A lot of important changes have been occurring this month, from the signing of the Wall Street reform bill, to help for homeowners with mortgage and foreclosure woes and other topics including taxes and credit. There’s a lot going on – have you been following it all?
If not, here’s a few of the most important headlines from July:
Wall Street Reform Bill Signed Into Law
Amid a dark cloud of bank failures, falling home prices and high levels of unemployment, a ray of hope now shines on the economy. Yesterday, July 21, the Wall Street reform bill was finally passed by President Barack Obama.
This means good news for depositors — DepositAccounts.com reports that as part of the bill, the FDIC has permanently increased the standard deposit insurance amount to $250,000. The limit was temporarily raised from $100,000 to $250,000 after the economic crisis hit and was previously set to drop back down in 2014.
The bad news? Consumers had rejected the bill’s debit amendment, which sought to begin charging interchange fees for debit card usage. Even though a survey conducted by Visa found an enormous 83 percent of respondents opposed the possible new requirement of debit card holders paying to own and using their cards, it was passed in the newly signed bill.
Finally, auto dealers probably don’t care much either way. After months of debate, Congress finally concluded auto dealers would be exempt from financial regulation. Auto dealers had argued they should not be subject to oversight under the new bill because they had not contributed to the financial crisis, unlike Wall Street, mortgage lenders and credit issuers. Looks like the government agrees.
Unaffordable Mortgage and Foreclosures: Prevention is the Key
Foreclosure prevention workshops have been popping up across the nation lately, as more underwater mortgage holders move closer to foreclosure as the only way out. Just last month, Grace F. Napalitano, a U.S. representative, held a free foreclosure prevention fair in La Puente, California.
Other cities are catching on, too. The Sierra Vista Herald reports a foreclosure prevention workshop, sponsored by the Better Business Bureau, City of Sierra Vista (Arizona) and SEAGO, is planned for July 31. Space and materials are limited, so sign up early if interested.
Miss Out on the Home Buyer Tax Credit? Deduct Mortgage Interest Instead
The first time home buyer tax credit has been a hot topic in the world of mortgages lately. Unfortunately, it’s too late for most homeowners to cash in on it. However, for those who were depending upon the hefty discount, there’s another option.
Moolanomy.com details another way home buyers can save money in taxes. One of the most popular tax deductions for homeowners is the mortgage interest deduction. Depending on the mortgage loan interest rate you qualified for, deduction your interest next April could save you quite a bit.
Not Enough Money for Tax Refunds
Speaking of taxes, the economic downturn has made it pretty hard for some states to pay out tax refunds. In fact, some are so deep in the hole, they decided to simply delay paying tax refunds all together.
It wasn’t just the lack of surplus money, either. Many couldn’t afford to pay employees to process the refunds.
However, July is supposed to be the cut-off for the delay, and any states that have withheld taxpayer money this year should be putting checks in the mail by now. Let’s hope so, because it’s not just your wallet that’s suffering from the missing money. ABC News explains “There’s a major incentive for states to provide tax refunds sooner rather than later” because after specific deadlines, state laws require that states pay interest on whatever refunds haven’t been sent out.
Wow this is a really great article, look forward to reading more.