Leadpile’s Blog

Unless you have been living under a rock, you know all about what has been going on in the U.S housing market. With houses being foreclosed left and right, it has put house values at an all time low. Most believe that this was due to large mortgage companies writing bad home loans and giving loans to individuals who clearly could not afford to own a home (or at least the one that they wanted to purchase).
Now until March the U.K government will be offering “A No Money Down Mortgage”. It basically is exactly what it says it is. People who normally could not afford to buy a house because of the down payment, now can. There has been a very split reaction on whether this is going to help or hurt the U.K economy. People are going to be buying houses, putting house sales and values on the rise, and the housing market will be booming. But what happens when the home owners realize that they are in over their heads and can not pay the payments? First they miss one payment, then two, until before they know it their house is being foreclosed.
It almost seems that somehow people do not listen to the world news over there. The same effect that happened to the U.S is going to happen to the U.K. You think that they would have learned from our mistakes. What is almost more shocking is that people think that the government is actually trying to help them. According to Alastair Stewart “Every scheme in history the government has tried to implement in the housing market has gone completely toes up,”. I don’t know why people think that this is going to be any different. All I know is that I hope the U.K does not come to us asking for money when they are in our position two years from now.

The idea of seeing home prices going up is something all of us continue to wish would come. The housing market appears it might have some positive momentum going on, and we will all need to cross our fingers that this is not too good to be true. There have been home value increase teasers in the past that did not stick, but maybe this is actually going to be the time when we see positive changes continue. According to the S&P/Case-Shiller national index, “Its 20-city index was up 1.4 percent in June compared with May, and up 0.5 percent in May over April – the first incidence of two consecutive monthly gains in more than three years. Eighteen of the 20 markets, including San Francisco, experienced monthly price gains.”
So do we know what is possibly fueling this housing price increase? I would guess that investors out there buying a lot of these homes, that were in foreclosure etc, has helped to create a bidding war on homes. Once you have a high demand and lower supply that creates pricing increase. This is great news for those in the neighborhoods that are hoping to see homes in their area selling for more. This will ultimately help them with their values. How about the government giving a tax credit for those purchasing a home? That has to help, however from what I heard about this program there are some stipulations on this program that eliminate some from getting the tax credit because they make too much. Is that fair? Time will only tell if these two things help to fuel the positive momentum we have going on with our housing market. I think a lot of us are hoping this is the beginning of the end of a struggling housing market. You never really realize how much an impact our housing market has on all sorts of industries, till going through it like we all have.

Sad news in the auto finance industry today….. Cash For Clunkers will end today. This program has fueled great success in our nation’s dealerships, however that is ending today. I am curious to see the reported end results of this short lived program and see if this is something that be continued on in the future. Ask the dealerships and they say that this brought people into their dealerships that would never have come. Ask consumers and they say this was great because they earned more money for their cars, than they ever would without the program. Ask the government and they say???????
This program we know has brought more traffic to the online auto finance industry, and Leadpile loves the idea of this. Can we all say “let’s keep Cash for Clunkers” going?

With everything that has happened in the financial market in the last few years, many question if the responsibility falls on the consumer or the lenders (or both)? Is the responsibility of the lender to make sure the customer 100% know what they are signing, or it is the responsibility of the customer to ask questions if they do understand what they are signing? There are advocates on both sides, however the government now feels it needs to step in. NPR is reporting that Congress has drafted legislation that would allow the government to oversee all consumer financial products such as credit cards, mortgage loans and payday loans. This measure would prevent consumers from getting any sort of “loan” that they did not fully understand what they were signing. I am not quit sure how something like this can be regulated, but the government wants to step in and try to protect consumers in these sorts of situations. Many legislatures feel that the past behavior of our banks was that they would shop around till they found a lender that would take on their “unique” client situation. Unfortunately, what this caused was those “unique” consumers to then fall behind on their mortgages because they really can’t afford that mortgage.
No matter what, if you agree with government intervention in our financial market or not, the bottom line is our country needs something to change. The right answer is not always that easy to figure out, however one thing I do know is that to change our financial market there needs to be a combination of many people/groups that need to come together to protect customers…and sometimes protect the lenders (the good ones).

In recent news it was announced that there was a widespread cyber attack that hit dozens of government websites, and some nongovernment websites. While Treasury Department and Federal Trade Commission Web sites were shut down by the software attack, which lasted for days over the holiday weekend, others such as the Pentagon and the White House were able to fend it off with little disruption. These sort of cyber attacks are known as “denial of service” attacks. Websites are inidated with so much internet traffic that they are forced to be taken offline. It is not confirmed that this is 100% related to North Korea, however fingers are being pointed their way. This brings up the question about security on the internet and also with our government agencies. How can occurances like this be prevented with all the sophistication of these sort of hackers? One thing I do know is that the internet is a revolving “monster” that all agencies and companies need to constantly be upgrading their systems to keep protected.

Imagine this….. you fell behind on your mortgage and you are going to have to move out of the home you spent your hard earned money building to your satisfaction. Out of anger you do some things to this home to express your frustration of the situation you are now in. Broken windows, damaged walls, and you decide on your way out you are going to put a nice little hammer to the A/C unit.
Unfortunately, this consumer’s damaged house needs to be then put up for sale by the bank for some other consumer to purchase. Who is going to want to purchase a home that requires so many repairs before even moving in? Fortunately, someone else’s “garbage” is another person’s treasures. With a great deal on the home, that home sells to a new consumer who sees so much potential with this damaged foreclosed home. The new homeowner also did their homework and found out with the Obama Plan, there are tax credits available to homeowners for things such as windows, HVAC, and a few other home improvements. In an effort to help consumers who are willing to purchase these damaged foreclosure homes, and for those that have to stay in their home and can not sell, the Federal Government rolled out some great tax credits for 2009 and 2010. The tax credits available are up to 30% of the cost of the designated repairs up to $1,500. There have been tax credits available to consumers in previous years, however to this level they have never been available.
Leadpile Lead Exchange works with the home improvement vertical and thinks maybe assistance like this, will only help with the demand for this lead type. Leadpile is currently looking for publishers that can potentially bring in this lead type so we can connect homeowners wanting to take advantage of these credits, with the advertisers that want to provide the services.

Here is the latest news on what is going on with the struggling auto industry.  Automakers are trying to get congress to approve a bailout for them, yet FORD has announced it does not need any help.  However, congress wants to add a stipluation in with this potential “deal”… that is a “car czar”.  This car czar would potentially be there to monitor every aspect of the money, evaluate the business relationships they have, and oversee everything else related to the industry.

So, what is a car czar and what is congress wanting this “person” to do?  According to NPR news, a few traits that is recommended is someone who knows industrial companies and can follow the money. Another person states the car czar must have financial smarts who is going to make decisions that are going to benefit Americans. However, is this something one person can truely take on? How about a committee that governs these future decisions that are made?
Leadpile Lead Exchange is definitely interested in this industry because we work a lot with the auto finance lead type. What happens in the automakers “world” affects our marketplace. We will be keeping an eye on what happens with the automakers and if they really decide to hire a car czar.

First, I would like to say congratulations to our next president of the United States. No matter who everyone voted for, we are all keeping an eye on how the future of our struggling America pans out.  Secondly, there was something that America should really pay attention to, and that is an amazing effect the internet had on the election of our 44th president.
The internet AND social networking tools contributed to the Barack Obama being elected. According to businessstandard.com,“Obama, on his part, has refined the digital act further — a fact revealed during his presidential announcement speech in Springfield last October when he said: “Let us be the generation that reshapes our economy to compete in the digital age…” A few examples of this being implemented, was in the case where almost 300,000 people created accounts on the barackobama.com website, he became the first YouTube politician, got involved on Facebook, MySpace, text messaging and all other avenues of the internet for fund raising and party awareness.
Another interesting aspect in this presidential campaign was, “Obama has proposed the creation of the nation’s first Chief Technology Officer (CTO) to ensure that the American government and all its agencies have the right infrastructure, policies and services for the 21st century. The CTO will have a specific focus on transparency, by ensuring that each arm of the federal government makes its records open and accessible as the e-government Act requires. The CTO will also ensure technological interoperability of key government functions”, according to Business Standard.
No matter who was elected, the excitement of the internet and the power it can have also excited Leadpile Lead Exchange. We are in it for the long hall on wherever this great internet craze LEADS us!

We all hear the opinions on both sides regarding payday loans. I came across this scenario that really points out the similarities of taking out a short term payday loan and renting a car. According to Ohioans For Financial Freedom commercial (youtube video),

Renting a car can cost about $29.00 per day. But imagine if the government required the rental company to quote an annualized cost of $10,585!

It’s just like the government saying that a $100 emergency loan costs $391 for the entire year, when it only costs $15 for two weeks. If you only need the loan for two weeks.—the yearly rate is absurd.

Leadpile Lead Exchange deals a lot with payday loans, the consumers wanting them and the lenders wanting to provide the loan for them. This scenario I found really makes it a little bit easier to understand the comparison amongst payday loans to something like a credit card or a rental car. There is bad in everything if it is abused. There is a need for short term loans sometimes, and a payday loan is a reasonable loan to take out for that short term need.

I am not sure how you could have missed what is going on with the economy, however each day there is new news. The latest news involves the government bailing out IAG Insurance Company with a 85 billion dollar loan. Last week the government was bailing out Fannie May and Freddie Mac. We are in a position of having to have our government save these mega giants. These bailouts show what kind of situation we are in now, but what could happen next?
The unfortunate side of this is that none of this has caused any major “positive” changes with our housing crisis. However, the Freddie Mac and Fannie Mae bailout has allowed rates to go down and maybe have a few more people go out and get a new mortgage loan. The latest news is the possibility of changes with Washington Mutual. Hurricanes, takeovers, bailouts, high gas prices, loss of jobs, foreclosures… is there something good going out there? There has to be! Let’s find the positive.
No matter what happens with the economy, Leadpile Lead Exchange will be right there trying to connect consumers needing services with advertisers that can provide that service to them.