Monthly Archives: April 2011

Milwaukee Public School Board President Files Chapter 7 Bankruptcy

Michael Bonds, president of the Milwaukee Public School Board, has filed for Chapter 7 bankruptcy, stating that it was a decision with which he struggled for months. In an article on www.jsonline.com, (Milwaukee Journal Sentinel), by Georgia Pabst, Bonds averred that, "’At the end of the day, I made the decision and have to live with the repercussions, but it has no bearing on my ability to lead and make sound decisions.’" Bonds alleged that his family's income declined by nearly 35% during the past year when Mrs. Bonds’ income went from $127,000 to $99,000 after she was reassigned as principal of an elementary school from a high school. Mr. Bonds said that his salary declined approximately 7% at the University of Wisconsin at Milwaukee due to state furlough days. The family has, reportedly, also lost equity in their home which has decreased in value from $218,000 in 2007 to $165,000 in 2009. Mr. Bonds, who filed a solo bankruptcy petition, lists assets of $242,490 with li

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Twenty Percent Down Payment Too High for Most Mortgage Borrowers

Half of the 1,000 potential borrowers surveyed recently by the National Foundation for Credit Counseling (NFCC) responded that they were not able to afford the 20% down payment proposed under new Federal guidelines for residential mortgages, according to www.HousingWire.com. Just three months ago, Federal regulators proposed a ruling that would require lenders to maintain 5% of the risk on mortgages pooled into securities, reports the American Bankruptcy Institute’s Bankruptcy Brief. Exempt from the rule would be loans that meet various standards, including that 20% down payment. The NFCC, a not-for-profit credit counseling organization, is against the decision, saying that the high down payment rate would exclude too many borrowers. Gail Cunningham, a spokesperson for the NFCC, opined that the number of borrowers who would ultimately be able to afford a QRM could be even lower than the survey suggests. She states, "’Since prices for homes are at historic lows, the necessary down

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