Your Money Crasher Minute: I Didn’t Know My Kid Took Out a Mortgage ...

Welcome to this week's edition of your Money Crasher Minute Having trouble viewing this email? [Click here]( # In this week’s newsletter: - Rates continue climbing - The Consumer Financial Protection Bureau has been busy - Accidental art collector - And more [Kelly Ernst headshot] Kelly Ernst Managing Editor Quick Market Price Check Last updated: November 2, 6:30pm EST 3,759.69 S&P 500 (-21.62% YTD) $20,131.90 Bitcoin Price (-57.82% YTD) 7.22% 30-Yr Fixed Mortgage What Goes Up … Keeps Going Up It came as no surprise to anyone when the [Federal Reserve]( announced another rate hike on Wednesday. The 75-basis-point increase is the fourth in the past four months, and it brings the federal funds rate to between 3.75% and 4%. What does this mean for you, the economy, and how you should handle your finances? Read [our breakdown on the latest rate hike]( to find out. And if you think this is bad, just remember that in the ’80s, the federal funds rate got up to a whopping 19%. So, you know, perspective. Surprises Are for Birthdays, Not Banks The Consumer Financial Protection Bureau is [taking aim at junk fees]( one of the many [ways banks can hit you with charges](. Its new guidance cracks down on two particular types of junk fees: Surprise Depositor Fees These fees, which typically range from $10 to $19, penalize consumers who deposit a check that bounces. This hurts the depositor, who may have no idea a check is bad, rather than the person who wrote the bad check. Under the new CFPB guidance, banks would only charge a depositor fee if the depositor could have reasonably known the check was bad (e.g. they’d deposited bad checks from the same person before). Surprise Overdraft Fees Surprise overdraft fees occur when you make a purchase because your bank account balance is positive, so you believe you have enough to cover the charge. But the bank hits you with an overdraft fee because other, unexpected transactions put you in the red — for instance, someone finally cashes a check you wrote them months ago or the gas you bought earlier this week ago takes a few days to post. These fees can cost you as much as $36 each time you overdraw your account. The CFPB has already taken action against [Regions Bank]( which it ordered to refund $191 million to consumers for surprise overdraft fees. [annoyed party.jpg]  Breaking Up Is Hard to Do The CFPB is also working on an [open banking rule]( that will make it easier for consumers to switch banks. The rule would, among other things: - Allow consumers to transfer their account histories and other data to their new bank rather than having to start over from scratch - Create better security for consumers’ financial data - Make it easier for consumers to switch direct deposit and recurring payments to their new bank account - Enable banks to tailor their offerings to new consumers based on their financial histories The goal is to make it easier for consumers to take their business elsewhere if they’re unhappy with their current bank. The CFPB hopes it will also encourage banks to strive for customer retention by providing better products and services. The official rule will be proposed in 2023 and is expected to be implemented in 2024.  That Doesn’t Make Any Sense One in five people have errors on their credit reports, according to the [FTC](. And some of those errors are patently ridiculous. Think: - Paid-off loans that still show a balance due - Original loan amounts that somehow grow over time - Children who supposedly took out mortgages before they were born The CFPB calls these errors junk data, and they can tank your credit score, making it harder for you to apply for things like auto loans and mortgages. The CFPB [wants credit bureaus to do better]( at detecting and removing this clearly illogical data. While credit bureaus get their acts together, you can protect your credit score by regularly [reviewing your credit report]( and [fixing any errors]( you find. [confused woman w glasses.jpg] Fannie & Freddie Open the Door a Little Wider There’s new hope for homebuyers having trouble getting a mortgage. The [Federal Housing Finance Agency]( will now require lenders to consider two more credit score models when underwriting mortgages. To date, lenders have used only FICO scores, which don’t include payment histories for things like utilities and rent. The additional models, FICO 10T and VantageScore 4.0, take this data into account, which is great news for homebuyers with low credit scores or minimal credit histories. The change opens up the possibility of homeownership to more first-time buyers, low-income buyers, and minorities. And Now for Something a Little Lighter... - Showing Us the Money. ​​New York City’s [new salary transparency law]( is great news for job seekers. It joins a growing list of places that require employers to provide a pay range for open positions, including the states of Colorado, California, and Washington. Goodbye, "salary commensurate with experience." - I Can’t Believe It’s Not Affordable. Start stocking up on holiday baking supplies now if you see them on sale. Groceries are pricier in general these days, and [butter]( in particular is sky-high. I realize this isn’t "lighter" news for most people, but I count it as a win because I’m hoping it’s the final death knell for butter boards. (Blech.) - This Is Where FOMO Gets You. A "bored" TikToker ["accidentally" bought a Salvador Dali print]( at auction. She never expected her $4,000 bid to win, but it did. She now has viral fame, a heck of a story to tell, and a piece of art history she describes as "hideous." - It’s One Banana, Michael. What Could It Cost, $10? Average Twitter users aren’t he only ones aghast at Elon Musk’s decision to start charging verified users for their blue checkmarks. When Stephen King learned Musk reportedly wanted to charge $20 a month for the icon, he clapped back with a tweet that led to a [truly ridiculous back-and-forth]( in which Elon tried haggling with King for a lower price, then attempted to frame the monthly charge as a peasants-against-the-feudal-sytem rallying cry. Billionaires say the darndest things. Sent to: {EMAIL} [Unsubscribe]( Money Crashers, LLC, 1887 Whitney Mesa Dr #3030, Henderson, NV 89014, United States