The First Time Home Buyer tax credit may have fueled a considerable jump in home sales for the month of April, auto dealers may slide past rules that would require them to be watched over by consumer financial protection regulators and parents may be able to take advantage of a new private student loan option to help pay for their kids’ college.
New Home Sales Increase Due to Tax Credit
The First Time Home Buyer tax credit encouraged buyers to get out and purchase homes before the deadline of April 30 was reached and new home sales were all the better for it.
According to the Commerce Department, new single-family homes rose 14.8 percent from March to a seasonally adjusted annual rate of 504,000 thanks to the tax credit. Also, the demand for new homes was said to have surged in March, climbing 29.9 percent from the prior month. And actual sales climbed by 47.8 percent in April. (Wall Street Journal)
Auto Dealers May Escape Consumer Protection Regulation
As Wall Street reform pushes through Congress, a part of it that would require a consumer financial protection regulator to oversee certain businesses may not pertain to the auto industry.
Last week, the Senate directed key negotiators to advocate exempting auto dealers from the financial oversight — something the House agreed to back in December. If the auto industry is not included in this regulation, they won’t be barred from unfair practices that relate to auto loans; however, consumer loans, mortgages and credit cards will still be included. (CNN Money)
Wells Fargo Offers New Student Loan Option for Parents
Many private lenders are trying to keep their consumer business by competing with the new federal student loans that will all be controlled by the government. As a result, many are putting out new products to appeal to borrowers. A new option from Wells Fargo is the Student Loan for Parents, which is likely meant to compete with the Federal PLUS loan. This new loan will allow parents (or another sponsor) to borrow funds for a student’s education during their years in school if the student can’t qualify for a loan or pay for school alone. (Wells Fargo)
