Stripe Is Offering $20,000 Bonus To Employees Who Relocate To Less Expensive Cities, But It Comes With A Pay Reduction


Topline

Stripe is offering a $20,000 bonus to employees who move away from San Francisco, New York City or Seattle but it comes with a 10% pay reduction, spokesman Mike Manning told Forbes, making the e-commerce and mobile payment processor the latest tech company to implement pay cuts for workers who chose to relocate to less expensive cities as remote work policies are extended because of the pandemic. 

Key Facts

Stripe, which has more than 2,800 employees, has relied on remote work for years and in May announced it would hire at least 100 remote engineers, saying remote workers have helped the company stay close to customers so they can tailor Stripe’s products accordingly. 

Stripe joins other technology companies that have said they’ll cut the pay of employees who move to less expensive cities, including the social media companies Facebook and Twitter and enterprise software companies VMware and ServiceNow, according to Bloomberg, which first reported the news.

Further Background

Just as many white-collar Americans are reconsidering the cost of living in expensive cities if remote work policies continue, many companies are also reconsidering expensive office costs. Some companies have had market-based salary policies in place for years, meaning pay is adjusted based on the cost of living or cost of labor in the area. 

Tangent

The job search marketplace Hired surveyed 2,300 tech workers and found that 55% said they would not be willing to accept a reduced salary if their employer made work from home permanent. An overwhelming 90% said the same job should receive the same pay, regardless of if the person works remotely, but 40% said they support location adjustments. More than half, 53%, said they would be “likely” or “very likely” to move to a city with a lower cost of living if allowed to work from home permanently. 

Further Reading

Stripe Workers Who Relocate Get $20,000 Bonus and a Pay Cut (Bloomberg)

Why Silicon Valley workers who relocate for remote work face pay cuts (Fox Business)

2020 State of Salaries Report: Salary benchmarks and talent preferences (Hired)



Source link

3 Ways to Use Your Home to Help Pay for College


Inner Circle members: Share a personalized version of this article from the members area.

Your home is probably your largest asset and one of the biggest investments you’ll ever make. If you’re the parent of a student who’ll be heading off to college in the near future, you may be wondering about how to use your home to invest in your child’s future by helping pay that sky-high tuition.

Here are three ways you may want to consider using the equity in your home to do so.

1. Home Equity Loans

There are multiple ways to borrow against your home’s equity. The first is a straightforward home equity loan, which is a second mortgage on your home. You’ll receive the full amount of the loan upfront and then begin paying it back over time with interest.

As you’ve been paying your mortgage, you’ve been building up equity. For example, if your mortgage was originally $300,000 but is now down to $200,000, your home equity equals $100,000, which you might be able to borrow against in the form of a loan.

Depending on the lender, you might be able to borrow as much as 80 to 90 percent of your equity, which means in the case of our example, you’d have possibly $80,000 to $90,000 at your disposal.

2. Home equity line of credit

Another option is a home equity line of credit (HELOC). Much like a credit card, you have a maximum amount you can borrow up to as needed.

Whatever amount you choose to borrow, that’s the figure you’ll pay interest on. So, if your line of credit extends up to $90,000, but choose to only borrow $20,000, you’ll only pay interest on that amount, until you pay it down.

3. Cash-out refinance

Another way to use your home to get your hands on much-needed funds is to refinance your current mortgage loan, replacing it with a larger mortgage loan. You can take the difference between the two loan amounts and spend it as you wish. This is called a cash-out refinance.

Again, you will likely only be able to take out a loan for 80 to 90 percent of the value of your home, so the difference you can keep will be based upon that. So, let’s say you have a home worth $300,000, and you only owe $100,000 on your current mortgage, you might be able to get a new mortgage against your house for somewhere between $240,000 to $270,000. After you pay off the original mortgage, you’d have $140,000 to $170,000 to work with.

This can be an especially good option if your current mortgage is at a higher interest rate than the current rates being offered.

Of course, your home is not the only source of money to pay for college tuition, but it does offer you some alternatives. Perhaps one of these three is a perfect fit for you. With that said, everyone’s situation and finances are different. So, before using your home equity make sure you consider all of the options available to you and your child.



Source link

Pay Securely Online | Product Feature


An all-in-one tool for managing your renovation payments

finding general contractors

Sweeten Payments makes it simple, secure, and fast to pay your general contractor securely online, right from our website.

Until now, most contractors would only accept paper checks. You’d have to write a check, send it in the mail, and wait a week or more for the funds to clear. Contractors usually won’t start work before funds arrive in their account.

Our tool links directly to your bank account. It transfers funds to your contractor in 4 to 6 business days.

Benefits:

  • Make payments quickly and conveniently
  • Pay securely online right from your Sweeten dashboard. Your contractor’s payment requests will automatically appear in the order they’re due. When you’re ready, just click to approve the payment.
  • Take control of payment scheduling
  • Make partial payments at each major project milestone. Your contractor can begin the next stage of the project right away.
  • See your payment records at a glance
  • Check the status of all in-progress and completed payments.

Frequently Asked Questions

When will Sweeten Payments be available?

We’re launching Sweeten Payments on July 15, 2020. It will appear as a new tab on your Sweeten dashboard.

Do all Sweeten general contractors accept payments through the Payments tool?

The tool is new; contractors will have to set up their Payments accounts before they can receive funds. Ask your contractor  if they’re ready to receive Sweeten Payments. 

How do I sign up?

Go to the Payments tab on your dashboard and follow the simple instructions. We’ll ask you for some basic information, and then ask you to upgrade your Sweeten password for improved security. We’ll then ask you to link your bank account, with a simple, secure interface.

How will my bank account and personal information be protected?

Sweeten will never see your account information or social security number. Your contractor will also never see your account information or social security number. We work with a 3rd party payment system that is built around security and privacy. It uses strong, end-to-end encryption for all transactions.

Do I have to keep funds in my Sweeten Payments account?

No. We transfer the funds directly from your bank. You’ll only see a balance in your Payments account if we’re unable to deliver a payment to your contractor..

Can I link Sweeten Payments to my credit card?

Currently, Payments can only link to a bank account. It’s usually not possible to pay for a renovation with a credit card—most contractors only accept paper checks when you pay them directly.

Sweeten handpicks the best general contractors to match each project’s location, budget, scope, and style. Follow the blog, Sweeten Stories, for renovation ideas and inspiration and when you’re ready to renovate, start your renovation with Sweeten.



Source link

Homeowners Struggling to Pay Bills in the Coronavirus Crisis


The Coronavirus Crisis has people struggling to pay bills: twelve percent of homeowners did not pay on time their mortgage last month, according to the U.S. Census.

New data from the U.S. Census shows that:

  • 12% of mortgage holder households did not make their mortgage payment on time; 41% of them deferred their payment,
  • Among the owners who paid on time last month’s payment, 44% of them experienced a loss of employment income,
  • 31% of those who did not pay on time used the stimulus package but it was not enough to cover the cost,
  • 63% of the owners have high confidence in their ability to make next month’s payment while 21% have moderate confidence. However, the level of confidence is lower for Hispanics and African Americans.

The U.S. Census releases the results of the 2020 Household Pulse Survey every week (starting April 23, 2020). The 2020 Household Pulse Survey (HPS), an experimental data product, is an Interagency Federal Statistical Rapid Response Survey to Measure Household Experiences during the Coronavirus (COVID-19) Pandemic, conducted by the Census Bureau in partnership with five other agencies from the Federal Statistical System:

  • Bureau of Labor Statistics (BLS)
  • National Center for Health Statistics (NCHS)
  • Department of Agriculture Economic Research Service (ERS)
  • National Center for Education Statistics (NCES)
  • Department of Housing and Urban Development (HUD)

Specifically, the HPS asks individuals about their experiences regarding employment status, spending patterns, food security, housing, physical and mental health, access to health care, and educational disruption. The survey is designed to be longitudinal, which means that this data provides insights with regard to how household experiences changed during the pandemic. Thus, the ultimate goal of this weekly survey is to understand how individuals are experiencing this period and respond to the business curtailment and closures, stay-at-home and safer-at-home orders, school closures, changes in consumer patterns and the availability of consumer goods, and other abrupt and significant changes to American life.

The National Association of REALTORS® closely monitors the results of this survey in order to address the needs and concerns of people in regards to housing during the pandemic. Particularly, the HPS provides estimates about the last month’s payment status for owner- and renter-occupied housing units and confidence in the ability to make next month’s payment.

As the data shows, 12 percent of all mortgage holder households did not pay on time last month’s payment.1 This actually translates to 12.3 million people across the country. Particularly, it is estimated that 7.3 million mortgage holders did not pay last month’s payment (partial payment, full payment but late or no payment at all) while 5.0 million deferred their payment. The HPS also provides information about the age, race, income, marital status, and household size of these homes. Taking a closer look at the demographics, most of these owners who were not able to pay last month’s payment on time were:



Source link

3 Ways to Use Your Home to Help Pay for College


Inner Circle members: Share a personalized version of this article from the members area.

Your home is probably your largest asset and one of the biggest investments you’ll ever make. If you’re the parent of a student who’ll be heading off to college in the near future, you may be wondering about how to use your home to invest in your child’s future by helping pay that sky-high tuition.

Here are three ways you may want to consider using the equity in your home to do so.

1. Home Equity Loans

There are multiple ways to borrow against your home’s equity. The first is a straightforward home equity loan, which is a second mortgage on your home. You’ll receive the full amount of the loan upfront and then begin paying it back over time with interest.

As you’ve been paying your mortgage, you’ve been building up equity. For example, if your mortgage was originally $300,000 but is now down to $200,000, your home equity equals $100,000, which you might be able to borrow against in the form of a loan.

Depending on the lender, you might be able to borrow as much as 80 to 90 percent of your equity, which means in the case of our example, you’d have possibly $80,000 to $90,000 at your disposal.

2. Home equity line of credit

Another option is a home equity line of credit (HELOC). Much like a credit card, you have a maximum amount you can borrow up to as needed.

Whatever amount you choose to borrow, that’s the figure you’ll pay interest on. So, if your line of credit extends up to $90,000, but choose to only borrow $20,000, you’ll only pay interest on that amount, until you pay it down.

3. Cash-out refinance

Another way to use your home to get your hands on much-needed funds is to refinance your current mortgage loan, replacing it with a larger mortgage loan. You can take the difference between the two loan amounts and spend it as you wish. This is called a cash-out refinance.

Again, you will likely only be able to take out a loan for 80 to 90 percent of the value of your home, so the difference you can keep will be based upon that. So, let’s say you have a home worth $300,000, and you only owe $100,000 on your current mortgage, you might be able to get a new mortgage against your house for somewhere between $240,000 to $270,000. After you pay off the original mortgage, you’d have $140,000 to $170,000 to work with.

This can be an especially good option if your current mortgage is at a higher interest rate than the current rates being offered.

Of course, your home is not the only source of money to pay for college tuition, but it does offer you some alternatives. Perhaps one of these three is a perfect fit for you. With that said, everyone’s situation and finances are different. So, before using your home equity make sure you consider all of the options available to you and your child.



Source link

Michael Che of ‘SNL’ Will Pay One Month’s Rent for Tenants


“Saturday Night Live” star Michael Che lost his grandmother to the novel coronavirus last week. And he’s honoring her memory by covering one month’s rent for her old neighbors in a New York City public housing building.

The “Weekend Update” host revealed in a now-deleted Instagram post last week that his grandmother, Martha, died April 5 after contracting the coronavirus disease COVID-19. And he also signed off from “Weekend Update” during the first-ever “SNL: At Home” edition on Saturday as “Martha’s grandbaby.”

Che said that his grandmother moved out of the New York City Housing Authority building in the 1990s. Now he’s covering the rent for all 160 units in the complex to honor her spirit and memory, as well as to raise awareness for the millions of unemployed Americans struggling to make ends meet right now.

In another Instagram post, Che said, “It’s crazy to me that residents of public housing are still expected to pay their rent when so many New Yorkers can’t even work.” He added: “I know that’s just a drop in the bucket, so I really hope the city has a better plan for debt forgiveness for all the people in public housing.” He ended the post by calling on Mayor Bill de Blasio, New York Gov. Andrew Cuomo and rapper Sean “Diddy” Combs to help. “Let’s fix this! Page me!”

The post had drawn more than 3,500 comments by press time, and 76,000 “likes” and counting. It also led Che to trend on Twitter on Thursday morning.

Che himself grew up in a housing project on Allen Street on Manhattan’s Lower East Side, and has held fundraisers for NYCHA residents. “You go without heat. You go without food. You go without doorknobs. You go without everything. Elevators don’t work. There was grease and oil inside the elevators to keep off graffiti, but then you couldn’t touch the wall,” he told the New York Times last year. “And the thing is, it’s all fixable! We can do something about this.”

Nearly a third of American renters missed their April rent payments, and the number of coronavirus-related layoffs has swelled to more than 20 million as jobless claims climbed another 5.25 million last week.

And while stimulus checks of up to $1,200 for adults, $2,400 for married couples and $500 per child are starting to hit many Americans’ bank accounts this week, to the great relief of many, one in three Americans say the one-time payment won’t cover their expenses for even a month.

New York City announced a $170 million campaign to feed the hungry on Wednesday, and de Blasio also asked the state government to extend a moratorium on evictions until 60 days after the coronavirus state of emergency ends, and to give renters hit by pandemic-related job losses up to a year to pay their back rent.



Source link

Lenders get stricter as some borrowers think they don’t have to pay


calculator HW+

Standards for home loans are tightening by the hour as companies like United Wholesale Mortgage, the nation’s largest wholesale lender, beef up rules to ward off early defaults from people losing jobs because of the COVID-19 pandemic.

“I get as many as 10 emails a day from companies announcing new overlays – mostly for re-verification of employment,” said Mark Goldman, a loan officer with C2 Financial in San Diego. “All the lenders want to make sure borrowers are still working and still have cash flow.”

Almost 14 million Americans have filed for unemployment in the last two weeks after businesses were closed and workers told to stay at home by states scrambling to reduce the spread of COVID-19. That record number doesn’t include people who lost their jobs and have been unable to get through to overwhelmed state employment offices to make a benefit claim.

As lenders tightened standards, an index measuring the availability of mortgage credit in March crashed to the lowest level since June 2015, led by a pull-back in jumbo and non-QM lending, the Mortgage Bankers Association said in a Thursday report.

MBA’s Mortgage Credit Availability Index fell 16% led by a 24% plunge in jumbo and non-QM mortgages. A drop in the index means rules are stricter and mortgages are harder to get.

So far, the hit hasn’t been as bad for mortgages backed by Fannie Mae and Freddie Mac. The index measuring the availability of conforming loans dipped 2.7%.

But that doesn’t mean lenders aren’t being more careful with those loans. Many now require re-verification of employment within 24 hours of closing, and some are asking borrowers to sign an affidavit saying they have not been notified of a pending layoff or income reduction.

The rest of this content is for HW+ members. Join today with a HW+ Membership! Already a member? log in



Source link

Equifax expects to pay out another $100 million for data breach


The Department of Justice may think it knows who hacked Equifax and exposed the sensitive personal information of 148 million U.S. consumers, but that doesn’t mean the breach is behind Equifax quite yet.

In fact, the credit reporting agency disclosed this week that it expects to pay out an additional $100 million for its role in the breach.

Last year, the company set aside then agreed to pay out nearly $700 million to settle numerous federal and state investigations.

But the company revealed this week in its fourth-quarter earnings report that it set aside another $99.6 million in the fourth quarter for “certain legal proceedings and government investigations related to the 2017 cybersecurity incident.”

According to the company, it believes this accrual will cover the remainder of its expected payouts for the breach. More specifically, the company said it “represents completed settlements and our best estimate of remaining liabilities for the U.S. matters related to the 2017 cybersecurity incident.”

All in all, the company set aside just over $800 million for breach-related payouts in 2019, which does not include the company’s legal or professional services expenses.

Beyond that, the company spent an additional $337 million in 2019 on technology and data security, legal and investigative fees, and product liability for the breach.

In total, the breach cost Equifax $1.14 billion in 2019 alone.

Overall, the breach cost Equifax more than $1.7 billion since it was first disclosed in 2017.

According to Equifax, at the time of the breach, the company had $125 million in cybersecurity insurance coverage. The company has long since received the maximum reimbursement of $125 million on that insurance policy.

The company also cautions that despite its current belief that this $100 million will cover all its “remaining liabilities,” it is possible that its financial punishment is not over yet.

“While it is reasonably possible that losses exceeding the amount accrued will be incurred, it is not possible at this time to estimate the additional possible loss in excess of the amount already accrued that might result from adverse judgments, settlements, penalties or other resolution of the proceedings and investigations related to the 2017 cybersecurity incident based on a number of factors, such as the various stages of these proceedings and investigations, that alleged damages have not been specified or are uncertain, the uncertainty as to the certification of a class or classes and the size of any certified class, as applicable, and the lack of resolution on significant factual and legal issues,” the company said in its earnings statement.

“The ultimate amount paid on these actions, claims and investigations in excess of the amount already accrued could be material to the company’s consolidated financial condition, results of operations, or cash flows in future periods,” the company added.



Source link