Texas Loans – Uncharted 3 Blog http://uncharted3blog.com/ Tue, 22 Nov 2022 15:16:01 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://uncharted3blog.com/wp-content/uploads/2021/05/default.png Texas Loans – Uncharted 3 Blog http://uncharted3blog.com/ 32 32 Cancellation of the student loan has been blocked. Now what? https://uncharted3blog.com/cancellation-of-the-student-loan-has-been-blocked-now-what/ Tue, 22 Nov 2022 15:16:01 +0000 https://uncharted3blog.com/cancellation-of-the-student-loan-has-been-blocked-now-what/ By WILLIAM CHITTENDENThe conversation 1. Why was Biden’s student loan forgiveness program stalled? It was ruled unconstitutional. The decision was made on November 10, 2022, by Judge Mark Pittman of the U.S. District Court for North Texas, who ruled that the Higher Education Student Aid Opportunities Act of 2003 – or hero – “does not […]]]>

By WILLIAM CHITTENDEN
The conversation

1. Why was Biden’s student loan forgiveness program stalled?

It was ruled unconstitutional. The decision was made on November 10, 2022, by Judge Mark Pittman of the U.S. District Court for North Texas, who ruled that the Higher Education Student Aid Opportunities Act of 2003 – or hero – “does not provide the executive branch with a clear decision.” Congressional authorization” for a student loan forgiveness program. He added that the program was “an unconstitutional exercise of the legislative power of Congress and must be rescinded.”

The judge’s ruling bars any student loans from being forgiven “until a final verdict is rendered” in the case. Technically, this could be taken to the Supreme Court, but it could also be settled at the level of the Court of Appeal.

In a separate case, on November 14, a three-judge panel of the United States Court of Appeals for the 8th Circuit temporarily blocked the program until the case was resolved by the court. The 8th Circuit covers seven states, including Missouri, which is one of several Republican-led states seeking to block the program.

Both rulings effectively block Biden’s plan to forgive up to $20,000 in student loans per borrower.

2. Can it be unlocked?

Both court decisions could be overturned. The Biden administration has argued that the Heroes Act of 2003 allows the Education Secretary to forgive student loans to people affected by the pandemic.

The Biden administration has already filed a notice of appeal of Pittman’s Nov. 10 decision.

On Nov. 18, the Biden administration asked the Supreme Court to overturn the Court of Appeals order blocking student loan forgiveness. The Supreme Court has asked the plaintiffs in the case to provide their response by November 23, 2022.

It’s unclear how the full court might rule. However, in two previous cases, Judge Amy Coney Barrett rejected attempts to block the student loan forgiveness plan.

3. What kind of relief can student borrowers get in the meantime?

Currently, student loan payments are suspended but are expected to resume in January 2023. The Biden administration may extend the payment suspension beyond December 2022. However, in August 2022 – when the last extension of the payment suspension was announced – the White House said it was supposed to be the last expansion.

Despite the decline in widespread student loan forgiveness, some borrowers may still qualify for one or more targeted student loan forgiveness programs. These groups include borrowers who attended a school that closed. Student loans can also be canceled for those who are totally and permanently disabled. Students who have been defrauded by their school – for example by being misled about graduate placement rates or the true cost of attending the school – may also be eligible.

In November 2022, the Biden administration released new rules to make it easier to forgive student loans in bankruptcy. If a student borrower can prove that their expenses equal or exceed their income, student loan debt can be eliminated in the event of bankruptcy.

William Chittenden is associate professor of finance at Texas State University.

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Governor Abbott requests federal aid after severe storms in North Texas | Texas Governor’s Office https://uncharted3blog.com/governor-abbott-requests-federal-aid-after-severe-storms-in-north-texas-texas-governors-office/ Wed, 16 Nov 2022 20:12:16 +0000 https://uncharted3blog.com/governor-abbott-requests-federal-aid-after-severe-storms-in-north-texas-texas-governors-office/ November 16, 2022 | Austin, TX | Press release Governor Greg Abbott today announced his request for a disaster declaration from the United States Small Business Administration (SBA) for communities in Texas affected by severe weather and tornadoes earlier this month in northeastern counties. east of Texas. An SBA disaster declaration would make federal disaster […]]]>

November 16, 2022 | Austin, TX | Press release

Governor Greg Abbott today announced his request for a disaster declaration from the United States Small Business Administration (SBA) for communities in Texas affected by severe weather and tornadoes earlier this month in northeastern counties. east of Texas. An SBA disaster declaration would make federal disaster assistance available to those affected in Lamar and Morris counties and their contiguous counties: Bowie, Camp, Cass, Delta, Fannin, Marion, Red River, Titus and Upshur.

“The State of Texas continues to work to ensure that North Texans affected by recent severe weather can receive the help and support they need to recover,” Governor Abbott said. “If approved, this designation would help communities in Northeast Texas access low-interest loans through the SBA to rebuild homes and businesses that have suffered physical or economic damage. I thank TDEM for working with the SBA to help determine the state’s eligibility for assistance. Together, we’re helping Texans rebuild after these storms.”

Following severe weather earlier this month, Governor Abbott directed the Texas Division of Emergency Management (TDEM) to work with local authorities to identify damage in affected communities and to work with the SBA to share documentation needed to determine Texas eligibility for assistance. Local, state and federal authorities have conducted damage assessments in affected areas, verifying that Lamar and Morris counties meet federally required thresholds for SBA assistance.

If approved, the program would provide long-term, low-interest loans through the SBA’s Disaster Grant Programs to eligible Texas homeowners, tenants, and business owners who have suffered damages and losses.

Read the governor’s letter.

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Texas woman charged with $1.2 million PPP loan program fraud – InsuranceNewsNet https://uncharted3blog.com/texas-woman-charged-with-1-2-million-ppp-loan-program-fraud-insurancenewsnet/ Mon, 14 Nov 2022 12:16:47 +0000 https://uncharted3blog.com/texas-woman-charged-with-1-2-million-ppp-loan-program-fraud-insurancenewsnet/ A Waxahachie woman who allegedly defrauded pandemic-era financial programs out of more than $1.2 million has been federally charged, U.S. Attorney for the Northern District of Texas, Chad E. Meacham, announced. Annette Bryant, 63, was charged last Tuesday with one count of wire fraud, eight counts of making false statements to a bank and one […]]]>
A Waxahachie woman who allegedly defrauded pandemic-era financial programs out of more than $1.2 million has been federally charged, U.S. Attorney for the Northern District of Texas, Chad E. Meacham, announced.

Annette Bryant, 63, was charged last Tuesday with one count of wire fraud, eight counts of making false statements to a bank and one count of conducting monetary transactions on property from illegal activities. She made her first appearance before US Magistrate Judge Toliver on Monday.

According to the indictment, Ms. Bryant – the sole owner and operator of a number of LLCs, including Processing Services, Inspirational Tax Services LLC, Neighborhood TX Inspections LLC, JJ&JJ Remodeling and Roofing LLC and JAM Business and Tax Services – – fraudulently applied for and obtained six Paycheck Protection Program loans (https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program ) (PPP) totaling $848,586 and four economic loans Injury Disaster Loan (https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl) (EDIL) Loans of the program totaling $359,500. She also allegedly attempted to secure two additional PPP loans worth $411,160 which were never funded.

The indictment alleges that Ms. Bryant included false statements in PPP loan applications submitted to financial institutions administering the PPP, including InterBank, Comerica, Regions Bank and others. She allegedly inflated the number of employees at her businesses, inflated their payrolls, and even lied about how many businesses she owned. She also allegedly included false statements in EIDL loan applications submitted to the Small Business Administration, misrepresenting her company’s gross earnings.

Ms. Bryant allegedly went so far as to send tax documents from financial institutions which she said had been submitted to the IRS but were never filed. These bogus forms, including IRS Form 1040 (https://www.irs.gov/forms-pubs/about-form-1040x) (Individual Income Tax Return), IRS Form 940 (https://www.irs .gov/forms-pubs/about-form-940) (Employer’s Annual Federal Unemployment Tax Return) and IRS Form 941 (https://www.irs.gov/forms-pubs/about- form-941) (Employer’s Quarterly Federal Income Tax Return) allegedly contained false information about his activities and personal income.

An indictment is only an allegation of criminal conduct, not evidence. Like all defendants, Ms. Bryant is presumed innocent until proven guilty in court.

If convicted, she faces up to 30 years in federal prison for each count of making a false statement to a bank, 20 years for wire fraud, and 10 years for engaging in monetary transactions in property from of illegal activities. In the event of conviction, it will be required to renounce the financial product of the scheme or the property attached to it.

The United States Treasury Inspector General for Tax Administration, the Dallas Field Office of the Office of the Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG), and the Office of the Inspector General of Small Business Administration (SBA-OIG) conducted the investigation. Assistant US Attorneys Marty Basu and Fabio Leonardi are pursuing the case.

The Paycheck Protection Program (PPP) and the Expanded Economic Disaster Loan Program (EIDL) have been authorized under the CARES (Coronavirus Aid, Relief, and Economic Security) Act (https://home .treasury.gov/policy-issues/coronavirus/about-the-cares-act), a federal law enacted on March 29, 2020, to provide emergency financial assistance to Americans suffering economic hardship due to the COVID pandemic -19. The PPP provided forgivable loans to small businesses to cover payroll, rent, and some other expenses; EIDL provided partially repayable loans to small businesses to cover operational expenses, including accounts payable, as well as salaries, mortgages and other bills.

Contact:

Erin Dooley Publicist 214-659-8707 [email protected]

Updated on November 11, 2022

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Texas judge blocks student loan forgiveness program https://uncharted3blog.com/texas-judge-blocks-student-loan-forgiveness-program/ Fri, 11 Nov 2022 02:48:25 +0000 https://uncharted3blog.com/texas-judge-blocks-student-loan-forgiveness-program/ Sign up for The Brief, our daily newsletter that keeps readers up to date with the most essential news from Texas. A North Texas federal judge ruled on Thursday that President Joe Biden’s student loan forgiveness program was “unlawful”, the latest challenge to the policy that has seen several attacks from conservative groups. U.S. District […]]]>

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2 Lenders Claim Bitcoin Miner Iris Energy Defaulted On Equipment Loans Worth $103M CryptoBlog https://uncharted3blog.com/2-lenders-claim-bitcoin-miner-iris-energy-defaulted-on-equipment-loans-worth-103m-cryptoblog/ Tue, 08 Nov 2022 09:30:04 +0000 https://uncharted3blog.com/2-lenders-claim-bitcoin-miner-iris-energy-defaulted-on-equipment-loans-worth-103m-cryptoblog/ Another bitcoin mining company is facing financial trouble as Iris Energy’s Form 6-K filing with the U.S. Securities and Exchange Commission (SEC) shows the company could face a default. payment on two loans. Iris Energy’s Form 6-K filing explains to the SEC that the company “has received notice from its lender alleging the occurrence of […]]]>

Another bitcoin mining company is facing financial trouble as Iris Energy’s Form 6-K filing with the U.S. Securities and Exchange Commission (SEC) shows the company could face a default. payment on two loans. Iris Energy’s Form 6-K filing explains to the SEC that the company “has received notice from its lender alleging the occurrence of an event of default and acceleration in connection with the equipment financing facilities respective limited remedies”.

Bitcoin mining firm Iris Energy faces default on 2 loans

On November 7, 2022, bitcoin mining company Iris Energy notified investors of the October operations and the company noted that it was currently mining a hash rate of around 3.9 exahash per second (EH/s). The bitcoin mining firm also said its “Mackenzie expansion” in British Columbia, Canada, from 50 megawatts (MW) to 80 MW is “on track to be powered by the end of Q4 2022.” . In addition, the Company’s Childress facility in Texas is still in the construction and power-up phase and operations continue to that end.

2 Lenders Claim Bitcoin Miner Iris Energy Defaulted on Equipment Loans Worth $103M

However, a Form 6-K filing with the SEC filed in November indicates that two lenders allege the company defaulted on $103 million in equipment loans. The loans are held by two special purpose vehicles (SPVs) and the lenders have sent an “alleged notice of acceleration” for the alleged defaults. Iris Energy said much of its exahash is unaffected by the alleged SPV acceleration notification. Iris Energy’s SEC filing states:

2.4 Miner EH/s and all Group Data Center capacity and development pipeline are not affected by the Limited Recourse Equipment Financing Agreements or the so-called Acceleration Notice.

The bitcoin miner’s filing with the US regulator follows other mining companies dealing with financial issues. For example, in late September Bitcoin.com News reported that Compute North had filed for bankruptcy protection. Additionally, Core Scientific told the US SEC that it is experiencing financial difficulties as “Core Scientific’s operating performance and liquidity have been severely impacted by the prolonged decline in the price of bitcoin.”

Regarding the Iris Energy case, one SPV says he owes him $71 million, and the other claims Iris Energy owes him $32 million. Iris Energy said it has data center capacity available and that it “continues to explore the possibilities of using this capacity to host third-party miners or to self-operate using additional miners which the company has or chooses to buy”.

Iris Energy shares (Nasdaq: IREN) lost 19.60% against the US dollar over the past five days. A myriad of bitcoin mining companies have also seen their shares fall 80%-90% in the past 12 months and year-to-date, IREN is down 81.68% against the greenback.

Keywords in this story

bitcoin miner, bitcoin miner Iris Energy, bitcoin mining, british columbia, BTC miner, capacity, north compute, Core Scientific, default, defaults, IREN, Iris Energy, Iris Energy mining, stocks of Iris Energy, Iris Energy Stock, Publicly Traded, Self-Mine, Texas

What do you think of the Iris Energy SEC filing showing two companies alleging default on equipment loans? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the news manager for Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about disruptive protocols emerging today.




Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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KP RE CAPITAL GROUP EXPLORES INVESTMENT AND DEVELOPMENT OPPORTUNITIES IN THE DFW METRO PLEX AS WELL AS THE NORTH TEXAS MARKET https://uncharted3blog.com/kp-re-capital-group-explores-investment-and-development-opportunities-in-the-dfw-metro-plex-as-well-as-the-north-texas-market/ Wed, 02 Nov 2022 21:26:00 +0000 https://uncharted3blog.com/kp-re-capital-group-explores-investment-and-development-opportunities-in-the-dfw-metro-plex-as-well-as-the-north-texas-market/ COO and Partner at KP RE Capital Group DALLAS, TX, USA, Nov. 2, 2022 /EINPresswire.com/ — KP RE Capital Group is a multi-faceted direct lender specializing in residential and investment real estate. Known for being a quality developer of high-end properties in certain markets, this move to enter the Texas market could also open doors […]]]>

COO and Partner at KP RE Capital Group

DALLAS, TX, USA, Nov. 2, 2022 /EINPresswire.com/ — KP RE Capital Group is a multi-faceted direct lender specializing in residential and investment real estate. Known for being a quality developer of high-end properties in certain markets, this move to enter the Texas market could also open doors to other verticals such as energy and major land acquisitions.

KP RE has offices in New Jersey and Southern California (both founding partners are located there), as new COO Scott Ward is a current resident of Frisco Texas, so it may be a good idea to get a foothold. KP RE has just secured the initial investments from a group in Irvine CA to begin internal operations, as they have also begun a massive capital raise for their $100 million bridging lending and aggregation REIT, launching also a new FIN TECH platform which they will introduce in the first quarter of 2023.

The NORTH TEXAS development market is extremely hot right now, and with no signs of slowing down, KP RE Capital Group sees this as a stable development bonus for years to come. Statistically, there are some very clear numbers to support this, such as average home prices in Dallas increasing by over 19%, Ft Worth by 24.8%, and Celina/Prosper by over 18.2%. With so many new jobs and businesses in this area of ​​North Texas and the surrounding DFW metro plex, KP RE considers this area a “must-see” MSA both for quality investment and as a benefit to its participants. to the REIT / Debt Fund.

KP RE has also engaged and partnered with heavyweights in the field of private money lending such as Geraci Law (Geraci Law Firm), Armanino (Armanino LLP – Accounting Experts, Business Advisory and technology solutions) and AppFolio (property management software | AppFolio Property Management) to ensure a modern and fresh approach to platform investing. Besides creating their own internal tech game, it looks like there’s nothing short of quality investment and solid management going forward. Data from here

Neighborhood Scott
KP RE Capital Group
+1 972-351-6949
write to us here
Visit us on social media:
Other

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Will Student Loan Debt Relief Ever Happen? Forgiveness in legal limbo https://uncharted3blog.com/will-student-loan-debt-relief-ever-happen-forgiveness-in-legal-limbo/ Sun, 30 Oct 2022 11:15:02 +0000 https://uncharted3blog.com/will-student-loan-debt-relief-ever-happen-forgiveness-in-legal-limbo/ As soon as President Joe Biden announcement his project of pay off $10,000 to $20,000 in student debt for borrowers earning less than $125,000 a year, legal efforts to stop it have begun. The first trial against One-Time Federal Student Loan Debt Relief program was tabled at the end of September, and there have been […]]]>

As soon as President Joe Biden announcement his project of pay off $10,000 to $20,000 in student debt for borrowers earning less than $125,000 a year, legal efforts to stop it have begun. The first trial against One-Time Federal Student Loan Debt Relief program was tabled at the end of September, and there have been five others since.

On Friday, October 21, a federal appeals court suspended the student loan debt relief plan by issuing an “administrative stay” which functions as a temporary injunction, prohibiting payments indefinitely until the court decides on the injunction request. Borrowers who were previously told debt cancellation could begin on October 23 are now wondering when their debt will be cancelled.

Learn about the legal challenges with the one-time student debt relief plan and how they could affect the timing of cancellation for eligible borrowers. To learn more about student loan forgiveness, learn how debt forgiveness can change your credit score and whether you will have to pay state taxes on your discharged loans.

What are the legal arguments against the White House student loan debt relief plan?

Legal arguments against student debt forgiveness so far fall into five main categories: claims for harm to borrowers; allegations of harm to states and state agencies; claims for damages due to the devaluation of Cancellation of civil service loans; claims that the program violates the Administrative Procedure Law; and asserts that the program is unconstitutional. Many lawsuits include multiple claims for damages.

One of the biggest challenges for those who oppose student debt relief in court has been finding plaintiffs with legal status who would suffer direct harm from the student loan forgiveness program. This was first demonstrated by Garrison v. US Department of Education: Borrower Frank Garrison claimed he was wronged because his automatic student loan debt cancellation would result in a tax burden for the State of Indiana. Garrison’s legal status was badly damaged when the Department of Education announced that borrowers could opt out of debt forgiveness. The case is still on appeal.

What are the biggest legal challenges to the student debt relief plan?

The biggest lawsuit opposing one-time student debt relief right now is Nebraska vs. Bidenwhere six Republican-led states (Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina) say the White House plan will hurt their tax revenues and state-based lending agencies.

The state-based lawsuit is the first legal challenge to date that has materially impacted the debt cancellation plan. Just one day after a judge in the Eastern District of Missouri dismissed the case for lack of standing, a federal circuit court suspended the program indefinitely pending its decision on the appeal.

Other lawsuits against student debt relief have yet to have much luck stopping the plan.

As mentioned above, Garrison v. US Department of Education — which claimed the plaintiff would be harmed by state taxes on automatic debt relief — was dismissed by the District Court for the Southern District of Indiana. The decision has been appealed, but the case seems unlikely to succeed.

Likewise, in Brown County Taxpayers Association v Biden, a Wisconsin court has dismissed a lawsuit brought by taxpayers who claimed they should pay more taxes because of the student debt relief plan. The court ruled that there is no “taxpayer standing”.

The taxpayers group also claims that the debt cancellation plan is unconstitutional. He filed emergency motions with the Seventh Circuit Court of Appeals and the United States Supreme Court to stop the plan, but both motions were denied without explanation.

Three other legal challenges to the student debt relief program are still pending in court.

The first one, Arizona vs. Biden, takes a slightly different approach than the Nebraska trial. Led by Arizona Attorney General Mark Brnovich, the lawsuit makes three allegations of injury. He says the state will lose tax revenue because student debt cancellation cannot be enforced until 2025; the program will increase inflation, which harms the state’s economy; and recruitment for government jobs will be penalized by the devaluation of the civil service loan cancellation program. Arizona has not sought a temporary injunction, and court hearings in the case have yet to begin.

A libertarian think tank also claims that it will be harmed by the one-time weakening of the student loan debt forgiveness program of the civil service loan forgiveness program, which will make it more difficult for it to recruit employees who would be eligible. The defendants in Cato Institute v. US Department of Education were served last week and hearings are expected to begin soon.

Finally, in Brown v. US Department of Educationtwo Texas borrowers – an applicant with non-federally held FFEL loans and an applicant who did not receive a Pell grant – say the debt relief plan should be canceled because it did not not required a “notice-and-comment period” as required by the Administrative Procedure Act. The case began hearings this week.

How does the White House legally defend the one-time student debt relief program?

The Department of Education argues that its one-time student debt relief plan is protected by the Higher Education Opportunities for Students Relief Act of 2003, also known as the HEROES Act. This act authorizes the Secretary of Education to change any regulations relating to any student financial assistance program for Americans who “have suffered direct economic hardship as a direct result of war or other military operation or ‘a national emergency’.

President Joe Biden and Education Secretary Miguel Cardona stand at a podium

Biden announced his unique student debt relief plan with Education Secretary Miguel Cardona on August 24.

Washington Post/Getty Images

The White House says the COVID-19 public health emergency gives the Department of Education the legal basis to forgive student loan debt under the HEROES Act.

The United States has been in a public health emergency since the Secretary of Health and Human Services declared one due to COVID-19 on January 31, 2020. This emergency declaration has been extended several times since, most recently on October 13, 2022. .

When will the student loan debt forgiveness lawsuits be resolved?

Legal experts are divided on the impact of the lawsuits on the $10,000 to $20,000 student loan debt repayment plan. Regardless, no student loan debt will be forgiven under the current plan until the Eighth Circuit Court of Appeals issues its decision on the motion for a temporary injunction.

This 11-judge federal appeals court is dominated 10-1 by Republican appointees. While arguments on the injunction motion were expected from the states and the Department of Education the week of October 24, there is no indication when the court will issue its decision.

In an interview with Time NextAdvisor, student financial aid expert Mark Kantrowitz predicts that “there will be a slight delay,” but “state attorneys general are unlikely to prevail in their appeal.” .

On Thursday, October 27, Biden went even further in an interview with NewsNation, saying, “We’re going to win this case. I think in the next two weeks you’re going to see those checks coming out.”

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Frost Bank’s parent company profits rise 58% in Q3 https://uncharted3blog.com/frost-banks-parent-company-profits-rise-58-in-q3/ Thu, 27 Oct 2022 22:30:00 +0000 https://uncharted3blog.com/frost-banks-parent-company-profits-rise-58-in-q3/ Profits at the San Antonio-based parent company of Frost Bank have soared in the past quarter due to increased lending volumes and rising interest rates. Cullen/Frost Bankers Inc. reported net income of $168.1 million, or $2.59 per share, on revenue of $479.3 million in the three months ended Sept. 30. By comparison, it earned $106.3 […]]]>

Profits at the San Antonio-based parent company of Frost Bank have soared in the past quarter due to increased lending volumes and rising interest rates.

Cullen/Frost Bankers Inc. reported net income of $168.1 million, or $2.59 per share, on revenue of $479.3 million in the three months ended Sept. 30. By comparison, it earned $106.3 million, or $1.65 per share, on $362.5 million in revenue in the same period last year.

On an annual basis, profits jumped 58% while revenues soared 32%.

“These results in our overall growth show that our investments and sustainable (internal) growth strategy are paying off and that our business is well positioned for success,” Cullen/Frost Chairman and CEO Phil Green said Thursday. during a conference call with analysts. .

Investors reacted positively to the results, pushing Cullen/Frost’s stock price up $6.24, or 4.4%, to $148.16, slightly below its all-time high.

READ MORE: Top Frost Bank executive says Texas economy remains ‘very strong’

The bank holding company easily beat 13 analysts’ consensus estimate of $2.23 per share for the latest quarter, as tracked by Yahoo Finance.

“I think more recently the reason they’re higher than expected is really because Frost is a big beneficiary of higher interest rates,” said Keefe, Bruyette & Woods analyst Brady Gailey. “People underestimated how much extra money Frost would make with higher rates. That’s been playing out over the last two quarters.

This will probably continue as well. Frost CEO Jerry Salinas said the bank expects the Federal Reserve to raise interest rates by 3/4 percent next week and another 1/2 percent in December. .

The bank is one of the biggest beneficiaries of rate hikes because it has significantly more cash on its balance sheet than its peers, Gailey said. In addition, its loan portfolio is heavy with floating rate loans. Yields on these loans generally increase when the Fed raises rates.

Frost ended the third quarter with just under $17 billion in loans, compared to $15.8 billion in the same period last year.

A view of Frost Tower, headquarters of Cullen/Frost Bankers Inc., from San Pedro Creek Cultural Park in downtown San Antonio.

San Antonio Express-News/Staff Photographer Sam Owens

“The portfolio’s year-over-year growth has been broad-based,” Green said. About half came from commercial real estate loans, a third from commercial and industrial loans and the rest from consumer real estate.

RELATED: Frost Bank begins to see a return to growth after the pandemic slows

It had $46.6 billion in deposits at the end of the last quarter compared to $39.6 billion a year ago. Frost shared the interest rate increases with its customers by offering higher rates on deposit accounts, Green said, which led to increased deposits.

“It’s still a great deposit base, allowing the business to make more money as rates go up,” Gailey said.

The bank’s net interest margin – a measure of the difference between what it earns in interest on loans and what it pays in interest on deposits – climbed 0.45 percentage points from the second quarter to reach 3.01% at the end of September. The last time it was above 3% was nine quarters ago. Gailey expects the margin to continue to grow, but not at this rate.

“The puck is always moving in the right direction for Frost,” he said.

The $116.8 million increase in revenue year-over-year more than offset an almost $40 million increase in non-interest expense, which includes salaries, benefits and other elements. Wages and salaries have climbed about $28 million, or nearly 28%, over the past year.

This increase is “pretty dramatic and necessary to keep the best group of people here and attract new ones,” Green said.

Frost attributed the increase in employee pay to annual merit and market increases and the implementation of a $20-an-hour minimum wage he passed in December. Additionally, earnings have been hit by its expansion into Houston and Dallas, as well as preparations to offer a mortgage product for the first time since 2000.

The mortgage team is preparing to launch its pilot program with plans to roll it out on a wider basis in stages beginning late this year and early next year, Green said.

“It’s exciting to see how we’re creating a comprehensive process for originating and managing mortgages,” he added.

When completed next year, Frost will have added 33 branches in Houston. In Dallas, it is adding 30 branches through 2024.

Frost will continue to invest in four areas of the business, Green said. These areas are people, technology, branches and marketing.

It had nearly $53 billion in assets at the end of the third quarter.


pdanner@express-news.net

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Do you think the owners will stay put? Austin suggests otherwise https://uncharted3blog.com/do-you-think-the-owners-will-stay-put-austin-suggests-otherwise/ Tue, 25 Oct 2022 11:10:04 +0000 https://uncharted3blog.com/do-you-think-the-owners-will-stay-put-austin-suggests-otherwise/ Comment this story Comment Mortgage rates have nearly tripled and housing affordability has plummeted, but US home prices aren’t really expected to drop much — or so the mainstream narrative does. However few buyers there are, there are too few sellers to drive prices much lower, optimists say. Austin, Texas seems to disagree. One of […]]]>

Comment

Mortgage rates have nearly tripled and housing affordability has plummeted, but US home prices aren’t really expected to drop much — or so the mainstream narrative does. However few buyers there are, there are too few sellers to drive prices much lower, optimists say.

Austin, Texas seems to disagree.

One of the hottest housing markets of the pandemic-era boom, the Texas capital has suddenly seen a flood of inventory of existing homes. The number of listings has jumped to the highest since 2011, and in a metro area that has become accustomed to going through inventory in less than a month, it now takes more than three, according to data from Texas Real Estate Research. Center at Texas A&M University. .

Austin is a unique case, of course, but it shows that the “lock-in effect” may not be the ironclad defense against falling home prices that some investors and homeowners think it is. The thinking says homeowners aren’t supposed to voluntarily part with their sub-3% 30-year mortgages when they should turn around and replace them with new home loans carrying interest rates above 7% . That’s true for the typical young family that may have been on the verge of growing, but it’s not a hard and fast rule that applies nationwide.

In Austin, what seems to be happening is an effort to time the top of the market. Like stock traders, homeowners and investors in Austin who bought their properties before the boom seem to be rushing to cash in their tokens. “I suspect people are worried about home values ​​going down, so they try to sell even if they have low interest rates,” Jim Gaines, a research economist at Texas Real Estate Research, told me over the phone. Center. Some may never have lived in the houses; others may transfer cash proceeds to smaller homes or cheaper suburbs; while others might just move into renting waiting for a market bottom to buy back.

While still up year over year, Austin-Round Rock home prices are clearly down, falling 6.9% on a sequential basis in the third quarter from the second, according to the home of the Texas Real Estate Research Center. single-family home price index, which tracks repeat sales on the same homes. The declines are widespread across all price categories, though the most expensive homes are holding up slightly better than mid-priced and lower-priced homes, the data showed.

Owners may also be keen to take profits in other recently hot markets such as Miami, Phoenix and Boise, Idaho. All were juggernauts who benefited from the combination of 2021’s low interest rates and pandemic-fueled migration. And now many of their longtime residents sit on piles of untapped equity, a tempting resource to tap as inflation eats away at purchasing power.

Admittedly, it is not certain that this first wave of registrations will necessarily snowball in Austin or elsewhere. In fact, it’s conceivable that many of these sellers will start pulling their listings from the marketplace once they see they’re not getting the deals they were hoping for, and proponents of the “lockdown effect” could still be justified. Underwriting standards have tightened considerably since the financial crisis and there are far fewer resettable loans, so the US is unlikely to see an impending wave of forced sales. With few homeowners underwater, there is a strong incentive to keep making mortgage payments rather than risk foreclosure.

So, ultimately, the fate of house prices rests with the labor market. The median forecast from a Bloomberg survey of economists predicts that unemployment will hit 4.5% next year. But with the Federal Reserve rapidly tightening financial conditions to combat the worst inflation in 40 years, the range of estimates is wide – 3.3% to 6% – and the likelihood of a recession is rising. “If people start losing their jobs willy-nilly, then yes, those house prices are going to come down fast because there’s going to be an increase in distressed sales,” Gaines told me. In other words, low inventories can probably dampen most housing markets for a while. But if the labor market starts to crash, housing will likely crash with it. In Austin, the low-inventory bulwark is already starting to crumble.

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Jonathan Levin has worked as a Bloomberg reporter in Latin America and the United States, covering finance, markets, and mergers and acquisitions. Most recently, he served as the company’s Miami office manager. He holds the CFA charter.

More stories like this are available at bloomberg.com/opinion

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Waco area fund makes loans to businesses that might not otherwise qualify https://uncharted3blog.com/waco-area-fund-makes-loans-to-businesses-that-might-not-otherwise-qualify/ Sat, 22 Oct 2022 00:09:00 +0000 https://uncharted3blog.com/waco-area-fund-makes-loans-to-businesses-that-might-not-otherwise-qualify/ Not wanting their business to crumble or collapse, Jeff Logan and Jennifer Svacina got a $10,000 loan to keep their business afloat. A new source provided money to purchase merchandise for their JJ’s Balloons and to turn a part-time staffing position into a full-time position. Now JJ’s Balloons, 1412 N. Valley Mills Drive, is well […]]]>

Not wanting their business to crumble or collapse, Jeff Logan and Jennifer Svacina got a $10,000 loan to keep their business afloat. A new source provided money to purchase merchandise for their JJ’s Balloons and to turn a part-time staffing position into a full-time position.

Now JJ’s Balloons, 1412 N. Valley Mills Drive, is well established. Logan was eagerly awaiting Svacina’s return from balloon deliveries on Friday so he could hit the road with more orders to fill. Baylor University’s homecoming was a dream come true for owners and their employees. Parade floats, McLane Stadium, tailgating venues and other venues quickly needed these air-filled plastic orbs.

JJ’s Balloons was delighted to oblige, who also recently delivered mountains of blue robin egg balloons to Amazon’s new Waco fulfillment center.

Logan said he and Svacina started the company about four years ago. They needed an influx of cash to weather the pandemic. Logan said their personal credit ratings were excellent, but the company had no track record.

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A friend suggested they seek relief from the McLennan Community Investment Fund, a local nonprofit set up in early 2021 to provide business loans to people who might not otherwise qualify. It falls under the purview of the US Treasury Department but depends on local funding to thrive, Chairman Bill Vance said. The city of Waco, McLennan County and at least three local banks provided start-up money.

Already 27 loans with a combined value of $237,225 have entered local pockets, said Vance, a former longtime judge of the Waco 10th Court of Appeals. But Vance said more money would come in if the local entity received certification from the Treasury Department as a community development financial institution.

Federal funds would supplement what is made available locally.

“Once we’re certified, we’ll be eligible for financial aid grants which are quite a number, half a million plus a year, all of which go into the loan program,” Vance said. “If I have one message for your readers, it’s this: If you know a business owner who needs money for inventory, working capital, equipment, or vehicles, send tell us.”

He said the program strives to help underserved communities, including people who struggle to meet traditional lending standards.

“Our underwriting criteria aren’t as stringent as the banks,” Vance said.

Loans made available through the investment fund carry fixed interest rates between 6% and 10%, according to an information package. But Vance said all loans through the local office have fixed rates of 6% or less.

“We didn’t have a default,” he said. “We have a policy to cover this eventuality, but we haven’t had one so far.”

New York this week hosted a gathering of members of community development finance institutions. McLennan Community Investment Fund Board Member Tom Chase and Managing Director Jane Allen went there on a fact-finding mission.

“We’re not members yet, but we’ll get there,” Chase said. “All the major banks are at this meeting, offering their loan and grant programs. We have the support of three local banks, which is not great. We are asking for more.”

Allen said the band’s application is pending and she is confident they will receive certification early next year. Joining means he becomes eligible for grants of $600,000 or more, which he will use to make loans. In the meantime, it will seek money from private sources and continue to process loans.

“What we are learning this week is that there are many donors who want to provide assistance to underserved areas of the country,” Allen said.

Startup Waco CEO Jon Passavant said his coworking center provides office space for the McLennan Community Investment Fund team at 605 Austin Ave. Staff can interact with business owners and fledgling entrepreneurs, some of whom may need advice or financial assistance.

Passavant said the investment fund is “a necessary option for growing small businesses, those not targeted by traditional lending.”

The fund’s website lists “partners and sponsors,” including the Cen-Tex Hispanic, African American, Bellmead, Greater Robinson, and Greater Waco Chambers of Commerce; East Waco Empowerment Project; Cooper and Waco Foundations; Insurers’ Compensation Societies; Prosper Waco; Butterfly digital media; Waco boot; City of Waco and County of McLennan; First National Bank of Central Texas and Central National Bank; The Puerta Waco; Community Race Relations Coalition; and Small Business Development Center.

“More moral support than financial support,” Vance said of the band.

A fact sheet says the fund has received financial support from McLennan County, City of Waco, Federal Home Loan Bank of Dallas, Central National Bank, Community Bank & Trust, First National Bank of Central Texas, the Insurors Indemnity Co. of Waco and the Waco Foundation.

In addition to Chase and Vance, the fund’s board includes Waco City Council member Andrea Barefield and business leader Alfred Solano.

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