagan also appreciates that bank management has encouraged and enabled employees to get involved in the communities where they work.

“They show [support] not just through their words, but through their actions,” he said.

THE BANK TODAY

The entity is now TrustCo Bank Corp of NY, a publicly traded savings and loan holding company based in Glenville. It operates 145 outlets, nearly all in three areas: the Capital Region, the Lower Hudson Valley and Central Florida. There is also a branch in Vermont and Massachusetts, and two in New Jersey.

Chairman, President and CEO Robert J. McCormick has led the company since 2002, following his late father, Robert A. McCormick, who took over as CEO in 1985.

He spoke to The Daily Gazette last week about how and why Trustco has endured and grown over a 120-year period that has seen so many other banks fail or disappear.

“Trustco avoids this fate by remaining strong, independent and invested in the community,” he said.

After graduating from Shenendehowa High School and Siena College, and following a stint at Albany Savings Bank, McCormick went to work for Trustco in 1995 and saw Albany’s banking landscape consolidate, with institutions dating back to the early 1990s. 1800s passing through the history books.

“I think when I worked for Albany Savings Bank, there were 14 banks headquartered in the city of Albany,” he said. Among them was the venerable Albany Savings Bank, which was acquired by Charter One, which was acquired by Citizens Financial Group.

As McCormick tells it, the secret to success is simple: providing community members with the financial services they need while remaining visible and accessible through a network of local branches.

“Our core product is the current account and the residential mortgage,” he said, adding that “99.9% of the population has a residential mortgage or a current account. If you can take care of people with these two products, they are rather faithful to you and rather satisfied with you.

McCormick continued, “We try to have lots of locations, which is another trademark of Trustco. You are going to find very few 6 billion dollar banks that have 145 locations. We like that. They become billboards.

The business model is based on these fundamentals.

Trustco does not sell its mortgages, so it can make its profit on the interest over the years rather than the initial mortgage underwriting costs, so it can offer lower closing costs.

It has this network of branches in the communities where its borrowers live, so if they’re having trouble paying off their mortgage, they can come in and talk to a human who might already know them, rather than talking to an employee. from the call center.

And that’s the heart of it.

Trustco’s financial records show that the vast majority of its revenue comes from interest on loans and also show that 90% of those loans are residential mortgages. Add home equity lines of credit and 95% of its loan portfolio is for individual homes.

Only 4% are commercial loans, which can be much larger than residential loans – a double-edged sword.

“Real estate is a cyclical market. Prices go up and down. The main thing is to do [mortgages] the right way up front,” McCormick said. “You end up with a very diversified portfolio. Instead of having concentrations in one building, you have many consumers who own many single-family homes in many different neighborhoods.

Trustco’s strategy for staying visible in the community follows a similar pattern, with donations of time and money to dozens of local organizations rather than one big, high-profile movement.

Again and again, checks are presented at ceremonies. Again and again, a platoon of employees dons their Trustco t-shirts and takes on a community project.

The next recipients will be Capital District YMCA, The Environmental Clearinghouse and The Schenectady Foundation, which will receive monetary donations at the anniversary ceremony on Thursday.

“We make a lot of contributions every year,” McCormick said. “I don’t know how good it is to have your name out there on the arenas. I think taking care of people is key.

GROWTH STRATEGY

As it avoided being acquired by larger companies, Trustco did not go on a buying spree as it grew steadily over the years.

It acquired several Bank of New York branches in the 1980s and purchased the Home Savings Bank of Albany in 1991, but most of its locations are branches opened by Trustco itself. (The main branch got its first satellite in August 1923, in the Mont Pleasant neighborhood.)

“I’m a big fan of organic growth and I’m a big fan of de novo expansion,” McCormick said. “It’s not as fast and it’s not as smooth and it’s not as sexy. But you open your own branches and you know what you’ve got, and you develop your own line of business. It was very effective for us.

The leap out of the Capital Region in the early 2000s was a big step for Trustco, and not one that many community banks would take.

McCormick said the company reviewed Austin, Texas; Boston; Charlotte; and Phoenix, and rejected each for different reasons before choosing the Orlando area.

There is some winter snowbird overlap between the Capital Region and Central Florida, allowing Trustco to serve customers in both, but that’s not why it chose Orlando, said McCormick. Rather, it is a diverse and prosperous region accessible within hours from the Capital Region.

“We are entering a vibrant and thriving market that is full geographic and economic diversification from our home base,” he said. “That’s what makes it a home run.”

Trustco now has 50 branches in Florida.

“That’s a big part of our success,” McCormick said.

Of all the challenges Trustco has faced in 120 years, COVID was an odd challenge – the impact was human rather than financial or corporate.

“I think COVID has affected our employees more than it’s affected anything else,” McCormick said. “From a financial point of view, we were solid. But we were deemed essential and our employees took it very seriously. The management team too, we didn’t hide in our basements.

The labor shortage that has worsened during the pandemic is also a hindrance as Trustco recruits and hires.

But with Americans’ personal savings at an all-time high after two years of COVID and a still-strong housing market boom, Trustco released historic financial data for the first quarter of 2022. The value of its mortgage portfolio is sharply above pre-pandemic levels, and the benefits followed.

LOOK AHEAD

Don’t look for big changes at Trustco in the year 121.

“Obviously we stay on top of other companies’ product offerings and what the competition is doing,” McCormick said. “But generally speaking, this mortgage and this checking account are still a very effective mix.”

The machinery behind the scenes is the biggest component of change these days.

Trustco recently installed a new teller platform and a new loan tracking system. Over the next three years, it will modernize its entire ATM network.

“The biggest issue for us and most companies our size is technology,” McCormick said. “You have to walk the fine line between brick and mortar [for] the classic customer and the more and more technology-demanding customers. So we spend a lot of time, effort and money developing technology and upgrading our systems. »

The old main branch has been expanded and remodeled so many times it would be unrecognizable to the 11 dapper men who opened it in 1902. The technology behind the counter would of course be alien – inconceivable in the age of ledgers and mechanical calculators.

But when the ceremony ends on Thursday, the people inside will do the same thing their ancestors did: keep customers’ money safe and lend them other people’s money to pursue what the American dream looks like for them.

More from The Daily Gazette:

Categories: Business, News, Schenectady, Schenectady County, Scotia Glenville

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Critical analysis of Berkshire Bancorp (OTCMKTS: BERK) and Citizens Financial Group (NYSE: CFG) https://sunnationalbankcenter.com/critical-analysis-of-berkshire-bancorp-otcmkts-berk-and-citizens-financial-group-nyse-cfg/ Sat, 04 Jun 2022 00:21:55 +0000 https://sunnationalbankcenter.com/critical-analysis-of-berkshire-bancorp-otcmkts-berk-and-citizens-financial-group-nyse-cfg/

Berkshire Bancorp (OTCMKTS:BERK – Get Rating) and Citizens Financial Group (NYSE:CFG – Get Rating) are both finance companies, but which is the better investment? We’ll compare the two companies based on their dividend strength, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of the current ratings and recommendations for Berkshire Bancorp and Citizens Financial Group, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Berkshire Bancorp 0 0 0 0 N / A
Citizens Financial Group 1 4 6 0 2.45

Citizens Financial Group has a consensus target price of $54.27, suggesting a potential upside of 34.11%. Given Citizens Financial Group’s possible higher upside, analysts clearly believe that Citizens Financial Group is more favorable than Berkshire Bancorp.

Insider and Institutional Ownership

94.8% of Citizens Financial Group shares are held by institutional investors. 70.4% of Berkshire Bancorp shares are held by insiders. By comparison, 0.5% of Citizens Financial Group shares are held by insiders. Strong institutional ownership indicates that hedge funds, large money managers, and endowments believe a company is poised for long-term growth.

Profitability

This table compares the net margins, return on equity and return on assets of Berkshire Bancorp and Citizens Financial Group.

Net margins Return on equity return on assets
Berkshire Bancorp N / A N / A N / A
Citizens Financial Group 30.67% 10.69% 1.19%

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of Berkshire Bancorp and Citizens Financial Group.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Berkshire Bancorp $20.05 million N / A $2.70 million N / A N / A
Citizens Financial Group $6.99 billion 2.87 $2.32 billion $4.72 8.57

Citizens Financial Group has higher revenues and profits than Berkshire Bancorp.

Risk and Volatility

Berkshire Bancorp has a beta of 0.02, suggesting its stock price is 98% less volatile than the S&P 500. By comparison, Citizens Financial Group has a beta of 1.44, suggesting its stock price stock is 44% more volatile than the S&P 500.

Summary

Citizens Financial Group beats Berkshire Bancorp on 9 out of 10 factors compared between the two stocks.

About Berkshire Bancorp (Get a rating)

Berkshire Bancorp Inc. operates as a bank holding company for Berkshire Bank which provides community banking services primarily to businesses, professionals and retail customers. The company offers savings statements, NOW, money market deposits and checking accounts, as well as certificates of deposit. It also offers commercial and industrial real estate, commercial and residential real estate, multi-family real estate, construction and consumer loans, as well as mortgage and leasing services. Additionally, the company offers ATM and debit cards; safes; bill payment, collection, remote deposit capture and currency exchange services; and mobile, telephone and online banking. It operates through two branches located in Manhattan and four branches located in Brooklyn, New York; four branches located in Orange and Sullivan counties in New York State; and a branch located in Teaneck, New Jersey. Berkshire Bancorp Inc. was founded in 1871 and is headquartered in New York, New York.

About Citizens Financial Group (Get a rating)

Citizens Financial Group logoCitizens Financial Group, Inc. operates as a banking holding company for Citizens Bank, National Association which provides retail and commercial banking products and services to individuals, small businesses, middle market businesses, corporations and institutions in United States. The Company operates in two segments, Consumer Banking and Commercial Banking. The Retail Banking segment offers deposit products, mortgage and home equity loan products, credit cards, business loans, wealth management and investment services; and auto loans, education and point-of-sale financing, as well as digital deposit products. This segment serves its customers through telephone service centers, as well as through its online and mobile platforms. The Corporate Banking segment offers various financial products and solutions, including lending and leasing services, deposit and cash management services, foreign exchange solutions, interest rate risk management and commodities, as well as syndicated loans, corporate finance, mergers and acquisitions, debt and equity markets services. This segment serves the government banking, nonprofit, healthcare, technology, professional, oil and gas, asset finance, franchise finance, asset-based lending, commercial real estate, private equity and sponsor financing. It operates approximately 1,200 branches in 14 states and the District of Columbia; 114 retail and non-branch commercial offices in national markets; and approximately 3,300 ATMs. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence , Rhode Island.



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Should you tell potential buyers if you think your house is haunted? https://sunnationalbankcenter.com/should-you-tell-potential-buyers-if-you-think-your-house-is-haunted/ Fri, 27 May 2022 15:00:45 +0000 https://sunnationalbankcenter.com/should-you-tell-potential-buyers-if-you-think-your-house-is-haunted/

Image source: Getty Images

Sellers must disclose certain defects to buyers. But is paranormal activity one of them?


Key points

  • State laws generally require home sellers to make disclosures to buyers.
  • If the sellers have detected paranormal activity in their home, it could be considered a defect.
  • Sellers should know if they are required to tell potential buyers that they suspect their home is haunted.

When you sell your house, you are in the best position to know the details of the property. As a result, many states have laws requiring you to disclose certain details about the home you are selling. Specifically, you will likely need to explain any material defects so that buyers can make an informed choice about whether to make an offer, secure a mortgage, and pay you for your property.

There are some known defects that you should generally point out to potential buyers, such as roof leaks or foundation issues. But what if you think your house is haunted because you have evidence of paranormal activity. Is it something you need to share?

What are the rules regarding a suspected haunted house?

Not surprisingly, most states don’t have laws on the books that specify exactly whether a seller must disclose if a property is haunted. However, this issue has been resolved in a limited number of locations, including New York, New Jersey, Massachusetts, and Minnesota.

In Minnesota and Massachusetts, the law specifically states that paranormal activity does not have to be disclosed to potential buyers. But in New York and New Jersey, there are circumstances where this information must be shared.

In New Jersey, sellers must be honest in reporting ghostly activity, but only if potential buyers request it. So homebuyers worried about having unwanted missing guests with a new mortgage bill when purchasing a property should make sure to find out if there are any ghosts on the premises.

In New York, sellers who perpetuate the reputation of a haunted house cannot turn around and sell the property to unsuspecting buyers or the courts could overturn the sale of the house. This is based on a court ruling in 1991 when a family spoke publicly about ghostly activity and then sold their home to out-of-town buyers who were unaware of their reputation. It’s often called the “Ghostbusters” case.

Other states don’t specifically address hauntings, but many require sellers to disclose recent deaths on the property, as well as “emotional flaws” or details about the stigmatized property that may lower the value of the home.

Should You Disclose Paranormal Activity?

If you suspect your home is haunted, you may want to speak with a realtor to see if it’s a good idea to let potential buyers know. You don’t want to break a state law and end up with your home sale not going through or a buyer suing for non-disclosure.

While you are not obligated to disclose details of a haunting, you will have the opportunity to decide for yourself if you wish to share information about ghostly activities. In a hot market, that may not scare away potential buyers — and it may even entice some to come see your space, as rumors of ghosts could potentially help your property stand out from the crowd.

Ultimately, it’s up to you whether you think it’s fair to share your beliefs with potential buyers if you don’t have to – or whether you’d rather let them do their due diligence by themselves and perhaps meet the ghosts at their own pace after moving in.

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The Fed will raise interest rates again soon. Make those money moves now https://sunnationalbankcenter.com/the-fed-will-raise-interest-rates-again-soon-make-those-money-moves-now/ Fri, 27 May 2022 14:14:06 +0000 https://sunnationalbankcenter.com/the-fed-will-raise-interest-rates-again-soon-make-those-money-moves-now/

Federal Reserve Chairman Jerome Powell.

Xinhua News Agency | Xinhua News Agency | Getty Images

Americans face a period of rapidly rising interest rates for the first time in years.

The Federal Reserve released the minutes of its last meeting on Wednesday, showing that the central bank plans to make further 50 basis point rate hikes this year, likely at every remaining meeting on the calendar. In an effort to curb inflation, the Fed could also raise interest rates more than the market currently anticipates.

The minutes are from the central bank’s meeting in early May, where it raised its key rate by half a point.

As rates rise, financial experts recommend consumers make key money moves to put themselves in a better financial position. These typically include paying off debt and bolstering personal budgets to be able to withstand any sudden shocks to the economy.

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“If your New Year’s resolution was to build a family budget, it may need a refresh and a review,” said Cathy Schaeffer, Certified Financial Planner, Vice President and Director of Family Counselors at Baker Boyer in Walla Walla, Washington. Now is “an opportunity to really look at your personal budget and identify ways to pay down your debt more aggressively because these rate hikes are likely to continue.”

Pay off the debt

Some borrowers need to be especially careful at this time.

That includes anyone looking to buy a home, buy a car or have credit card debt, according to CFP Lauren Anastasio, director of financial advice at Stash.

“If you’re shopping for a home, you might want to ask your lender if you can lock in your rate now,” she said. “Sometimes the lender, for a flat fee, will let you lock in today’s rate even if you don’t close for a few months.”

Some borrowers consider adjustable rate mortgages, which offer lower initial rates but eventually revert to market terms. People who had ARMs and are nearing the end of that period may want to consider refinancing at a fixed rate.

Car buyers may want to stick to newer models and avoid the used-car market, where prices have jumped the most. Taking the time to shop around for the best possible deal is also in your best interest.

“There’s still a lot of value there,” said Jacqui Kearns, chief brand and strategy officer at Affinity Federal Credit Union in New Jersey, adding that while rates are rising, they’re still historically low.

It’s a very delicate dance that the Fed leads.

Lauren Anastasio

Director of Financial Advisory at Stash

People with credit card debt may also want to contact their lenders to see if they can work out a deal.

“I always recommend people call their lender and see if they can lower their interest rate,” Anastasio said.

It may also be a good idea to consolidate credit card debt into something fixed rate, as this type of debt is the most sensitive to rate hikes and often has the highest interest rate. Right now, the average interest rate on a new credit card is nearly 20%, according to LendingTree.

Paying off debt in full is also a good idea, if possible. Kearns recommends going after cards that have relatively low balances.

“If you have that $200 or $300 [debt] there, just pay it,” she said.

Prepare for the future

Pierre Dazeley | Photodisc | Getty Images

Paying down debt is just one way to prepare for future financial success, which is especially important when people are assessing the risk of a recession.

“It’s a very tricky dance the Fed is doing,” Anastasio said, adding that while the central bank will do its best to rein in inflation without shutting down the economy too much, there are many factors beyond its control, like the uncertainty linked to the war in Ukraine.

Financial experts recommend taking the time now to review your spending and saving to find a solid balance.

“Be smart about spending the money you have,” Kearns said. This may mean reducing discretionary purchases or budgeting more for items that have increased in price. Americans should also make sure they have strong emergency savings to counter rising prices.

As people plan for future expenses, like an upcoming vacation, they may also want to budget more than they usually would, Anastasio said.

“The reality is that we may see a decrease in rapidly rising costs, but that doesn’t necessarily mean that when I go to the grocery store to buy formula, the manufacturer is suddenly going to go back to what they were charging. two years ago,” she said.

Ask for help

Of course, rising interest rates have some advantages. Over time, savers might start seeing better rates on savings accounts, Schaeffer said. Investors also have opportunities to take advantage of market volatility, Kearns said.

“Now is a great time to invest if you feel like it,” Kearns said. “Literally a few dollars a day on the volatility we’re seeing can add a lot of value if you stay long term.”

Those who are struggling to manage their money or feeling stressed by the current environment may want to seek professional help for better budgeting or future planning.

“Now is a good time to really take a hard look at your goals, your risk tolerance and your financial plan,” Schaeffer said, adding that this is especially important for those going through transitional times such as approaching retirement. or preparing to send a child to college. .

“Have a plan and work with someone to put that plan in place,” Kearns said, adding that there are plenty of resources out there that cover prices for digital tools, from platforms to in-person advisors.

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CHECK: 74-year-old retiree turned model: “You don’t have to blend in” with Acorns+CNBC

Disclosure: NBCUniversal and Comcast Ventures are investors in tassels.

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Remember, it’s stupid economics! Aunt Fannie Mae says the housing boom seems over | Fox Rothschild LLP https://sunnationalbankcenter.com/remember-its-stupid-economics-aunt-fannie-mae-says-the-housing-boom-seems-over-fox-rothschild-llp/ Wed, 25 May 2022 13:46:50 +0000 https://sunnationalbankcenter.com/remember-its-stupid-economics-aunt-fannie-mae-says-the-housing-boom-seems-over-fox-rothschild-llp/

It was not really Aunt Fannie but her chief economist Doug Duncan who concluded today that the party ended in March as interest rates have climbed 200 basis points since January 1. Fannie Mae revised new home sales for March to 709,000 from an earlier estimate of 763,000. The April figures also reflect a continued slowdown with sales estimated at 591,000. Duncan described this as a normal market response when the Federal Reserve raises borrowing costs for consumers while trying to contain inflation. A report by Realtor.com suggests that the market hasn’t lost all its steam, but buyers are now much more price sensitive.

The advice to clients in the throes of separation and divorce should be that if you are the spouse keeping the homestead and buying out your husband or wife, be aware that the market valuation or analysis you are relying on may indicate “market peak” prices. If the economy slows or the Federal Reserve continues to raise borrowing rates, the herd of buyers will shrink and prices may actually fall. It is this author’s hypothesis that Philadelphia and suburban markets may be insulated from these prevailing winds for two reasons. First, compared to New York, suburban New Jersey, and metro Washington, housing in Philadelphia remains relatively inexpensive. AND, if remote work remains in vogue, many people living along the Northeast Corridor may choose eastern Pennsylvania for property because they can commute to New York or Washington a few days a week while still living in a country where state income tax is 3.07%.

Remember that a house is not just “home”. It is an investment and a big investment. Friends who bought during the 2007 market rush will remind you that many spent a few years “under water” with mortgages that exceeded fair market value and no one to sell to.

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States with worst foreclosure rates this year – 24/7 Wall St. https://sunnationalbankcenter.com/states-with-worst-foreclosure-rates-this-year-24-7-wall-st/ Sun, 22 May 2022 21:00:54 +0000 https://sunnationalbankcenter.com/states-with-worst-foreclosure-rates-this-year-24-7-wall-st/

Part of the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act, passed by Congress and signed by President Donald Trump in March 2020, included temporary foreclosure and eviction protections for homeowners holding federally guaranteed mortgages. This emergency regulatory safeguard kept millions of Americans at home during the pandemic’s most economically crippling time. (These are the states where most people own their homes.)

Thanks to the continued spike in home prices nationwide, many of these borrowers are holding more equity in their homes than before the global virus outbreak. But not everyone emerged above the water from this abstention lifeline.

According to recent analysis by real estate data provider ATTTOM, foreclosure filings hit a post-pandemic high in the first quarter of 2022 at 78,271, up 39% from the previous quarter and 132% from the same period. period last year. To find the states with the most foreclosures, 24/7 Wall St. looked at 2021 and 2022 foreclosure data provided by ATTOM Data Solutions. States are ranked by the number of foreclosures per 100,000 dwellings.

Foreclosure activity is still 57% lower than it was in the first three months of 2020, but the return to normal is fast approaching. Foreclosures have declined in the 12 months to March 2022 in just three states – Alaska and the Dakotas – while foreclosure activity has jumped more than 200% in five states – New York, New Jersey, Colorado, Nevada and Michigan. Foreclosure activity jumped nearly 500% in Nevada and Michigan. Nationally, foreclosure activity increased by 135%.

Chicago, New York, Los Angeles, Houston and Philadelphia had the highest number of foreclosures. For cities with populations under 200,000, the highest foreclosure rates were in Cleveland, Ohio; Atlantic City, New Jersey; Jacksonville, North Carolina; Rockford, Ill.; and Columbia, South Carolina. (See also the city with the highest housing costs of any state.)

In three states — Wyoming, Louisiana and Mississippi — underwater mortgages accounted for between 10% and 17% of all mortgages, the most among the states. An underwater mortgage is when a home is worth less than the money owed on the mortgage.

Here’s the state with the worst foreclosure rate this year

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