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Tri-County Sentry
Friday
MARCH 28, 2014
Engineers as Entrepreneurs
(NewsUSA) - Engineers have given the world many of the great innovations we live by today -Thomas Edison, George Westinghouse, the Wright Brothers and Henry Ford, just to mention some household names. But did you know what else each of those great engineers did to realize success? They founded great enterprises to support the potential of their engineering innovations. The great American tradition of engineers-asentrepreneurs continues today. Young, ambitious visionaries are still coming forward, stoked with ideas and the savvy to bring these ideas to life by bringing them to market. Sometimes they've conceived a previously undreamt-of way to improve some aspect of life we all face every day. Sometimes they've dreamed of making life just a little bit easier for people in far-flung or disadvantaged parts of the world. Sometimes they're figuring out how to make modern life greener and cleaner for everyone. Ecovative Design LLC, Green Island, N.Y., is a great example of this tradition in operation today. Ecovative was founded by Eben Bayer and Gavin McIntyre in 2006. They met at an Inventor's Studio
Blackonomics
By Jason Alderman
The process of bringing an idea to life often requires testing entrepreneurial skills. course at Rensselaer Poly- vented traditional wheeltechnic Institute in Troy chairs from succeeding N.Y., where they created in the unpaved, hilly and and eventually patented a muddy regions of the demushroom-based insula- veloping world. Besides obvious briltion then called Greensulate, using agricultural liance, ambition and drive, waste and the growth prop- what unites young visionerties of mushrooms to aries like Bayer, McIntyre grow packing material that and Winter? One thing they all have functions like traditional Styrofoam but biodegrades in common is that they received an early boost harmlessly. Another leading engi- by bringing their visions neer-entrepreneur today is and plans to the InnovaAmos Winter, an associate tion Showcase, or iShow. professor of mechanical Sponsored by ASME, the engineering at the Mas- American Society for Mesachusetts Institute of chanical Engineers, the Technology. Winter is the iShow is a competition for creator of the Leveraged early-career engineer-enFreedom Chair, an inge- trepreneurs from all over nious improvement on tra- the world. Bayer, McIntyre ditional wheelchair design and Winter are not just that takes advantage of brilliant -- they're iShow levers and easily sourced Winners. For more information, bike parts to overcome the problems that have pre- visit www.asme.org.
Accelerating Black Business Growth
By James Clingman While the 2012 economic Census data have not yet been released, I am certain we will see another increase in the number of Black-owned businesses over the past five years. As a matter of fact, Black business start-ups increased at the highest rate during the previous 5-year census period. It’s great that we are going into business, but
New Mortgage Rules Protect Against Risky Loans
it is shortsighted for us to stop there and celebrate just the number of businesses and overlook the growth of those businesses. Understanding that most small businesses go out of business in a few years, it is vital that we concentrate on growing the businesses we have in addition to merely counting them. A closer look at 2007 census data will indicate
James Clingman that of the nearly 2 million Black-owned businesses, only 106,566 had employees; the total number of employees is 909,552, not all of whom are Black, of course, with an annual payroll of just more than $23 million. Please take a moment and juxtapose those stats against the $1 trillion annual income of Black people in this country, and then analyze the information relative to our population size and the percentage of Black businesses that are sole proprietorships. One-person businesses are not inherently bad; don’t get me wrong. However, the problem with approximately 5 percent of Black-owned businesses having employees indicates a dearth in business growth within our ranks. With that same scenario being repeated from census to census Black economic empowerment via the very engine that moves this nation and the world—business—will never be achieved. That is a prescription for falling even further behind, especially when you consider the realignment of geopolitical power and influence; Black businesses must not only be started, they must be grown to a scale that hire more people and increases their value proposition. We have heard and continue to hear the litany of excuses and reasons for why our businesses are in BUSINESS, See page 12A
Good news for people shopping for a mortgage – and for current homeowners facing foreclosure because they can no longer afford their home loan: New mortgage regulations drafted by the Consumer Financial Protection Bureau recently took effect and they provide a slew of new rights and protections for consumers. One of the cornerstones of the new mortgage rules is that lenders now are required to evaluate whether borrowers can afford to repay a mortgage over the long term – that is, after the initial teaser rate has expired. Otherwise, the loan won't be considered what's now referred to as a "qualified mortgage." Qualified mortgages are designed to help protect consumers from the kinds of risky loans that brought the housing market to its knees back in 2008. But obtaining that designation is also important to lenders because it will help protect
them from lawsuits by borrowers who later prove unable to pay off their loans. Under the new abilityto-pay rules, lenders now must assess – and document – multiple components of the borrower's financial state before offering a mortgage, including the borrower's income, savings and other assets, debt, employment status and credit history, as well as other anticipated mortgage-related costs. Qualified mortgages must meet the following guidelines: • The term can't be longer than 30 years. • Interest-only, negative amortization and balloonpayment loans aren't allowed. • Loans over $100,000 can't have upfront points and fees that exceed 3 percent of the total loan amount. • If the loan has an adjustable interest rate, the lender must ensure that the borrower qualifies at
By Les Christie NEW YORK -- Millions of Americans say they want to buy a home this year, but many won’t be able to, according to a new survey from Zillow. The reasons: Limited supply of homes, soaring prices and strict lending standards. “The dream of homeownership remains very much alive and well,” said Zillow’s chief economist Stan Humphries. “But these aspirations must also contend with the current reality, and in many areas, conditions remain difficult.” In all but one of 20 metro areas Zillow surveyed, 5% or more of residents said they wanted to buy a home over the next 12 months. The desire is particularly strong for renters: 10% of them want to buy. That would translate into 4.2 million first-time buyers, double the number who purchased in 2013. That won’t happen. Inventories of homes for sale are up slightly, but there are still many local shortages. And in some markets, like San Francisco, New York and Seattle, tight sup-
Even though the “vast majority” of respondents to Zillow’s survey said they felt confident they could afford a home in the next year, many will face obstacles that will prevent them from achieving that goal. ply has translated into sky high prices few first-time buyers can afford. Nationwide, home prices are up some 11% last year, according to the S&P/Case-Shiller national home price index. Meanwhile, mortgage rates have also been moving higher. The average rate for a 30-year fixed is about 4.3%, up about 0.8 of a percentage point compared with a year ago. That has made loan payments on a $200,000, 30year mortgage about $90 a
month more expensive. Even when buyers find deals they can afford, they still may not be able to get a loan. Lenders these days require solid credit scores, well-documented incomes and job histories, as well as substantial down payments, of 20% or more, to qualify for the best mortgage deals. Homebuyers with little cash to put down and less than ideal credit scores can often get mortgages backed RENTERS, See page 12A
LOS ANGELES – RISE Financial Pathways (RISE) is looking for qualified applicants to participate in the Match Your Savings $2,500 grant aka IDA (individual development account) program. The IDA is a savings account designed to help families and individuals of modest means on their path to building wealth. A participant’s individual savings and matched funds are used towards buying a home, starting a business or going to school. The program is funded in part by the federal government and RISE. Income guidelines and other requirements must be met. Qualified participants make a one or two year commit-
ment to deposit a minimum of $50.00 per month into an IDA. Through this no-risk savings program, deposits are made directly into a personal savings account set up with RISE partner Union Bank. “This is an amazing opportunity for qualified individuals and families who want to build assets,” said RISE Financial Planning Counselor Lissette Rojo. “The matching grant helps them get closer to their goal of building wealth.” For every one dollar participants save, they will receive $2.50 in matching funds (matching only the first $1,000 saved). At the end of the program year, participants would have saved $3,500 that may be
used to help buy their first home, start a new business or invest in their education. For more information contact Senior Program Officer Veronica Lopez at 323-233-1900 ext. 224 or email veronica@risela.org. To determine your eligibility and complete an enrollment application, you may also visit the program site at http://risefinancial.wordpress.com/savings-programs/match-your-savings/. Act now! Register today to take advantage of this opportunity. Spots are limited to the first 300 people who will be invited to attend an orientation to complete the program application. Only 150 final participants will be randomly selected through a coin toss process.
the fully indexed rate (the highest rate to which it might climb), versus the initial teaser rate. • Generally, borrowers must have a total monthly debt-to-income ratio of 43 percent or less. • Loans that are eligible to be bought, guaranteed or insured by government agencies like Fannie Mae, Freddie Mac and the Federal Housing Administration are considered qualified mortgages until at least 2021, even if they don't meet all QM requirements. Lenders may still issue mortgages that aren't qualified, provided they reasonably believe borrowers can repay – and have documentation to back up that assessment. New, tougher regulations also apply to mortgage servicers – the companies MORTGAGE, See page 12A
Millions of Renters Say They Really Want to Buy a Home This Year
Rise Matching Grant Program Helps Residents Gain Financial Independence