Democrats predict the sky is falling, see a big win for Kerry, and believe the Moon is made of green cheese! SOURCE: Chronicle Washington Bureau Predicting an economic "catastrophe" fiscal "experts" say the U.S. budget deficit will grow to some $60 trillion in the next 10 years. These experts predict that the government may be unable to meet social security, medicare, education and military needs without doubling taxes and reversing current trends in rising expenditures. The size of the looming deficit is set at $72 trillion by the Social Security Board of Trustees; at $40 trillion by the Government Accountability Office; and $47 trillion by the international Monetary Fund. In the near future much, if not all of the government's disposable income will go to paying interest to foreign entities that are funding today's budget deficit. "This administration and previous administrations have set us up for a major financial crisis," said laurence Kotlikoff, economics chairman at Boston University. In related news, John Kerry plans to vote for an immediate inquiry into the issue before voting against it. ____________________ Happy days are here again: lenders see windfall in the misery of Chapter 13 debtors SOURCE: SpotlightonFinance.org The 1.5 million U.S. households filing for personal Bankruptcy every year offer a sizeable niche market for lenders—if they could just figure out who was least likely to get into financial trouble again. Apparently, First Hallmark Mortgage Corp has found a way to tap this market. The New Jersey-based mortgage lender targets borrowers in Chapter 13 Bankruptcy repayment programs who own their homes. First Hallmark specializes in debt consolidation loans that fold existing mortgage and credit card debt into a 2-year hybrid adjustable rate mortgage. The company markets its product through direct mail and referrals from Bankruptcy attorneys. The key is to find borrowers who are able to stay current on their repayment plans and mortgages for 2-3 years. Borrowers who receive a First Hallmark consolidation loan and stay current with payments are offered the chance to refinance into a lower-cost conventional mortgage. Bruno Viscariello, president of First Hallmark, told the industry newsletter Inside Mortgage B&C Lending (Bethesda, MD) that about 80% of the company's customers are able to take advantage of the refinance option. About 1/2 of the company's $15.5 million in monthly originations comes from borrowers in Bankruptcy. The company operates in New Jersey, New York, Pennsylvania and Florida.