Blackstocks.com: In the Know

DOD to Limit High-Interest Loans

According to the AP, Servicemembers and their dependents could pay no more than 36 percent annual interest on payday loans, vehicle title loans and refund anticipation loans under a preliminary draft of a law intended to stop high-interest loans to the military.

The U.S. Department of Defense's draft proposal, a copy of which was obtained by The Associated Press on Tuesday, was a blessing for banking and consumer lending groups that had feared the law would be interpreted so broadly that it would include many common practices such as credit cards, overdraft protection on checking accounts and direct bill payment.

The draft will be published Wednesday in the Federal Registrar, and the public will have 60 days to comment before it is finalized and goes into effect Oct. 1.

"I think we're both on the same wavelength that we want the bad practices to end and we don't want military families to become second-class financial customers," said Wayne A. Abernathy, executive director of financial institutions policy and regulatory affairs for the American Bankers Association.

Congress placed the APR cap on all consumer credit loans last year, giving the Department of Defense the job of deciding what practices fell under Congress' definition of "consumer credit."

Most of the debate before Congress focused on payday lenders, which offer small-scale, short-term loans for a fee that customers must repay when they receive their next paycheck. Borrowers who cannot settle up at payday often "roll over" the loan repeatedly, leading to more charges that quickly add up.

Most payday lenders charge around $15 per $100 borrowed, pushing annual interest rates on two-week loans close to 400 percent. A 36 percent cap would limit fees to $1.38 for each $100 borrowed.

"We're not going to make loans at $1.38, so on the effective date there won't be payday loans available to military people," said Steven Schlein, a spokesman for the Community Financial Services Association, an industry trade group.

"Military personnel deserve the same financial choices as any other citizens."

Several groups, including the National Military Family Association, say credit cards, overdraft protection charges and other high cost lending practices are also detrimental and should be included.

The draft left open the option for Congress to go back and add other lending practices.

Google Earth maps atrocities in Darfur

According to Reuters, Search engine Google and the U.S. Holocaust Memorial Museum launched an online mapping project on Tuesday to provide what the museum said was evidence of atrocities committed in Sudan's western Darfur region.

More than 200,000 people have been killed in Darfur since 2003 and some of this carnage -- which the United States calls the first genocide of this century -- has been detailed by Google Earth, the search engine's mapping service (http://earth.google.com).

Using high-resolution imagery, users can zoom into Darfur to view more than 1,600 damaged or destroyed villages, providing what the Holocaust Museum says is evidence of the genocide. Sudan's government denies that genocide is taking place.

In addition, the remnants of more than 100,000 homes, schools, mosques and other structures destroyed by janjaweed militia in Darfur, Sudanese forces and others are visible.

"When it comes to responding to genocide, the world's record is terrible. We hope this important initiative with Google will make it that much harder for the world to ignore those who need us the most," said Holocaust Museum director Sara Bloomfield in a statement.

"Crisis in Darfur" is the first of the museum's "Genocide Prevention Mapping Initiative" that is aimed at providing information on potential genocides early on in the hope that governments and others can act quickly to prevent them.

"At Google, we believe technology can be a catalyst for education and action," Elliot Schrage, Google's vice president, said in a statement.

Sources for the project included the U.S. State Department, nongovernmental organizations, the United Nations and individual photographers as well as the Holocaust Museum, which is based in Washington.

National Civil Rights Groups Call for immediate Moratorium on Foreclosure

According to the Center for Responsible Lending, National civil rights groups, including the Leadership Conference on Civil Rights, the NAACP, the National Fair Housing Alliance, the National Council of La Raza, and the Center for Responsible Lending called today for mortgage lenders, loan servicers and loan investors to institute an immediate six-month moratorium on subprime home foreclosures resulting from reckless and unaffordable loans in the subprime market.

The groups want to stop home losses for families that received unaffordable subprime mortgages with "payment shock."  The predominant loan type marketed by subprime lenders in recent years are hybrid subprime mortgages, which begin with a temporary fixed interest rate that changes to a much more costly adjustable-rate mortgage (ARM). These "exploding" ARMs, as well as other types of non-traditional mortgages, have been a driving force in massive foreclosures occurring today.

As foreclosures continue to rise on subprime mortgages, a disproportionate share of the harm falls on African-American and Latino homeowners and the neighborhoods where they live.  Forty percent of Latino families and over half of African Americans who receive home loans get higher-cost mortgages, predominately subprime loans.  To prevent further home losses in vulnerable communities, industry must work actively with homeowners to help them keep their homes by transitioning these borrowers into affordable loan products. 

Tuskegee Airmen Being Honored for World War II Service As First U.S. All-Black Aviation Unit

According to the AP, recognition has been a long time coming for Milton Crenshaw and other members of the Tuskegee Airmen, the first all-black unit in the Army Air Corps.

But now, in the span of one week, Crenshaw has been honored by the state of Arkansas, and he and other survivors of the unit will receive the Congressional Gold Medal for their work as fighter pilots during World War II.

Without men like Crenshaw, the unit would not have been as successful, Arkansas Gov. Mike Beebe said Tuesday as he presented Crenshaw a plaque for his dedication, service and commitment.

"I don't think there's any question that nobody had a greater track record as a unit in World War II than the Tuskegee Airmen," Beebe said. "Over 100 kills and ... not a single loss in combat as a result of enemy fire. That didn't just happen, somebody trained those guys to be that good."

Two historians have said research shows the Airmen did lose some planes to enemy fire during World War II, and one former bomber co-pilot said last year that his plane was shot down while being escorted by the unit. Few would question, though, that the Tuskegee Airmen made a powerful contribution.

NAACP President Bruce S. Gordon Moving On....

According to the Aoocaiated Press-- NAACP President Bruce S. Gordon said Saturday he is quitting the civil rights organization.

When Bruce S. Gordon was appointed president of the NAACP 19 months ago, some observers said it wasn't a good fit. Now the civil rights organization must look for someone new to lead it in the wake of Gordon's sudden resignation.

Dennis C. Hayes, the group's general counsel, will serve as interim president. Hayes filled the same role after Kweisi Mfume resigned the presidency in 2004.

In a phone interview with The Associated Press from Los Angeles, Gordon cited as reasons for his stepping down his clashes with board members over management style and differing opinions over the organization's mission.
"I believe that any organization that's going to be effective will only be effective if the board and the CEO are aligned and I don't think we are aligned," Gordon said Sunday.

"I don't view this as I'm right and they're wrong. I view this as I see things one way and they see things a different way. That misalignment between the CEO and the board is unhealthy."

Rep. Charles Rangel Chairman House Ways and Means Committee Passed Small Bus and Support Increase in Minimum Wage

According to Inc.com, a House committee this week approved a $1.3 billion bipartisan tax package for small businesses aimed at boosting support for an increase in the federal minimum wage.

The Small Business Tax Relief Act of 2007, which the House Ways and Means Committee passed unanimously on Monday, would extend tax credits for small-business owners, while raising the amount of capital spending they can write off every year.

Lawmakers said the move paves the way for a compromise bill between the House and Senate that balances tax relief for smaller business with a $2.10 hike in the federal minimum wage over the next two years -- an initiative Democrats have called a legislative priority. The federal minimum wage has stood at $5.15 per hour since 1997.

Former Congressman Harold E. Ford, Jr. Joins Merrill Lynch As Vice Chairman

According to the Business Wire, Merrill Lynch & Co., Inc. (NYSE: MER) today announced that Harold E. Ford, Jr., former congressman, Ninth District of Tennessee, will join the company as vice chairman and senior policy advisor, effective March 5. Mr. Ford will advise senior management on domestic policy issues, serve as a member of the firm's public policy and social responsibility management committee, and support a variety of business development initiatives in the institutional and retail markets. He will report to Greg Fleming, president of the firm's Global Markets and Investment Banking group and maintain offices in New York and Nashville, Tenn.

Mr. Ford was elected to Congress in 1996 at age 26 and served five terms. He sat on the House Budget Committee and the House Committee on Financial Services. In addition, Mr. Ford co-chaired the Congressional Savings and Ownership Caucus, a bi-partisan coalition dedicated to advancing policies to build savings and assets for all Americans, and low-income Americans in particular, and the Community Solutions and Initiatives Caucus, a bipartisan group of lawmakers that seeks to help faith and community-based groups solve social challenges. Earlier this year, he was elected chairman of the Democratic Leadership Council, the progressive policy and issues advocacy organization, succeeding Iowa Governor Thomas Vilsack, who resigned to take steps in advance of a run for the presidency.

If Mark Cuban, owner of the Dallas Mavericks can step up; then why can't we all?

If Mark Cuban, owner of the Dallas Mavericks can step up; then why can't we all?

Mark Cuban, the owner of the Dallas Mavericks, MBA franchise discusses what is happening to a young gentleman by the name of

In fact here is his post in its entirety.

'For those who don't know. Genarlow Wilson was sentenced to 10 years in jail for doing something every 17 year old I knew, including me, tried to do. He is two years into this nightmare that only makes the State of Georgia a posterchild for mistrust in government.
Rather than go into detail I will refer everyone to some wonderful articles written in support of Genarlow and to his lawyers reference site, WilsonAppeal.com
I wanted to thank and commend ESPN , The NY Times and our own HDNet and others for great coverage leading to the introduction of a new bill aiming to right this gross injustice.
Personally, there is no chance I do business in the state of Georgia beyond the commitment the Mavs have to play the Hawks until Genarlow is out of jail.'

The question again, if Mark Cuban, can step up to the plate and shine a little light on something that seems so blatantly out of whack - then why can't we all?

Click to see our response to two gentleman post on his blog where they state "if you do the crime do the time is here."

Click here to see a number of things that we can do like

Technorati tags: Alton Perkins, www.blackstocks.com, Mark Cuban, dallas Mavericks, NBA, Genarlow Wilson, ESPN, Georgia

Bob Johnson nation's premier minority-controlled student loan provider

Black Entertainment Television founder Bob Johnson says his new bank holding company, Urban Trust Bank Holdings, has created a student loan company he hopes will become the nation's premier minority-controlled student loan provider.

Johnson is teaming up with Goldman Sachs on the project. The business is called UTB Education Finance and will be based in Washington.
Details about the new company and the types of products it would provide were not immediately available, but an Urban Trust spokesman says the business will originate and consolidate loans.

"The size and scope of our company will allow us to create student loan products that will appeal to families and students and the financial-aid professionals that serve them," Johnson says in a statement.

Urban Trust Bank is expected to open a branch soon in the District. Johnson bought the Orlando-based thrift last year.

Technorati tags: Urban Trust Bank, Wal-Mart, Orlando, Atlanta and Washington, D.C., Metro Bank of Orlando, is a federally chartered savings bank, Bob Johnson, BET, Mortgage, ARM, 30-year fixed rate, www.blackstocks.com, Alton Perkins, piggy back loans, mortgage insurance, real estate, broker, African American, money, investing, www.blogblackstocks.com, Student loans

Robert Johnson and Wal-Mart Team Up

Investor Robert Johnson's Urban Trust Bank has entered into an agreement to put its branches in Wal-Mart stores in the Washington area and beyond.

The Bethesda-based bank's majority owner is RLJ Cos., controlled by Johnson, the former chairman of Black Entertainment Television (BET).

Urban Trust Bank signed a master agreement to lease space in Wal-Marts up and down the Eastern seaboard. The first branches will open in the Washington area and Orlando, Fla. Atlanta is being pegged as the next market.

At this point, the number of Wal-Mart stores (NYSE: WMT) with Urban Trust branches hasn't been decided, but it will be "fairly significant," says the bank's CEO, Dwight Bush.

The bank is "committed to supporting urban consumers," Bush says, and "the demographics of Wal-Mart customers and associates fits our sweet spot."

Urban Trust plans to open the first local Wal-Mart branches by the end of the year.

 

Technorati tags: Urban Trust Bank, Wal-Mart, Orlando, Atlanta and Washington, D.C., Metro Bank of Orlando, is a federally chartered savings bank. It has a flagship branch in Washington, and another location at 715 S. Goldwyn Ave. in Orlando, Bob Johnson, BET, Mortgage, ARM, 30-year fixed rate, www.blackstocks.com, Alton Perkins, piggy back loans, mortgage insurance, real estate, broker, African American, money, investing, www.blogblackstocks.com