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Opinion Editorials

Home Affordable Mortgage Program fails miserably

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HAMP continues to fail

Here at Agent Genius, many articles have been written regarding the failure of the Home Affordable Modification Program (HAMP) and today’s report released by Fitch Ratings shows that 65%-75% of loans modified through HAMP default.

On the heels of HAMP’s various other failures, the core mission to help struggling homeowners seems to be effective a mere 25%-35% of the time (that is after the few applicants that make it through the mounds of red tape and whose paperwork is not lost).

According to CNN, the Fitch report points to HAMP’s failure being that most applicants struggle with all of their debts, not just mortgage, and borrower behavior continues regardless of help. The report notes that “on average, HAMP-modified borrowers have 64% of their monthly pretax income spent before they even buy a quart of milk.”

Helping homeowners

The report calls for the administration to help with all debt and although I continue to see HAMP as a colossal failure and I don’t personally support the program, I think the core mission of HAMP has the potential to help and I feel that the administration giving an overall debt relief package to struggling homeowners won’t fix anything.

HAMP could include debt counseling as an option for their modification plans, but HAMP has bigger problems than borrower behavior if only 25% of applicants don’t default. Can you imagine what would happen to a lender if 75% of all of their loans defaulted?

If HAMP continues to fail, what do you think the government could do to help struggling homeowners? Or do you think the market should level out naturally without government assistance?

Lani is the Chief Operating Officer at The American Genius - she has co-authored a book, co-founded BASHH and Austin Digital Jobs, and is a seasoned business writer and editorialist with a penchant for the irreverent.

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16 Comments

16 Comments

  1. Laguna Beach Homes For Sale

    June 17, 2010 at 6:51 am

    Really Mortgage Program looks good on paper,but fails miserably in practical application.Very sad..

  2. Joe Loomer

    June 17, 2010 at 7:14 am

    They’re just kicking the can down the road, hoping to inject a steady stream of foreclosures into the market, rather than a deluge at one time. It’s my belief that was the plan all along – look at the failure rate of low-income mortgage programs? You couldn’t see this coming?

    Navy Chief, Navy Pride

  3. Al Lorenz

    June 17, 2010 at 12:39 pm

    The government could help struggling homeowners by letting them suffer the consequences of their actions. As a politicians, the administration could call it an “Education Initiative for Struggling Homeowners.”

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Opinion Editorials

Women-owned businesses make up 42% of all businesses – heck yeah!

(EDITORIAL) Women-owned businesses make a huge impact on the U.S economy. They make up 42% of all businesses, outpace the national growth rate by 50%, and hire billions of workers.

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women-owned business

Women entrepreneurs make history in the U.S as female-owned businesses represent 42% of all businesses, while continuing to increase at DOUBLE the national growth rate!

Women are running the world, and we are here for it! The 2019 American Express State of Women-Owned Businesses Report, states 13 million women are now self-employed entrepreneurs. From 2014 to 2019, women-owned businesses grew 21%. Think that’s impressive? Well, businesses owned by women of color grew 43% within the same timeframe, with a growth rate of 50%, and currently account for 50% of all women-owned businesses! Way to go! What this also means is that women employ over 2.4 million workers who together generate $422.5 billion in revenue.

What can we learn from these women that’ll help you achieve success in your businesses?

  1. Get informed: In a male-dominated business industry, women are often at a disadvantage and face multiple biases. So, know your stuff; study, research, and when you think you know it all…dig deeper!
  2. Stay hungry: Remember why you started this journey. Write down notes and reminders, goals, and inspirations, hang them up and keep them close.
  3. Ask for advice: Life is not meant to go through alone, so ask questions. Find a mentor and talk to people who have walked a similar path. Learning from them will only benefit your business.

Many of these women found ways to use their passion to drive their business. It may not be exactly what they thought it would be when they started out, but is it ever? Everyone has to start off small and rejection is part of the process. In fact, stories of rejection often serve as inspiration and encouragement to soon-to-be self starters.

Did you know J.K Rowling’s “Harry Potter” book was turned down TWELVE times? Seven books later with over 400 million copies sold, the Harry Potter brand is currently valued at over 15 billion. While you might not become a wizard-writing fantasy legend like J.K Rowling, you sure as heck can be successful. So go for it, and chase your dreams.

If you want to support women-owned businesses, start by scrolling through Facebook or doing some research to find women-owned businesses in your community. Then, support by buying or helping to promote their products. Small businesses, especially women-owned, black women-owned, and women of color-owned, are disproportionally affected by the current economic crisis ignited by a health pandemic. So if you can, shop small and support local. And remember, there’s a girl (or more) doing a happy dance when you checkout!

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Opinion Editorials

How to increase website engagement

(EDITORIAL) A website is vital to any business, but customer engagement guarantees success. Check out these powerful tips to boost engagement.

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Having a website for your business isn’t enough. If you want to grow your company, you need to maximize this digital asset by increasing user engagement. The question is, where do you begin?

What does healthy website engagement look like?

Launching a website is one of the quintessential first steps in building a business. It’s a new company’s way of saying, “We’ve arrived! See, we’re legit!” But the problem is that very few entrepreneurs and business owners know anything about building websites. So they use a drag-and-drop web builder to throw a few elements together and develop a site in a few hours.

Simply having a website isn’t enough. If it’s only a placeholder for your brand, you’re missing out on an opportunity to reach people and move them from awareness to purchase. You don’t need a website – you need an engaging website.

What is user engagement?

“Put most simply, user engagement is when visitors to your site appreciate your content enough to stick around, absorb, and convert,” web design and UX optimizer Rob Wells writes. “Most importantly, when user engagement is high, you’ll find that your audience becomes more loyal. You’ll notice more return visits and higher conversions, because your website simply works.”

Signs of high user engagement include reading and absorbing content, organic comments on blog posts, social media shares, watching videos, above average time on site, high click-through rates, and low bounce rates. We’ll tell you more about how to achieve these “wins’ in the following section.

5 Tips for Boosting Engagement

Every website developer, marketing guru, and entrepreneur has their own formula for boosting engagement, but there are a few tactics that everyone can agree on. If you want to see immediate results, start by doing the following:

    1. Make it About Your Target Audience: Too many businesses make the mistake of shaping their marketing messages around themselves. They mistakenly assume that customers care about them, when the truth of the matter is that customers only care about themselves.If you want to boost engagement on your website, start by transforming your messaging. Make it about your audience. Make the customer the hero of their own story. You’re just there to guide them along and point to solutions (products and services) that may help them get from where they are now to where they want to be.
    2. Tell Stories: Cut out the sterile corporate lingo and breathe a little life into your copy. Mission statements are lame. Tell stories!The Ward & Barnes, P.A. website is a perfect example of how storytelling can cause engagement to soar. They actually include client stories, testimonials, and quotes on their homepage. This helps visitors connect with the brand and immediately establish a feeling of trust and goodwill.
    3. Eliminate Distractions: “According to research by Google, people judge websites as beautiful or not within 1/50th to 1/20th of a second,” Website Magazine notes. “Perhaps even more interesting is the fact that visually complex websites are consistently rated as less beautiful than simpler sites.”Stop with the complex websites and sophisticated designs. You’re not a web design company – there’s no need for all of these bells and whistles! Eliminate distractions and simplify every page to one specific focal point. Anything more means you’re actually competing against yourself.
    4. Empower Your CTAs: Every page on your website should have a call-to-action (CTA). And when creating these CTAs, always ask yourself one simple question: “Why would anyone click this?”If you’re asking for an email address or sale without providing clear and direct value in return, you’re missing the point. You have to compel people to follow through.One of the best ways to empower your CTAs is to offer something in return – like a free eBook, a discount code, or a product sample. When there’s an enticing reward, people will be much more likely to follow through.
    5. Go Visual: The brain processes visuals much faster than text. Use this to your advantage by integrating visual content into your website. This means video, graphics, and original images. Skip the stock photos! However, don’t overdo it. Remember to keep it simple and avoid unnecessary distractions. Quality over quantity works every time.

Turn your website into a lead generating asset

Transform your website from a branded placeholder into a powerful, lead generating asset that procures leads, and converts them from curious visitors into profitable lifelong customers. This process can take time, but you have to begin somewhere. Start by leveraging the tips in this article and analyzing the data. Based on the numbers, you can optimize, iterate, and improve over time.

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Opinion Editorials

Idea: Color-coded face masks as the new social contract to combat COVID-19

(BUSINESS NEWS) Americans must come together on a new social contract if we have any hope of permanently reopening the economy and saving lives.

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social contract: color coded wristbands covid-19

A church in Texas used a stoplight color-coded wristlet system to help churchgoers navigate the new social awkwardness of closeness. Those with green bands are comfortable with contact including high fives, yellow bands indicate someone who wants to talk but not touch, and red is for someone interested in keeping their distance altogether.

In pre-pandemic America, basic social cues were sufficient to communicate these feelings, and most violations of them were annoying but not harmful. We now live in a world where daily banalities like grocery shopping and shaking hands with a new acquaintance are now potentially dangerous – for you and those you care about.

So what is the way forward?

Humans are social beings, and much of our survival is reliant on our relationships to, and interactions with, other humans. A way forward is critical. But our brains are trained to find and read faces in an instant to assess emotion and whether that emotion indicates a presence of a threat.

Not only has this pandemic challenged our innate notions of community and safety, the scientifically healthy way forward is to cover most of our faces, which is staggeringly counter to our understanding of a threat. It is now impossible to tell whether a sunglassed-masked stranger walking into a restaurant is a robber or just a person who was walking in the sun.

But because we are humans with large brains, we are able to adapt. We are inherently compassionate and able to emotionally understand fear in others and ourselves. We are able to understand both science and social grace. In this case, the science is straightforward but the social grace is not.

Governor Abbott of Texas announced the second closure of bars and reduction of capacity in restaurants last Friday in response to the dramatic increase in coronavirus cases statewide. During the press conference he said: “Every Texan has a responsibility to themselves and their loved ones to wear a mask, wash their hands, stay six feet apart from others in public, and stay home if they can.”

It is this shared responsibility that we must first embrace before any meaningful reopening can proceed.

We must accept that for the indefinite future, we have a new normal. We have to adapt to these new social codes in order to protect ourselves and our neighbors. Color-coded bracelets, masks, hats, choose your accessory – this could be a way forward.

First, we must agree these measures are necessary. And we shouldn’t take them because a politician told us to or told us not to – many people feel that our government has failed to provide us with coherent guidance and leadership considering a broad social contract.

We should adapt them because if you are not free, I am not free. We can do this together.

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