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When announcing his plans Monday to begin the transition phase of reopening the state, Georgia Governor Brian Kemp made some reference to the FY21 State Budget which has been on hold since Georgia lawmakers went on break because of the COVID-19 outbreak. However, neither Kemp, Lt Governor Geoff Duncan nor House Speaker David Ralston (R-Blue Ridge) made any reference to a return date.

“While I am encouraged by the data, proud of what we have accomplished, and confident of our plan moving forward, I know that the journey ahead is long.,” said Kemp. “We must remain laser-focused on defeating this virus and keeping Georgians safe. We must find ways to revitalize communities devastated by COVID-19. We must identify opportunities for economic growth and prosperity. We will have tough conversations about the budget, state spending, and our priorities and values as a state. Those conversations are underway, and here’s what I know: if we remain united just as we have in this fight against COVID-19, we can overcome the challenges and obstacles ahead.”

Georgia lawmakers have to return to approve a budget for FY21, even if they don’t take up any other legislation – although a lot is pending. The House and Senate did approve an amended FY20 budget to carry Georgia through June 30 date (the end of the fiscal year) but the FY21 budget was not approved prior to the called recess of the General Assembly. The House did give its okay to a $28.1 billion budget for FY 21 and sent it to the Senate. However, Senators never had a chance to vote on this proposal before the March 13 recess.

While no date has been set for the resumption of the 2020 session of the Legislature, Speaker Ralston recently appointed a five-member committee to make recommendations on when it’s safe for lawmakers to get back to work.

In his memo announcing the committee, Ralston said, “As we look forward to resuming the 2020 Session of the Georgia General Assembly at a date to be determined, I have today appointed a committee to review our protocols and make recommendations on specific operations during that time. None of us can know what the remainder of the session will look like. All we can know is that how we conduct our business will be significantly different than when we suspended the session on March 13.”

The committee is being co-chaired by Leader Jon Bums (R-Newington) and Leader Bob Trammell (D-Luthersville). Members of the committee include: Chairman Matt Hatchett (R-Dublin), Rep. William Boddie (D-East Point), Rep. Mark Newton (R-Augusta), Bill Reilly, Clerk, Spiro Amburn, the Speaker’s Chief of Staff, Holli Pitcock, the Speaker’s Office Director of Constituent Services and Betsy Theroux, House Messenger.

Vensure Employer Services, one of the nation’s leading PEOs, has responded to the coronavirus (COVID-19) outbreak by extending its telemedicine services, at no cost to clients, employees, and their family members for the next 90 days. This will allow nearly 300,000 employees and their families to speak with a licensed medical professional from a safe place during this period of social distancing.
 
“With the current unprecedented strain on healthcare services, facilities and healthcare professionals are overwhelmed. We want to assure our clients and their employees have access to the care they need,” says Alex Campos, CEO of Vensure Employer Services. “Everyone is focused on COVID-19, but there are also all the other routine healthcare needs of the people we serve.”
 
While telemedicine is a well-established practice, the current crisis has elevated its profile. MDLIVE is a platform that provides immediate access to board certified healthcare professionals through a mobile app, online, or by phone. Telemedicine healthcare professionals evaluate and treat non-emergency conditions and can even send prescriptions to pharmacies.
 
“Covering the cost of this service at this time is definitely the right thing to do for all our stakeholders,” Campos stated. “There could also be long-term benefits. This allows employers to demonstrate their commitment to their employees’ wellbeing. And once people experience telemedicine services, they will undoubtedly be more comfortable using the technology. In the long run, that can lower healthcare costs for everyone.”

Home-buying demand shook off more than 5 million new claims for unemployment assistance and continued to strengthen this week, according to Redfin’s latest weekly report. Redfin is introducing a new measure for home-buying demand to get a clearer picture of the impact of the coronavirus pandemic. The new measure compares the daily number of homebuyer inquiries, regardless of whether the homebuyer is served by a Redfin agent or one of its partners, to the average daily number of inquiries in January and February, on a seasonally adjusted basis. For the seven days ended on Sunday, April 19, home-buying demand was down 19% on a seasonally-adjusted basis from pre-coronavirus levels after dropping as much as 34% at the beginning of April.

Not Enough New Homes For Sale
Many sellers continue to sit on the sidelines, if they can afford to wait. In an April survey of 216 prospective sellers, Redfin found only 1 in 5 thought it was a good time to sell, down from 1 in 2 at the beginning of March. So it’s no surprise that new listings for the seven days ended April 17 are down almost 50% compared to the same time last year, far more than the 19% decline in buyer demand.

The lack of inventory is one of the leading causes for a lack of sales, along with tighter lending standards and buyer concerns over the economy. Pending sales for the same period are down almost 50% compared to the same time last year.

Demand for Affordable Single-Family Homes Drives Bidding Wars Again
Agents from Madison to Maryland to Los Angeles say competition for the best homes is getting intense. Lindsay Katz, a Redfin agent in Los Angeles, tried to make an appointment to view a new listing in northwest LA but got an email from the listing agent saying it’s first-come-first-served. “It was crazy. The email just said ‘We’re like Trader Joe’s now. There are tape markers 10-feet apart on the sidewalk and there may be waiting times to get in. Bring your own mask and gloves.'”

After a few weeks of Redfin buyers being the only bidder or facing competition from one or two other offers, Redfin is hearing stories of bidding wars with four, five, or more buyers and homes selling above the asking price across the country. The stories are eerily similar; well-priced single-family homes have buyers with a stable income and strong credit fighting over scarce inventory.

On the other hand, it’s been more difficult to sell a condominium, with pending sales down 56% for the seven days ended April 18. That’s 6 points worse than the average decline cited above and 10 points worse than the 46% drop in pending sales for single-family homes over the same period.

In the Washington D.C. area, Redfin agent Lisa Tucker says selling a single-family home in the District’s tony neighborhoods is no problem, but condos, especially studios, are much more challenging. “We’ve dropped the price, we’re offering to cover $5,000 in closing costs and six months of condo fees and it’s just not happening. You have a specific buyer, earlier in their careers, with less stability in their jobs.”

Low Inventory and Buyer Demand Anchors Prices
With inventory down so much, prices have been remarkably resilient. Median listing prices for the seven days ending April 19 were $307,000, up 3% compared to the same time last year. That gain is inflated due to the Easter holiday timing in 2019, but people are surprised when Redfin tells them prices aren’t down double-digits.

Layching Quek, a Redfin agent in Chicago, says some buyers are hunting for bargains that just aren’t there. “I’ve written some offers 5 to 10% below the list price. Buyers want to know how aggressive we can go, but prices have remained steady. Sellers are just taking properties off the market and waiting to see if stay-at-home is lifted.”

Tighter Lending Standards Will Hit First-Time and Lower-Income Buyers Hardest
Rates for 30-year fixed rate mortgages have continued to hover just under 3.5% for the past seven days, near all-time lows. But as Redfin reported last week, loans are harder to get.

Increased lending standards and concerns over job security, even for folks who are still employed, will limit opportunities for first-time and lower-income buyers. This threatens to deepen the divide between folks who can take advantage of historically low interest rates and those who can’t save up a 20% down payment or haven’t established their credit.

But where there’s a will, there’s a way. Recently Redfin has heard stories of multi-generational buyers, with families banding together to buy a home. Iyesha Chestnut, a Redfin agent in Atlanta, said she now has several clients looking for larger homes with a finished basement or a proper in-law suite for the parents. In many cases, parents have saved up the down payment but aren’t working any longer, and the kids provide the income for monthly payments.

To read the full update, please visit: http://www.redfin.com/blog/housing-market-improving-covid-19-unemployment

Delta Air Lines, Inc. today announced that it intends to commence a private offering to eligible purchasers of $1.5 billion in aggregate principal amount of senior secured notes due 2025 (the “Notes”), subject to market and other conditions. The Company also announced it intends to enter into a new $1.5 billion Term Loan B facility due 2023 (the “New Credit Facility”) concurrently with the closing of the offering of the Notes.

The Company intends to use the net proceeds from the offering of the Notes and borrowings under the New Credit Facility for general corporate purposes and to bolster its liquidity position. The final terms and amounts of the Notes and the New Credit Facility are subject to market and other conditions, and may be materially different than expectations. The offering of the Notes is not contingent upon the closing of the New Credit Facility.

The Notes and New Credit Facility will be pari passu obligations secured on a first priority basis by a diverse pool of slots, gates and routes collateral comprised of domestic slots at New York-JFK, New York-LaGuardia and Reagan National Airport, slots at Heathrow, London routes, other European and Latin American routes.

This press release is neither an offer to sell nor the solicitation of an offer to buy the notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful. The notes are being offered in the United States only to qualified institutional buyers in an offering exempt from registration in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”),  and outside the United States in reliance on Regulation S under the Securities Act. The notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act or any applicable state securities laws. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

LendingTree®, the nation’s leading online loan marketplace, released its study on the costs bankruptcy experienced by individuals who have filed for bankruptcy and the effect on an individual’s credit. The report found that consumers who recently filed for bankruptcy aren’t completely shut out of the market, though interest rates affect their cost for new credit. In fact, more than half of those who filed for bankruptcy one year before visiting LendingTree had credit scores of 640 and higher. 

Key findings

56% of people who filed for bankruptcy one year before seeking out loan offers on LendingTree have credit scores of 640 or higher.

Out of those, 17% had a score of 680 or higher; 5% had scores of 700 or higher; and 1.5% had a score of at least 740.

After two years, when some borrowers are once more eligible for conventional mortgages, 63% had prime scores of at least 640. About 5% had scores of 700 or higher.

After five years, 71% of borrowers had scores of 640 or higher, 41% had scores of 680 or higher and 17% had scores of at least 700.

However, the more recently borrowers went through bankruptcy, the higher their offered mortgage APRs were, even compared with others with similar credit scores.

Those with scores of 760+ were a stark exception; they got better APR offers, on average, than those who had no bankruptcies on their records.

Mortgage borrowers two years out from bankruptcy can expect to pay almost $26,000 more over the life of their mortgage than people without a bankruptcy on their records.

Even after five years, they can expect to pay more than $9,600.

People looking for auto loans less than a year from their bankruptcy will pay almost $2,900 more for a $25,000 5-year car loan than those with no bankruptcies on record.

The extra costs vary over the first five years following bankruptcy, but they are always at least $1,250 higher than for those without a bankruptcy.

There are plenty of reasons why a person might file for bankruptcy, like insurmountable medical bills or extended unemployment. Consumers might fear using bankruptcy as a tool because they worry that they won’t be able to secure a mortgage or another type of loan in the future. But bankruptcy doesn’t resign borrowers to low credit scores forever.

LendingTree customer data shows that more than half (56%) of all loan applicants who declared bankruptcy had a score of 640 or above just one year after filing. As the chart below shows, the percentage of consumers in all credit bands over 640 increases over time.

 

Borrowers who recently filed for bankruptcy pay $25,000+ more for a mortgage

Bankruptcy filers could pay tens of thousands of dollars more over the lifetime of a mortgage loan compared with borrowers without a bankruptcy on their credit report. Two years post-bankruptcy, LendingTree customers paid over $25,000 more in interest than those with no bankruptcies on a $250,000 30-year mortgage. Five years post-bankruptcy, that number is cut in half to about $10,000 more in interest.

Bankruptcy filers will pay thousands more over the life of an auto loan

Less than one year out from filing for bankruptcy, new auto loan applicants pay nearly $3,000 more on a five-year $25,000 auto loan due to higher APRs. After five years, that number drops to about $2,000.

The data suggests that although APRs eventually go down for auto loan borrowers as time passes after their bankruptcy, they’ll still pay a premium for loans in the form of higher interest rates for years to come.

Auto loan borrowers included in the study needed scores of 600 and above. LendingTree borrowers with scores from 600-639 did qualify for auto loans, but they paid a premium (typically 10%+ APR).

Offered APRs steady decrease as time passes after bankruptcy

 

Potential borrowers will generally see lower offered APRs if they wait longer to apply for a loan post-bankruptcy. For instance, auto loan borrowers with credit scores between 640 and 679 will be rewarded with much lower APRs if they apply for an auto loan five years out from a bankruptcy rather than after one year.

For borrowers with credit scores of 720+, the time that’s passed after a bankruptcy doesn’t have as much of a clear effect on the offered APRs. Borrowers who can achieve such high credit scores post-bankruptcy might have other financial advantages that make them stand out as applicants, such as a higher down payment or income.

Despite short-term costs, bankruptcy is still an option for some borrowers

Consumers who are in dire need of debt relief shouldn’t rule out bankruptcy as an option just because of the negative effect it will have on their credit score. Millions of Americans have used bankruptcy as a tool to take control of their finances. Consumers who are struggling with credit card debt could consider taking out a debt consolidation loan which may offer benefits like an overall lower APR, faster debt repayment and few bills to track.  Another option is to seek out credit counseling services, which often come at no cost. If consumers are considering filing for bankruptcy, it’s important to speak with a qualified attorney to better understand the options available and the legal process.

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