Health Bills Affecting Credit Scores

 

Can Medical Collection Debt Impact Credit Scores?

Reading time: 3 minutes

Highlights:

• Changes to medical collection debt included on credit reports begin to take effect July 1, 2022.
• Paid medical collections debt will no longer appear on credit reports, and the time period before unpaid medical collection debt appears increases from 6 months to 1 year.
• There are some actions to consider that may help prevent debt from medical bills.

The three nationwide credit reporting agencies (NCRAs) — Equifax®, Experian® and TransUnion® — announced significant changes to medical collection debt reporting to support consumers faced with unexpected medical bills. As of July 1, 2022, paid medical collection debt will no longer appear on credit reports. And the time period before unpaid medical collection debt appears on your credit reports increases from 6 months to 1 year. This extension provides additional time to pay off medical debt before it appears on credit reports. In the first half of 2023, the NCRAs will no longer include medical collections debt under $500 on credit reports.

Before this joint measure, if a healthcare provider turned your overdue account over to a collection agency because you haven't paid the amount due, the collection agency may report that information to the credit agencies after a 180-day (six-month) period.

By removing paid medical collection debt from credit reports, this joint action from the credit agencies helps support consumers faced with unexpected medical bills. Most healthcare providers do not report to the three nationwide credit bureaus (Equifax, Experian and TransUnion), which means most medical debt is not typically included on credit reports and does not generally factor into credit scores.

When you receive your bill, be sure to examine it carefully and compare it with the explanation of benefits provided by your health insurance provider. If you believe you've found an error, contact your medical provider or health insurance company. Ask for an itemized bill so you can better understand what you're being charged for.

It's always a good idea to regularly review your credit reports to make sure the information is accurate and complete. You can receive free Equifax credit reports with a myEquifaxaccount. Free weekly credit reports from the three NCRAs are available at annualcreditreport.com through the end of 2022.

If you're facing mounting medical expenses, there are some things you may want to consider to help prevent accumulating debt from medical bills.

• Contact your health insurance company. Know your coverage and follow up to make sure the company is paying costs it has agreed to cover.
• Negotiate with your health provider. If you can't afford to pay a bill, try to work with your medical provider to reduce the amount owed or set up a payment plan.
• If you believe medical debt has been listed on your credit report mistakenly, contact the medical provider or collection agency first. You can also file a dispute with the three nationwide credit bureaus. At Equifax, you can create a myEquifax account to file a dispute. Visit the dispute page to learn other ways you can submit a dispute on your Equifax credit report.
• If possible, prepare for medical procedures in advance by finding out what your insurance will cover and what costs are your responsibility.

Real Estate

Wenston DeSue is a realtor, organizational consultant, design, construct, build expert and developmental networker.  Real estate is the business of exchange and affects every person on the planet.  Real estate on all levels represents resources, access and ultimately, power.  Knowledge is power…

PCS Title…Good Stuff!

 

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By Joseph E. Seagle, Esq.● Jul 22, 2022 Smart Brevity® count: 3 mins... 852 words

Good 😎 day to you! I’ll be on a 🌅 staycation next week. One of the perks of living in a world-class tourist destination is that you’re only a short drive away from a fabulous resort. What we’re seeing: In addition to a lot of cash closings, subject-to closings, and properties in foreclosure, we’re seeing an uptick in buyers with cold feet, canceling contracts early in the closing process. Also, it’s common for properties to not appraise for the sales price, and borrowers are finding it harder to qualify for loans at higher interest rates. In addition to adjustable rate mortgages, we’re also seeing a lot more second mortgages, grants, and downpayment assistance loans coupled with first mortgage loans.

1. Big thing: Existing home sales fall for 5th straight month NAR reported on Wednesday that existing home sales fell another 5.4% between May and June to 5.12 million. They were expecting 5.36 million sales. The housing market reflects the effects of higher mortgage interest rates and unemployment numbers. Typically June is a hot month for real estate sales. This is the lowest number of sales since June 2020 when COVID-19 lockdowns were still in effect in most of the country, and it’s 14.2% lower than the same time last year. The flip-side: Housing supply increased from 2.6 months to 3 months, creeping up toward the 6-month supply that indicates that housing supply and demand are “balanced.” But a 4-month supply is considered to be “normal.” So supply is still not sufficient for demand, preventing prices from plummeting.  By the numbers: Cash closings were 25% of all transactions (and reflected in the types of closings we’re seeing). Mortgage demand has fallen to a 22-year low. Homes sold to first-time homebuyers hit 30%, up from 27% the month before (again, same as we’re seeing).  New housing starts dropped 2% from May to June, its lowest level since September 2021, also missing estimates.  May numbers were revised for the better. Housing starts dropped only 11.9% instead of the 14.4% reported last month.  Meanwhile, apartment starts rose by 15% (!) and the median existing-home price increased 13.4% since last year.  The bottom line: We still need more housing. Rents are holding steady or rising as tenants struggle to buy, so it’s no surprise that multifamily construction is booming. Meanwhile, interest rate increases are hindering builders and buyers alike but making no dent in median price increases. The trick for the Fed: cool it, but don’t freeze it.

2. Foreclosure lawyers getting busy Foreclosure starts increased 219% in the first six months of this year with the highest increases in Illinois, New Jersey and Ohio. This sounds worse than it is, reflecting numbers that are still 1% lower than they were prior to the pandemic.  Pandemic-era moratoriums are being lifted, so we’re seeing a return to normal rates of foreclosure. Foreclosure law firms have been on the sidelines, with files queued in their databases as mortgage servicers, being pressured by regulators, tried to work out defaults with borrowers.  Now, as the restraints are lifted, they can start the foreclosure process in full.  Yes, but: Overall foreclosure activity is still below historic averages. We’re expected to be back to normal levels in early 2023. What we're seeing: Investors who focus on foreclosures and short sales are starting to burn up our phones and inboxes with questions about potential transactions. Real Estate Wenston DeSue is a realtor, organizational consultant, design, construct, build expert and developmental networker.  Real estate is the business of exchange and affects every person on the planet.  Real estate on all levels represents resources, access and ultimately, power.  Knowledge is power…

Housing Shortages Persist!

 NEWS & MEDIA

krisanapong detraphiphat, Getty Images

JULY 15, 2022

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Housing Shortage Isn’t Just a Coastal Crisis

The U.S. needs about 3.8 million housing units to keep up with household growth, a crisis with multiple causes, some of which go back to the Great Recession.

NEW YORK – The U.S. housing shortage started as a crisis along both coasts but has evolved into a national problem that ultimately threatens Americans’ quality of life, the national economy and even the current housing construction model.

According to Freddie Mac, the country is short 3.8 million housing units in order for it to keep up with household expansion. Up For Growth, a national cross-sector network formed to seek solutions to housing affordability issues, says the housing deficit doubled from 2012 to 2019, reducing supply in 47 states and the District of Columbia.

As a result, home prices and rents have skyrocketed, including in areas known for housing affordability, due to spiking demand fueled by the pandemic and the ability for some workers to seek out affordable housing thanks to a new-found ability to work from home.

Why is there a problem? Forces affecting affordability today include a labor shortage that can be traced back to the Great Recession, more expensive building materials, rising costs for land and tightened lending standards for builders.

“Over the last four or five years, every place I go, they cite underbuilding,” remarks National Association of Home Builders Chief Economist Robert Dietz. He says communities losing residents are the exception, while elsewhere, “it was just a matter of degree and scale.”

The cost of housing in the highest-paying, most productive U.S. regions discourages people from relocating – if you live there and own a home, it makes sense to stay; if you wish to move where the jobs are, the cost of housing makes it difficult.

Meanwhile, higher-income households are jockeying for limited housing inventory.

Real Estate

Wenston DeSue is a realtor, organizational consultant, design, construct, build expert and developmental networker.  Real estate is the business of exchange and affects every person on the planet.  Real estate on all levels represents resources, access and ultimately, power.  Knowledge is power…

NOW…Don’t Go To Work!?!?!

 Haley LaFloure picked up a couple dozen doughnuts on the way to work. 

© Emily Kask for the Washington PostIt’s official: Fridays in the office are over

She forgot it was Friday. 

The surprise she’d planned for her colleagues turned out to be on her: The office was empty. Everyone else at the St. Louis investment firm where she works had decided to close out the week from home, which meant LaFloure was stuck at her desk with enough sugary fried dough to last her a month. 

“I don’t even like doughnuts,” the 25-year-old said. “I sat down and was like, ‘What am I going to do with these?’ ” 

As white-collar workers across the country settle into hybrid work routines, one thing is becoming clear: Nobody wants to be in the office on Fridays. 

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The last day of the workweek, once synonymous with long lunches and early departures, has increasingly become a day to skip the office altogether. The trend, which was already brewing before the pandemic, has become widely adopted, even codified, in recent months and is creating new challenges for employers. 

Hating hybrid work? Here’s how to make it less painful.

Just 30 percent of office workers swiped into work on Fridays in June, the least of any weekday, according to Kastle Systems, which provides building security services for 2,600 buildings nationwide. That’s compared to 41 percent on Mondays, the day with the second-lowest turnout, and 50 percent on Tuesdays, when the biggest share of workers are in the office. 

“It’s becoming a bit of cultural norm: You know nobody else is going to the office on Friday, so maybe you’ll work from home, too,” said Peter Cappelli, director of the Center for Human Resources at the University of Pennsylvania’s Wharton School. “Even before the pandemic, people thought of Friday as a kind of blowoff day. And now there’s a growing expectation that you can work from home to jump-start your weekend.” 

© Provided by The Washington PostIt’s official: Fridays in the office are over

So far, employers appear divided on whether to embrace a remote end to the week or to try to lure employees to the office. There are taco trucks and wine carts, costume contests and karaoke sing-offs, all aimed at getting workers to give up their couches for cubicles. 

Even buttoned-up employers are learning to let loose. Citigroup has deemed Fridays “Zoom-free,” while accounting giant KPMG promises “no-camera Fridays” and lets employees clock out for the weekend at 3 p.m. in the summers. 

“We want to make sure people are getting a break so they can recharge their batteries,” said Paul Knopp, chief executive of KPMG U.S. “We’re giving them a lot more agency about how they work — and where they work.” 

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For some workers, office mandates aren’t just a pain. They’re harmful.

Some start-ups and tech firms have begun doing away with Fridays altogether. Crowdfunding platform Kickstarter and online consignment shop ThredUp are among a small but growing number of firms moving to a four-day workweek that runs from Monday to Thursday. 

Executives at Bolt, a checkout technology company in San Francisco, began experimenting with no-work Fridays last summer and quickly realized they’d hit a winning formula. Employees were more productive than before, and came back to work on Mondays with new enthusiasm. In January, it switched to a four-day workweek for good. 

“There was no hesitation: Everybody was like, ‘Sign me up,' ” said Angela Bagley, the company’s head of employee experience. “And it was amazing: We kept getting the job done. Managers were onboard, people kept hitting their goals. And they come back on Mondays energized and more engaged.” 

But for other companies, finding the right balance has been trickier. 

“Employers recognize that it’s tougher to get people to come back in, so they’re asking, ‘What can we do?' ” said Julie Schweber, an adviser at the Society of Human Resource Management. “The answer is basically: If you feed them, they will come. Food trucks, special catered events, ice cream socials, that’s what’s popular right now.” 

Online Optimism, a digital marketing firm with offices in New Orleans, Atlanta and Washington, D.C., has a Friday routine of free lunches and free-flowing happy hours beginning at 4 p.m. sharp. The only rule: no shots. 

Although the company has dropped all requirements for in-office work, as many as 80 percent of its 25 employees show up on days when there’s free food, said chief executive Flynn Zaiger. 

“Honestly, the best socializing happens on Friday,” he said. “Why not have a beer or two? If people are going to be a little less productive one day of the week, I’d rather it be Friday than Monday.” 

CEO Flynn Zaiger, left, and Juan Pablo Madrid, senior director of design innovation, talk during a happy hour at the end of the workday in their Online Optimism office on July 8 in Washington. (Carolyn Van Houten/The Washington Post)

Those shifting norms are rippling across the economy and reshaping business patterns for commercial real estate firms, parking garage operators and the many eateries that cater to workers during the week. The drop-off in office work, particularly on Fridays, has led coffee shops to reduce their hours, delis to rethink staffing and bars like Pat’s Tap in Minneapolis to kick off happy hour earlier than ever — starting at 2 p.m. 

“Since they’re not at the office, people come in early to pluck away at their laptops while they sip a cocktail or two,” said General Manager Dave Robinson. “By 4:30 or 5 on Fridays, we’re completely full.” 

But lunchtime haunts that once saw large crowds on Fridays say they’re struggling. The drop-off has been particularly stark at Manny’s Cafeteria & Delicatessen in Chicago. Business on Fridays is down 30 percent from pre-pandemic levels. 

“It’s painful,” owner Dan Raskin said. “Before the pandemic, Friday was the busiest day of the week — people would have an easier day at work and go out with their friends for lunch — but now it’s one of the slowest.” 

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That’s also the case at LAZ Parking, which operates more than 3,000 garages nationwide. Demand on Mondays and Fridays is much lower — by about 20 percent — than it is midweek, said Leo Villafana, the company’s vice president for the Mid-Atlantic region. Wednesdays are the busiest days, though even when people do come in, they tend to stay for shorter periods. 

The desire to work from home on Fridays is just about universal, said Johnny Taylor, chief executive of the Society for Human Resource Management, an industry lobby group. 

“When you ask employees when they want to work from home, everyone wants Fridays,” he said. 

Taylor began toying with hybrid schedules in 2015, long before the pandemic forced businesses of all kinds to adapt. But his early experiments with remote Fridays were a disaster. Employees blew off their work and began winding down after lunch on Thursday. Productivity fell off a cliff. 

Hybrid work for many is messy and exhausting

It’s official: Fridays in the office are over

© Photos by Emily Kask for the Washington PostTOP: Sam Olmsted and Tom the dog go to pick up the DoorDash lunch at the door for Online Optimism in New Orleans on July 8. ABOVE: Lunch at Online Optimism on July 8.

But now, as the pandemic enters year three, norms have changed. People are more accustomed to teleworking, Taylor said. He now allows remote work on both Mondays and Fridays. 

“Fridays from home have become institutionalized,” he said. “There’s really no turning back.” 

As employers confront this new reality, they’re looking for more adaptable offices with more communal spaces and gathering areas instead of traditional cubicles. Think more comfy couches, coffee bars, libraries and patio work spaces. 

“What people don’t want is to work remotely, together, in the office,” said Lenny Beaudoin, global head of workplace and design at commercial real estate services firm CBRE. “Why make the trip if I’m just logging onto Zoom, like I do at home? It’s up to organizations to have better conversations and choreograph their schedules. It can’t be haphazard.” 

Perhaps most important — even more so than free food — Beaudoin said, is the prospect of interacting with colleagues. To that end, some firms are developing apps that offer employees a quick snapshot of who will be in the office on any given day, along with planned events and other perks, so they can decide whether getting dressed and making the commute is worthwhile. 

“Just like nobody likes to eat in an empty restaurant, nobody wants to go to an empty office,” he said. “When people do come in to work, they want a real social connection.” 

That’s proven to be the case at MasterControl, a software firm in Salt Lake City, where employees have reconfigured their weekly rhythm to account for end-of-week slowdowns. The company’s fitness groups, including its running and biking clubs, have moved Friday gatherings to earlier in the week. Most meetings and training sessions are now on Mondays and Tuesdays, when the largest share of employees are in the office. 

“Friday, the turnout is definitely much lower — you can see that just by coming into the office and looking around,” said Alicia Garcia, the company’s chief culture officer. “We’re finding that people really appreciate that flexibility.” 

There are about 50 employees — out of 1,500 — at Overstock’s Utah headquarters on any given day. On Fridays, though? Hardly anybody. 

The online retailer discourages meetings of any kind on Friday. Most corporate employees opt to work longer days during the week so they can take every other Friday off. But even for those who don’t, the last day of the workweek has become a much-needed respite from never-ending meetings and messages, said chief executive Jonathan Johnson. 

“Fridays are the emptiest days,” said Johnson, who also works from home that day. “The office is open if people want to come but we don’t push it.” 

Johnson limits himself to one Zoom meeting on Fridays, then catches up on emails, writes a weekly letter to the company’s board and plans out the coming week. 

Though sometimes he makes room for more personal errands, too. 

“I will admit I kicked off at 4 o’clock last Friday to get a haircut,” he said. “It tends to be a great catch-up day.” 

© Carolyn Van Houten/The Washington PostCEO Flynn Zaiger walks through the hall that leads to the Online Optimism office during a happy hour at the end of the workday on July 8.

Real Estate

Wenston DeSue is a realtor, organizational consultant, design, construct, build expert and developmental networker.  Real estate is the business of exchange and affects every person on the planet.  Real estate on all levels represents resources, access and ultimately, power.  Knowledge is power…

PCS Title Update…Good Stuff!

 

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By Joseph E. Seagle, Esq.● Jul 15, 2022 Smart Brevity® count: 3 mins... 835 words

👋 Top of the day to you! A ⛈️ rain storm Wednesday evening had me walking to my car through three inches of water with trash bags rubber-band-strapped over my shoes. Here’s hoping our Central Florida ☔ monsoon season eases out the door sooner rather than later.

1. Big thing: Housing drives inflation On Wednesday, the US Labor Department reported that inflation increased 9.1% over the last 12 months, the fastest increase in consumer prices since 1981.  Why it matters: This increase was much higher than expected. To cool it, the Fed will continue raising interest rates at a sharp clip for the foreseeable future, which in turn will continue increasing mortgage borrowing rates as well. Core inflation, which strips out food and energy price increases, rose only at 5.9% which was a slower pace than in May. Airfare and hotel prices dropped, and inflation overall appears to be decreasing in July with gas prices dropping from their June highs.  By the numbers: Housing costs were a large contributor to the increase in inflation, rising 5.5% higher than last year and 0.7% since May. This is the fastest that housing costs had risen since 1990.  What they're saying: According to Inman, it’s going to get worse before it gets better. Housing (purchases as well as rents) inflation usually lags all other inflation by six to 12 months. Rapid rises in rents is only now starting to hit the inflation numbers, and the market could actually go into a negative feedback loop.  This means the Fed’s rate-raising attempts to cool inflation could instead increase housing inflation as more sellers pull listings from the market, scared to leave a home at a lower rate than a replacement they could buy. Further, home builders are feeling the pinch of higher rates on their buyers and their own acquisition and development lines of credit, causing them to pull back on building new inventory.  The bottom line: All of this exacerbates the housing shortage as demand continues to climb, simply pushing up home prices and rents rather than lowering them.

2. 2021’s Top 10 Orlando investor buyers The Orlando Sentinel recently reported that the top 10 home buying firms in Central Florida were tied to firms in the single-family home rental business. Institutional investors have at least partially contributed to the shortage of homes for sale as they snap up single-family homes and rent them to tenants instead.  Go deeper: We’ve written about this before, but the Sentinel’s in-depth research and review of public records puts a name to the companies responsible for the widespread purchases. In particular, they discovered that one company — Progress Residential, a subsidiary of Arizona-based private equity firm Pretium Partners — purchased 740 properties in one year alone.  The rest of the top 10 is a Who’s Who of private equity hedge funds and Wall Street big wigs: Main Street Renewal, Invitation Homes, FirstKey Homes, My Community Homes, Beacon Ridge Capital, and Tricon Residential By the numbers: These 10 bought 3,496 homes or 12% of all the sales that year. Many of the purchases were from Zillow which decided to exit the home-buyer model last Fall. Zillow sold many of the homes in bulk to these top 10 institutional investors.  State of play: Many of these companies rose from the ashes of the Great Recession as they bought up swaths of REO properties from lenders that had ended up with the houses out of foreclosures. Since then, they’ve all continued to grow at a fast clip each year, expanding their market share between 27 and 60 percent a year. Our thought bubble: When we first saw these institutional investors come into the market after the financial collapse of the mid-2000s, we expected that they would buckle under the weight of holding so many single-family rentals. That doesn’t look likely at all now.

3. All the news …. Adjustable Rate Mortgages, with lower initial rates, are making a comeback as fixed rates rise. Marketwatch “Title theft” protection is a crock of …. UExpress HUD charges Polk County RV park owner with discrimination against transgender tenant. HUD Press Release Buyers are canceling at the highest rate since the start of COVID. (We can attest.). Inman via LinkedIN There are still places where $72K a year will buy a lot of home. But none of the top 10 are in Florida. REALTOR Online Real Estate Wenston DeSue is a realtor, organizational consultant, design, construct, build expert and developmental networker.  Real estate is the business of exchange and affects every person on the planet.  Real estate on all levels represents resources, access and ultimately, power.  Knowledge is power…