The Obama administration wants three big banks to do a better job of helping borrowers with loan modifications. The administration also is withholding financial incentives to the servicers of mortgage loans, according to the U.S. Department of Treasury.

Three big mortgage servicers urged to do more

The Obama Administration’s Housing Scorecard identified Bank of America, J.P. Morgan Chase and Wells Fargo Bank as the three mortgage loan services in need of improvement. A fourth bank, Ocwen Loan Servicing, was also named as need improvement, but funds are not being withheld from the bank “as their compliance results were substantially and negatively affected by a large servicing portfolio acquired during the compliance testing period,” according to Treasury statement.

Acting Treasury Assistant Secretary for Financial Stability Tim Massad said in a statement:

While we continue to get tens of thousands of new homeowners into mortgage modifications each month, we need servicers to step up their performance to meet the needs of those still struggling.

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When buying a car, you are often told to beware of the salesperson’s sweet tongue. However, you also need to beware of the auto loans lender or the dealer. Lenders will always try to trick you into getting financing from them thus you should be alert. Do not rush to borrow money before ascertaining vital aspects of the loan agreement. You should therefore:

a)  Inquire about the interest rate of the loan

The interest rate is usually the most crucial element of a loan agreement. You can find out from various dealers or lenders how much interest they charge and compare before settling on a lender whose rates are affordable and favorable to you.

b) Inquire about any possible auto loan penalties and fees

Be keen because scores of dealers and lenders usually have hidden charges and fees within the loan. You should therefore know of their existence and how much they cost. Al

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At the end of the first quarter of 2011, 10.9 million or 22.7 percent of all residential properties with a mortgage were in negative equity. This represents a small decrease in the number of homeowners underwater on their home loans from the 23.1 percent or 11.1 million in the fourth quarter of 2010. Negative equity occurs either when a property drops in value or when the homeowners increase their mortgage debt or a combination of both of these issues occur.

Mortgage loans and negative equity

CoreLogic’s researchers say that declining home values were a major factor in borrowers going underwater, but that an additional important factor was the presence of a home equity loan. According to CoreLogic, “While only 18 percent of borrowers with no home equity loans were underwater at the end of the first quarter, 38 percent of borrowers with home equity loans were in a negative equity position. Over 40 percent (4.5 million) of all negative equity borrowers have home equity loans.”

Homeowners who are underwater are not necessarily in any danger of foreclosure or a short sale as long as they can make their monthly payments.

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Q: How much money or financial aid can a college student get from federal Pell grants, and when would the student receive that Pell grant money from the government?

A: The Federal Pell Grant: Federal Pell Grant award amounts can change yearly. The maximum Pell Grant award for the 2010–11 award year was $5,550. How much Pell Grant aid a student can receive will depend on the students EFC, students cost of attendance, full-time or part-time status, when the student applies, amount of funding the school has, and if the student will be attending school for a full academic year. Students may be eligible to receive up to two Federal Pell Grants in an academic / award year, however they may not receive Federal Pell Grants from more than one college at a time.

How Federal Pell Grant Awards Are Dispersed: There are a number of different methods for receiving Federal Pell Grant funds, the payment method(s) will typically depend on the policies of your school or college. S

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