Flint searching for a consulting firm to revitalize plagued Atherton East

FLINT -- To Kanesha Miller Atherton East is more than a symbol of urban blight. She said her neighborhood has decayed into a virtual war zone. "It's been too many shootings around my door and my children," said Miller. The last shooting was the last straw for the mother of two. "I felt bad just terrible just like oh my gosh not again," she said. When Miller heard word of a $500,000 planning grant was headed to her neighborhood could help relocate families. City officials interviewed and grilled three consultants Wednesday, July 29, to lead the master plan in redeveloping and restoring faith in the city. Megan Hunter Director of Planning said the city isn't equipped to handle a search. "The plan is really detailed and it's more than just a plan it's actually a conceptual drawings it's looking at how to finance the housing so we need a consultant who has those expertise we don't have them in house," said Hunter The vehicle city said they are hoping to correct their failure. "They were put there because the city didn't want to incorporate them into the fabric of the community, now it's time for the city to erase that wrong." see more: http://www.minbcnews.com/news/story.aspx?id=1236964#.Vbof161JejM

Uh-oh: Interest-only mortgages are back

Even if you don’t know much about home loans, you’ve probably heard of interest-only mortgages, if only because they played a large role in the financial crisis of 2008 and 2009. These loans practically disappeared during the recession but have since started to make a comeback, but that’s not necessarily something to be concerned about. Interest-only mortgages are a risky product with a bad reputation, and the loans available now aren’t like the ones that made a mess of the economy several years ago.

What Is an interest-only mortgage?

With a traditional 30-year fixed-rate mortgage, your monthly payments go toward both the principal balance and the interest accrued on the loan. An interest-only mortgage has a period — commonly 3, 5, 7 or 10 years — during which you’re only paying the interest accrued on that principal. If you take out a $100,000 loan and make payments on the interest accrued for 10 years, you’ll still have $100,000 to repay (plus interest) over the next 20 years of the loan. Instead of spreading that $100,000 over 30 years, you now have to pay it over 20, resulting in higher loan payments (the interest rate also resets at the end of that first period, meaning your interest rate could go up).

Loose underwriting standards allowed consumers with little to contribute to a down payment and less-than-great credit scores obtain interest-only mortgages before the financial crisis, said Scott Sheldon, a senior loan officer in Santa Rosa, Calif. “People tried to squeeze into a house they couldn’t afford, because they could only afford the interest-only payment,” he explained.

Historically, homeowners relied on the ability to refinance their homes at the end of the interest-only period said Tony Sachs, chief lending officer of online mortgage marketplace Sindeo. Home values tanked during the crisis, wiping out home equity and the option to refinance, so when borrowers’ payments increased, they couldn’t afford them and started defaulting on their loans.

Who can get an interest-only mortgage?

Interest-only loans aren’t meant to be an affordability tool, Sheldon said. As the economy has improved, lenders started offering them again (within the past year or so), but they’re much different than those pre-2007 loans that everyone associates with the term “interest-only.”

“They’re usually geared toward higher-net-worth individuals who are interested primarily in cash flow and otherwise have a lot of assets,” Sheldon said. The interest-only loans he can originate now have stringent requirements: “We usually want 12 months of mortgage payments in the bank, in addition to the 740 credit score, in addition to the 25% down payment.”

He said they’re only available for jumbo loans right now (loans that exceed the limits set by Freddie Mac and Fannie Mae), so it’s not the sort of thing the average consumer would be looking at.

“They are meant for people who have … the appetite for risk and have the ability to absorb the consequences, should they be negative,” Sachs said. “For the right person, they can be used as a successful mortgage product and financial or tax-management tool.”

For example, someone who is well-paid but receives large bonuses may want an interest-only loan, to preserve their take-home pay throughout the year and make large, voluntary contributions toward the principal when they receive their bonuses. It’s an alternative to paying more throughout the year with a loan amortized over 30 years. Another type of person who may want an interest-only loan is someone who could afford to pay cash for a property but uses the interest-only mortgage to claim the mortgage interest tax deduction

see more: http://www.usatoday.com/story/money/personalfinance/2015/07/24/credit-dotcom-interest-only-mortgages/30168323/

The Wisdom of the Rule of Three

For years I trained consultants in the ambiguous and complex art of innovation at a prestigious consulting firm. I was amused at their indoctrination which included an unbending adherence to the rule of three. No, not that bad things happen in threes but rather that a client should always be given three paths to action: most ambitious, most cautious and a middle way. These correlate to best case, worst case and most probable case. The objective of this rule is to provide some perspective as to the range of options available, cover as much of the upside and downside of the issue in question as reasonable and to gauge the client's level of aspiration. Given that most of us can only really remember three things at a time, this rule is simply a strategy to break habit bound thinking by showing obvious alternatives.

Lately I'm beginning to see the wisdom in the rule of three. Where it used to be that the center of the bell curve marked the gathering place of consensus or at least cooperative collaboration, it is now the right and left edges of the curve that define the places that keep us apart. These segments are defined by their oppositional relationships. Social media has exasperated the situation as it has become a micro-segmenting forum for marketers and provocateurs alike. Spin becomes the opinion of the segment, and in turn, the segment takes opinion as fact. Consider how many postings you have seen in the last week that not only express a contempt for an alternative point of view but support it with a barrage of partisan data, dubious facts and conspicuous omissions. These segments are motivated to act in a unilateral way sometimes with tragic consequences. The old adage "Everyone is entitled to their own opinion, but not their own facts" appears to have little gravitas in a world where the two are now indistinguishable.

The most dangerous thing an innovator can do is to believe that they know something that is actually untrue and be unwilling to make adjustments to this belief as their experiences provide information to the contrary. So how do we gain real perspective in an environment designed to coopt our own thinking?

1. Look in Your Blind Spots: When we drive, we know that our mirrors don't reveal the entire situation so we glance over our shoulder just in case to see what we may have missed. The same is true when it comes to our thinking. Instead of "unfriending" that person in your social media network who is always rambling about politics or religion take a moment to actually read their posts. Ask yourself why they believe what they believe. Consider what it must be like to be in their shoes. Look for a deeper rational. This will enhance your understanding.
2. Feed Your Head: Read, watch and listen to sources that you seldom encounter or fully engage. If you are straight read The Advocate, if you are progressive, read The National Review. Keep an open mind. Most importantly, look for information or a point of view where you can see a glimmer of truth even though you don't necessarily adhere to it personally. Psychologists call this counter-attitudinal advocacy: making a strong argument for the opposition. This will increase your range.

see more: https://www.linkedin.com/pulse/wisdom-rule-three-jeff-degraff

Big Four Firms Dominate Global Risk Consulting

The Big Four firms collectively account for nearly two-thirds of the global risk consulting market and could expand that footprint if they acquire more cybersecurity firms, suggests a new report.

The report, from Source Information Services, found the global market for risk consulting has risen by over $1 billion (9 percent) to just under $14 billion in 2014. Risk consulting in financial services dominates the market, accounting for $5 billion, or about 35 percent of the total.
Regulation and compliance work have driven much of the growth to date, according to the report, but cybersecurity is likely to have a significant impact in the near future. Big Four firms perform the majority of global risk consulting, accounting for 61 percent of the market. However, the report warns the Big Four could miss out on the next stage of growth if they don’t react to the growing demand for cybersecurity expertise. 
Big Four firms aren’t seen by clients to have the specialist expertise required to capitalise on this wave of increased investment in cybersecurity,” said Source founder Dr. Fiona Czerniawska, who authored the report. “These firms now have a limited window of opportunity to either recruit or acquire organizations with these skills. Despite recent growth, the global risk consulting market is at a crossroads. Our research shows increasing polarization between ‘low cost’ and ‘high value’ parts of the market will create new challenges for consulting firms across the board.”
Regulatory-related risk consulting work falls into the low-value part of the market, according to the report, as clients turn to consultants for cost-effective support when they can’t handle the workload themselves.
In contrast, cyber risk falls into the high-value end of the market as it is relatively new territory for most organizations. The consulting market for cyber risk is smaller than for regulatory-related work, but the report suggests it will grow more quickly as organizations rely more on consultants to help them.
The increasing number of risk-related initiatives has led to a dramatic rise in the use of consultants. In 2013, only 27 percent of organizations said their investment in risk-related areas would drive up their use of consultants. Today, that figure has nearly doubled to 50 percent. This trend holds across most parts of the private sector. However, public sector managers still focus on saving money and thus are more likely to rely on in-house resources to do this type of work.
read more: http://www.accountingtoday.com/news/firm-profession/big-four-firms-dominate-global-risk-consulting-75186-1.html

Rates fall on 30-year home mortgages

WASHINGTON – Average long-term U.S. mortgage rates fell this week, retreating from high levels for the year amid economic turbulence overseas. The lower rates brought an incentive for prospective purchasers toward the end of the spring home buying season.

Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage declined to 4.04 percent this week from 4.08 percent a week earlier. The rate on 15-year fixed-rate mortgages eased to 3.20 percent from 3.24 percent.

Markets around the world have been nervously watching tumult and a nearly monthlong slide in China’s stock markets, and Greece’s economic crisis as it tries to negotiate a rescue from its European partners. That has pushed investors to seek safety in U.S. Treasury bonds, pushing interest rates lower.

Bond yields for Treasurys have been pushed lower by the rise in bond prices. The yield on the key 10-year Treasury note dropped to 2.20 percent Wednesday from 2.42 percent a week earlier. Mortgage rates often follow the yield on the 10-year note. It traded at 2.27 percent Thursday morning.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount. 

read more: http://www.spokesman.com/stories/2015/jul/10/rates-fall-on-30-year-home-mortgages/

Consulting deals with medical companies can earn doctors six-figure paydays

For the past five years, Coon Rapids cardiologist Dr. Jeffrey Chambers has led a nationwide study that found doctors could safely use a Minnesota-made medical device to drill out hardened calcium in clogged arteries around the heart.

A report of the study’s results published last year disclosed that Chambers was a paid consultant.

Federal data published last week reveal the extent of those payments — $296,000 in 2014 from New Brighton-based Cardiovascular Systems, Inc. It was among the highest such totals in the state.

Cardiovascular Systems says Chambers’ expertise is a vital asset for a study investigating the safety of its product, and that the amount of its payments are typical for the industry.

Critics ranging from bioethicists to consumer groups say such payments create a risk of bias in clinical studies. It’s a long-running debate in Minnesota’s health care community, and one of the key questions emerging from the federal data published last week disclosing $6.5 billion in drug and device-company payments to 600,000 doctors in 2014.

Manufacturers have a huge financial stake in the outcomes of clinical studies because positive results are crucial to getting regulatory approval to sell their products. Organizations like the Mayo Clinic and the University of Minnesota no longer allow their doctors to serve as investigators on studies if they have consulting deals with makers of the devices or drugs being tested.

“When a Mayo employee is doing consulting for a company, it is Mayo Clinic policy that is inappropriate for them to do research on the company’s products,” said Mayo radiologist and industry-relations expert Dr. Richard Ehman, describing the health system’s policy on financial relationships with industry.

Proponents argue doctors shouldn’t have to work for free to advance state-of-the-art science. And close collaboration with industry is essential to inventing new technology like the Diamondback 360 Coronary Orbital Atherectomy System that has been on the market since October 2013 and that Chambers and his trial team have studied since March 2010.

“We believe the involvement of physicians in clinical trials for new medical devices and applications is critical,” Cardiovascular Systems spokesman Jack Nielsen said in an e-mail to the Star Tribune. “As a leading interventional cardiologist, Dr. Chambers’ expertise is vital when investigating the safety and efficacy of new medical technology products.”

Nielsen noted the company has rigid rules for conducting the study involving 443 patients at 49 health care centers. The company paid Chambers for serving as principal investigator of the study, and for presenting data at scientific and federal policy meetings, as well as training other doctors to use the Diamondback 360 device.

Chambers, who works at Metropolitan Heart and Vascular Institute, didn’t return calls for comment about the payments.

 

see more: http://www.startribune.com/consulting-deals-with-medical-companies-can-earn-doctors-six-figure-paydays/311696601/