#aaron amort

[nofatclips]

Grandpappy's Gold by Bearaxe featuring Terry Moore, live on Band in Seattle

[magzoso-tech]

New Post has been published on https://magzoso.com/tech/leading-robotics-vcs-talk-about-where-theyre-investing/

Leading robotics VCs talk about where they’re investing

The Valley’s affinity for robotics shows no signs of cooling. Technical enhancements through innovations like AI/ML, compute power and big data utilization continue to drive new performance milestones, efficiencies and use cases.

Despite the old saying, “hardware is hard,” investment in the robotics space continues to expand. Money is pouring in across robotics’ billion-dollar sub verticals, including industrial and labor automation, drone delivery, machine vision and a wide range of others.

According to data from Pitchbook and Crunchbase, 2018 saw new highs for the number of venture deals and total invested capital in the space, with roughly $5 billion in investment coming from nearly 400 deals. With robotics well on its way to again set new investment peaks in 2019, we asked 13 leading VCs who work at firms spanning early to growth stages to share what’s exciting them most and where they see opportunity in the sector:

Shahin Farshchi, Lux Capital

Kelly Chen, DCVC

Rob Coneybeer, Shasta Ventures

Aaron Jacobson, NEA

Eric Migicovsky, Y Combinator

Helen Liang, FoundersX Ventures

Andrew Byrnes, Micron Ventures

Ludovic Copéré Sony Innovation Fund

Costantino Mariella, Sony Innovation Fund

Cyril Ebersweiler, SOSV & HAX

Peter Barrett, Playground Global

Bruce Leak, Playground Global

Jim Adler, Toyota AI Ventures

Participants discuss the compelling business models for robotics startups (such as “Robots as a Service”), current valuations, growth tactics and key robotics KPIs, while also diving into key trends in industrial automation, human replacement, transportation, climate change, and the evolving regulatory environment.

Shahin Farshchi, Lux Capital

Which trends are you most excited in robotics from an investing perspective?

The opportunity to unlock human superpowers:

Increase productivity to enhance creativity leading to new products and businesses.

Automating dangerous tasks and eliminating undesirable, dangerous jobs in mining, manufacturing, and shipping/logistics.

Making the most deadly mode of transport: driving, 100% safe.

How much time are you spending on robotics right now? Is the market under-heated, overheated, or just right?

Three-quarters of the new opportunities I look at involve some sort of automation.

The market for robot startups attempting direct human labor replacement, floor-sweeping, and dumb-waiter robots, and robotic lawnmowers and vacuums is OVER heated (too many startups).

The market for robot startups that assist human workers, increase human productivity, and automate undesirable human tasks is UNDER heated (not enough startups).

Are there startups that you wish you would see in the industry but don’t? Plus any other thoughts you want to share with TechCrunch readers.

I want to see more founders that are building robotics startups that:

Solve LATENT pain points in specific, well-understood industries (vs. building a cool robot that can do cool things).

Focus on increasing HUMAN productivity (vs. trying to replace humans).

Are solving for building interesting BUSINESSES (vs. emphasizing cool robots).

Kelly Chen, DCVC

Three years ago, the most compelling companies to us in the industrial space were in software. We now spend significantly more time in verticalized AI and hardware. Robotic companies we find most exciting today are addressing key driver areas of (1) high labor turnover and shortage and (2) new research around generalization on the software side. For many years, we have seen some pretty impressive science projects out of labs, but once you take these into the real world, they fail. In these changing environmental conditions, it’s crucial that robots work effectively in-the-wild at speeds and economics that make sense. This is an extremely difficult combination of problems, and we’re now finally seeing it happen. A few verticals we believe will experience a significant overhaul in the next 5 years include logistics, waste, micro-fulfillment, and construction.

With this shift in robotic capability, we’re also seeing a shift in customer sentiment. Companies who are used to buying outright machines are now more willing to explore RaaS (Robot as a Service) models for compelling robotic solutions – and that repeat revenue model has opened the door for some formerly enterprise software-only investors. On the other hand, companies exploring robotics in place of tasks with high labor shortages, such as trucking or agriculture, are more willing to explore per hour or per unit pick models.

Adoption won’t be overnight, but in the medium term, we are very enthusiastic about the ways robotics will transform industries. We do believe investing in this space requires the right technical know-how and network to evaluate and support companies, so momentum investors looking to dip their hand into a hot space may be disappointed.

Rob Coneybeer, Shasta Ventures

We’re entering the early stages of the golden age of robotics. Robotics is already a huge, multibillion-dollar market – but today that market is dominated by industrial robotics, such as welding and assembly robots found on automotive assembly lines around the world. These robots repeat basic tasks, over and over, and are usually separated by caged walls from humans for safety. However, this is rapidly changing. Advances in perception, driven by deep learning, machine vision and inexpensive, high-performance cameras allow robots to safely navigate the real world, escape the manufacturing cages, and closely interact with humans.

I think the biggest opportunities in robotics are those which attack enormous markets where it’s difficult to hire and retain labor. One great example is long-haul trucking. Highway driving represents one of the easiest problems for autonomous vehicles, since the lanes tend to be well-marked, the roads have gentle curves, and all traffic runs in the same direction. In the United States alone, long haul trucking is a multi-hundred billion dollar market every year. The customer set is remarkably scalable with standard trailer sizes and requirements for shipping freight. Yet at the same time, trucking companies have trouble hiring and retaining drivers. It’s the perfect recipe for robotic opportunity.

I’m intrigued by agricultural robots. I’ve seen dozens of companies attacking every part of the farming equation – from field clearing and preparation, to seeding, to weeding, applying fertilizer, and eventually harvesting. I think there’s a lot of value to be “harvested” here by robots, especially since seasonal field labor is becoming harder to find and increasingly expensive. One enormous challenge in this market, however, is that growing seasons mean that the robotic machinery has a lot of downtime and the cost of equipment isn’t as easily amortized in other markets with higher utilization. The other big challenge is that fields are very, very tough on hardware and electronics due to environmental conditions like rain, dust and mud.

There are a ton of important problems to be solved in robotics. The biggest open challenges in my mind are locomotion and grasping. Specifically, I think that for in-building applications, robots need to be able to do all the thing which humans can do – specifically opening and closing doors, climbing stairs, and picking items off of shelves and putting them down gently. Plenty of startups have tackled subsets of these problems, but to date no one has built a generalized solution. To be fair, to get to parity with humans on generalized locomotion and grasping, it’s probably going to take another several decades.

Overall, I feel like the funding environment for robotics is about right, with a handful of overfunded areas (like autonomous passenger vehicles). I think that the most overlooked near-term opportunity in robotics is teleoperation. Specifically, pairing fully automated robotic operations with occasional human remote operation of individual robots. Starship Technologies is a perfect example of this. Starship is actively deploying local delivery robots around the world today. Their first major deployment is at George Mason University in Virginia. They have nearly 50 active robots delivering food around the campus. They’re autonomous most of the time, but when they encounter a problem or obstacle they can’t solve, a human operator in a teleoperation center manually controls the robot remotely. At the same time. Starship tracks and prioritizes these problems for engineers to solve, and slowly incrementally reduces the number of problems the robots can’t solve on their own. I think people view robotics as a “zero or one” solution when in fact there’s a world where humans and robots work together for a long time.

[ericfruits]

Smucker's Bite-Sized Pet-Food Deal Goes Down Easy

April 5, 2018 10:49 a.m. ET

Not all pet-food acquisitions are the same. J.M. Smucker Co.’s $1.7 billion deal for Ainsworth Pet Nutrition, maker of Rachael Ray-endorsed Nutrish dog treats, looks like a winner.

Like other packaged-food brands, the maker of jams and peanut butter is eager to diversify its product suite, and the rapidly growing market for premium pet foods is attractive. In February, General Mills GIS -0.01% agreed to acquire Blue Buffalo BUFF -0.01% Pet Products for $8 billion.

That deal wasn’t well-received by investors. General Mills shares fell by 6.4% the following two trading sessions on fears that the company was overpaying and would have few synergies with the newly acquired business.

That isn’t the case with the Ainsworth deal. Unlike General Mills, Smucker already has a large pet-food business, having acquired Meow Mix-maker Big Heart Pet Brands in 2015. This makes it easier to reap cost savings by combining the two units. Smucker said these savings would come to $25 million in the first year, rising to an annual $55 million in three years.

After taking into account those cost savings, Smucker said it is paying approximately 12 times earnings before interest, taxes, depreciation and amortization for Ainsworth. That compares to 22 times, including synergies, that General Mills paid for Blue Buffalo.

Smucker also said it is considering selling its U.S. baking business, which includes things like Pillsbury cake mixes, Hungry Jack pancakes and Martha White cornbread. These are the kinds of processed, carbohydrate-heavy products that consumers are shying away from. Disposing of them makes sense, though it may be a challenge to fetch a good price.

Smucker’s shares were down by less than 1% in early morning trading on Thursday, a far milder reaction than General Mills received after its pet-food deal. The lesson for packaged-food makers eyeing deals is that valuation still matters.

Write to Aaron Back at aaron.back@wsj.com

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[phgq]

Clark airport defers rental collection from locators

#PHnews: Clark airport defers rental collection from locators

CLARK FREEPORT, Pampanga – Heeding the call of President Rodrigo Duterte  during his State of the Nation Address (SONA) last Monday, the Clark International Airport Corporation (CIAC) announced on Wednesday that it is deferring the collection of lease rentals from its locators to assist the business sector adversely affected by the coronavirus disease 2019 (Covid-19) pandemic.

“We currently have about 45 locators and we told them that they don’t have to right now pay their rentals for the months of April to June this year, and they also do not need to worry about paying any interests or penalties on delayed payments,” CIAC president Aaron Aquino said in a statement.

“We hope this policy will serve as a springboard for businesses here at the aviation complex to promptly recover from the sudden business disruption and income loss caused by the pandemic,” he said.

Duterte reiterated his call to lawmakers to finalize the Bayanihan 2, a proposed measure to finance government-initiated programs to help businesses, employees and marginalized members of the society to cope with the impact of the pandemic.

“It was no less than President Duterte who reminded bigger establishments -- in our case, the CIAC as the government-owned corporation -- to give assistance to stakeholders on rentals, or a form of an extension in the period of payments,” Aquino said.

In addition to the deferred collection of lease rentals during the quarantine period, Aquino said CIAC locators are also given a 30-day grace period from the last due date of their rental payments or from the date of the lifting of the enhanced community quarantine (ECQ), modified ECQ and general community quarantine (GCQ), “whichever is longer, without incurring interests.”

After the grace period, locators are given the option of paying their unsettled accounts through a 12-month installment scheme, he said.

“This means the amount of rentals accrued by locators during the ECQ, MECQ and GCQ can be equally amortized in 12 months following the end of the 30-day grace period, and again without interest or penalties,” he added.

For outstanding accounts as of March 15, 2020 or “old unpaid accounts prior to the imposition of the ECQ,” Aquino noted CIAC shall grant a grace period for payment of 90 calendar days, adding that no interest or penalty shall be imposed from March 16 up to June 15.

He said these policies will be applied while awaiting an official guideline from the Department of Trade Industry on the request of both the Clark Development Corporation and the Bases Conversion Development Authority to allow the grant of full waiver on payment of lease rentals from April to June 2020.

The Clark Civil Aviation Complex managed by CIAC is home to the privately-run Clark International Airport, as well as the mixed-use business district Clark Global City, and has currently around 45 locators in cargo and aviation-related businesses. (PNA)

  ***

References:

* Philippine News Agency. "Clark airport defers rental collection from locators." Philippine News Agency. https://www.pna.gov.ph/articles/1110458 (accessed July 30, 2020 at 12:21AM UTC+14).

* Philippine News Agency. "Clark airport defers rental collection from locators." Archive Today. https://archive.ph/?run=1&url=https://www.pna.gov.ph/articles/1110458 (archived).

[gadgetsrevv]

Man United’s summer wasn’t good enough for a club of their size and ambition

Faith begins when reason ends. You get to the outer limits of your rational tether and then you take that big leap. It’s not necessarily a bad thing: Belief is central to sports. History is filled with stories of those who believed in themselves, thereby achieving great things. There’s also a rich trove of “outside-the-box” thinkers who are rewarded when they defy conventional wisdom and mainstream opinion to do things differently, whether in terms of tactical innovation or recruitment approach.

Then again, relying on faith more than reason can also amount to a whole lot of smoke and mirrors. And Manchester United’s summer transfer campaign requires a leap of faith, because reason and evidence won’t get you far enough. Certainly not if you want to divine some kind of path forward progress in the medium term.

But first, let’s deal with the aspects of United’s summer that were not leaps of faith.

Aaron Wan-Bissaka may have just one Premier League season as a starter under his belt, but he showed more than enough and has shown more than enough in the past year to suggest he belongs at this level. Add the fact that he’s 21, which means you’ll either amortize the fee over a decade of service or, if he comes up short, still get a fair chunk of your money back thanks to the Premier League mid-tier’s insatiable hunger for competent English footballers.

– Ogden: Another good start for Man United? – Premier League 2019-20: Best-case, worst-case scenarios – Team page: All Man United news, fixtures and results

Extending Marcus Rashford‘s contract also falls into the no-brainer category. It’s true that a reported £200,000 a week is a hefty pay package, but a striker of comparable quality and age (21) probably would have cost close to that in wages, plus a massive transfer fee. What’s more, he’s Mancunian, he’s likeable, he’s a good professional and he’s homegrown, all of which tick marketing and “club values” boxes as well.

Harry Maguire, at £80 million, is a bit more of a stretch but still no more than a calculated risk for a club of Manchester United’s financial might. There’s enough of a body of work there to suggest that, at worst, he’ll be an upgrade over the guys he’s replacing. He turns 27 this season, so you probably won’t get much resale but at best, he’ll be one of the top central defenders in the league for six or so years.

Move along the reason-to-faith continuum and the needle moves a little further into the “faith” category.

Daniel James has excited many and he too seems like a thoroughly likable guy. At £15 million (plus potential bonuses), he wasn’t overly expensive to poach from Swansea, either. But he turns 22 in November and made his league debut only a year ago. Compare him to another Welsh winger, Liverpool’s Ben Woodburn, and you’ll note that he has four international caps to Woodburn’s 10. Note that Woodburn is nearly two years younger and plays his league football in League One this season.

Maybe the Welsh FA are fools. Maybe James is a late bloomer. Maybe coaches and scouts just missed out on him. Maybe United spotted something beyond his absurdly good goal that went viral last year, but there’s no denying that it’s rare for players at that fee and with that résumé to have a lasting impact at Old Trafford. Again, it takes a leap of faith, in both James and United’s scouting, that he won’t turn into the Welsh David Bellion.

David De Gea’s new contract — agreed to but apparently not yet signed — is a leap of faith either way. If the club signs off on paying him £110 million over the next six years, the leap of faith is that they believe the real De Gea is the one from two years ago, not the one from last season (who was humdrum, by his standards). Any way you slice it, that’s an enormous wage, particularly since it’s not as if Europe’s other big boys were beating a path to his door: most are already well-served between the sticks.

(Of course, if there’s a more sinister reason why he has reportedly yet to sign, like holding out for even more money or running down his contract, then that’s even more worrying, though truth be told, the mishandling of De Gea’s deal in letting it go this far predates the summer.)

Paul Pogba, left, and Harry Maguire, second from left, will help anchor this Man United side moving forward but the summer transfer window was largely frustrating for the club.

Cycle backwards and there was the appointment of the manager.

As an interim boss to muck out Jose Mourinho’s mess, Ole Gunnar Solskjaer was just fine. But giving him a permanent deal (three years, no less) in April when they could have spent another two months evaluating him (and deciding if there were better options out there) was another massive leap of faith.

How about the striking department and the decision to let Romelu Lukaku go without replacing him, and to do it at the very end of the English transfer window? United have five forwards on their books, which sounds ample until you remember that one of them (Rashford) has never started more than 36 games in all competitions or scored more than 13 goals. Another (Anthony Martial) does double duty as a winger and has started fewer than half of United’s league games over the past three seasons. Then there’s Alexis Sanchez, who is coming off a Copa America, scored only twice in all competitions last year and has generally been a bust since moving to Old Trafford.

United’s other two forward options, Tahith Chong and Mason Greenwood, are 19 and 17 respectively and had eight appearances, one start and no goals between them heading into this season.

There are many leaps of faith in there. You need to believe that Rashford and/or Martial can double their productivity, just like that. You need to be confident that Sanchez can regain his mojo (a seriously long shot), and you need to believe that Greenwood and/or Chong can step up.

(Greenwood, especially, is a highly rated prospect but he turns only 18 this season. Reason and history suggests 18-year-olds don’t generally contribute greatly even when we’re talking GOAT candidates. Lionel Messi had 25 appearances and eight goals the year he turned 18. Cristiano Ronaldo clocked in at 31 and five. Sure, there are players who blossomed at a tender age — Michael Owen, Kylian Mbappe, Neymar — but they’re the exception. Are you sure you want to take that leap of faith with Greenwood?

Maybe the biggest leap of faith of all is in midfield.

Compared to a year ago, United lost Marouane Fellaini and Ander Herrera this summer and neither was replaced. Instead, your leap of faith is that Scott McTominay — who is 22 and started only nine league games last season on a pretty average team by United standards — will blossom or, if that doesn’t happen, that 31-year-old Nemanja Matic, whose output declined sharply last season, will turn back the clock. Or that Fred, who struggled in his first season at Old Trafford and started only 10 of 29 games with Solskjaer in charge, will go back to being the player he was in Ukraine. Or that Andreas Pereira, now in his sixth season at the club (he has seven league starts to show for it) will suddenly, at 23, go to the next level.

– Ames: Man United the big losers in transfer window? – Borden: Christian Pulisic is not your wonderboy anymore – 30 Under 21: The best young players in men’s soccer

(You’ll note at this point that I haven’t mentioned the club’s most expensive player, one Paul Pogba. I have faith, as does the club, that he won’t leave between now and the end of the Spanish transfer window and that he’ll have a strong, productive season. Many do not.)

There’s nothing wrong with faith. It comes down to trust. The people making the decisions at the club, from Ed Woodward to Solskjaer to assistant coach Mike Phelan, to the gaggle of scouts and coaches on the payroll, see these guys every day and do this job for a living. If you trust them enough to take that leap of faith, then great. Maybe they’ll be vindicated.

But when it comes to reason, that’s another matter. Reason, when you have the sort of resources United have, would have suggested a different path, one with fewer leaps of faith and a couple more reasonable certainties. Provided, of course, the conspiracy theories being peddled in the darkest corners of the internet aren’t true and Man United’s goal is to genuinely restore the club to a status befitting its history and achievements over most of the past three decades and not simply to milk it further commercially while making the balance sheet look better in case a prospective buyer turns up.

Either way, it could be a long season at Old Trafford. 

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[aaronsniderus]

How Student Loans Impact Your Debt-to-Income Ratio

You recently applied for student loan refinancing, a car loan or maybe a mortgage, but soon after are notified that your application was not accepted. Denied. Your credit score is solid, you make a decent living and you’ve never missed a payment. So, what gives?

There’s one factor you might not be considering: your debt-to-income ratio.

What is a debt-to-income ratio?

Your debt-to-income ratio is a percentage of how much debt you owe relative to your income. Often referred to as “DTI” for short, it’s an important number in your financial life.

When applying for a loan or other type of credit, many lenders look not only at your overall credit score, but also at your DTI to determine if you’re a good candidate. If a large chunk of your income is going to debt each month, lenders may be wary of extending further credit.

The lower your debt-to-income ratio, the better. But if you have pesky student loans, they could be pushing your DTI into the red zone, which can make you look risky to creditors and make it difficult to reach your financial goals.

Front-end vs. back-end DTI

As if the whole concept of DTI weren’t complicated enough, you actually have two different debt-to-income ratios: front-end DTI and back-end DTI.

Your front-end debt-to-income ratio is how much of your gross income goes toward housing costs, such as mortgage payments and insurance. If you don’t yet own a home and are applying for a mortgage, your front-end DTI is what you would be paying if you were approved.

Your back-end debt-to-income ratio is how much of your gross income goes toward all of your debt obligations, including credit card payments, student loan payments, mortgage — even child support and alimony.

Typically, lenders would like your front-end DTI to be 28% or less. For back-end DTI, the standard benchmark is typically 36% or less. These numbers aren’t set in stone and may vary by lender, but if you have a generally high debt-to-income ratio, you may have difficulty getting approved for new loans.

In fact, according to the Consumer Financial Protection Bureau, 43% is the maximum DTI a borrower can have in order to get approved for a qualified mortgage.

How student loans impact your debt-to-income ratio

Your student loans aren’t accounted for in the front-end debt-to-income ratio, but that debt certainly impacts the back-end. If you have a steep student loan balance, your DTI can be high — in some cases, too high, effectively limiting your options to buy a house while owing student loans, to refinance your student debt, and more.

For example, let’s say you are applying for a mortgage. Your gross income (before taxes) is $3,000 per month and your monthly debt breakdown looks like this:

Estimated mortgage payment and insurance = $1,000 Student loan payment = $300 Credit card payment = $50 Car payment = $200

In this scenario, your total debt payments add up to $1,550 per month. To find out your DTI, you’d divide your total debts by your gross income or use the calculator below.

With either method, you’ll find that your monthly debt of $1,550, divided by an income of $3,000, comes out to a DTI of 51.6%. Yikes!

Debt-to-Income (DTI) CalculatorYour infoGross annual incomeMonthly housing costMonthly minimum credit card paymentsMonthly auto loan paymentsMonthly student loan paymentsMonthly personal loan paymentsOther monthly debtBased on an income of $60,000, monthly housing costs of $900 and $100 in other monthly debt payments, your Front-End DTI is — and your Back-End DTI is —.6 Best Banks To Refinance Your Student Loans6 Ways To Lower Your Debt-to-Income RatioHow Your Student Loans Can Affect Your Mortgage Application

Student loan refinancing rates as low as % APR. Check your rate in 2 minutes.

TotalFront-End DTIBack-End DTI

Your debt-to-income ratio, student loans and how they affect your mortgage

If over half of your income would be going to your debt obligations — as in the example above — you won’t get approved for that mortgage.

“I think debt-to-income ratios are about to become very problematic for people who carry student loan debt and want to buy a house,” said Aaron LaRue, borrower-experience lead at Clara Lending, which is now part of SoFi.

“When applying for a home loan, debt-to-income ratios can be one of the largest limiting factors when calculating home affordability. I’d argue that this is a bigger issue than having a low credit score. As far as qualifying, it’s right up there with how much you have for a down payment,” LaRue added.

And if you don’t have much for a down payment, your DTI could matter even more. A down payment is a way for lenders to reduce risk — the more you pay up front, the less they need from a mortgage. A 20% down payment is the standard amount if you want to avoid paying private mortgage insurance, although the Federal Housing Administration loan program offers mortgages down payments as low as 3.5%.

But for millennials, student loans may make home ownership a tough goal to achieve. Only 34% of millennials with student loans own a home, according to an October 2018 study by MagnifyMoney. (Note: Both MagnifyMoney and Student Loan Hero are owned by LendingTree.) The study also found that millennials with student loans who did own a home tended to have less valuable properties and higher mortgages than those without student loans.

How to improve your debt-to-income ratio, student loans and all

If you’re thinking of applying for a credit card, mortgage, car loan, student loan refinancing or another type of funding, it’s important to not only maintain good credit, but a healthy debt-to-income ratio as well.

For example, when mortgage lenders examine your back-end DTI, a large student loan payment can be “a killer,” according to LaRue. “A monthly payment of a few hundred dollars can translate to a loss of tens of thousands of dollars off of your maximum home purchase price,” he explained.

Before you go after a big financial goal, calculate your debt-to-income ratio. If it’s too high, you may want to hold off for a while until you improve your situation. Otherwise, you’re much more likely to face rejection.

I’ll let you in on a little secret: I was actually rejected for student loan refinancing because of my debt-to-income ratio. And honestly, I should’ve known better, considering I was making $30,000 at the time and my student loans balance was also at $30,000. If your loans are the same level or even higher than your salary, it’s likely your DTI is also too high!

But before you give up on applying for a mortgage or refinancing forever, there are ways you can improve your debt-to-income ratio:

Ask for a raise Earn more through side hustling Pay off your debt ASAP

In other words, to improve your DTI, you need to earn more, get rid of some debt, or both. Given the example above, if you were to focus on eliminating your student loans and car loan, you’d be left with a prospective $1,000 mortgage payment and $50 credit card bill each month. And $1,050, divided by $3,000, comes out to a more reasonable 35%.

If you want to improve your debt-to-income ratio to pursue your big life goals, make it a point to pay off your debt as soon as possible and find ways to supplement your income. It could mean the difference between getting a letter that says, “Congratulations!” and one that begins, “We regret to inform you…”

By preparing now and understanding how student loans affect debt-to-income ratio, you can take the necessary steps to go after what you want without being automatically rejected.

Dillon Thompson contributed to this report.

Interested in refinancing student loans? Here are the top 6 lenders of 2019!

LenderVariable APREligible Degrees  Check out the testimonials and our in-depth reviews! 1 Important Disclosures for SoFi. SoFi Disclosures Student loan Refinance:

Fixed rates from 3.890% APR to 8.074% APR (with AutoPay). Variable rates from 2.500% APR to 7.115% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.500% APR assumes current 1 month LIBOR rate of 2.50% plus 0.00% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. See eligibility details. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org) 2 Important Disclosures for Earnest. Earnest Disclosures

To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.50% APR (with Auto Pay) to 7.27% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of April 17, 2019, and are subject to change based on market conditions and borrower eligibility.

Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.

The information provided on this page is updated as of 04/17/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at hello@earnest.com, or call 888-601-2801 for more information on our student loan refinance product.

© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.

3 Important Disclosures for Laurel Road. Laurel Road Disclosures

FIXED APR Fixed rate options consist of a range from 3.75% per year to 5.80% per year for a 5-year term, 4.25% per year to 6.25% per year for a 7-year term, 4.55% per year to 6.65% per year for a 10-year term, 4.85% per year to 7.05% per year for a 15-year term, or 5.30% per year to 7.27% per year for a 20-year term, with no origination fees. The fixed interest rate will apply until the loan is paid in full (whether before or after default, and whether before or after the scheduled maturity date of the loan). The monthly payment for a sample $10,000 loan at a range of 3.75% per year to 5.80% per year for a 5-year term would be from $183.04 to $192.40. The monthly payment for a sample $10,000 loan at a range of 4.25% per year to 6.25% per year for a 7-year term would be from $137.84 to $147.29. The monthly payment for a sample $10,000 loan at a range of 4.55% per year to 6.65% per year for a 10-year term would be from $103.88 to $114.31. The monthly payment for a sample $10,000 loan at a range of 4.85% per year to 7.05% per year for a 15-year term would be from $78.30 to $90.16. The monthly payment for a sample $10,000 loan at a range of 5.30% per year to 7.27% per year for a 20-year term would be from $67.66 to $79.16.

However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the fixed rate will decrease by 0.25%, and will increase back up to the regular fixed interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.

VARIABLE APR Variable rate options consist of a range from 2.75% per year to 6.30% per year for a 5-year term, 4.00% per year to 6.35% per year for a 7-year term, 4.25% per year to 6.40% per year for a 10-year term, 4.50% per year to 6.65% per year for a 15-year term, or 4.75% per year to 6.90% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.25% to 3.80% for the 5-year term loan, 1.50% to 3.85% for the 7-year term loan, 1.75% to 3.90% for the 10-year term loan, 2.00% to 4.15% for the 15-year term loan, and 2.25% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 2.75% per year to 6.30% per year for a 5-year term would be from $178.58 to $194.73. The monthly payment for a sample $10,000 loan at a range of 4.00% per year to 6.35% per year for a 7-year term would be from $136.69 to $147.77. The monthly payment for a sample $10,000 loan at a range of 4.25% per year to 6.40% per year for a 10-year term would be from $102.44 to $113.04. The monthly payment for a sample $10,000 loan at a range of 4.50% per year to 6.65% per year for a 15-year term would be from $76.50 to $87.94. The monthly payment for a sample $10,000 loan at a range of 4.75% per year to 6.90% per year for a 20-year term would be from $64.62 to $76.93.

However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.

All credit products are subject to credit approval.

Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.

4 Important Disclosures for LendKey. LendKey Disclosures

Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.

5 Important Disclosures for CommonBond. CommonBond Disclosures

Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.

All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.49% effective March 10, 2019.

6 Important Disclosures for Citizens Bank. Citizens Bank Disclosures Education Refinance Loan Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of April 1, 2019, the one-month LIBOR rate is 2.50%. Variable interest rates range from 3.00% – 9.74% (3.00% – 9.74% APR) and will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. Fixed interest rates range from 3.89% – 9.99% (3.89% – 9.99% APR) based on applicable terms, level of degree earned and presence of a co-signer. Lowest rates shown are for eligible, creditworthy applicants with a graduate level degree, require a 5-year repayment term and include our Loyalty discount and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty and Automatic Payment Discount disclosures. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of their loan. Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer with the Education Refinance Loan. Borrowers should carefully review their current benefits, especially if they work in public service, are in the military, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans and replace those with the benefits of the Education Refinance Loan. For more information about federal student loan benefits and federal loan consolidation, visit http://studentaid.ed.gov/. We also have several resources available to help the borrower make a decision at http://www.citizensbank.com/EdRefinance, including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review. Citizens Bank Education Refinance Loan Eligibility: Eligible applicants may not be currently enrolled. Applicants with an Associate’s degree or with no degree must have made at least 12 qualifying payments after leaving school. Qualifying payments are the most recent on time and consecutive payments of principal and interest on the loans being refinanced. Primary borrowers must be a U.S. citizen, permanent resident or resident alien with a valid U.S. Social Security Number residing in the United States. Resident aliens must apply with a co-signer who is a U.S. citizen or permanent resident. The co-signer (if applicable) must be a U.S. citizen or permanent resident with a valid U.S. Social Security Number residing in the United States. For applicants who have not attained the age of majority in their state of residence, a co-signer will be required. Citizens Bank reserves the right to modify eligibility criteria at anytime. Interest rate ranges subject to change. Education Refinance Loans are subject to credit qualification, completion of a loan application/consumer credit agreement, verification of application information, certification of borrower’s student loan amount(s) and highest degree earned. Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan. Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount. Co-signer Release: Borrowers may apply for co-signer release after making 36 consecutive on-time payments of principal and interest. For the purpose of the application for co-signer release, on-time payments are defined as payments received within 15 days of the due date. Interest only payments do not qualify. The borrower must meet certain credit and eligibility guidelines when applying for the co-signer release. Borrowers must complete an application for release and provide income verification documents as part of the review. Borrowers who use deferment or forbearance will need to make 36 consecutive on-time payments after reentering repayment to qualify for release. The borrower applying for co-signer release must be a U.S. citizen or permanent resident. If an application for co-signer release is denied, the borrower may not reapply for co-signer release until at least one year from the date the application for co-signer release was received. Terms and conditions apply. Borrowers whose loans were funded prior to reaching the age of majority may not be eligible for co-signer release. Note: co-signer release is not available on the Student Loan for Parents or Education Refinance Loan for Parents. 2.50% – 7.27%1Undergrad & Graduate

Visit Earnest

2.50% – 7.12%3Undergrad & Graduate

Visit SoFi

2.81% – 8.79%4Undergrad & Graduate

Visit Lendkey

2.50% – 6.65%2Undergrad & Graduate

Visit Laurel Road

2.55% – 7.12%5Undergrad & Graduate

Visit CommonBond

3.00% – 9.74%6Undergrad & Graduate

Visit Citizens

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

The post How Student Loans Impact Your Debt-to-Income Ratio appeared first on Student Loan Hero.

from Updates About Loans https://studentloanhero.com/featured/student-loan-debt-to-income-ratio/

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How Student Loans Impact Your Debt-to-Income Ratio

You recently applied for student loan refinancing, a car loan or maybe a mortgage, but soon after are notified that your application was not accepted. Denied. Your credit score is solid, you make a decent living and you’ve never missed a payment. So, what gives?

There’s one factor you might not be considering: your debt-to-income ratio.

What is a debt-to-income ratio?

Your debt-to-income ratio is a percentage of how much debt you owe relative to your income. Often referred to as “DTI” for short, it’s an important number in your financial life.

When applying for a loan or other type of credit, many lenders look not only at your overall credit score, but also at your DTI to determine if you’re a good candidate. If a large chunk of your income is going to debt each month, lenders may be wary of extending further credit.

The lower your debt-to-income ratio, the better. But if you have pesky student loans, they could be pushing your DTI into the red zone, which can make you look risky to creditors and make it difficult to reach your financial goals.

Front-end vs. back-end DTI

As if the whole concept of DTI weren’t complicated enough, you actually have two different debt-to-income ratios: front-end DTI and back-end DTI.

Your front-end debt-to-income ratio is how much of your gross income goes toward housing costs, such as mortgage payments and insurance. If you don’t yet own a home and are applying for a mortgage, your front-end DTI is what you would be paying if you were approved.

Your back-end debt-to-income ratio is how much of your gross income goes toward all of your debt obligations, including credit card payments, student loan payments, mortgage — even child support and alimony.

Typically, lenders would like your front-end DTI to be 28% or less. For back-end DTI, the standard benchmark is typically 36% or less. These numbers aren’t set in stone and may vary by lender, but if you have a generally high debt-to-income ratio, you may have difficulty getting approved for new loans.

In fact, according to the Consumer Financial Protection Bureau, 43% is the maximum DTI a borrower can have in order to get approved for a qualified mortgage.

How student loans impact your debt-to-income ratio

Your student loans aren’t accounted for in the front-end debt-to-income ratio, but that debt certainly impacts the back-end. If you have a steep student loan balance, your DTI can be high — in some cases, too high, effectively limiting your options to buy a house while owing student loans, to refinance your student debt, and more.

For example, let’s say you are applying for a mortgage. Your gross income (before taxes) is $3,000 per month and your monthly debt breakdown looks like this:

Estimated mortgage payment and insurance = $1,000 Student loan payment = $300 Credit card payment = $50 Car payment = $200

In this scenario, your total debt payments add up to $1,550 per month. To find out your DTI, you’d divide your total debts by your gross income or use the calculator below.

With either method, you’ll find that your monthly debt of $1,550, divided by an income of $3,000, comes out to a DTI of 51.6%. Yikes!

Debt-to-Income (DTI) CalculatorYour infoGross annual incomeMonthly housing costMonthly minimum credit card paymentsMonthly auto loan paymentsMonthly student loan paymentsMonthly personal loan paymentsOther monthly debtBased on an income of $60,000, monthly housing costs of $900 and $100 in other monthly debt payments, your Front-End DTI is — and your Back-End DTI is —.6 Best Banks To Refinance Your Student Loans6 Ways To Lower Your Debt-to-Income RatioHow Your Student Loans Can Affect Your Mortgage Application

Student loan refinancing rates as low as % APR. Check your rate in 2 minutes.

TotalFront-End DTIBack-End DTI

Your debt-to-income ratio, student loans and how they affect your mortgage

If over half of your income would be going to your debt obligations — as in the example above — you won’t get approved for that mortgage.

“I think debt-to-income ratios are about to become very problematic for people who carry student loan debt and want to buy a house,” said Aaron LaRue, borrower-experience lead at Clara Lending, which is now part of SoFi.

“When applying for a home loan, debt-to-income ratios can be one of the largest limiting factors when calculating home affordability. I’d argue that this is a bigger issue than having a low credit score. As far as qualifying, it’s right up there with how much you have for a down payment,” LaRue added.

And if you don’t have much for a down payment, your DTI could matter even more. A down payment is a way for lenders to reduce risk — the more you pay up front, the less they need from a mortgage. A 20% down payment is the standard amount if you want to avoid paying private mortgage insurance, although the Federal Housing Administration loan program offers mortgages down payments as low as 3.5%.

But for millennials, student loans may make home ownership a tough goal to achieve. Only 34% of millennials with student loans own a home, according to an October 2018 study by MagnifyMoney. (Note: Both MagnifyMoney and Student Loan Hero are owned by LendingTree.) The study also found that millennials with student loans who did own a home tended to have less valuable properties and higher mortgages than those without student loans.

How to improve your debt-to-income ratio, student loans and all

If you’re thinking of applying for a credit card, mortgage, car loan, student loan refinancing or another type of funding, it’s important to not only maintain good credit, but a healthy debt-to-income ratio as well.

For example, when mortgage lenders examine your back-end DTI, a large student loan payment can be “a killer,” according to LaRue. “A monthly payment of a few hundred dollars can translate to a loss of tens of thousands of dollars off of your maximum home purchase price,” he explained.

Before you go after a big financial goal, calculate your debt-to-income ratio. If it’s too high, you may want to hold off for a while until you improve your situation. Otherwise, you’re much more likely to face rejection.

I’ll let you in on a little secret: I was actually rejected for student loan refinancing because of my debt-to-income ratio. And honestly, I should’ve known better, considering I was making $30,000 at the time and my student loans balance was also at $30,000. If your loans are the same level or even higher than your salary, it’s likely your DTI is also too high!

But before you give up on applying for a mortgage or refinancing forever, there are ways you can improve your debt-to-income ratio:

Ask for a raise Earn more through side hustling Pay off your debt ASAP

In other words, to improve your DTI, you need to earn more, get rid of some debt, or both. Given the example above, if you were to focus on eliminating your student loans and car loan, you’d be left with a prospective $1,000 mortgage payment and $50 credit card bill each month. And $1,050, divided by $3,000, comes out to a more reasonable 35%.

If you want to improve your debt-to-income ratio to pursue your big life goals, make it a point to pay off your debt as soon as possible and find ways to supplement your income. It could mean the difference between getting a letter that says, “Congratulations!” and one that begins, “We regret to inform you…”

By preparing now and understanding how student loans affect debt-to-income ratio, you can take the necessary steps to go after what you want without being automatically rejected.

Dillon Thompson contributed to this report.

Interested in refinancing student loans? Here are the top 6 lenders of 2019!

LenderVariable APREligible Degrees  Check out the testimonials and our in-depth reviews! 1 Important Disclosures for SoFi. SoFi Disclosures Student loan Refinance:

Fixed rates from 3.890% APR to 8.074% APR (with AutoPay). Variable rates from 2.500% APR to 7.115% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.500% APR assumes current 1 month LIBOR rate of 2.50% plus 0.00% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. See eligibility details. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org) 2 Important Disclosures for Earnest. Earnest Disclosures

To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.50% APR (with Auto Pay) to 7.27% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of April 17, 2019, and are subject to change based on market conditions and borrower eligibility.

Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.

The information provided on this page is updated as of 04/17/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at hello@earnest.com, or call 888-601-2801 for more information on our student loan refinance product.

© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.

3 Important Disclosures for Laurel Road. Laurel Road Disclosures

FIXED APR Fixed rate options consist of a range from 3.75% per year to 5.80% per year for a 5-year term, 4.25% per year to 6.25% per year for a 7-year term, 4.55% per year to 6.65% per year for a 10-year term, 4.85% per year to 7.05% per year for a 15-year term, or 5.30% per year to 7.27% per year for a 20-year term, with no origination fees. The fixed interest rate will apply until the loan is paid in full (whether before or after default, and whether before or after the scheduled maturity date of the loan). The monthly payment for a sample $10,000 loan at a range of 3.75% per year to 5.80% per year for a 5-year term would be from $183.04 to $192.40. The monthly payment for a sample $10,000 loan at a range of 4.25% per year to 6.25% per year for a 7-year term would be from $137.84 to $147.29. The monthly payment for a sample $10,000 loan at a range of 4.55% per year to 6.65% per year for a 10-year term would be from $103.88 to $114.31. The monthly payment for a sample $10,000 loan at a range of 4.85% per year to 7.05% per year for a 15-year term would be from $78.30 to $90.16. The monthly payment for a sample $10,000 loan at a range of 5.30% per year to 7.27% per year for a 20-year term would be from $67.66 to $79.16.

However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the fixed rate will decrease by 0.25%, and will increase back up to the regular fixed interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.

VARIABLE APR Variable rate options consist of a range from 2.75% per year to 6.30% per year for a 5-year term, 4.00% per year to 6.35% per year for a 7-year term, 4.25% per year to 6.40% per year for a 10-year term, 4.50% per year to 6.65% per year for a 15-year term, or 4.75% per year to 6.90% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.25% to 3.80% for the 5-year term loan, 1.50% to 3.85% for the 7-year term loan, 1.75% to 3.90% for the 10-year term loan, 2.00% to 4.15% for the 15-year term loan, and 2.25% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 2.75% per year to 6.30% per year for a 5-year term would be from $178.58 to $194.73. The monthly payment for a sample $10,000 loan at a range of 4.00% per year to 6.35% per year for a 7-year term would be from $136.69 to $147.77. The monthly payment for a sample $10,000 loan at a range of 4.25% per year to 6.40% per year for a 10-year term would be from $102.44 to $113.04. The monthly payment for a sample $10,000 loan at a range of 4.50% per year to 6.65% per year for a 15-year term would be from $76.50 to $87.94. The monthly payment for a sample $10,000 loan at a range of 4.75% per year to 6.90% per year for a 20-year term would be from $64.62 to $76.93.

However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.

All credit products are subject to credit approval.

Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.

4 Important Disclosures for LendKey. LendKey Disclosures

Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.

5 Important Disclosures for CommonBond. CommonBond Disclosures

Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.

All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.49% effective March 10, 2019.

6 Important Disclosures for Citizens Bank. Citizens Bank Disclosures Education Refinance Loan Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of April 1, 2019, the one-month LIBOR rate is 2.50%. Variable interest rates range from 3.00% – 9.74% (3.00% – 9.74% APR) and will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. Fixed interest rates range from 3.89% – 9.99% (3.89% – 9.99% APR) based on applicable terms, level of degree earned and presence of a co-signer. Lowest rates shown are for eligible, creditworthy applicants with a graduate level degree, require a 5-year repayment term and include our Loyalty discount and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty and Automatic Payment Discount disclosures. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of their loan. Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer with the Education Refinance Loan. Borrowers should carefully review their current benefits, especially if they work in public service, are in the military, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans and replace those with the benefits of the Education Refinance Loan. For more information about federal student loan benefits and federal loan consolidation, visit http://studentaid.ed.gov/. We also have several resources available to help the borrower make a decision at http://www.citizensbank.com/EdRefinance, including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review. Citizens Bank Education Refinance Loan Eligibility: Eligible applicants may not be currently enrolled. Applicants with an Associate’s degree or with no degree must have made at least 12 qualifying payments after leaving school. Qualifying payments are the most recent on time and consecutive payments of principal and interest on the loans being refinanced. Primary borrowers must be a U.S. citizen, permanent resident or resident alien with a valid U.S. Social Security Number residing in the United States. Resident aliens must apply with a co-signer who is a U.S. citizen or permanent resident. The co-signer (if applicable) must be a U.S. citizen or permanent resident with a valid U.S. Social Security Number residing in the United States. For applicants who have not attained the age of majority in their state of residence, a co-signer will be required. Citizens Bank reserves the right to modify eligibility criteria at anytime. Interest rate ranges subject to change. Education Refinance Loans are subject to credit qualification, completion of a loan application/consumer credit agreement, verification of application information, certification of borrower’s student loan amount(s) and highest degree earned. Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan. Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount. Co-signer Release: Borrowers may apply for co-signer release after making 36 consecutive on-time payments of principal and interest. For the purpose of the application for co-signer release, on-time payments are defined as payments received within 15 days of the due date. Interest only payments do not qualify. The borrower must meet certain credit and eligibility guidelines when applying for the co-signer release. Borrowers must complete an application for release and provide income verification documents as part of the review. Borrowers who use deferment or forbearance will need to make 36 consecutive on-time payments after reentering repayment to qualify for release. The borrower applying for co-signer release must be a U.S. citizen or permanent resident. If an application for co-signer release is denied, the borrower may not reapply for co-signer release until at least one year from the date the application for co-signer release was received. Terms and conditions apply. Borrowers whose loans were funded prior to reaching the age of majority may not be eligible for co-signer release. Note: co-signer release is not available on the Student Loan for Parents or Education Refinance Loan for Parents. 2.50% – 7.27%1Undergrad & Graduate

Visit Earnest

2.50% – 7.12%3Undergrad & Graduate

Visit SoFi

2.81% – 8.79%4Undergrad & Graduate

Visit Lendkey

2.50% – 6.65%2Undergrad & Graduate

Visit Laurel Road

2.55% – 7.12%5Undergrad & Graduate

Visit CommonBond

3.00% – 9.74%6Undergrad & Graduate

Visit Citizens

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

The post How Student Loans Impact Your Debt-to-Income Ratio appeared first on Student Loan Hero.

from Updates About Loans https://studentloanhero.com/featured/student-loan-debt-to-income-ratio/

[mikebrackett]

How Student Loans Impact Your Debt-to-Income Ratio

You recently applied for student loan refinancing, a car loan or maybe a mortgage, but soon after are notified that your application was not accepted. Denied. Your credit score is solid, you make a decent living and you’ve never missed a payment. So, what gives?

There’s one factor you might not be considering: your debt-to-income ratio.

What is a debt-to-income ratio?

Your debt-to-income ratio is a percentage of how much debt you owe relative to your income. Often referred to as “DTI” for short, it’s an important number in your financial life.

When applying for a loan or other type of credit, many lenders look not only at your overall credit score, but also at your DTI to determine if you’re a good candidate. If a large chunk of your income is going to debt each month, lenders may be wary of extending further credit.

The lower your debt-to-income ratio, the better. But if you have pesky student loans, they could be pushing your DTI into the red zone, which can make you look risky to creditors and make it difficult to reach your financial goals.

Front-end vs. back-end DTI

As if the whole concept of DTI weren’t complicated enough, you actually have two different debt-to-income ratios: front-end DTI and back-end DTI.

Your front-end debt-to-income ratio is how much of your gross income goes toward housing costs, such as mortgage payments and insurance. If you don’t yet own a home and are applying for a mortgage, your front-end DTI is what you would be paying if you were approved.

Your back-end debt-to-income ratio is how much of your gross income goes toward all of your debt obligations, including credit card payments, student loan payments, mortgage — even child support and alimony.

Typically, lenders would like your front-end DTI to be 28% or less. For back-end DTI, the standard benchmark is typically 36% or less. These numbers aren’t set in stone and may vary by lender, but if you have a generally high debt-to-income ratio, you may have difficulty getting approved for new loans.

In fact, according to the Consumer Financial Protection Bureau, 43% is the maximum DTI a borrower can have in order to get approved for a qualified mortgage.

How student loans impact your debt-to-income ratio

Your student loans aren’t accounted for in the front-end debt-to-income ratio, but that debt certainly impacts the back-end. If you have a steep student loan balance, your DTI can be high — in some cases, too high, effectively limiting your options to buy a house while owing student loans, to refinance your student debt, and more.

For example, let’s say you are applying for a mortgage. Your gross income (before taxes) is $3,000 per month and your monthly debt breakdown looks like this:

Estimated mortgage payment and insurance = $1,000 Student loan payment = $300 Credit card payment = $50 Car payment = $200

In this scenario, your total debt payments add up to $1,550 per month. To find out your DTI, you’d divide your total debts by your gross income or use the calculator below.

With either method, you’ll find that your monthly debt of $1,550, divided by an income of $3,000, comes out to a DTI of 51.6%. Yikes!

Debt-to-Income (DTI) CalculatorYour infoGross annual incomeMonthly housing costMonthly minimum credit card paymentsMonthly auto loan paymentsMonthly student loan paymentsMonthly personal loan paymentsOther monthly debtBased on an income of $60,000, monthly housing costs of $900 and $100 in other monthly debt payments, your Front-End DTI is — and your Back-End DTI is —.6 Best Banks To Refinance Your Student Loans6 Ways To Lower Your Debt-to-Income RatioHow Your Student Loans Can Affect Your Mortgage Application

Student loan refinancing rates as low as % APR. Check your rate in 2 minutes.

TotalFront-End DTIBack-End DTI

Your debt-to-income ratio, student loans and how they affect your mortgage

If over half of your income would be going to your debt obligations — as in the example above — you won’t get approved for that mortgage.

“I think debt-to-income ratios are about to become very problematic for people who carry student loan debt and want to buy a house,” said Aaron LaRue, borrower-experience lead at Clara Lending, which is now part of SoFi.

“When applying for a home loan, debt-to-income ratios can be one of the largest limiting factors when calculating home affordability. I’d argue that this is a bigger issue than having a low credit score. As far as qualifying, it’s right up there with how much you have for a down payment,” LaRue added.

And if you don’t have much for a down payment, your DTI could matter even more. A down payment is a way for lenders to reduce risk — the more you pay up front, the less they need from a mortgage. A 20% down payment is the standard amount if you want to avoid paying private mortgage insurance, although the Federal Housing Administration loan program offers mortgages down payments as low as 3.5%.

But for millennials, student loans may make home ownership a tough goal to achieve. Only 34% of millennials with student loans own a home, according to an October 2018 study by MagnifyMoney. (Note: Both MagnifyMoney and Student Loan Hero are owned by LendingTree.) The study also found that millennials with student loans who did own a home tended to have less valuable properties and higher mortgages than those without student loans.

How to improve your debt-to-income ratio, student loans and all

If you’re thinking of applying for a credit card, mortgage, car loan, student loan refinancing or another type of funding, it’s important to not only maintain good credit, but a healthy debt-to-income ratio as well.

For example, when mortgage lenders examine your back-end DTI, a large student loan payment can be “a killer,” according to LaRue. “A monthly payment of a few hundred dollars can translate to a loss of tens of thousands of dollars off of your maximum home purchase price,” he explained.

Before you go after a big financial goal, calculate your debt-to-income ratio. If it’s too high, you may want to hold off for a while until you improve your situation. Otherwise, you’re much more likely to face rejection.

I’ll let you in on a little secret: I was actually rejected for student loan refinancing because of my debt-to-income ratio. And honestly, I should’ve known better, considering I was making $30,000 at the time and my student loans balance was also at $30,000. If your loans are the same level or even higher than your salary, it’s likely your DTI is also too high!

But before you give up on applying for a mortgage or refinancing forever, there are ways you can improve your debt-to-income ratio:

Ask for a raise Earn more through side hustling Pay off your debt ASAP

In other words, to improve your DTI, you need to earn more, get rid of some debt, or both. Given the example above, if you were to focus on eliminating your student loans and car loan, you’d be left with a prospective $1,000 mortgage payment and $50 credit card bill each month. And $1,050, divided by $3,000, comes out to a more reasonable 35%.

If you want to improve your debt-to-income ratio to pursue your big life goals, make it a point to pay off your debt as soon as possible and find ways to supplement your income. It could mean the difference between getting a letter that says, “Congratulations!” and one that begins, “We regret to inform you…”

By preparing now and understanding how student loans affect debt-to-income ratio, you can take the necessary steps to go after what you want without being automatically rejected.

Dillon Thompson contributed to this report.

Interested in refinancing student loans? Here are the top 6 lenders of 2019!

LenderVariable APREligible Degrees  Check out the testimonials and our in-depth reviews! 1 Important Disclosures for SoFi. SoFi Disclosures Student loan Refinance:

Fixed rates from 3.890% APR to 8.074% APR (with AutoPay). Variable rates from 2.500% APR to 7.115% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.500% APR assumes current 1 month LIBOR rate of 2.50% plus 0.00% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. See eligibility details. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org) 2 Important Disclosures for Earnest. Earnest Disclosures

To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.50% APR (with Auto Pay) to 7.27% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of April 17, 2019, and are subject to change based on market conditions and borrower eligibility.

Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.

The information provided on this page is updated as of 04/17/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at hello@earnest.com, or call 888-601-2801 for more information on our student loan refinance product.

© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.

3 Important Disclosures for Laurel Road. Laurel Road Disclosures

FIXED APR Fixed rate options consist of a range from 3.75% per year to 5.80% per year for a 5-year term, 4.25% per year to 6.25% per year for a 7-year term, 4.55% per year to 6.65% per year for a 10-year term, 4.85% per year to 7.05% per year for a 15-year term, or 5.30% per year to 7.27% per year for a 20-year term, with no origination fees. The fixed interest rate will apply until the loan is paid in full (whether before or after default, and whether before or after the scheduled maturity date of the loan). The monthly payment for a sample $10,000 loan at a range of 3.75% per year to 5.80% per year for a 5-year term would be from $183.04 to $192.40. The monthly payment for a sample $10,000 loan at a range of 4.25% per year to 6.25% per year for a 7-year term would be from $137.84 to $147.29. The monthly payment for a sample $10,000 loan at a range of 4.55% per year to 6.65% per year for a 10-year term would be from $103.88 to $114.31. The monthly payment for a sample $10,000 loan at a range of 4.85% per year to 7.05% per year for a 15-year term would be from $78.30 to $90.16. The monthly payment for a sample $10,000 loan at a range of 5.30% per year to 7.27% per year for a 20-year term would be from $67.66 to $79.16.

However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the fixed rate will decrease by 0.25%, and will increase back up to the regular fixed interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.

VARIABLE APR Variable rate options consist of a range from 2.75% per year to 6.30% per year for a 5-year term, 4.00% per year to 6.35% per year for a 7-year term, 4.25% per year to 6.40% per year for a 10-year term, 4.50% per year to 6.65% per year for a 15-year term, or 4.75% per year to 6.90% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.25% to 3.80% for the 5-year term loan, 1.50% to 3.85% for the 7-year term loan, 1.75% to 3.90% for the 10-year term loan, 2.00% to 4.15% for the 15-year term loan, and 2.25% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 2.75% per year to 6.30% per year for a 5-year term would be from $178.58 to $194.73. The monthly payment for a sample $10,000 loan at a range of 4.00% per year to 6.35% per year for a 7-year term would be from $136.69 to $147.77. The monthly payment for a sample $10,000 loan at a range of 4.25% per year to 6.40% per year for a 10-year term would be from $102.44 to $113.04. The monthly payment for a sample $10,000 loan at a range of 4.50% per year to 6.65% per year for a 15-year term would be from $76.50 to $87.94. The monthly payment for a sample $10,000 loan at a range of 4.75% per year to 6.90% per year for a 20-year term would be from $64.62 to $76.93.

However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.

All credit products are subject to credit approval.

Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.

4 Important Disclosures for LendKey. LendKey Disclosures

Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.

5 Important Disclosures for CommonBond. CommonBond Disclosures

Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.

All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.49% effective March 10, 2019.

6 Important Disclosures for Citizens Bank. Citizens Bank Disclosures Education Refinance Loan Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of April 1, 2019, the one-month LIBOR rate is 2.50%. Variable interest rates range from 3.00% – 9.74% (3.00% – 9.74% APR) and will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. Fixed interest rates range from 3.89% – 9.99% (3.89% – 9.99% APR) based on applicable terms, level of degree earned and presence of a co-signer. Lowest rates shown are for eligible, creditworthy applicants with a graduate level degree, require a 5-year repayment term and include our Loyalty discount and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty and Automatic Payment Discount disclosures. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of their loan. Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer with the Education Refinance Loan. Borrowers should carefully review their current benefits, especially if they work in public service, are in the military, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans and replace those with the benefits of the Education Refinance Loan. For more information about federal student loan benefits and federal loan consolidation, visit http://studentaid.ed.gov/. We also have several resources available to help the borrower make a decision at http://www.citizensbank.com/EdRefinance, including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review. Citizens Bank Education Refinance Loan Eligibility: Eligible applicants may not be currently enrolled. Applicants with an Associate’s degree or with no degree must have made at least 12 qualifying payments after leaving school. Qualifying payments are the most recent on time and consecutive payments of principal and interest on the loans being refinanced. Primary borrowers must be a U.S. citizen, permanent resident or resident alien with a valid U.S. Social Security Number residing in the United States. Resident aliens must apply with a co-signer who is a U.S. citizen or permanent resident. The co-signer (if applicable) must be a U.S. citizen or permanent resident with a valid U.S. Social Security Number residing in the United States. For applicants who have not attained the age of majority in their state of residence, a co-signer will be required. Citizens Bank reserves the right to modify eligibility criteria at anytime. Interest rate ranges subject to change. Education Refinance Loans are subject to credit qualification, completion of a loan application/consumer credit agreement, verification of application information, certification of borrower’s student loan amount(s) and highest degree earned. Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan. Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount. Co-signer Release: Borrowers may apply for co-signer release after making 36 consecutive on-time payments of principal and interest. For the purpose of the application for co-signer release, on-time payments are defined as payments received within 15 days of the due date. Interest only payments do not qualify. The borrower must meet certain credit and eligibility guidelines when applying for the co-signer release. Borrowers must complete an application for release and provide income verification documents as part of the review. Borrowers who use deferment or forbearance will need to make 36 consecutive on-time payments after reentering repayment to qualify for release. The borrower applying for co-signer release must be a U.S. citizen or permanent resident. If an application for co-signer release is denied, the borrower may not reapply for co-signer release until at least one year from the date the application for co-signer release was received. Terms and conditions apply. Borrowers whose loans were funded prior to reaching the age of majority may not be eligible for co-signer release. Note: co-signer release is not available on the Student Loan for Parents or Education Refinance Loan for Parents. 2.50% – 7.27%1Undergrad & Graduate

Visit Earnest

2.50% – 7.12%3Undergrad & Graduate

Visit SoFi

2.81% – 8.79%4Undergrad & Graduate

Visit Lendkey

2.50% – 6.65%2Undergrad & Graduate

Visit Laurel Road

2.55% – 7.12%5Undergrad & Graduate

Visit CommonBond

3.00% – 9.74%6Undergrad & Graduate

Visit Citizens

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

The post How Student Loans Impact Your Debt-to-Income Ratio appeared first on Student Loan Hero.

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[magzoso-tech]

New Post has been published on https://magzoso.com/tech/leading-robotics-vcs-talk-about-where-theyre-investing-2/

Leading robotics VCs talk about where they’re investing

The Valley’s affinity for robotics shows no signs of cooling. Technical enhancements through innovations like AI/ML, compute power and big data utilization continue to drive new performance milestones, efficiencies and use cases.

Despite the old saying, “hardware is hard,” investment in the robotics space continues to expand. Money is pouring in across robotics’ billion-dollar sub verticals, including industrial and labor automation, drone delivery, machine vision and a wide range of others.

According to data from Pitchbook and Crunchbase, 2018 saw new highs for the number of venture deals and total invested capital in the space, with roughly $5 billion in investment coming from nearly 400 deals. With robotics well on its way to again set new investment peaks in 2019, we asked 13 leading VCs who work at firms spanning early to growth stages to share what’s exciting them most and where they see opportunity in the sector:

Shahin Farshchi, Lux Capital

Kelly Chen, DCVC

Rob Coneybeer, Shasta Ventures

Aaron Jacobson, NEA

Eric Migicovsky, Y Combinator

Helen Liang, FoundersX Ventures

Andrew Byrnes, Micron Ventures

Ludovic Copéré Sony Innovation Fund

Costantino Mariella, Sony Innovation Fund

Cyril Ebersweiler, SOSV & HAX

Peter Barrett, Playground Global

Bruce Leak, Playground Global

Jim Adler, Toyota AI Ventures

Participants discuss the compelling business models for robotics startups (such as “Robots as a Service”), current valuations, growth tactics and key robotics KPIs, while also diving into key trends in industrial automation, human replacement, transportation, climate change, and the evolving regulatory environment.

Shahin Farshchi, Lux Capital

Which trends are you most excited in robotics from an investing perspective?

The opportunity to unlock human superpowers:

Increase productivity to enhance creativity leading to new products and businesses.

Automating dangerous tasks and eliminating undesirable, dangerous jobs in mining, manufacturing, and shipping/logistics.

Making the most deadly mode of transport: driving, 100% safe.

How much time are you spending on robotics right now? Is the market under-heated, overheated, or just right?

Three-quarters of the new opportunities I look at involve some sort of automation.

The market for robot startups attempting direct human labor replacement, floor-sweeping, and dumb-waiter robots, and robotic lawnmowers and vacuums is OVER heated (too many startups).

The market for robot startups that assist human workers, increase human productivity, and automate undesirable human tasks is UNDER heated (not enough startups).

Are there startups that you wish you would see in the industry but don’t? Plus any other thoughts you want to share with TechCrunch readers.

I want to see more founders that are building robotics startups that:

Solve LATENT pain points in specific, well-understood industries (vs. building a cool robot that can do cool things).

Focus on increasing HUMAN productivity (vs. trying to replace humans).

Are solving for building interesting BUSINESSES (vs. emphasizing cool robots).

Kelly Chen, DCVC

Three years ago, the most compelling companies to us in the industrial space were in software. We now spend significantly more time in verticalized AI and hardware. Robotic companies we find most exciting today are addressing key driver areas of (1) high labor turnover and shortage and (2) new research around generalization on the software side. For many years, we have seen some pretty impressive science projects out of labs, but once you take these into the real world, they fail. In these changing environmental conditions, it’s crucial that robots work effectively in-the-wild at speeds and economics that make sense. This is an extremely difficult combination of problems, and we’re now finally seeing it happen. A few verticals we believe will experience a significant overhaul in the next 5 years include logistics, waste, micro-fulfillment, and construction.

With this shift in robotic capability, we’re also seeing a shift in customer sentiment. Companies who are used to buying outright machines are now more willing to explore RaaS (Robot as a Service) models for compelling robotic solutions – and that repeat revenue model has opened the door for some formerly enterprise software-only investors. On the other hand, companies exploring robotics in place of tasks with high labor shortages, such as trucking or agriculture, are more willing to explore per hour or per unit pick models.

Adoption won’t be overnight, but in the medium term, we are very enthusiastic about the ways robotics will transform industries. We do believe investing in this space requires the right technical know-how and network to evaluate and support companies, so momentum investors looking to dip their hand into a hot space may be disappointed.

Rob Coneybeer, Shasta Ventures

We’re entering the early stages of the golden age of robotics. Robotics is already a huge, multibillion-dollar market – but today that market is dominated by industrial robotics, such as welding and assembly robots found on automotive assembly lines around the world. These robots repeat basic tasks, over and over, and are usually separated by caged walls from humans for safety. However, this is rapidly changing. Advances in perception, driven by deep learning, machine vision and inexpensive, high-performance cameras allow robots to safely navigate the real world, escape the manufacturing cages, and closely interact with humans.

I think the biggest opportunities in robotics are those which attack enormous markets where it’s difficult to hire and retain labor. One great example is long-haul trucking. Highway driving represents one of the easiest problems for autonomous vehicles, since the lanes tend to be well-marked, the roads have gentle curves, and all traffic runs in the same direction. In the United States alone, long haul trucking is a multi-hundred billion dollar market every year. The customer set is remarkably scalable with standard trailer sizes and requirements for shipping freight. Yet at the same time, trucking companies have trouble hiring and retaining drivers. It’s the perfect recipe for robotic opportunity.

I’m intrigued by agricultural robots. I’ve seen dozens of companies attacking every part of the farming equation – from field clearing and preparation, to seeding, to weeding, applying fertilizer, and eventually harvesting. I think there’s a lot of value to be “harvested” here by robots, especially since seasonal field labor is becoming harder to find and increasingly expensive. One enormous challenge in this market, however, is that growing seasons mean that the robotic machinery has a lot of downtime and the cost of equipment isn’t as easily amortized in other markets with higher utilization. The other big challenge is that fields are very, very tough on hardware and electronics due to environmental conditions like rain, dust and mud.

There are a ton of important problems to be solved in robotics. The biggest open challenges in my mind are locomotion and grasping. Specifically, I think that for in-building applications, robots need to be able to do all the thing which humans can do – specifically opening and closing doors, climbing stairs, and picking items off of shelves and putting them down gently. Plenty of startups have tackled subsets of these problems, but to date no one has built a generalized solution. To be fair, to get to parity with humans on generalized locomotion and grasping, it’s probably going to take another several decades.

Overall, I feel like the funding environment for robotics is about right, with a handful of overfunded areas (like autonomous passenger vehicles). I think that the most overlooked near-term opportunity in robotics is teleoperation. Specifically, pairing fully automated robotic operations with occasional human remote operation of individual robots. Starship Technologies is a perfect example of this. Starship is actively deploying local delivery robots around the world today. Their first major deployment is at George Mason University in Virginia. They have nearly 50 active robots delivering food around the campus. They’re autonomous most of the time, but when they encounter a problem or obstacle they can’t solve, a human operator in a teleoperation center manually controls the robot remotely. At the same time. Starship tracks and prioritizes these problems for engineers to solve, and slowly incrementally reduces the number of problems the robots can’t solve on their own. I think people view robotics as a “zero or one” solution when in fact there’s a world where humans and robots work together for a long time.

[joyzhong1]

LOAN ZONE: Roundup of this week’s middle market loans

● BERKADIA $19M for Brooklyn midrise

240 MEEKER

Berkadia announced $19.6 million in financing for 240 Meeker, a mid-rise multifamily property in Brooklyn. Senior managing director Stewart Campbell, of the firm’s Manhattan office, secured the financing on behalf 240 Meeker Avenue Corporation. The 10-year, permanent Fannie Mae loan features a 4.37 percent fixed interest rate and six years of interest-only payments. “The new loan financing provided a great long-term rate while maximizing proceeds and property cash flow with 72 months of interest-only payments,” said Campbell. Located at 240 Meeker Ave., the 46-unit post-war property features one- and two-bedroom floor plans with terraces or balconies in every unit. The building has a roof deck, laundry and on-site parking.

● HOULIHAN PARNES Local bank funds $30M Westchester acquisition loan

Houlihan Parnes tapped a local bank for an acquisition loan on their purchase of two Westchester office properties. The firm’s Andrew Greenspan and James J. Houlihan placed an acquisition loan and credit facility totaling $30,500,000 on 555-565 Taxter Road, Elmsford (pictured top). Houlihan said the properties were acquired as defaulted debt and through a foreclosure process. Located within Taxter Corporate Park, the properties were once owned by Keystone Property Group, which had purchased them as part of a $230 million portfolio deal with Mack-Cali in 2014, according to Westfair Online. 555-565 Taxter contains a total of 371,224 rentable square feet, which will be managed and leased by GHP Office Realty, the Houlihan Parnes affiliate. The properties are located two miles from the entrance of the Gov. Mario M. Cuomo Bridge and Saw Mill River and Sprain Brook Parkways. The interest only loan was placed with a local bank at an interest rate of 4.625 percent for an interim term. The loan features a $7 million line of credit to fund building capital improvements and Tenant improvement. The loan has a renewal option and flexible pre-pay schedule. The borrower was represented by Elizabeth Smith of Goldberg Weprin Finkel Goldstein, LLP, as attorney.

● MADISON REALTY CAPITAL $30M redirect at GEM Hotel

JOSH ZEGEN

Madison Realty Capital (MRC) closed $30.5 million of financing collateralized by the GEM Hotel, a luxury boutique hotel located at 300 West 22nd Street in Chelsea. The funds refinance previous debt and support Icon Realty Management’s business plan to reposition the hotel with an expanded marketing strategy and updated branding, coupled with strategic capital improvements to the property. “This deal provided MRC with the opportunity to refinance a successful and established hospitality asset with strong sponsorship and a new business plan aimed at making it even more competitive in the local market,” said Josh Zegen, Co-Founder and Managing Principal of MRC. The GEM Hotel is a five-story, 30,948 GSF four-star, luxury hotel that was constructed originally in 1912 as a residential property, and converted to hospitality use by the sponsor in 2007. According to MRC, Icon Realty plans to increase revenue by implementing an aggressive marketing strategy across internet booking channels, corporate accounts, along with a branding overhaul. A new capital improvement plan will also include room upgrades, lobby improvements and façade work. JLL’s Aaron Appel brokered the financing.

● DWIGHT CAPITAL Greenback for green buildings

BRANDON BAKSH

Dwight Capital closed on two green loans for apartment properties in Nevada and North Carolina. Dwight secured a $31 million loan on Tesora Apartments, a 231-unit complex in Las Vegas. Built in 2004, the project was able to obtain the Energy Star for Existing Buildings Certification with an Energy Star score of 96, thereby qualifying for HUD’s reduced Green MIP program. Dwight also secured a $41.17 million loan on the 270-unit Preserve at Ballantyne Commons in NC. That non-recourse fixed rate loan had a 35-year term with a flexible step-down prepayment schedule. “This was a big closing for Dwight Capital,” said managing director, Brandon Baksh. “We were able to achieve the National Green Building Standard certification despite the project needing a significant amount of capex to get there. We were able to use the necessary repairs to increase the appraised value of the project and our underwritten NOI. “This is the type of renovation HUD had envisioned with the green program and we are glad we are able to achieve a win-win for both the borrower and HUD.”

● ARBOR REALTY TRUST $38M to stay competitive

STEPHEN YORK

Arbor Realty Trust funded a Fannie Mae DUS loan in Norcross, GA. Fields at Peachtree Corners, a 490-unit multifamily property, received $38.6 million on a 12-year fixed rate term with a six-year interest only period, and a 30-year amortization schedule. Stephen York, of Arbor’s New York City office, originated the loan. “We were pleased to provide aggressive high-leverage financing, along with an attractive rate and maximum I/O, for our client,” said York. “The property was recently renovated thanks to a $3 million capital improvement plan. The new sponsors are planning continued renovations for more than 100 units and exterior enhancements to boost curb appeal. This will help the property remain well situated in the highly competitive Peachtree Corners submarket.”

Source Article

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[theconservativebrief]

It’s been 10 years since Lehman Brothers collapsed, setting off a global financial meltdown that would take years to correct. A decade later, there are some guardrails in place to prevent a Great Recession 2.0 — but another crisis at some point is essentially inevitable.

The 2008 financial crisis wreaked havoc on global markets and the world. In the United States, the S&P 500 fell by 28 percent in the 22 trading days after Lehman filed for bankruptcy in September 2008. Over the next six months, it would lose nearly half its value. The unemployment rate jumped from 6.1 percent in August 2008 to 9.5 percent two years later in August 2010. Millions of Americans lost their homes, jobs, or both.

A decade later, there’s been a lot of reflection on what happened in the financial crisis — and whether a repeat could be on the horizon. I reached out to eight experts to ask how far we’ve come, specifically in terms of government policy, in guarding against another financial and economic calamity. Simply put, are the guardrails in place to prevent another financial crisis like what happened in 2008?

They told me that there have been efforts to increase oversight, such as the Dodd-Frank financial reform, which created entities such as the Consumer Financial Protection Bureau (CFPB) and put in place new regulations and tools for banking supervision and oversight by entities such as the Federal Reserve and Federal Deposit Insurance Deposit Corporation (FDIC). But there are still risks in the system, and some suggested regulators hadn’t gone far enough. Moreover, financial crises are sometimes inevitable.

“Regardless of improvements in law and regulation, every financial system is vulnerable to a possible crisis,” Aaron Klein, a fellow in economic studies at the Washington, DC–based think tank the Brookings Institution, told me. “Throughout history, financial crises have emerged from many types of assets, from Dutch tulips to US subprime mortgages.”

Klein’s full response and the responses of the seven other experts I asked are below, edited for length and clarity.

Bill Emmons, assistant vice president and economist at the Federal Reserve Bank of St. Louis

The guardrails are not in place to prevent another crisis like 2008. However, I don’t think another crisis like that is likely any time soon. The underlying conditions in the economy and financial markets are very different today, in large part because the crisis occurred and left lots of damage in its wake.

My understanding of the financial crisis is that it resulted from the reversal of “dual leverage cycles,” in the words of economist John Geanakoplos.

The first leverage cycle was an explosion of mortgages collateralized by houses; this was the debt-financed housing bubble. The second leverage cycle was in the financial markets, comprising new debt securities collateralized by mortgages. This was the world of collateralized debt options (CDOs) and credit default swaps (CDS).

The bursting of the housing bubble alone would not have been sufficient to create the financial crisis, in my view. Nor would a collapse of the markets for securitized mortgages itself have resulted in the crisis we saw.

What happened was the collapse of both bubbles. The housing bubble began to deflate first, followed by the financial-markets bubble.

The guardrails that would prevent a recurrence would include hard-wired, across-the-board mortgage underwriting standards, verified income, and, in an ideal world, shorter mortgage-amortization schedules. All would reduce the incentive and ability to lever up the housing stock.

In the financial markets, guardrails would include much more stringent disclosure requirements for securitized debt (mortgage-backed securities), truly independent credit-rating agencies (S&P, Moody’s, Fitch, others), and real power granted (and used) by the Securities and Exchange Commission and the Federal Reserve to regulate the over-the-counter derivatives markets, including the CDS market.

Another unrealized reform that touches on both retail and wholesale markets would be scaling back Fannie Mae and Freddie Mac, the housing government-sponsored enterprises. They pumped huge amounts of air into the housing bubble and participated in the credit-market mania. If they were eliminated or drastically cut back, they would not be in a position to contribute to future leverage cycles in the housing and financial markets.

Very little of this reform agenda has taken place. Thus, I conclude that there is no reason why another financial crisis in housing and related financial markets could not occur. However, the damage resulting from the collapse of the last financial crisis was so severe that I don’t think we’re likely to experience another one any time soon.

Kristina Hooper, global markets strategist at Invesco

We have certainly put out a number of regulations following the global financial crisis intended to prevent a similar crisis. For example, the reforms we have seen around the mortgage industry — and keep in mind that housing was at the epicenter of the crisis in the US — were an appropriate response to the crisis and are likely to prevent a similar housing bubble and bust. And so it is unlikely that the exact same crisis will occur.

However, in the process, we may have made ourselves more vulnerable to another type of crisis. For example, one component of Dodd-Frank, the Volcker Rule — which essentially prevents banks from speculation in markets — may have increased the likelihood of a crisis because it removes important market makers, thereby reducing liquidity.

And, of course, we don’t have many tools available at our disposal, either fiscal or monetary, to combat another crisis it if does occur. With such a high level of government debt, we may find Congress unwilling to spend a lot to stimulate the US economy in the event of a crisis. And the Fed has only just begun normalizing monetary policy, so it doesn’t have a lot of “dry powder” to tackle a new crisis.

The Fed has an enormous balance sheet as a result of three phases of quantitative easing, and while it has started to unwind it, it is still incredibly bloated — much bigger than it was a decade ago when the global financial crisis started. And so it’s unclear how much the Fed would be willing to expand its balance sheet in the event of another crisis. The Fed has hiked rates seven times and is very likely to hike them again in September, but the federal funds rate is still relatively low, so there are only so many rate cuts the Fed could do to stimulate the economy in the event of a crisis (the federal funds rate was over 5 percent at the start of 2007, so the Fed had the ability to dramatically drop rates in order to combat that crisis).

Aaron Klein, policy director of the Center on Regulation and Markets at the Brookings Institution and former chief economist for the Senate Banking Committee

We have made substantial progress in building a safer and more resilient financial system since the crisis. Changes in law like Dodd-Frank created a stronger regulatory system and gave regulators new tools to detect, prevent, and contain future problems. These reforms can make future crises less likely to occur and mitigate the impact when they do.

Specifically, higher capital requirements for the largest, most systemically connected financial institutions reduce their chances of distress, and, coupled with restructuring requiring significantly more long-term debt, reduces the potential for devastating creditor runs. New tools that allow the FDIC to close any failed, systematically important financial institution should give policymakers a way out of the box they found themselves in in 2008, when the options were unjust bailouts or collapse of the financial institution. The establishment of the CFPB, the first financial regulator charged with putting consumers first, can help avoid creating the very type of toxic instruments that were at the core of the crisis.

However, regardless of improvements in law and regulation, every financial system is vulnerable to a possible crisis. Throughout history, financial crises have emerged from many types of assets, from Dutch tulips to US subprime mortgages.

Protecting against a crisis will always rely on the judgment, courage, and wisdom of those in charge. It is why changes to leadership, regulation, and enforcement actions in what were, and may once again, not be headline-grabbing financial regulators are the most important guardrails against another crisis.

Mark Zandi, chief economist at Moody’s Analytics

The financial system is on much sounder ground than it was a decade ago prior to the financial crisis, and much less likely to suffer another crisis, at least on the same scale.

As a result of Dodd-Frank, the banking system now has much more capital — the cushion required to absorb losses the system suffers on its lending. The system also has much stiffer liquidity requirements and better risk management practices, including a stress-testing process that requires large financial institutions to be prepared for events similar to the financial crisis.

There is also now in place a clear process for resolving failing financial institutions that pose a threat to the entire financial system. There was no such process in place prior to the financial crisis, and policymakers resolved each failing institution, from Bear Stearns and Lehman Brothers to Fannie Mae and Freddie Mac, differently. This spooked investors in these institutions, causing them to run for the proverbial doors, precipitating the crisis.

The Federal Reserve and other regulators are willing and able to use so-called “macroprudential” tools to address problems that are developing in the financial system. Not too long ago, for example, regulators issued guidance to banks to be more cautious in their lending on multifamily projects, as there was growing evidence of overbuilding. This is something regulators would not have done prior to the financial crisis.

The CFPB is now looking out for consumer and mortgage lending practices. When combined with new rules making it more difficult to extend loans to households that can’t financially support them — the qualified mortgage rule is a good example — it is now more difficult to make bad consumer lending decisions.

To be sure, despite all these efforts and others, there will still be missteps by the financial system, and even crises. There are already problems brewing in so-called leveraged lending to non-financial businesses. These highly indebted companies will likely navigate the next recession, and the resulting bankruptcies and losses will stress the economy and financial system. Regulators appear to be on increasing alert to this problem, and may utilize macroprudential steps to address it. The sooner, the better.

More broadly, by requiring banks to hold more capital and be more liquid, risk-taking is shifting to the less regulated and more opaque part of the financial system known as the “shadow system.” The next financial event or crisis will likely emanate from here.

The financial system is in a much better place than it was 10 years ago, and the next crisis appears a long way off, but regulators will need to be vigilant as the nightmare of the financial crisis fades and risk-taking increases.

Richard Sylla, financial historian at New York University’s Stern School of Business

In a word, no.

In two years, we mark the 300th anniversary of the connected Mississippi bubble in France and South Sea bubble in England, perhaps the first great international financial crisis. From then to now, there have been a great number of similar crises.

In response to the 2007–2009 crisis, we have not done a lot to prevent excessive credit and debt creation — the common feature of nearly all financial crises. And even what we did, such as the Dodd-Frank reforms, is now being watered down.

That’s another feature of financial history, i.e., taking tough measures in the wake of a crisis and then watering them down over time. What’s different this time is that the watering-down began almost immediately instead of waiting a bit. That makes me think that we will not again have to wait half a century or more before the next large-scale financial crisis arrives.

Kathryn Judge, law professor at Columbia University

Despite a decade of reform, we still do not have the guardrails needed to ensure a healthy and resilient financial system. Banks today are stronger than they were in 2008, and there have been meaningful steps taken to prevent a precise replay of the last crisis. But the next crisis will inevitably look different than the last, and the structural deficiencies revealed in the last crisis have not gone away.

One core challenge is an excessively fragmented regulatory structure. The United States still has three federal bank regulators (the FDIC, OCC, and Federal Reserve) and two federal market regulators (the SEC and CFTC), in addition to a host of other state and federal financial regulators. These regulators sometimes compete when they need to cooperate, and they are limited in the information that they share with one another. No regulator has responsibility for understanding, much less addressing, the health of the financial system as a whole.

Dodd-Frank attempted to mitigate these challenges by requiring the heads of the major financial regulators to also serve as members of the Financial Stability Oversight Council (FSOC). But the FSOC’s powers are limited, and the agency heads remain far more concerned with furthering their individual missions than addressing systemic risk.

A second core challenge is complexity. Financial institutions, instruments, and market structures are increasingly complex and interconnected. The largest banking organizations continue to consist of hundreds, and sometimes thousands, of separate legal entities. New financial instruments with untested features are popping up daily and often trading in ever-changing market structures. As we learned the hard way with securitization, even useful financial innovations can pose unforeseen hazards. The rise of fintech only accentuates the rate of change and possibility of disruption. Post-crisis reforms have reduced the complexity of layering of securitization structures, but they have not halted the trend toward increasing complexity and the massive information gaps it creates.

The combination of a complex and constantly evolving financial system with a fragmented regulatory structure was at the core of the last crisis. These challenges remain, and could well lead to another crisis sooner than anyone would like.

Gregg Gelzinis, research associate for economic policy at the Center for American Progress

Reforms put in place following the financial crisis have improved the resiliency of the financial system. Big banks fund themselves with more shareholder capital and less debt than they did in 2008, enhancing their ability to sustain losses and avoid failure. They also rely on more stable forms of funding, face annual stress-testing, and file “living wills” with regulators to plan for their orderly failure. The previously unregulated derivatives market has been taken out of the shadows, regulators now have the authority to subject nonbank financial companies like Lehman Brothers to enhanced oversight, and consumers finally have a cop on the beat to police abuses in the financial marketplace.

These improvements have put our financial system on a more stable footing. But far more needs to be done to ensure that we protect workers, families, and savers from the economic devastation of another financial crisis.

Despite some improvement, the largest banks in the country still fund themselves with far too much debt and too little shareholder capital. Increasing the size of these loss-absorbing buffers would further limit the chances of a financial crisis and improve the outlook for long-term, sustainable economic growth.

Policymakers have also failed to meaningfully reform short-term funding markets that serve as a key source of funding for the shadow banking sector. The risk of destabilizing runs on these markets, similar to bank runs prior to deposit insurance, still poses a threat to the broader financial system.

Finally, the endless list of post-crisis scandals shows that policymakers have not adequately addressed Wall Street’s broken culture. Policymakers should advance rules that rein in excess risk-taking, misconduct, and conflicts of interest that still permeate Wall Street and that undermine trust in the financial system.

Diego Zuluaga, policy analyst at the Cato Institute’s Center for Monetary and Financial Alternatives

Using the term “guardrails” can be deceptive, because it implies more knowledge about the source of the next financial crisis than experience teaches us we can presume to have. But there is reason to believe that some of the causes of the 2008 meltdown remain unaddressed.

The crisis originated in the US mortgage market, where it had been long-standing government practice to encourage lending to risky borrowers on attractive terms. These loans were guaranteed by Fannie Mae and Freddie Mac. It was their government backing that caused much of the excessive risk-taking by banks.

Yet, a decade later, the GSEs like Fannie and Freddie hold more than 60 percent of US mortgage debt and are responsible for 97 percent of mortgage securitizations, the instruments whose mispricing caused so much pain 10 years ago. Indeed, America remains an outlier in the degree of control that the government exercises over the mortgage market.

Banks are in a better position to withstand shocks today than they were in 2008. Average bank capital as a share of assets, a key measure of resiliency, is around 10 percent. This compares to 7.5 percent at the dawn of the crash, and as low as 3 percent in the case of the failed Lehman Brothers. There is also greater awareness among regulators of the unreliability of complex models to appraise bank safety and soundness. Still, the Federal Reserve has 24 different capital measures, which it is now reducing to 14, to assess the health of banks. Supervision, therefore, is hardly more transparent than it was 10 years ago.

More significantly, taxpayers continue to be exposed through deposit insurance, guarantees on mortgage and student loans, and the government responsibility to resolve failed institutions. Such implicit underwriting of private risks encourages irresponsible behavior as much as it did a decade ago.

Original Source -> How close are we to another financial crisis? 8 experts weigh in.

via The Conservative Brief

[rickhorrow]

15 TO WATCH/5 SPORTS TECH/POWER OF SPORTS 5: RICK HORROW’S TOP SPORTS/BIZ/TECH/PHILANTHROPY ISSUES FOR THE WEEK OF AUGUST 13

with Jamie Swimmer & Jesse Leeds Grant

Golf and tech engines are revving for the second annual Indy Women in Tech Championship Powered by Group1001. Boasting a $2 million purse, dozens of the world’s best female golfers, and a classic location – the Brickyard Crossing Golf Course, designed by Pete Dye – the Indy Women in Tech Championship also shows off a unique week of tech and STEM focused events for women and girls. Indy Women in Tech makes an annual commitment to support local initiatives financially and through marketing platforms surrounding the LPGA event with a particular focus on expanding the reach of robotic programs in schools; expanding STEM days; helping to create programs that enable professional, full-time athletes to gain the network, confidence, support, and skills to enter the full-time workforce; and creating initiatives aimed at women who have been away from the workforce and equipping them with the skills needed to use tech as a vehicle back to the workforce. Leadership at all levels is also an important component of this event. While the ability to lead and influence is apparent on the PGA Tour – as we saw during Sunday’s PGA Championship final round, as winner and likely Player of the Year Brooks Koepka battled timeless Tiger Woods – the LPGA has been missing a true icon for some years. Here’s hoping one comes into sharper focus this week in Indy.

In the wake of this past year’s FBI scandal that took college basketball by storm, the NCAA has unveiled a series of rules changes aimed at cleaning up and reforming the game. According to USA Today, the NCAA is broadly promoting stricter enforcement of the rule book, tougher penalties for violations of such rules, and adding independent investigators for “complex” cases. In such instances, NCAA investigators will now be allowed to “accept information established by another administrative body, including a court of law, government agency, accrediting body or a commission authorized by a school.” One of the biggest issues going forward now is how USA Basketball, the NCAA, and NBA work together on implementing these changes. Under the new rules, elite high school basketball recruits and college players will be eligible to be represented by agents who are certified by the NCAA; the NCAA has tasked USA Basketball with selecting which players will be allowed to sign with agents, but it wants “no part” in bearing such responsibility. The changes are being hailed as “enormously significant” by those in college basketball, though they likely will not be implemented until 2022 at the earliest and still need to be ironed out.

Los Angeles Rams Owner and American billionaire Stan Kroenke has agreed to pay $777 million to buy out Alisher Usmanov’s stake in Arsenal to become the club’s sole owner. According to the London Times, Kroenke’s business, Kroenke Sports & Entertainment, reported that Usmanov accepted the offer, which values the London-based Premier League club at $2.3 billion. The two billionaires have been battling each other for control of the club ever since they initially invested back in 2007; “Kroenke has been Arsenal’s majority shareholder since 2011 and is planning to make offers to the club’s number of remaining small shareholders to take complete control.” The capital needed to fund the takeover will likely come from a mix of Kroenke’s personal money and from raising capital – $58.2 million of his own money will be used and the remaining $721 million will be borrowed, “which he says will not be borrowed against the club.” This marks the latest move by Kroenke to expand his sports business empire, but Gunner fans are not happy with the move, citing Kroenke’s concern for the bottom line over trophies won.

With the recent release of the upcoming season’s NBA schedule, the league is betting on LeBron James and the Los Angeles Lakers to attract a crowd everywhere they go. According to the Los Angeles Times, the Lakers have lost a significant amount of public intrigue since Kobe Bryant’s retirement a few years ago, but they are “officially back square in the public eye.” Christmas Day, always known to feature marquee matchups, will pit the Philadelphia 76ers against the Boston Celtics in a heated East Coast battle, followed by the Oklahoma City Thunder against the Houston Rockets, and capped off with a matchup between LeBron’s Lakers and the reigning NBA Champion Golden State Warriors. Some have questioned the league’s scheduling decisions though, specifically why the Lakers open the season on the road instead of at Staples Center and why the Warriors-Rockets, Lakers-Celtics matchups are not being featured on Christmas Day. In a league that is so driven by fan engagement and television ratings, the NBA had to make some tough scheduling decisions – some to the chagrin of loyal fans.

Mississippi has become the fourth state to legalize sports betting in the wake of the Supreme Court’s recent decision. According to JohnWallStreet, Mississippi now follows Nevada, New Jersey, and Delaware and has opened sportsbooks at Beau Rivage Casino in Biloxi and Gold Strike Casino in Tunica – both properties owned by MGM Resorts International. State laws will require anyone wanting to make in-game bets to “visit their local casino as mobile betting will be restricted to those on the casino’s physical premises.” Currently no other states in the South offer legalized sports betting, though neighboring Alabama has more illegal college football bets per capita than any other state in the country. While MGM has the first-mover advantage in Mississippi, William Hill has gone to greater lengths to establish itself; the company has already announced partnerships with 11 casinos around the state. Mississippi’s advantage as the only Southern state with legalized sports betting is expected to last for at least one year, but could be longer.

Green Bay Packers quarterback Aaron Rodgers is calling for more consistency when it comes to the ongoing national anthem dilemma in pro football. According to The Ringer, Rodgers agrees with San Francisco 49ers CEO Jed York’s comments about halting concessions during the playing of the anthem before games. “Everybody in the stadium stands and does the exact same thing,” said Rodgers. “You have people in the concession, people in the bathroom; you’ve got cameramen on their knee watching. You can’t have it one way or another.” Rodgers went on to underline the looming misconception about why players protest the anthem – not to protest the song itself or the troops serving our country, but to protest social inequality and racial injustice. NFL Hall of Famer Jim Brown chimed in, noting that he personally would never take a knee during the playing of the anthem. “I am not going to denigrate my flag and I’m going to stand for the national anthem,” said Brown. “I’m fighting with all of my strength to make it a better country, but I don’t think that’s the issue.” With the NFL’s regular season kicking off in mere weeks, the league is running out of time to hammer down a solid anthem plan.

In honor of the new Premier League season kicking off across the pond, let’s take a look to look at some of the financials behind the world’s most lucrative soccer league. According to the London Telegraph, since its humble origins back in 1992, the Premier League has grown to nearly unrecognizable heights. Heading into this year’s campaign, the total value of shirt sponsorship was worth more than $388 million, reflecting the league’s increasing global appeal. That number is not only representative of the league’s popularity, but of the ever-evolving and changing business climate in which its teams operate. The Premier League’s founding “coincided with the electronics booms,” by the fact that by 2002-2003 six telecoms and media companies had their names on team’s shirts, but has since grown well beyond that. Nowadays it is easy to see the geopolitical influence and the “rise of the Middle East” being reflected by the Gulf’s two biggest airlines – Emirates supporting Arsenal and Etihad sponsoring Manchester City. The new big trend in the Premier League is gambling entities. With their continued rise in popularity and the recent Supreme Court decision in the U.S., expect sports betting sponsorship to grow in the UK as well.

The Atlanta Braves have two things to be happy with these days – their on-field performance and their bottom line. The Braves are currently battling it out with the Philadelphia Phillies for control of the NL East while also reporting significantly improved financials from last year. According to the Atlanta Journal-Constitution, over the first three months of the season the team “showed a modest increase in revenue and a surge in profit.” The team’s revenue from Q2 was up $6 million compared to last year’s number – $182 million this year versus $176 million last year. The really impressive number is the club’s profits; last year the Braves reported a loss of $1 million, and this year they are reporting a quarterly profit of $37 million after depreciation and amortization. Braves owner Liberty Media said the increased profits were “primarily driven by higher revenue and reduced operating expenses from lower player salaries due to the acceleration of player salary expense in previous quarters as a result of released and injured players.” Business continues to boom around SunTrust Park, with a new 140-room hotel coming to The Battery. If the team keeps winning expect the money to keep coming.

Adidas is expected to meet year-end financial targets after reporting stronger-than-anticipated Q2 profits. According to CNBC.com, the sportswear company was expected to register $448.7 million in net profit this past quarter, but that number came in at $484.6 million, up 20% from what analysts predicted. Sales were up 10% to $6.14 billion, beating the expected 8% rise. Adidas said that it was “taking a medium triple-digit million euro impairment regarding its Reebok brand after the German Financial Reporting Enforcement Panel disagreed with how the firm calculated historical book value.” The move is not expected to have an impact on the year’s final financial numbers. Adidas, the official sponsor of this summer’s 2018 FIFA World Cup, saw its marketing spend and jersey sales increase thanks to the tournament. Despite Nike coming out as the real winner from Russia with three of the four semi-finalists and both finalists donning the swoosh over the three stripes, Adidas sold more than eight million jerseys during the World Cup and appears to be in good financial standing.

ESPN continues to add exclusive content to its new OTT platform, ESPN+. According to JohnWallStreet, the sports network has announced a new multi-year deal with Italy’s top soccer league, Serie A, to broadcast matches in the United States, with most airing on ESPN+ and a Match of the Week broadcast on either ESPN or ESPN2; the matches will also be available in Spanish on ESPN Deportes. The deal was struck before Serie A’s first match and will kick off with Ronaldo’s Juventus debut on August 18. Additionally, ESPN inked a new seven-year deal with Top Rank Boxing, replacing the four-year agreement that the two sides agreed to last summer. The “new pact calls for ESPN to bring fight fans 54 cards per year, 36 of which (includes 24 international cards) will be exclusive to ESPN+ subscribers.” Though still in its infancy, ESPN’s OTT platform is one of the few bright spots for the network. In fiscal Q3, ESPN’s advertisement revenue decreased, programming costs increased, and its television base shrunk, but ESPN+’s affiliated fees helped the company post mid-single digital revenue growth, rising to $15.23 billion.

The Washington Redskins, a club that once prided itself on having a season ticket waiting list that included as many as 200,000 names, are scrambling to not only attract new fans, but to hold on to current ones. According to the Washington Post, the Redskins have recently begun advertising single-game general admission tickets for the upcoming season instead of “continuing their long-running claim of a season ticket waiting list and a resulting lack of inventory.” Just two months ago, the club admitted that its “mythical” waiting list no longer existed, trying to push to reengage with fans as opposed to keeping them at a distance. Along with ending its waitlist claims, the Redskins are offering season ticket holders discounts ranging from 20-50% on all food at FedEx Field when they scan their mobile or paper tickets after placing an order at a concession stand. This approach of intimately catering to its fan base comes as a drastic change in strategy from previous years. Without a playoff win in over 10 years, the Redskins are looking for alternative ways of getting people in seats on game days.

With the 2022 Beijing Olympics only four years away, NHL legend Wayne Gretzky is being tasked with helping to grow the game in China. According to ChinaDaily.com, Gretzky has been appointed as a global ambassador for the KHL Chinese Kunlun Red Star. In his role, Gretzky will help develop a comprehensive youth development program in China, visiting the country in mid-September to make promotional stops in Beijing, Shenzhen, and Shanghai. China “is seeking to boost hockey in a country where winter sports participation remains in its infancy.” While this is certainly going to be a challenge for Gretzky, the NHL has already begun trying to tap into the market from a grassroots level. For the second year, the league is holding promotional games in China, when the Boston Bruins square off against the Calgary Flames in Shenzhen, coinciding with Gretzky’s mid-September visit. With a population of nearly 1.4 billion, China presents a massive opportunity to spread the game of hockey. While it certainly won’t be easy to do, it seems fitting that Wayne Gretzky is the one tasked with this.

LionTree has become a minority investor in Ripken Holdings LCC, the parent company of Ripken Baseball. According to SportsBusiness Journal, LionTree, a global investment and merchant bank, has strategically decided to invest in Ripken Holdings in an attempt to help “jumpstart an expansion of Ripken’s youth baseball operations.” The amount invested by LionTree has not been disclosed, but the capital will be put toward developing more youth baseball complexes around the country; Ripken Baseball currently operates such facilities in Aberdeen, MD; Myrtle Beach, SC; and Pigeon Forge, TN. “Adding a minority partner gives us an infusion of capital where we can now really expand the model,” said Ripken Holdings CEO and MLB Hall of Famer Cal Ripken Jr. “And with LionTree, this is also a firm that has a lot of digital expertise and allow us to grow that part of that online content and teaching business, too.” Ripken Baseball has long been a pioneer in trying to grow baseball at the youth level, helping MLB overcome one of its biggest hurdles – youth engagement.

ATP/WTA BNP Paribas Open tournament Owner Larry Ellison has become an investor in the reform project for the Davis Cup. And according to the Desert Sun, this means there may be an "even greater possibility" of bringing the event to the California desert as early as 2021. Ellison, the "wealthiest man in tennis," and among the world’s wealthiest people, became an investor in the 25-year, $3 billion partnership between the ITF and investment group Kosmos that is "expected to reform Davis Cup into a one-week event." Ellison purchased the BNP Paribas Open and Indian Wells Tennis Garden in 2010, and has since "invested substantially into making the March event into a marvel within the sport." The Kosmos/ITF Davis Cup reform project "will create a season finale with 18 tennis nations and their individual tennis stars playing at world class venues." On August 16 in Orlando, it "could become more clear whether this could eventually bring more world class tennis to Indian Wells when the ITF votes on whether to accept the project proposal.” The event, as envisioned by the reform project and Ellison, could generate significant revenues for tennis development worldwide.

PHIT America released its Inactivity Pandemic’ Report 2018 last week, and the results are grim. The organization reports that 7% of American children are physically active to CDC standards, while the number of U.S. children who are active three times a week has dropped to 23.9%, a decrease of 15% in the last five years; core participation in team sports in the U.S. is also down for the fifth straight year. Said PHIT America Founder Jim Baugh. “Do we really think Americans are going to put down their smart phones and tablets? Will schools suddenly start putting daily P.E. back in our schools? Hell no! The competition is going to get stronger. And the sports and fitness industry must respond.” On brand campaigns to get more children playing sports, Baugh questioned, “Are they really just PR programs for their brand? What is their cost per participant? I bet it isn’t close to the PHIT America formula, which is less than $10 to get a kid physically moving while at school. If PHIT America had access to those brand funds, their ROI would be much better. And, perhaps, more kids would be fitter.

Tech Top 5

DraftKings launches first sports betting in New Jersey. Online fantasy sports provider DraftKings has announced the launch of DraftKings Sportsbook, making it the first company to offer legal online and mobile sports betting in New Jersey. The move comes two months after DraftKings officially applied for a sports betting license in the state after laws restricting wagering on sporting events were relaxed in the country. DraftKings says that it has used insight into the habits of American sports fans to tailor its sportsbook app and online platform to their preferences. The service will give users the ability to place multiple types of bets, including live in-game bets, on both major and niche sports taking place locally and internationally. In addition, the app and website will allow consumers to toggle between the company’s fantasy sports and sportsbook platforms, enabling them to place a bet and then draft a fantasy line-up with one click. While its sportsbook is currently only available in New Jersey, DraftKings is prepared to act in response to the legalization of sports betting in other states across the U.S.

European Championships launch VR app. The European Broadcasting Union (EBU) has launched a virtual reality app to accompany the ongoing multi-sport European Championships. The European Championships Lounge has been released and made available to EBU member broadcasters, offering viewers an innovative way to take in the sporting action, which is taking place in Berlin and Glasgow. Individual broadcasters have been given the opportunity to personalize the VR experience to meet the nations’ requirements, using it as a supplementary tool to attract a new audience. More than 50 hours of content from the track and field events at Germany’s Olympic Stadium have been made available on the app, as well as other competitions’ live feeds, leaderboards, and statistics. The VR platform can be purchased in Google, Apple, and Oculus stores. Stefan Kürten, director of EBU Sport said, “This approach will drive new audiences to the coverage, creating a massive footprint across all screens, supporting and helping our member broadcasters and partners to the fullest.”

Eleven Sports makes Facebook UK free-to-air partner. Eleven Sports has confirmed a partnership with Facebook that sees the social media platform become the broadcaster’s free-to-air (FTA) partner in the UK and Ireland. As part of the agreement, at least one match per week from both La Liga and Serie A will be shown live and free of charge on Eleven’s UK Facebook page, with a selection of games from the rest of the company’s top-flight soccer portfolio to be made available on Facebook across the season. Cristiano Ronaldo's anticipated Serie A debut is one of the opening games selected for live streaming on Facebook, with Juventus’ trip to Chievo being shown on August 18. In addition to the live matches, in-game highlights and clips, weekly review shows, and socially-led content will be published on Eleven’s Facebook page to help drive interaction and engagement. The deal comes after Eleven announced it would show the first two rounds of the 2018 PGA Championship on its Facebook channel.

Sportradar is valued at $2.4 billion. Private equity firm EQT has sold a minority share of sports data and integrity company Sportradar to Canada Pension Investment Board (CPPIB) and Silicon Valley-based growth equity firm TCV. The investment sees CPPIB and TCV become strategic partners of Sportradar in a deal which values the company at $2.4 billion. Under the terms of the deal, Sportradar founder and chief executive Carsten Koerl will retain his entire ownership position and continue to drive its future development and growth. EQT will also reinvest a portion of its sale proceeds into Sportradar.  “CPPIB and TCV are both known for extensive global tech experience and a track record for working alongside innovative management teams to help achieve their long-term vision,” said Koerl. “Having two new investors with a strong North American footprint is ideal given our increasing focus and expanding operations in the U.S.” Sportradar has a number of high-profile partnerships within sport, including agreements with the NBA, NFL, and FIFA.

Seattle Seahawks and Sounders implement screening technology. Seattle’s two remaining men’s major league sports teams have partnered with screening company Clear to bolster fan security at their shared CenturyLink Field home. The NFL Seattle Seahawks and MLS Seattle Sounders have followed the lead of the MLB Seattle Mariners to introduce Clear’s fingerprint recognition technology at the venue’s security entry checkpoints. The deal is designed to allow fans to enter CenturyLink Field more easily while also using the system to purchase concessions and make payments. The Seahawks are the first NFL team to implement the platform, which was used for the first time at the team’s preseason game against the Indianapolis Colts. The Sounders are the fourth MLS team to install the technology. In order to enroll and use the system, kiosks will be situated around the stadium, where fans will have to answer questions and create a biometric account by scanning their fingerprints. Clear Sports membership is free.

Power of Sports 5

Aaron Rodgers talks Wounded Warrior Project in new video. Green Bay Packers quarterback Aaron Rodgers is one of four professional athletes featured in Sharpie’s Uncap the Possibilities campaign, which looks at how each athlete is inspiring positive change through their chosen charity. In the video series, releases in partnership with The Players’ Tribune, Rodgers talked about how his grandfather served in the Air Force and was active duty during World War II. He came home with a Purple Heart and a Silver Star. His service was “one of the greatest achievements of his life,” Rodgers said. The Wounded Warrior Project works to help veterans live life on their own terms by providing free programs and services in mental health, career counseling, and long term rehabilitative care. In a statement Sharpie said, “It’s this natural talent that has enabled the quarterback to orchestrate countless thrilling come-from-behind wins in the closing minutes of the game. And Aaron’s chosen charity, Wounded Warrior Project®, is all about the strong comeback that the wounded veterans it serves can experience.”

Shane Victorino visits Boys and Girls Club. Shane Victorino hasn't been a Phillie since 2012, but with his retirement set, he was back in town to visit the place that, after a nearly $1 million donation to help with renovations in 2011, now bears his name. Victorino toured the facilities and checked in on summer programs. He discussed some of the younger kids' artwork with the artists themselves. Other than a 2008 World Series championship, Victorino said, being able to give that to the Nicetown community is what he's most proud of when he looks back at his time in Philadelphia. "To be able to give back and embrace a community, especially here in Nicetown, it meant a lot," Victorino said. "This is it for the rest of my life and hopefully many years beyond that. When I renovated this building, it was 100-plus years old. So, hopefully for the next 100 years, this thing can provide a safe haven and somewhere for these kids to come and enjoy themselves.” While the Shane Victorino Nicetown Boys & Girls Club renovations have been his signature project, Victorino has also been involved with clinics and projects in his home state, Hawaii.

NHL All-Stars golf for mental health. Toronto Maple Leafs center Nazem Kadri will be joined by a number of NHL all-stars for the 6th Annual Nazem Kadri Charity Golf Classic at the Sunningdale Golf and Country Club. “I think we’re really trying to focus on that stigma and I still feel like there’s more awareness to be raised,” said Kadri. “We’re really trying to focus on that this year.” The Nazem Kadri Foundation is a proud support of local Canadian charities and strives to give back to the community by raising awareness and funding to aid important causes.

Semper Fi 5k charity race becomes RaceThread partner race. RaceThread, the most comprehensive searchable directory of races from every sport, partners with Washington D.C charity race Semper Fi 5K Run/Walk, an annual 5K race that benefits the Semper Fi Fund, a non-profit organization that provides financial assistance and support to wounded, critically ill, and injured members of the military. The partnership with the race directory and the local charity race provides a premium access account free of charge as well as gives the run/walk participants a way to provide feedback on the race. With more than 55,000 races, RaceThread allows athletes of all abilities to search and find the next race that’s perfect for them based on the race’s profile and reviews. From the most scenic run to worst post-race food to the best finish line medal, RaceThread provides logistics and previous participants’ thoughts all on one page. To keep the directory up to date for users and allow race directors complete control of the race information, RaceThread partners with race directors who can claim their race profile and in doing so, update the information, attract new athletes, and create an online hub for participants.

Chris Paul donates $2.5 million to Wake Forest Basketball. Former Wake Forest University superstar and hometown hero Chris Paul is donating $2.5 million to support Wake Forest Basketball. The Houston Rockets point guard’s latest donation to his alma mater – the largest ever by a former basketball student-athlete or any alumnus under the age of 35 – will ensure that future generations of Demon Deacons can succeed on and off the court. Paul’s leadership gift demonstrates significant progress in fundraising efforts to transform the men’s and women’s basketball clubhouses with expanded and enhanced locker rooms, nutrition resources, and treatment areas. The new Chris Paul Locker Room for the men’s team will be named in his honor. “Giving back has always been important to my family and me, and Wake Forest is part of my family,” Paul said. The recent investments towards improving Wake Forest Athletics are amazing, and now is the time to give back in a meaningful way.”

[wdfpalma6716884-blog]

45 Outstanding DO-IT-YOURSELF Gift Ideas That Anybody Can possibly do (PHOTOS).

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3 TIPS FOR NEW HOME BUYERS 

by Aaron Deinhardt, CPA

As CPAs you will likely buy and sell real estate, either a single family home or investment properties, many times throughout your life. When the situation arises you will be armed with a financial background that helps you plan for and execute the financial elements related to the purchase or sale. One element that many CPAs overlook is the need for real estate advice from a trusted professional. I myself, a finance professional and CPA, purchased my first property nine years ago. Going through that experience I became highly aware that there was a significant difference in the level of service provided by different real estate agents.

My first foray into homebuying was not very successful or productive because I haphazardly selected a real estate agent by looking through social media ads. In my mind it didn't matter who I selected as I planned to educate myself... I am a CPA and I am smart enough, so what could go wrong? I soon learned it made a big difference! The first property I put an offer on turned out to be a lemon and required repairs exceeding 40% of the property’s value! The situation was made worse by my agent who didn’t provide me with professional advice when I needed it most. Instead, my agent informed me of all the things that could go wrong if i did not proceed with the purchase. I was told I could lose my deposit and open myself up to litigation. Furthermore, the agent told me it was unreasonable and unacceptable to ask the seller to repair any of the property defects. I had never purchased real estate before so I took my agent’s comments very seriously. After reflecting on my agent's guidance and consulting with others who had purchased real estate I became skeptical my agent was acting in my best interest and giving me professional advice.

To keep a long story short I was able to walk away from the transaction with my deposit and without risk of litigation. But I consider myself lucky given my youthful exuberance, and inexperience going in. Had I not been skeptical of the advice provided by my agent, who by the way had more than 30 years of experience and had closed millions of dollars of transactions, I may have been pressured into purchasing the property. I had learned a very important lesson about real estate...which agent you select makes a big difference!

Today buyers and sellers are better educated about the protections afforded to them under various real estate and contract law, but the need for valuable real estate advice has not diminished. The real estate market is dynamic and can change quickly due to many factors including interest rates, governmental regulations, and various socioeconomic factors. All of these points further strengthen the need for a trusted advisor. As a result of my experiences with real estate agents over the past decade I decided to become an agent myself as I believe everyone should receive extraordinary service when making important life decisions.

To that end I would like to share with my CPA brethren three facts about buying real estate that you may not be aware of:

1.       Most home buyers can deduct 20-30% of your mortgage payment on their tax return as an itemized deduction.*

2.       Federal and State tax withholdings can be adjusted to reduce payroll deductions to help meet your monthly mortgage payment. A helpful withholding’s calculator is available at IRS.GOV: Withholdings Calculator.

3.       Property taxes, mortgage interest, private mortgage insurance, mortgage points are all tax deductible! In most cases rent is not deductible (IRS Pub 530).

As a real estate professional, who is also a CPA, I can help you with any of your home buying or selling needs while ensuring you receive exceptional service. Reach out anytime using any contact means below.

Regards,

Aaron Deinhardt, CPA

VISTA SOTHEBY'S INTERNATIONAL REALTY

Facebook - Aaron Deinhardt

Cell: 424-246-7173

Cal BRE # 02019455st

*Based on $0.5m to $1.0m home purchase with an interest rate in the range of 4% to 5%. Presumes an individual making approximately $120k to $150k annually with a marginal tax rate of 34% (State & Federal). Tax savings are greater in earlier years of mortgage due loan amortization. A CPA should be consulted to discuss the individual’s specific tax situation.