most people's minds. It's like money is an unfair advantage. You know, Donald Trump said that his dad gave him a small loan of a million dollars. you know, just a small loan in the 1970s. So, that's just a small example, but thereare lots of other unfair advantages. You know, you can have the right look, you can have gone to the right school, you
It's one monthly payment and one student loan servicer. loan because they're actually not federal student loans .
So the first applications for machine prediction are exactly the same as the applications that we were doing prediction before we had these new tools. Loan defaults-- you walk into a bank, you want to get a loan , the bank has to decide whether you're going to pay them back or not.That's a prediction problem.
before I kind of re-make my financial lives because-- we all hear that, you have to wait seven years before you can start improving your credit score, right? loan so that they can deal with their issues.
Itís incredibly promising, in fact, thereís this quote by William Gibson, he talks about the futureís here, itís just not evenly distributed yet. Loan capital spent? Is it consumptive or is it for productive purposes?
happened with their situation uh with the bank? the bank did indeed pull their loan and so they needed $40,000 right away which for a small company uh in themid 90s was a lot of money and because there was this shift in the atmosphere once they started focusing on what they
doing I was able to fund the restaurant three different ways through a commercial bank loan through a small business administration loan which at the time if you think about it a white middle classeducated male getting a small business administration loan was unheard of again at the time we were coming out of a
scale these are the subprime borrowers these are people that have a history of not paying their debts and that lenders really don't want to borrow to those or loan money to those people and then kind of this gray area in between are the alt aborrowers uh this would this discussion will become a little important later I just want you to give some background into who these people
You know, the big investment banks with a gearing ratio of 50, you know? Loan to equity. Unbelievable. And this was regarded as a viable business model until it collapsed. But what essentially was going on was that,within the banking industry, the industry was lending subprime borrowers in the United States -- low-income families. And they thought they were doing good -- but
good and very quick he he learned this whole business of how you make a home loan the process how you network to get customers and he and a partner Davidlobe started Countrywide in those days he sold the
the secondary Market is the market where loans are sold the primary Market is where you go to the lender and get the loan today it's estimated that there are 10 trillion in loans on all of our homesabout the equivalent of the national debt of those 5 trillion are owned or
pay the SNL people as contractors a fee so they bring me a loan and I pay them 1% of the loan amount and I don't have to pay their health insurance or any of that otherstuff that comes with full-time employment those independent people became mortgage
to help their employees with student loan debt, that takes the heat off the federal government, so to speak, to help them pay for student loans for employees. So these are, again, the issues of student loan solutions, student loan repayment, student loan forgiveness, make colleges accountable, income share agreements,free college, automatic paycheck deductions, pay with your 401 , and then employer contributions.
And because of that image of security and stability, the dollar is also a common way of holding your debts as well-- loans made between countries, loans made across borders, between companies as well.So a natural fact-- if you look at the American population, it's what?
But she said she wanted to start her business, build her business, but she knew that she needed to have a good credit score in order to leverage loans to make that happen.But when she came to us she actually had a pretty bad credit score and even the level of her business was so small that even
We know that the book exists. Loaner it is. "You head to the IT department.
In the spring of '05, we put seven entrepreneur's pictures, much like Sophia. Loans are not always just used for business activities, too.
On the bottom here, this is taken from an article about these interrupter devices that are put on cars for people who get high interest loans in order to afford cars.And I see here two opposite approaches to networked cars.
clients who were engaging this program, and we asked them the types of things that we saw them doing and how they were maybe doing something differently as getting access to loans . It wasn't actually that hard to come up with returns that high. Returns that high for a microenterprise could actually be reasonably that high. So that's not actually enough tosay ... just looking at that interest rate is by no means enough to say, "Oh, this is a bad idea." Now, when we asked the organization, "What
What was important about it wasn't that it did that lending -- and that happens -- was that the loans were sold. You got the phenomenon that was called 'securitization'. Loans were marketed. The link between the lenders and their clients was broken because of this new kind of monetization of credit products.And they were sold. And they were sold again and sold again and spliced and diced in very, very complex combinations. And very, very clever people were hired in
lobe started Countrywide in those days he sold the loans he made to Fanny May um how many people here know what exactly Fanny May is and what it doeslet me see a show show fans one more show oh all right maybe a fourth uh
which is good I will get more into fannye later but Fanny May is a a government agency that buys Home Loans from Banks so banks have cash to make more home loans in in the beginningFanny May uh only did government sponsored loans so Angelo had to make those loans and sell those to Fanny May
headaches for holders of of bonds than inflation you know initially Savings and Loans were only allowed to pay 5.5% on savings accountsand this is one of the misguided government regulations because the the government wants to keep mortgages
doing here and he started talking about subprime and they said you know what we've had some success with taking Prime loans putting them into a pool we chop up the pool and we sell those bonds to investors I bet you we could do the samething with your subprime loans hey why not if Drexel wants to do
their loan in the future.
A not so popular term has been the automatic paycheck deduction, which sounds scary to many people, which is proposed by a Senator that, in order to collect more student loan payments, to withdraw it from your monthly paycheck or your bi-monthly paycheck. Not popular. I don't think folks want to see income, health care, parking or driving, commuting, and student loan payment.
And then we'll definitely save time at the end to talk about questions that you have regarding your situation or just something you're curious about. Student loan refinancing-- definitely the most popular approach that many take to pay off their student loans . So student loan refinancing is the process of taking your student loans , your federal student loans , your private student loans or both,
It's one monthly payment and one student loan servicer. Student loan refinancing is also very flexible.
It's one monthly payment and one student loan servicer. Student loan consolidation. This gets talked about a lot.
It's one monthly payment and one student loan servicer. Student loan servicers can be great.
It's one monthly payment and one student loan servicer. Student loan calculators are tremendous.
E-loan and Prosper, kind of the common thread there.
Their loan book can run off.
The loan was $150 a month.
A loan modification is a program that President Obama started called the Making Home Affordable program, where if someone is behind on their mortgage,
I loaned it to him up there, so it's kind of like a permanent loan .
In the spring of '05, we put seven entrepreneur's pictures, much like Sophia. a loan , versus a loan with all these people behind it.
Interlibrary Loan would be another example.
The loan program from DOE supported the first five utility-scale projects.
Portfolio loans are where a banking, a lending institution, is going to own the loan .
To loan us money for a house?
local loan shark at a high rate, and then he wants his money, so you go to the next loan shark at a higher rate,
to loan me $5,000 dollars for my business." He was one of those guys .
That loan program was George Bush's loan program.
line loan uh into the Obama Administration and so president elect Obama in December and early January of
you're not falling behind you will owe just as much 10 years from now as you owe today if you take out an interest only loan and then you've got the negative amortization loan interesting if I had given this speech 10 years ago I would not have mentioned this I mean I I the product probably theoretically existed but it wasn't given to anybody
going to finance and the first and foremost of those is going to be their incomes you finance you make payments on your loan out of your wage income so if wages are going up prices are going up but prices ought to go up to match the amount of wages going up if wages are going up a little bit and prices are
was that you had to pay back the loan once the lenders stop getting paid back they go hey you know what I don't want to loan on this anymore I'm losing money here this is not this is was not a good idea I'm just going to stop loaning well wait a minute how are people going to bid up these prices now they can't they don't have access to all this borrowed
home loan rules, credit card liability rules.
an SNL and he he figured out that he could make a subprime loan which is basically a loan to a person with a low FICO score know whether or not your prime or not is all based on your credit score Prime is usually 700 or 720 and higher and subprime is basically 620 and lower and