Bank of America says it’s No. 2 for mortgage customer satisfaction. So does Chase.

In the competitive U.S. mortgage market, bank giants are battling to be runner-up in customer satisfaction for home loans.

On Wednesday, Bank of America BAC, +0.83%  boasted of earning the No. 2 spot in J.D. Power’s customer-satisfaction study for mortgage originations. On Tuesday J.P.Morgan Chase JPM, +0.51%  proclaimed it was No. 2 in J.D. Power’s customer-satisfaction study for mortgage servicing.

Both claims are true, with a caveat: USAA out-scored Bank of America in the origination study, but it wasn’t included in the ranking because its mortgages are only available to those who have been or are in the military, plus their families.

So, who is No. 1 for mortgage-customer satisfaction? That’s Quicken Loans, an online lender based in Detroit. Quicken nabbed top spots last year in customer satisfaction for both originations and servicing.

For the origination survey, Quicken has ranked No. 1 for five consecutive years, with good marks for loan offerings, the application and approval process, and problem resolution, among other categories. For the servicing study, 2014 was the first year that J.D. Power included Quicken, which promptly beat its competition. Quicken performed well in categories such as billing and payment process and escrow-account administration.

source: http://www.marketwatch.com/story/bank-giants-battle-to-be-no-2-for-mortgage-customer-satisfaction-2015-07-15

Mortgage rates dip amid world economic concerns

With all the chaos in the world these days – Greece, China, Puerto Rico, not to mention falling oil prices – investors have sought safety in bonds, driving yields down. That usually pushes mortgage rates lower. Although home loan rates dipped this week, they didn’t slide very far, according to the latest data released Thursday by Freddie Mac.

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The 30-year fixed-rate average slipped to 4.04 percent with an average 0.6 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.08 percent a week ago and 4.15 percent a year ago. The 30-year fixed rate has stayed above 4 percent for the past five weeks.

The 15-year fixed-rate average edged down to 3.2 percent with an average 0.5 point. It was 3.24 percent a week ago and a year ago.

Hybrid adjustable rate mortgages also fell. The five-year ARM average dropped to 2.93 percent with an average 0.4 point. It was 2.99 percent a week ago and a year ago.

The one-year ARM average dipped to 2.5 percent with an average 0.3 point. It was 2.52 percent a week ago.

“Yields on Treasury securities declined this week in response to investor concerns about events in Greece and China. Mortgage rates fell as well, although not by as much as government bond yields,” Sean Becketti, Freddie Mac chief economist, said in a statement.

“Overseas volatility is likely to persist for some time, providing some restraint on potential U.S. rate increases. In addition, the minutes of the June meeting of the Federal Open Market Committee suggest the Federal Reserve will proceed cautiously — monitoring events both overseas and in the United States to ascertain the appropriate moment to begin raising short-term interest rates. As a result, mortgage rates may remain in the neighborhood of 4 percent for a while.”

read more: http://www.washingtonpost.com/blogs/where-we-live/wp/2015/07/09/mortgage-rates-dip-amid-world-economic-concerns/

Mortgage Loan Rates Dip, but Remain Volatile

The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning, noting a week-over-week increase of 4.6% in the group’s seasonally adjusted composite index for the week ending July 3. That followed a decrease of 4.7% for the week ending June 26. The weekly results included an adjustment for the Independence Day holiday. Mortgage loan rates decreased on all five loan types.

On an unadjusted basis, the composite index decreased by 6% week over week. The seasonally adjusted purchase index rose by 7% compared to the week ended June 26. The unadjusted purchase index dropped by 4% for the week and remains 32% higher year over year.

The MBA’s refinance index increased by 3% week over week, and the percentage of all new applications that were seeking refinancing slipped from 48.9% to 48.0%, its lowest level since June of 2009.

Mortgage Daily News reported Tuesday that a majority of lenders were quoting conventional 30-year fixed mortgage loan rates of 4% for their top-tier borrowers earlier in the day, but after European markets closed Tuesday those rates disappeared and the prevailing rate moved back to 4.125% for top-tier borrowers. The report goes on to say:

    This type of intraday movement is par the course recently, and it’s not going away any time soon. Whether it’s driven by domestic events such as [Wednesday]’s release of the Minutes from that last Fed meeting, or by several days of negotiations over a new Greek bailout that follow, volatility is the only safe bet. For the past three business days, that volatility has generally left mortgage rates in better shape, but until we see a more stable change in market behavior, it’s safer to treat such days as “lock opportunities” as opposed to promises of further improvement. [Emphasis in original.]

Read more: http://247wallst.com/housing/2015/07/08/mortgage-loan-rates-dip-but-remain-volatile/

Sen. Lucio passes on consulting question

HARLINGEN — After filing the required annual personal financial statement, state Sen. Eddie Lucio Jr. declined to say if any firm paid him for consulting work last year.

Thus, it could not be ascertained if his past practice of consulting for firms doing business in the Rio GrandeValley has continued.

“Rio Consultants does not hold any contracts,” Lucio said of one of his businesses.

But asked if any firm paid him irrespective of contracts, Lucio said, “I have disclosed all the information that is required by the state of Texas.”

“I respectfully pass on requests that go beyond what is required by law,” the senator stated in an email to the Valley Morning Star.

Lucio, D-Brownsville, filed his annual personal financial statement earlier this year.

He reported being self-employed by Rio Shelters, Inc. and Rio Consultants. He also is a partner in Lone Star Golf Carts.

He reported assets of at least $85,000 for his business interests and liabilities of at least $60,000.

Lucio reported owing — alone or with other family member — at least $190,000 to several banks including the Lone Star National Bank, Rio Bank, Texas Regional Bank, BBVA Compass Bank, International Bank of Commerce and Plains Capital.

His personal financial statement notes he and his wife own half a lot in Port Isabel, he and other family member own 10 acres in Los Fresnos and his wife owns remaining properties in Brownsville and Los Fresnos.

State law requires public officials to annually file the statement with the Texas Ethics Commission regarding their sources of income, assets and liabilities of the prior year.

A legislator is allowed to accept compensation for work performed in a capacity other than as a public servant as long as it reflects the actual value of the work performed.

Financial disclosure laws are aimed at discouraging conflicts between a public servant’s personal interests and the performance of the officer’s official duties. The goal, the statute states, is “to strengthen the faith and confidence of the people of this state in state government.”

In 2002, it was learned Lucio was being paid by at least five companies: Aguirre Corp. of Dallas, CorPlan Corrections of Argyle, Dannenbaum Engineering of Houston, Management and Training Corp. of Utah (MTC), and Houston-based TEDSI Infrastructure.

 

read more: http://www.valleymorningstar.com/news/local_news/article_5b3abf00-22c9-11e5-a459-a31bf8546cf4.html

When a reverse mortgage can make sense

Q: Our home has no mortgage. I am 86 and my wife is 79. Home value is about $260,000. Would we benefit from a reverse mortgage and what are disadvantages? Melvin Gatlin, Christiana, Tenn.

A: Not knowing all that's needed to give a complete answer, the short answer is yes.

"I believe there would be a benefit to you from a reverse mortgage," says John Salter, an associate professor in the Department of Personal Financial Planning at Texas Tech University.

He says the Home Equity Conversion Mortgage (HECM) program offers a way to use the equity in your home through a line of credit, a monthly payment called a tenure payment, and a source of cash if needed.

The first benefit, he says, is the line of credit. "There are many advantages to setting up a HECM line of credit, which include the lender cannot call, cancel or reduce the line such as in a traditional home equity line of credit, the line of credit actually grows over time based on the borrowing rate, and the payback is flexible and voluntary," says Salter. That, in essence, means you can pay back any borrowed money at your own will.

In your case, Salter says a line of credit can be useful as a source of emergency funding, a place to draw cash for needs if your portfolio has a severe loss and you would prefer not to sell, and it can be used down the road. If your portfolio gets depleted, you can live on the line of credit.

Other benefits: The program is non-recourse; the loan value will never exceed the home's market value. "So, if you sell or upon death the only amount that is owed is the loan balance up to the home value," says Salter.

There are, of course, downsides to reverse mortgages. If you borrow funds from the mortgage, Salter says you are creating a debt that has to be repaid in the future upon sale of the home or death.

Plus, the mortgages aren't necessarily free. A few lenders have a zero-cost or minimal-cost option to open a line of credit. But those reverse mortgages may or may not have a nominal monthly service charge, says Salter.

Plus, to get a low-cost reverse mortgage, Salter says you'd need to choose the higher lender borrowing rate, called margin. "This increases your borrowing cost ... if your plan is to have the line of credit is for emergencies or future financial protection," says Salter. "This may not be as big of an issue and may be to your benefit later in terms of a larger line of credit available to you."

The line of credit would also be beneficial if you are in a position where you and your wife are comfortable now, but want a safety net for possible future financial issues, says Salter. "If you are in need of shorter-term cash, you can still use the line of credit for this," he says. "But be aware there is a new rule where you can only use less than 60% of the benefit in the first year to avoid a higher up-front cost, and you may be better off long term paying up-front costs to obtain a lower rate if you would plan to use funds earlier."

Salter's bottom line: If your house is paid, and you are financially comfortable, setting up the no-cost reverse mortgage seems like a logical choice. "You may never need it, but it will be there if you do," Salter says. "Just remember any funds borrowed is debt in your grand financial picture."

To learn more about reverse mortgages, check out the government's website, which also has a list of lenders to contact

read more: http://www.usatoday.com/story/money/columnist/powell/2015/06/27/reverse-mortgage-answers-robert-powell/28977291/

NextEra Energy hires The Boston Consulting Group for Hawaiian Electric Co. deal

NextEra Energy Inc., which is proposing to buy Hawaiian Electric Co. for $4.3 billion, has hired The Boston Consulting Group as an integration consultant, according to public documents.

 

The selection of one of the world's largest management consulting firms, which has 81 offices in 45 countries and is one of the “Big Three” in its industry, sets in motion the integration planning process for the sale.

 

In March, NextEra Energy CEO Jim Robo directed the company to retain an integration consultant upon completion of a successful shareholder vote in May by Hawaiian Electric's parent, Hawaiian Electric Industries. But HEI did not get enough of its shareholders to approve the sale at that time, which led to an extension of the vote to June 10, when it was approved. That enabled NextEra Energy to move ahead with the hiring of The Boston Consulting Group.

 

The cost of The Boston Consulting Group’s services were redacted in the document.

 

Both NextEra Energy and Hawaiian Electric also have added more team members to establish a core integration management office, which established guiding principles and a preliminary team structure. The office also began culture assessment planning and started to develop its first executive steering committee.

see more: http://www.bizjournals.com/pacific/news/2015/06/23/nextera-energy-hires-the-boston-consulting-group.html

Membership: Club Membership Req, Equity Purchase Req

Drug makers “regularly pay physicians for various types of work, such as speaking, consulting and clinical research,” The Wall Street Journal notes. But a new study led by Cleveland researcher Susannah Rose “finds female physicians received noticeably less than their male counterparts for the same activities.”

From the story:

For instance, men were paid $41 more, on average, than women for meals; they were also paid nearly $2,900, on average, more than women for speaking and about $2,400 more, on average, than women for consulting. Similarly, men were paid $15,000 more, on average, than women for industry-sponsored research, according to study in PLOS ONE.

Overall, of the $17.9 million paid to nearly 221,000 physicians by drug makers in 2011, just 24.9% went to women. Female physicians, on average, received fewer total dollars — nearly $3,600 — per person than men. The study analyzed publicly reported financial relationships among 747,603 physicians and 432 pharmaceutical, device and biomaterials companies in 2011.

The study authors say the findings “suggest that female physicians are not reaping the benefits of industry support at a time when government funding for research has been declining,” according to the story.

“It’s troubling because this may place women at a distinct disadvantage,” Rose, the study’s lead author, tells The Journal.

She is director of bioethics research and policy at the Cleveland Clinic and an assistant professor of medicine at Case Western Reserve University.

The Journal says Rose notes that previous studies “have found that women also receive less funding from the NIH than men.” In addition, the study found that disparities “were generally larger at institutions — such as academic medical centers — with better reputations, which are seen as more desirable by industry.”

However, the authors “were not able to cite reasons for the disparities,” The Journal says. They speculate that “industry could be biased; women may not work in medical specialties were the most research is conducted; industry may believe audiences at educational events respond better to male speakers; or women may be less inclined to work with industry.”

Spotlight on police unions

CityLab.com uses Cleveland as the focal point to explore what it calls “the paranoia of police unions” in response to reform efforts.

The website notes that Steve Loomis, head of the Cleveland Police Patrolmen’s Association, “has said that officers feel uneasy after recent decisions handed down concerning the department — decisions that have put police officers’ lives in danger.”

Never mind, says CityLab.com, “that each of the judgments in question represents an effort to bring accountability to law enforcement in Cleveland.”

Loomis’ logic, as articulated in recent comments to The Plain Dealer, amount to saying that efforts to reform police practices embolden criminals,

see more: http://www.crainscleveland.com/article/20150618/BLOGS03/150619785/female-physicians-receive-less-pay-than-males-for-speaking