Month: November 2019

After the financial crisis, there has been a change in the sources of funds for mortgage lending. Before, the financial crisis, banks were very actively involved in providing money for mortgage lending.

The situation has changed. Now, most of the money comes from non-bank lenders. Banks take in deposits and use the money from deposits and other sources to fund loans.

Non-bank lenders use sources other than deposits. Commonly, the non-bank lenders are using lines of credit (loans from third parties) to fund mortgages. https://www.bloomberg.com/news/articles/2019-11-05/mortgage-liquidity-squeeze-flagged-as-risk-to-powell-mnuchin

In the event of a financial crisis, it is uncertain if these non-bank lenders will be able to modify mortgages for mortgagors in distress (loan modifications) or even survive a financial crisis.

Interestingly, Quicken Loans has become the largest non-bank mortgage lender.

When there is a recession, if these lenders cannot provide a loan modification to borrowers, borrowers may have to use Chapter 13 bankruptcy to reorganize their debt (and save their home).

If you are having problems paying your mortgage, please feel free to contact

Attorney Robert M. Singer

2572 Whitney Avenue, Hamden, CT 06518

203-248-8278

serving all of Connecticut

As the economy slows down in 2019, and the trade war continues, it seems more likely that the economy will fall into recession in 2020.

The growth of debt in the U.S. goes on, unabated. One particular area of concern is the junk bond market, non-investment grade corporate debt.

There are two ways to have a junk bond bear market:

a. as interest rates rise, the value of a bond decreases.

b. in a slowing economy or recession, a corporate issuer may not be able to pay back the principal and interest due on the junk bonds, thereby resulting in a default.

For an interesting article on the debt market: https://www.thebeartrapsreport.com/blog/2018/12/30/one-sky-high-junk-bond-maturity-wall/

Now can be the time for investors to reallocate their portfolio away from high yield bonds, and high yield bond funds. Complacency can be costly. Don’t wait until the bear market hits, before adjusting your portfolio to protect against losses.

If you have losses from high yield bonds or high yield bond funds, please feel free to contact

Attorney Robert M. Singer

2572 Whitney Avenue

Hamden, CT 06518

203-248-8278

Serving all of Connecticut

Securities Arbitration for Investors.

Many people are using rideshare services, such as Uber & Lyte. Unlike with a taxi company, a driver for Uber & Lyte is an independent contractor, rather than an employee. The difference becomes very important in the event that a person is hurt as a result of the negligence of a driver.

Taxi companies employ drivers who work for the company. The taxi company has its own liability insurance company to cover the vehicle driven by an employee. If a driver is involved in an auto accident with a company vehicle, even if he has no passenger, typically, the taxi company insurance policy covers the claim.

An accident with an Uber or Lyte vehicle may be different. Uber and Lyte have a 1,000,000 policy, which will cover passengers in a vehicle. However, the coverage is different than a taxcab commercial insuance policy. If you are involved in an accident with an Uber or Lyte vehicle which is not transporting passengers (or going to pick up passengers), there may be an issue as to whether the 1M policy will cover your claim.

I recently renewed my auto insurance. The insurance company asked if I use my vehicle for any ride sharing service, such as Uber or Lyte. Ride sharing drivers need commercial insurance to cover claims. If you are involved in an accident with an off-duty rideshare driver, the other driver’s insurance company may deny the claim if he or she does not have commercial insurance.

If you were involved in an acciident with an Uber or Lyt motor vehicle, please feel free to contact

Attorney Robert M. Singer

2572 Whitney Avenue, Hamden, CT 06518

203-248-8278

Serving New Haven Count and all of Connecticut

rsingerct@yahoo.com

A person can be in an accident in which a vehicle is “totaled.” When a vehicle is totaled, an insurance company will pay to replace the vehicle. This often happens when the cost to repair the vehicle is greater than the value of the vehicle. For example, it is not economical for an insurance company to pay $10,000 to repair a car which is worth only $7,000.

In these situations, you need to determine how the insurance company will determine “value.” If your insurance company will be paying the amount due, check if your policy provides for payment based on “actual cash value” or “replacement cost.”

1. With replacement cost, you determine how much it would cost to replace the same vehicle at the time of loss. Often, you can look at a guidebook, such as the book from NADA (nadaguides.com).
2. The “actual cash value” is a different calculation (ACV). ACV considers the depreciation on a vehicle. The normal calculation is –

• original cash value less depreciation

the depreciation number should be based on the useful life of the vehicle and the number of years in service, i.e. 60% depreciation if car is 3 years old with a 5-year useful life.

there can be an additional deduction for items such as high mileage

In certain cases, you can obtain full replacement cost coverage. Also, if you are buying a car on credit, you may be required to obtain “gap insurance.” which covers the difference between normal insurance coverage and the amount of a loan. Gap insurance between important when a loan is upside loan (the loan amount is greater than the value of the motor vehicle).

If you have any questions in Connecticut concerning insurance coverage issues, please feel free to contact

Attorney Robert M. Singer

2572 Whitney Avenue, Hamden, CT 06518

203-248-8278

Serving all of Connecticut