Your Questions About Direct Loan Servicing

Nagesh answers:

These are the usual direct marketing activities of a bank:
1. Get new customers through direct mail, outward bound telemarketing, couponed print ads, direct response TV and radio.
2. Keep old customers happy. Direct mail, outward bound telemarketing, envelope stuffers with statements, paid checks
3. Resell and ujpsell old customers. (Get them to try new services) Direct mail, outward bound telemarketing, envelope stuffers with statements, paid checks
4. Sell bank-related services (mortgage loans, credit cards, loans, safe deposit boxes, foreign banking). Direct mail, couponed print ads, TV and radio
5. Crisis management (bank default, run on bank, rumors). Email, radio, outward bound phone, direct mail
6. New branch opening (email, direct mail, direct rsponse ads, TV and radio, outward bound telemarketing

One useful source of free direct marketing ideas you might want to look at is: www.word-jobber.blogspot.com

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Nagesh answers:

What Col Kurtz didn’t mention is that when you pay retail to a direct lender you end up with a higher rate and the lender gets more on the back end then a broker would, it’s called SRP or service release premium.

Here’s another little fact/difference.

The brokers yield spread premium has to be disclosed on the HUD1 settlement statement but the bank does not have to disclose their premium.

Nagesh answers:

Department of Education has very specific rules for their student loan forgiveness policies for those who work in public service. Page 47 of this book describes the details of having loans forgiven. Note: these are for FEDERAL loans only. If she has private student loans (or she consolidated loans after graduation, she may not qualify.)
http://studentaid.ed.gov/students/attach… (page 47)

What is a public service job?
Eligible public service jobs are full-time jobs in the following fields:
• Emergency management
• Government
• Military service
• Public safety
• Law enforcement
• Public health
• Public education (including early childhood education)
• Social work in a public child or family service agency
• Public child care
• Public service for individuals with disabilities
• Public interest law services (including prosecution or public defense or legal advocacy in low income communities at a nonprofit organization)
• Public service for the elderly
• Public library sciences
• School-based library sciences and other school-based services
• Certain tax-exempt organizations
• Faculty teaching in high-needs areas, as determined by the Secretary
• Full-time faculty member at a Tribal College or University

Note: A borrower who pays only, or primarily, under a 10-year standard repayment plan or under another repayment plan in amounts consistent with a 10-year standard repayment is UNLIKELY TO HAVE A REMAINING BALANCE for loan forgiveness after making 120 payments on the loan.

(This is why no one ever really qualifies, they passed the law, but if the person actually pays on it for 10 years, they pay the loan off!!!!) Stupid, worthless benefit that looks good on paper but never gets used unless someone takes a job working for minimum wage after they earn their degree.

How do I qualify for this loan forgiveness?
To be eligible to have remaining balances canceled, you must not be in default on the eligible loans and must have made 120 monthly payments on the eligible loan(s) beginning after Oct. 1, 2007. Earlier payments do not count toward meeting this requirement. Payments must have been made under any one or a combination of the following Direct Loan Program repayment plans.

• Standard Repayment Plan with a 10-year repayment period.
• Income-Contingent Repayment (ICR) Plan—not available to parent Direct PLUS loan borrowers.
• Income-Based Repayment (IBR) Plan—not available to parent Direct PLUS loan borrowers.
• Other Direct Loan repayment plans, but only payments that are at least equal to the amount that would be required under the 10-year Standard Repayment Plan may be counted toward the required 120 payments.

Nagesh answers:

1. It’s not that much difference between the two. Both helps keep everything on track.
2.Savings plans, payment services,and credit plans.
3.Common electronic banking transactions include obtaining cash, point of purchase payment, direct deposit, preauthorize payments, and transfer of funds between checking, savings, and loans.
4. You should always take the time to look at the rates and fees, online services and the offered that the bank may have for you.
5.When selecting a financial institution, a person should consider the services available, convenience (location, hours, branch offices, banking by mail, automatic teller machines), safety, personal service, rates charged, and interest paid to savers.

Nagesh answers:

The following is a summary of information about an assistance program or grant available to individuals or families through an agency of the U.S. Government. (“CFDA No.” is the program’s listing number in the Catalog of Federal Domestic Assistance.)

CFDA No. 10.417 VERY LOW-INCOME HOUSING REPAIR LOANS AND GRANTS

CATEGORY: Housing Assistance

OBJECTIVES
To give very low-income rural homeowners an opportunity to make essential repairs to their homes to make them safe and to remove health hazards to the family or the community.

TYPES OF ASSISTANCE
Direct Loans; Project Grants

USES AND USE RESTRICTIONS
The Very Low-Income Housing Repair program provides loans and grants to very low-income homeowners in rural areas to repair, improve, or modernize their dwellings or to remove health and safety hazards. Grant funds are only available to homeowners aged 62 or older who cannot repay a Section 504 Loan. This includes repairs or replacement of heating, plumbing or electrical services, roof or basic structure as well as water and waste disposal systems, and weatherization. Loans bear an interest rate of one percent and are repaid over a period up to 20 years. In addition to the above purpose, loan funds may be used to modernize the dwelling. Maximum loan amount cannot exceed a cumulative total of $20,000 to any eligible person and a maximum lifetime grant assistance is $7,500 to any eligibile person. The house must be located in an eligible rural area which does not not exceed 10,000 population. Some places with population between 10,000 and 25,000 may be eligible if not within a Metropolital Statistical Area (MSA). Assistance is available in States, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of Northern Mariana’s and the Trust Territories of the Pacific Islands.

ELIGIBILITY REQUIREMENTS
Applicants must own and occupy a home in a rural area; and be a citizen of the United States or reside in the United States after having been legally admitted for permanent residence or on indefinite parole. Loan recipients must have sufficient income to repay the loan. Grant recipients must be 62 years of age or older and be unable to repay a loan for that part of the assistance received as a grant. Applicant’s income may not exceed the very low-income limit set forth in RD Instructions.

INFORMATION CONTACTS
Regional or Local Office: Consult your local telephone directory for Rural Development county office number. If no listing, contact your Rural Development State office listed in Appendix IV of the Catalog or visit http://www.rurdev.usda.gov/recd_map.html.

Headquarters Office: Director, Single-Family Housing Processing Division, Rural Housing Service, Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-1474. Use the same number for FTS.

Web Site Address http://www.rurdev.usda.gov.