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Will Structured Settlement Factoring Industry Contract in 2011?

 

Settlement Quotes, LLC's  Andrew Cravenho makes 5 "optimistic" predictions for the structured settlement factoring industry for 2011 . He opines that:

 

1. Several structured settlement factoring companies will go out of business.
2. Courts will deny more transfers.
3. Legislation will become stricter.
4. Institutional money will be favored over private money.
5. Rates will increase, structured settlements will be worth less  (i.e. the amount of cash sellers can expect to receive will be less- those who continue to hold structured settlements will not suffer a drop in payments as the result of any rate increase.

Cravenho "believes rates will increase to a point where 30-50%  of cases will be either turned away by factoring companies or judges will deny them due to the  best interest standard not being met. Structured settlement annuities are priced to investors at 2 times the rate of other comparable financial products such as a treasury bond.  As the treasury bond increases with inflation, structured settlements will soon have investor rates over 10% for the first time since the Bank of the Internet fiasco".

The latter refers to what this author understands  as a period of time during the financial crisis where Bank of  The Internet turned off the funding spigot to a factoring company/broker, leaving the factoring company/ broker scrambling for alternative financing. Purportedly they wre unable to obtain as favorable discount rates as they had promised certain sellers of structured settlement payment rights, and would not let the sellers off the hook.

He goes on to say " with rates above 10%, annuitants in North Carolina and New York will not be able to cash out their structured settlement payments. In order to have most structured settlement factoring transactions approved, companies will take a cut in commissions in order to have the transaction meet the best interest standard. With high advertising costs, business overhead, less product and less income, some companies may have to close up shop".

Particularly troublesome for some, implies Cravenho, is the potential supply clause penalties purportedly in institutional financing arrangements which could put a squeeze on some companies

Is structured settlement factoring, an industry in contraction?

 Read Andrew Cravenho's article here

What Is A Settlement Factoring Exchange?

In this video John Darer interviews Andrew Cravenho of the Settlement Quotes, LLC Factoring Exchange. Viewers can learn about this viable alternative to going to the "usual suspects". If your clients have exhausted all other financing alternatives and have no other way to raise liquidity but to sell a portion of their structured settlement payment rights, a settlement factoring exchange may help make the process easier. An organized bidding process avails the seller of a group of individual investors and companies who compete for the business and the exchange takes a small fee.

"Lightweight" Scrivener "Spears" Structured Settlement-Quotes

Have blog rodents,  like Candid Quips, lowered their standards in pulling the image of Britney Spears into the morass of structured settlement "mistaken identity"  concerning  Structured Settlement-Quotes.com, a company that can give you factoring quotes but not structured settlement quotes!

Who is this "llghtweight" scrivener that penned the introduction? At first she opines that "cconsidering all the bad publicity that Britney has gotten lately over her wardrobe she ought to be awarded a structured settlement payment** The damages inflicted to her career over the last several months have to be astronomical" THEN she passes judgment on Ms. Spears' recent behavior obviously drawing on latent memory of supermarket tabloid journals for reference.

First of all the "lightweight", like most blog rodents with no bona fides, incorrectly assumes that a structured settlement is something that can be awarded. It is part of a compromise. A settlement is not awarded by a judge. That's why it is called a "settlement". (cue Pee Wee Herman "secret word of the day")

Second, I highly doubt Ms. Spears would be entitled to "astronomical" damages for the bad publicity brought on by her own bizarre behavior such as when the one time baldie bashed the car window with an umbrella***. If she bashed the window and she was bald, then its true. The truth is a defense in defamation cases. If the publicity reveals the truth then where does she go?

Third, even if Britney Spears were entitled to damages she would not be able to receive a "structured settlement" as it is unlikely that she could recover for personal physical injury or physical sickness. However, she could do a non qualified assignment (sometimes referred to as a non qualified structured settlement).

JUST REMEMBER THAT YOU CANNOT GET STRUCTURED SETTLEMENT QUOTES AT STRUCTURED SETTLEMENT-QUOTES.COM!

***later attributed by Spears to a new role she was trying out for