interest rates – Sociology Eso Science http://www.sociologyesoscience.com/ Fri, 04 Mar 2022 21:20:05 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://www.sociologyesoscience.com/wp-content/uploads/2021/06/favicon-6-150x150.png interest rates – Sociology Eso Science http://www.sociologyesoscience.com/ 32 32 San Diego Mortgage Company offers fast approvals, loan terms and today’s low rates https://www.sociologyesoscience.com/san-diego-mortgage-company-offers-fast-approvals-loan-terms-and-todays-low-rates/ Fri, 04 Mar 2022 21:20:05 +0000 https://www.sociologyesoscience.com/san-diego-mortgage-company-offers-fast-approvals-loan-terms-and-todays-low-rates/ “San Diego Mortgage Company – Equis Mortgage Group, LLC” Check out a San Diego Mortgage Company, called Equis Mortgage Group, LLC and a San Diego Mortgage Broker, David LePari, for all your mortgage and real estate needs with fast approvals and today’s low rates. today. We were looking for a San Diego mortgage company that […]]]>

“San Diego Mortgage Company – Equis Mortgage Group, LLC”

Check out a San Diego Mortgage Company, called Equis Mortgage Group, LLC and a San Diego Mortgage Broker, David LePari, for all your mortgage and real estate needs with fast approvals and today’s low rates. today.

We were looking for a San Diego mortgage company that offers fast home loan approvalscoupled with great terms and today’s low rates, and we came across Equis Mortgage Group, LLC and San Diego mortgage broker, David LePari.

As a professional mortgage broker, Mr. LePari originates, negotiates and processes residential mortgage loans on behalf of the client. Below is a six-point guide to what services to offer and what to expect from a qualified mortgage broker representing a new local San Diego mortgage company:

1. PROVIDES ACCESS TO MOST HOME LOAN PRODUCTS

This includes the most common types of mortgages such as Conventional, FHA, Jumbo, VA, Reverse, and Refinance, as well as other eligible and non-eligible loan products listed under Additional Loan Types on their website. .

2. FIND THE MOST ADVANTAGEOUS OFFER FOR THE CUSTOMER

A solid and reputable company San Diego Mortgage Company represents its own interests rather than the interests of a credit institution.

They must act not only as an agent, but as a competent consultant and problem solver.

Having access to a wide range of mortgage products, Mr. LePari is able to offer someone the greatest value in terms of interest rates, repayment amounts and loan products.

The best mortgage brokers will go through interviews to identify their short and long term needs and goals.

Many situations require more than just using a 30-year, 15-year, or adjustable rate (ARM) mortgage, so innovative mortgage strategies and sophisticated solutions are the benefits of working with an experienced mortgage broker and M David LePari fits that. profile on the spot.

3. HAS THE FLEXIBILITY AND EXPERTISE TO MEET ITS NEEDS

When we do Equis Mortgage Group their new San Diego mortgage company, one can expect a broker who guides the client through any situation, manages the process, and mitigates obstacles in the road along the way. For example, if borrowers have credit issues, the broker will know which lenders offer the best products to meet their needs.

Borrowers who find they need larger loans than their bank has approved also benefit from a broker’s knowledge and ability to successfully secure financing, for almost any home type and circumstance.

4. SAVE ONCE

With Equis as his San Diego Mortgage Company, all it takes is one application, rather than filling out forms for each individual lender. Mr. LePari and his team can provide a formal comparison of all recommended loans, guiding you to information that accurately outlines cost differences, with current rates, points and closing costs for each loan reflected.

5. SAVE MONEY WITH NO HIDDEN COSTS

A reputable mortgage broker will disclose how they are paid for their services, along with details of the total loan costs.

6. PROVIDES PERSONALIZED SERVICE AND ADVICE

Personalized service is the differentiating factor when selecting a mortgage broker like Mr. David LePari and his team.

We should expect his San Diego Mortgage Broker to help smooth the way, be available for her needs and advise throughout the closing process.

We checked the qualifications, experience and GMB reviews of this San Diego Mortgage Company and asked for referrals and in the end we found a friendly broker and fast team that will match one to the right lender and loan with the best terms and today’s low rates so one can successfully get and quickly get approved for a home purchase or mortgage refinance.

Equis Mortgage Group, LLC NMLS #2009443 / DRE #01438695

David LePari, Broker NMLS #2027739

Media Contact
Company Name: Equis Mortgage Group, LLC
Contact: David Leparis
E-mail: Send an email
Call: (619) 368-0941
Address:11440 BERNARDO COURT WEST, SUITE 300
Town: San Diego
State: California
The country: United States
Website: equismortgagegroup.com/

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CASTLE BIOSCIENCES INC Management report and analysis of the financial situation and operating results. (Form 10-K) https://www.sociologyesoscience.com/castle-biosciences-inc-management-report-and-analysis-of-the-financial-situation-and-operating-results-form-10-k/ Mon, 28 Feb 2022 23:39:10 +0000 https://www.sociologyesoscience.com/castle-biosciences-inc-management-report-and-analysis-of-the-financial-situation-and-operating-results-form-10-k/ You should read the following discussion and analysis of financial condition and results of operations together with our consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. This discussion and other parts of this Annual Report on Form 10-K contain forward-looking statements that involve risk and uncertainties, such as […]]]>
You should read the following discussion and analysis of financial condition and
results of operations together with our consolidated financial statements and
related notes included elsewhere in this Annual Report on Form 10-K. This
discussion and other parts of this Annual Report on Form 10-K contain
forward-looking statements that involve risk and uncertainties, such as
statements of our plans, objectives, expectations and intentions. Our actual
results, performance or achievements could differ materially from any future
results, performance or achievements discussed in these forward-looking
statements. Factors

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that could cause or contribute to such differences include, but are not limited to, those discussed in the section entitled “Risk Factors”.

Overview


Castle Biosciences is improving health through innovative tests that guide
patient care. For the diseases that our portfolio of tests cover, we believe the
traditional approach to developing a treatment plan for cancers and other
diseases using clinical and pathology factors alone is inadequate and can be
improved by incorporating the personalized information our diagnostic and
prognostic tests provide.

We currently market five proprietary MAAAs, designed to answer clinical
questions in dermatologic cancers, UM and BE. Our revenue is primarily generated
by our DecisionDx®-Melanoma risk stratification test for cutaneous melanoma and
our DecisionDx®-UM risk stratification test for UM.

The foundation of our business is our dermatologic cancer franchise, and our
lead product is DecisionDx-Melanoma, a proprietary risk stratification GEP test
that predicts the risk of metastasis, or recurrence for patients diagnosed with
invasive cutaneous melanoma, a deadly skin cancer. In the management of
melanoma, as with nearly all diseases, treatment plans are directed by patient
risk-stratification. This test has two distinct, complementary clinically
actionable uses. The first revolves around predicting the likelihood of having a
SLN negative biopsy result so that physicians and patients can discuss the risk
and benefit of undergoing the SLNB surgical procedure. The second use is to
inform the appropriate treatment plan during the initial five years
post-diagnosis, regardless of the decision to undergo or avoid invasive SLNB
surgery. In a typical year, we estimate approximately 130,000 patients are
diagnosed with invasive cutaneous melanoma in the United States. We launched
DecisionDx-Melanoma in May 2013. Based on the substantial clinical evidence that
we have developed, we have received Medicare coverage for DecisionDx-Melanoma,
which represents approximately 50% of the addressable patient population for
this test.

On August 31, 2020, we commercially launched our SCC proprietary GEP test,
DecisionDx®­SCC, for use in patients with one or more risk factors (also
referred to as "high-risk" SCC). On November 2, 2020, we commercially launched
our proprietary GEP test for difficult-to-diagnose melanocytic lesions,
DecisionDx® DiffDx™-Melanoma for use in patients with a melanocytic lesion and
uncertainty related to the malignancy of the lesion. We believe that these two
additional skin cancer tests address areas of high clinical need in
dermatological cancer and, together, represent an estimated addressable
population of approximately 500,000 patients in the United States.

We further expanded our commercially available dermatologic portfolio in May
2021 when we acquired the myPath Laboratory from Myriad Genetics, Inc. for a
cash purchase price of $32.5 million. myPath Melanoma is a clinically validated
GEP test that addresses the same unmet clinical need as our DecisionDx
DiffDx-Melanoma test. Today, we offer both our myPath Melanoma test and our
DecisionDx DiffDx-Melanoma test under an offering that we refer to as our CDO of
molecular testing solutions. By offering both of these tests in a single
offering, we believe we have demonstrated the ability to improve the test result
performance for patients with difficult-to-diagnose melanocytic lesions.

In 2021, we announced the launch of our innovative pipeline initiative to
develop a genomic test aimed at predicting response to systemic therapy in
patients with moderate to severe psoriasis, atopic dermatitis and related
inflammatory skin conditions. In the U.S. alone, there are approximately 18
million patients diagnosed with psoriasis and atopic dermatitis. Approximately
450,000 of these patients annually are eligible for systemic therapies. If
successful, this inflammatory skin disease pipeline test has the potential to
add approximately $1.9 billion to our current estimated U.S. TAM. In 2021, we
initiated a 4,800 patient, prospective, multi-center clinical study to develop
and validate this pipeline test and have 50 committed centers, out of the
initial target of 50. Based upon our current development and validation
timelines, we expect to commercialize this pipeline test by the end of 2025.

In addition to our dermatologic franchise, we also market a test for patients
diagnosed with UM, a rare cancer of the eye. DecisionDx®-UM is a proprietary,
risk stratification GEP test that predicts the risk of metastasis for patients
with UM. We believe DecisionDx-UM is the standard of care in the management of
newly diagnosed UM in the majority of ocular oncology practices in the United
States. We launched DecisionDx-UM in January 2010. Based on the substantial
clinical evidence that we have developed, we received Medicare coverage for
DecisionDx-UM, which represents approximately 50% of the addressable patient
population.

In December 2021, we extended our commercial portfolio of proprietary tests into
the gastroenterology market through our acquisition of Cernostics and the
TissueCypher® platform. The TissueCypher platform focuses on unlocking, in the
case of the initial test for use in patients with BE, the importance of the
location of the expression of proteins or lack thereof within the morphology of
the disease (also known as spatialomics). This "spatialomic" information is then
interpreted using artificial intelligence approaches to predict the likelihood
of progression to high-grade dysplasia and/or esophageal cancer in patients with
non-dysplastic, indefinite or low-grade dysplasia BE. We believe the addition of
expertise in the spatialomics area

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positions us for continued growth and success in diagnostics, complementing our first-to-market dermatology franchise and our proprietary test for MU.


The number of test reports we generate is a key indicator that we use to assess
our business. A test report is generated when we receive a sample in our
laboratory, and then the relevant test information is entered into our
Laboratory Information Management System, the expression of the biomarkers is
measured, then a proprietary algorithmic analysis of the combined biomarkers is
performed to generate a report providing the results of that analysis, which is
sent to the clinician who ordered the test. The numbers of GEP test reports
delivered by us during the years ended December 31, 2021 and 2020 are presented
in the table below:

                                                                 

Proprietary dermatological GEP tests

                                DecisionDx-
                                  Melanoma                 DecisionDx-SCC(1)                 CDO(2)                Dermatologic Total            DecisionDx-UM              Grand Total
Q1 2021                             4,060                           527                          218                      4,805                         337                     5,142
Q2 2021                             5,128                           784                          627                      6,539                         468                     7,007
Q3 2021                             5,505                           934                          913                      7,352                         375                     7,727
Q4 2021                             5,635                         1,265                          904                      7,804                         438                     8,242
For the year ended December
31, 2021                           20,328                         3,510                        2,662                     26,500                       1,618                    28,118

Q1 2020                             4,574                             -                            -                      4,574                         361                     4,935
Q2 2020                             3,008                             -                            -                      3,008                         306                     3,314
Q3 2020                             4,404                            57                            -                      4,461                         318                     4,779
Q4 2020                             4,246                           428                           73                      4,747                         410                     5,157
For the year ended December
31, 2020                           16,232                           485                           73                     16,790                      
1,395                    18,185



(1) We commercially launched DecisionDx-SCC on August 31, 2020.

(2)Includes DecisionDx DiffDx-Melanoma, which we marketed on
November 2, 2020and myPath Melanoma, which we began offering following our acquisition of Myriad myPath Laboratory on May 28, 2021. We offer both myPath Melanoma and DecisionDx DiffDx-Melanoma as part of our CDO.


For the year ended December 31, 2021, our dermatologic test report volume
increased by 57.8%, reflecting growth in DecisionDx-Melanoma as well as the full
year availability of DecisionDx-SCC and DecisionDx DiffDx-Melanoma (now offered
as part of CDO). For a discussion of how we recognize revenue derived from our
GEP tests, refer to "Net Revenues" under "Components of Results of Operations"
below.

The principal focus of our current commercial efforts is to educate clinicians
and pathologists on the value of our molecular diagnostic testing products
through our direct sales force in the U.S. In dermatology, we began 2020 with 32
outside sales territories. In the third quarter of 2020, we expanded our
dermatologic commercial team to create a dedicated sales force of ten
territories to support the launch of our DecisionDx Diff-Dx Melanoma test to
dermatopathologists. During the first half of 2021, we folded this dedicated
team into our existing sales team and completed a further expansion, bringing
our dermatologic sales force to the mid-60s. In connection with our acquisition
of Cernostics in December 2021, we hired an initial commercial team of
approximately 14 outside sales territories, along with commensurate internal
sales associates and medical science liaisons, to support our launch of the
TissueCypher Barrett's Esophagus Assay. This dedicated team focuses on
gastroenterology specialists that diagnose and manage patients with BE. However,
we will continue to evaluate our mix of outside sales territories, inside sales
support, marketing and medical affairs in the context of our dermatologic tests
and gastroenterology tests and adjust our investments based upon these
evaluations.

We continue to see new clinicians order our dermatologic tests for the first
time. For the year ended December 31, 2021, we saw approximately 1,938 new
ordering clinicians for our dermatologic tests compared to 1,396 during the same
period of 2020. Total ordering clinicians for our dermatologic tests were
approximately 5,900 for the year ended December 31, 2021.

For more information about the metrics we disclose, see “Information About Certain Metrics” below.


In developing our DecisionDx-SCC and DecisionDx DiffDx-Melanoma tests, we
believed that in addition to addressing significant unmet clinical needs, we
would see strategic opportunities for leverage, as many of the clinicians
currently ordering DecisionDx-Melanoma would likely be the same clinicians who
would find value in these other skin cancer tests. For example,

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we found that for the year ended December 31, 2021, approximately 78% of all
clinicians ordering DecisionDx-SCC had also ordered our DecisionDx-Melanoma test
during that same period.

We bill third-party payors and patients for the tests we perform. The majority
of our revenue collections is paid by third-party insurers, including Medicare.
We have received LCDs, which provide coverage for our DecisionDx-Melanoma,
myPath Melanoma and DecisionDx-UM tests that meet certain criteria for Medicare
and Medicare Advantage beneficiaries, representing approximately 60 million
covered lives. In 2022, DecisionDx-UM has received coverage from United
Healthcare that will represent approximately 43 million covered lives. A
''covered life'' means a subscriber, or a dependent of a subscriber, who is
insured under an insurance carrier's policy.

Palmetto, the MAC responsible for administering MolDX, the program that assesses
molecular diagnostic technologies, issued a final expanded LCD for
DecisionDx-Melanoma, effective November 22, 2020. With this expanded LCD and the
accompanying billing and coding articles, we estimate that a significant
majority of the DecisionDx-Melanoma tests performed for Medicare patients will
meet the coverage criteria. Noridian, the MAC responsible for administering
claims for laboratory services performed in Arizona, has adopted the same
coverage policy as Palmetto and also issued an expanded final LCD for
DecisionDx-Melanoma, effective December 6, 2020.

Separately, Palmetto issued a final LCD for DecisionDx-UM, which became
effective in July 2017, and Noridian issued a similar LCD that became effective
in September 2017. The Noridian LCD provides for coverage to determine
metastatic risk in connection with the management of a patient's newly diagnosed
uveal melanoma and to guide surveillance and referral to medical oncology for
those patients. Similar to cutaneous melanoma, the median age at diagnosis for
uveal melanoma is estimated at 58-62 years old, therefore the Medicare eligible
population represents close to 45% of the addressable market.

On May 17, 2019, CMS determined that DecisionDx-UM meets the criteria for
"existing advanced diagnostic laboratory test" status, also referred to as
"existing ADLT" status. For 2020, our rate was set by Noridian, our local MAC,
but effective in 2021 our rate is set annually based upon the median private
payor rate for the first half of the second preceding calendar year. Our rate
for 2021 was $7,776 and will remain at $7,776 for 2022, in each case based on
the calculation of the median private payor rate.

Also, on May 17, 2019, CMS determined that DecisionDx-Melanoma meets the
criteria for "new ADLT" status. Accordingly, from July 1, 2019 through March 31,
2020, the Medicare reimbursement rate was equal to the initial list price of
$7,193. From April 1, 2020 through December 31, 2021, the rate was also $7,193,
which was calculated based upon the median private payor rate for
DecisionDx-Melanoma from July 1, 2019 to November 30, 2019. CMS has informed us
that the rate for 2022 will continue to be $7,193, based on the median private
payor rate.

myPath Melanoma is currently covered under a MolDX LCD policy through Noridian
that oversees laboratories in both Utah and Arizona. Noridian issued an LCD that
became effective in June 2019. On September 6, 2019, myPath Melanoma was
approved as a new ADLT. The rate for 2022 will be $1,950.

TissueCypher is performed in our Pittsburgh, Pennsylvania laboratory and falls
under the Medicare jurisdiction that is managed by Novitas. Novitas previously
reviewed TissueCypher and we are receiving payments for claims according to the
CLFS. For 2022, CMS published in its CLFS a payment amount of $2,513 for the
test.

Beginning in 2023, the rates for DecisionDx-Melanoma, DecisionDx-UM, and myPath
Melanoma tests will be set annually based upon the median private payor rate for
the first half of the second preceding calendar year. For example, the rate for
2023 will be set using median private payor rate data from January 1, 2021 to
June 30, 2021.

In the second quarter of 2020, we submitted our technical assessment dossier for
DecisionDx-SCC to Palmetto and Noridian. The dossier was accepted as complete in
the third quarter of 2020. In early 2021, we submitted our technical assessment
dossier for DecisionDx DiffDx-Melanoma. The dossier was accepted as complete in
the first quarter of 2021. We expect that draft LCDs for DecisionDx-SCC and
DecisionDx DiffDx-Melanoma could potentially be posted by the end of the second
quarter of 2022 resulting in potentially final LCDs effective in 2023. However,
there is no assurance that the timing of any draft or final LCD will match our
expectations or our historical experience with LCDs for our other tests.

In the second quarter of 2021, Palmetto and the other MACs that participate in
the MolDX program posted a revised draft LCD for DecisionDx-Melanoma. The draft
LCD includes commentary about two publications regarding the clinical utility of
GEP tests and was posted to give providers an opportunity to comment. Each of
the draft LCDs include an assessment stating that the MAC does not believe that
the new data is sufficient to change the coverage criteria. We have submitted
comments on the draft LCD. The comment period on the last of these draft LCDs
closed on August 8, 2021. We are unable to predict when the final draft LCD will
be posted.

Since becoming a public company, we have financed our operations with the
revenue generated from the sale of our products, proceeds from our July 2019
IPO, follow-on public offerings of common stock in June 2020 and December 2020
and bank debt, which has since been repaid in full. We believe that our existing
cash and cash equivalents and anticipated cash generated

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from sales of our products will be sufficient to fund our operations for the
next 12 months and into the foreseeable future. However, we have based these
estimates on assumptions, including those related to the impact of COVID-19 on
our financial condition, that may prove to be wrong, and could result in us
depleting our capital resources sooner than expected.

Our net (loss) income may fluctuate significantly from period to period,
depending on the timing of our planned development activities, the growth of our
sales and marketing activities and the timing of revenue recognition under ASC
606. We expect our expenses will increase substantially over time as we:

•conducting clinical studies to generate evidence in support of our current and future product candidates;

•execute our marketing strategy for our current and future commercial products;

•pursue our ongoing and planned development of new products in our pipeline;

•seek to discover and develop additional product candidates;

•hire additional scientific and research and development personnel; and

• add additional operational, financial and management information systems and personnel.


Furthermore, we expect to continue to incur additional costs associated with
operating as a public company, including significant legal, accounting, investor
relations and other expenses.

Impact of the COVID-19 pandemic


We are continuing to closely monitor the impact of the COVID-19 pandemic on our
business and taking proactive efforts designed to protect the health and safety
of our workforce, continue our business operations and advance our corporate
objectives. We are providing the following update with respect to the impact of
COVID-19 on our business:

•We have maintained, and expect to continue to maintain, uninterrupted business
operations with adequate access to reagents and consumables needed for testing
patient samples and normal turnaround times for our delivery of test reports. We
have continued to maintain our previously implemented adjustments to our
operations designed to keep employees safe and comply with federal, state and
local guidelines, including those regarding social distancing.

•Following the onset of the COVID-19 pandemic, we experienced declines in orders
and test report volume. For example, in the second quarter of 2020, test reports
delivered for our lead product, DecisionDx-Melanoma, decreased 18.5% compared to
the second quarter of 2019. For the year ended December 31, 2020, our growth in
DecisionDx-Melanoma test report volume was 4.5%, compared to year-over-year
growth of 29.1% for the year ended December 31, 2019. Our analysis of
third-party data indicates that cutaneous melanoma diagnoses for the year ended
December 31, 2020 were down approximately 20% compared to the year ended
December 31, 2019. In the first quarter of 2021, test reports delivered for
DecisionDx-Melanoma decreased by 11.2% compared to the first quarter of 2020. We
believe these decreases in our test report volume were linked to delays and/or
cancellations in patient visits, resulting in fewer diagnostic biopsies and thus
a reduction in the number of diagnoses of cutaneous melanoma in response, as
well as the cumulative impact on promotional responsiveness as a result of
reduced sales calls per day and in-person sales call during the COVID-19
pandemic.

•We saw positive trends in orders and test report volumes in the second, third,
and fourth quarters of 2021. In the second, third and fourth quarters of 2021,
test reports delivered for DecisionDx-Melanoma increased by 70.5%, 25.0% and
32.7%, respectively, compared to the same quarters in 2020.

•Our commercial team uses a combination of in-person, virtual, and non-personal
promotional and educational efforts. Since the beginning of 2021, we have seen
improvements in the number of promotional calls per day, as well as a continued
shift from virtual to in-person sales calls. During the three-months ended
December 31, 2021, in-person sales calls accounting for over 90% of all calls
during such period. However, we have not yet achieved pre-COVID-19 levels of
calls per day per sales representative.

•Our future results will be dependent upon the extent and duration of the
COVID-19 crisis, including the emergence and spread of variants of the virus,
such as the Omicron variant, and government restrictions, which are beyond our
control. Although state and local government restrictions put in place to slow
the spread of the virus have been eased in certain locations, restrictions may
be reinstated from time to time in various regions depending on the
circumstances, potentially impacting the flow of future patient visits as well
as access to our sales targets. Even with the easing of state and local
restrictions and the availability of vaccinations, patient visits and diagnoses
of cutaneous melanoma may be impacted by continued apprehension regarding
possible exposure to the virus. For example, our

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analysis of third-party data indicates that cutaneous melanoma diagnoses during
the year ended December 31, 2021 remain approximately 11% below the pre-COVID,
2019 levels.

•We continue to believe our cash, cash equivalents and anticipated cash to be
generated from sales of our products, will be sufficient to fund our operations
for the next 12 months and into the foreseeable future.

As conditions are continuously evolving, we are unable to predict how our future
test report volume will be impacted, or the extent to which our results of
operations, financial condition or cash flows will be impacted, by the COVID-19
pandemic, or other future public health crises. Accordingly, the test report
data presented above is not necessarily indicative of our results of operations
that can be expected for future periods. For more information on the potential
impact of the COVID-19 pandemic on our business, see the risk factors included
under "Risks Related to Our Business" and the other risk factors included in
Part I, Item 1A., "Risk Factors," of this Annual Report on Form 10-K.

Factors affecting our performance

We believe that several important factors have had and which we believe will continue to have an impact on our operating performance and results of operations, including:


•Report volume. We believe that the number of reports we deliver to physicians
is an important indicator of the growth of adoption among the healthcare
provider community. Our revenue and costs are affected by the volume of testing
and mix of customers. Our performance depends on our ability to retain and
broaden adoption with existing prescribing physicians, as well as attract new
physicians. In the near term, our report volume may be negatively impacted by
ongoing developments of the COVID-19 pandemic as discussed above.

•Reimbursement. We believe that expanding reimbursement is an important
indicator of the value of our products. Payors require extensive evidence of
clinical utility, clinical validity, patient outcomes and health economic
benefits in order to provide reimbursement for diagnostic products. Our revenue
depends on our ability to demonstrate the value of our products to these payors.

•Gross margin. We believe that our gross margin is an important indicator of the
operating performance of our business. Higher gross margins reflect the average
selling price of our tests, as well as the operating efficiency of our
laboratory operations.

•New product development. A significant aspect of our business is our investment
in research and development activities, including activities related to the
development of new products. In addition to the development of new product
candidates, we believe these studies are critical to gaining physician adoption
of new products and driving favorable coverage decisions by payors for such
products.

Information about some metrics

The following provides additional information about certain measures we have disclosed in this MD&A and Analysis of Financial Condition and Results of Operations.


Test reports delivered for DecisionDx-Melanoma, DecisionDx-SCC, myPath
Melanoma/DecisionDx DiffDx-Melanoma, DecisionDx-UM and TissueCypher Barret's
Esophagus Assay represents the number of completed test reports delivered by us
during the reporting period indicated. The period in which a test report is
delivered does not necessarily correspond with the period the related revenue,
if any, is recognized, due to the timing and amount of adjustments for variable
consideration under ASC 606. We use this metric to evaluate the growth in
adoption of our tests and to measure against our internal performance
objectives. We believe this metric is useful to investors in evaluating the
volume of our business activity from period-to-period that may not be
discernible from our reported revenues under ASC 606. We also sometimes present,
on a limited basis, data on the number of orders received. We believe order data
can provide additional insight on current demand trends, particularly during the
COVID-19 pandemic and with respect to new product launches, when considered in
conjunction with test report volume. However, orders received in a particular
period do not necessarily correspond with actual delivered test reports or
reported revenues for the same period or subsequent periods.

New ordering clinicians for our dermatologic tests represents the number of
clinicians who ordered a dermatologic test from us for the first time during the
reporting period specified. Our dermatologic tests consist of
DecisionDx-Melanoma, DecisionDx-SCC and our CDO. We believe this metric is
useful in evaluating the effectiveness of our sales and marketing efforts in
establishing new relationships with clinicians and increasing the adoption of
our suite of dermatologic tests. We also believe this metric provides useful
information to investors in assessing our ability to expand the use of our
dermatologic tests. Since this metric is based upon the reporting period in
which an order is placed, it does not necessarily correspond to the reporting
period in which a test report was delivered or revenue was recognized.

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Components of operating results

Net income


We generate revenues from the sale of our products. Currently, our revenues are
primarily derived from the sale of DecisionDx-Melanoma and DecisionDx-UM. We
bill third-party payors and patients for the tests we perform.

Under ASC 606, we recognize revenue at the amount we expect to be entitled,
subject to a constraint for variable consideration, in the period in which our
tests are delivered to the treating physicians. We have determined that our
contracts contain variable consideration under ASC 606 because the amounts paid
by third-party payors may be paid at less than our standard rates or not paid at
all, with such differences considered implicit price concessions. Variable
consideration is recognized only to the extent it is probable that a significant
reversal of revenue will not occur in future periods when the uncertainties are
resolved. Variable consideration is evaluated each reporting period and
adjustments are recorded as increases or decreases in revenues. Variable
consideration for Medicare claims that are not covered by an LCD, including
those claims subject to approval by an ALJ at an appeal hearing, is deemed to be
fully constrained due to factors outside our influence (i.e., judgment or
actions of third parties) and the uncertainty of the amount to be received is
not expected to be resolved for a long period of time. For these fully
constrained claims, we generally recognize revenue in the period the uncertainty
is favorably resolved, if at all. Due to potential future changes in Medicare
coverage policies and appeal cycles, insurance coverage policies, contractual
rates and other trends in the reimbursement of our tests, our revenues may
fluctuate significantly from period-to-period. Additionally, our ability to
recognize revenue for our recently launched tests, DecisionDx-SCC and DecisionDx
DiffDx-Melanoma, is dependent on the development of reimbursement experience and
coverage decisions for these tests. Due to limited reimbursement experience, we
are currently recognizing revenues for these two tests on the basis of actual
cash collections.

Our ability to increase our revenues will depend on our ability to further
penetrate our target markets, and, in particular, generate sales through our
direct sales force, develop and commercialize additional tests, obtain
reimbursement from additional third-party payors and increase our reimbursement
rate for tests performed.

Cost of sales (excluding amortization of acquired intangible assets)


The components of our cost of sales are material and service costs associated
with testing samples, personnel costs (including salaries, bonuses, benefits and
stock-based compensation expense), electronic medical record set up costs, order
and delivery systems, shipping charges to transport samples, third-party test
fees, and allocated overhead including rent, information technology costs,
equipment and facilities depreciation and utilities. Costs associated with
testing samples are recorded when the test is processed, regardless of whether
and when revenues are recognized with respect to that test. As a result, our
cost of sales as a percentage of revenues may vary significantly from
period-to-period because we do not recognize all revenues in the period in which
the associated costs are incurred. We expect cost of sales in absolute dollars
to increase as the number of tests we perform increases. Additionally, we expect
cost of sales to increase with the expansion of laboratory capacity and staffing
in advance of the anticipated growth of our recently launched tests.

Gross margin and gross margin percentage are key indicators we use to assess our
business. See the table in "Results of Operations-Comparison of the years ended
December 31, 2021 and 2020" for details.

Research and development


Research and development expenses include costs incurred to develop our genomic
tests, collect clinical samples and conduct clinical studies to develop and
support our products. These costs consist of personnel costs (including
salaries, bonuses, benefits and stock-based compensation expense), prototype
materials, laboratory supplies, consulting costs, regulatory costs, electronic
medical records set up costs, costs associated with setting up and conducting
clinical studies and allocated overhead, including rent, information technology,
equipment depreciation and utilities. We expense all research and development
costs in the periods in which they are incurred. We expect our research and
development expenses to increase in absolute dollars as we continue to invest in
research and development activities related to developing enhanced and new
products.

We expect to use a portion of our cash and cash equivalents to further support
and accelerate our research and development activities, including three
important studies that are underway to support our DecisionDx-Melanoma test. The
first is the PERSONALize study, in which we are evaluating DecisionDx-Melanoma
for interactions with adjuvant therapies. The second is the CONNECTION study,
which is collecting long-term outcomes for up to 10,000 patients who have been
tested with DecisionDx-Melanoma. The third is the DECIDE study, which is
designed to determine the association of GEP test results with SLNB surgical
decisions in patients eligible for SLNB as well as to track outcomes for
patients who did and did not undergo SLNB. Also, as noted above, we recently
initiated a 4,800 patient, prospective, multi-center clinical study to develop,
validate and bring to market a pipeline test aimed at predicting response to
systemic therapy in patients with moderate to severe psoriasis, atopic
dermatitis and related inflammatory skin conditions. We have also initiated two
additional disease studies for pipeline tests for new indications.

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Selling, general and administrative expenses


Selling, general and administrative ("SG&A") expenses include executive, selling
and marketing, legal, finance and accounting, human resources, billing and
client services. These expenses consist of personnel costs (including salaries,
bonuses, benefits and stock-based compensation expense), direct marketing
expenses, audit and legal expenses, consulting costs, training and medical
education activities, payor outreach programs and allocated overhead, including
rent, information technology, equipment depreciation, and utilities. We expect
continued increases in SG&A expenses related to compliance with the rules and
regulations of the SEC and Nasdaq (in particular as we no longer qualify as an
emerging growth company and a smaller reporting company, and have become a large
accelerated filer), investor relations activities and additional insurance
expenses. Other administrative and professional services expenses within SG&A
are expected to increase with the scale of our business, but selling and
marketing-related expenses are expected to increase significantly, consistent
with our growth strategy.

Amortization of acquired intangible assets

The amortization of acquired intangible assets is mainly associated with the technology developed.

Other exploitation products

Other operating revenue consists of automatic payment received from HHS for provider relief funds pursuant to the CARES Act.

interest income

Interest income consists primarily of income on cash and cash equivalents, primarily money market funds.

Interest charges

Interest expense is primarily attributable to borrowings under our term debt, which was fully repaid in December 2020and also includes the related amortization of debt discounting and issuance costs.

Loss on extinguishment of debt

The loss on extinguishment of debt relates to the prepayment of our term loan facility in December 2020.

Income tax expense (benefits)


In connection with our acquisition of Cernostics in December 2021, and taking
into consideration the additional deferred tax liabilities resulting from such
acquisition, we determined that a portion of our valuation allowance should be
reduced, which was reflected in our income tax benefit for the year ended
December 31, 2021. Our consolidated financial statements do not reflect any
federal or state income tax benefits attributable to the net losses we have
incurred, due to the uncertainty of realizing a benefit from those items. As of
December 31, 2021, we had federal NOL carryforwards of $99.4 million, of which
$43.5 million will begin to expire in 2030 if not utilized to offset federal
taxable income, and $55.9 million may be carried forward indefinitely. Also, as
of December 31, 2021, we had state NOL carryforwards of $67.5 million, which
begin to expire in 2028 if not utilized to offset state taxable income.

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Operating results


Certain prior year amounts in the tables below have been reclassified to conform
to the current year presentation. Specifically, we no longer present gross
margin on the face of our financial statements and therefore the cost of sales
line is now presented within the operating expenses section. This
reclassification had no impact on operating loss, loss before income taxes or
net loss.

Comparison of the years ended December 31, 2021 and 2020

The following table summarizes our results of operations for the periods indicated (in thousands, except percentages):

                                                          Years Ended December 31,
                                                          2021                    2020                         Change
Net revenues                                      $      94,085               $  62,649          $  31,436                  50.2  %
Operating expenses and other operating income:
Cost of sales (exclusive of amortization of
acquired intangible assets)                              15,822                   9,685              6,137                  63.4  %
Research and development                                 29,646                  13,256             16,390                 123.6  %
Selling, general and administrative                      86,738                  48,132             38,606                  80.2  %
Amortization of acquired intangible assets                1,958                       -              1,958                    NA(1)
Other operating income                                        -                  (1,882)             1,882                 100.0  %
Total operating expenses, net                           134,164                  69,191             64,973                  93.9  %
Operating loss                                          (40,079)                 (6,542)           (33,537)               (512.6) %
Interest income                                              68                     373               (305)                (81.8) %
Interest expense                                             (1)                 (2,634)             2,633                 100.0  %
Loss on extinguishment of debt                                -                  (1,397)             1,397                 100.0  %

Loss before income taxes                                (40,012)                (10,200)           (29,812)               (292.3) %
Income tax (benefit) expense                             (8,720)                     84             (8,804)                   NM(2)
Net loss                                          $     (31,292)              $ (10,284)         $ (21,008)               (204.3) %




(1) NA = Not applicable
(2) NM = Not meaningful

The following table shows the amount of stock-based compensation expense reflected in the above line items (in thousands):


                                                               Years Ended 

the 31st of December,

                                                              2021                   2020               Change

Cost of sales (excluding amortization of acquired intangible assets)

                                      $        2,058          $     1,049          $    1,009
Research and development                                         4,522                1,492               3,030
Selling, general and administrative                             15,160                5,768               9,392
Total stock-based compensation expense                  $       21,740      

$8,309 $13,431




The following table provides a disaggregation of net revenues by type (in
thousands):

                           Years Ended December 31,
                              2021                 2020         Change
Dermatologic(1)      $      85,753              $ 57,646      $ 28,107
Other(2)                     8,332                 5,003         3,329
Total net revenues   $      94,085              $ 62,649      $ 31,436



(1) Dermatologic includes DecisionDx-Melanoma, DecisionDx-SCC and CDO. (2)Other mainly consists of DecisionDx-UM.

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The following table presents the calculation of gross margin (in thousands,
except percentages):

                                                               Years Ended December 31,
                                                            2021                       2020               Change
Net revenues                                          $     94,085                $    62,649          $   31,436
Less: Cost of sales (exclusive of amortization of
acquired intangible assets)                                 15,822                      9,685               6,137
Less: Amortization of acquired intangible assets             1,958                          -               1,958
Gross margin                                          $     76,305                $    52,964          $   23,341
Gross margin percentage                                       81.1   %                   84.5  %             (3.4) %


Net Revenues

Net revenues increased by $31.4 million, or 50.2%, to $94.1 million for the year
ended December 31, 2021, primarily due to higher revenues from our dermatologic
tests, which increased by $28.1 million. The higher dermatologic test revenue
was primarily attributable to higher volume from DecisionDx-Melanoma, which
increased 25.2%, higher per-unit revenues for DecisionDx-Melanoma, which reflect
the expanded LCD for the test that became effective in the fourth quarter of
2020, and increased revenues from DecisionDx-SCC and our CDO. We believe the
higher test report volume for DecisionDx-Melanoma during the year ended
December 31, 2021 reflects the relaxing of COVID-19 restrictions, and the
related positive impacts on the flow of patient visits, as well as the effects
of our sales force expansions discussed above. Revenues from other tests
(non-dermatologic) contributed $3.3 million to the overall increase in net
revenues for the year ended December 31, 2021. This increase was principally due
to the significantly higher Medicare rate for DecisionDx-UM that became
effective January 1, 2021 and, to a lesser extent, the effect of a 16.0%
increase in DecisionDx-UM test report volume. We believe the higher test report
volume for DecisionDx-UM during the year ended December 31, 2021 is due in part
to patients making up for missed eye exams from 2020 due to COVID-19 impacts.
Net revenues include positive revenue adjustments related to tests delivered in
previous periods, associated with changes in estimated variable consideration,
of $3.3 million for the year ended December 31, 2021 compared to $0.2 million
for the year ended December 31, 2020. The year-over-year increase is primarily
attributable to favorable adjustments related to the settlement and collection
during the year ended December 31, 2021 of certain groups of receivables from
prior years.

Cost of sales (excluding amortization of intangible assets acquired)


Cost of sales (exclusive of amortization of acquired intangible assets) for the
year ended December 31, 2021 increased by $6.1 million, or 63.4%, compared to
the year ended December 31, 2020, primarily due to higher personnel costs due to
additional headcount in our laboratory testing operations, and increased costs
of supplies and services, attributable to the higher activity levels. The
additional personnel costs included a year-over-year increase in stock-based
compensation expense of $1.0 million. Due to the nature of our business, a
significant portion of our cost of sales expenses represent fixed costs
associated with our testing operations. Accordingly, our cost of sales expense
will not necessarily increase or decrease commensurately with the change in net
revenues from period to period. We expect our cost of sales (exclusive of
amortization of acquired intangible assets) to continue to increase in future
periods as we hire additional laboratory personnel and related resources to
support our expected growth in volume for our dermatologic, GI and pipeline
tests

Gross margin


Our gross margin percentage was 81.1% for the year ended December 31, 2021,
compared to 84.5% for the same period in 2020. The decrease was largely due to
amortization expense associated with our acquired intangible assets. In the near
term, we expect that our gross margin percentage will decline as we invest in
additional laboratory personnel and related resources to support the anticipated
growth in our report volumes for tests in advance of obtaining reimbursement
coverage. Additionally, our gross margin percentage will be negatively impacted
by amortization of intangible assets associated with recent acquisitions.

Research and development


Research and development expenses increased by $16.4 million, or 123.6%, for the
year ended December 31, 2021, compared to the year ended December 31, 2020,
primarily due to increases in personnel costs and costs incurred in our clinical
studies. Approximately 55% of the increase is attributable to higher personnel
costs, due to expansions in headcount in support of our growth, including higher
stock-based compensation expense of $3.0 million compared to 2020. Approximately
27% of the increase was attributable to higher costs for clinical studies,
including costs related to the PERSONALize, CONNECTION and DECIDE studies as
well as our recently initiated a 4,800 patient, prospective, multi-center
clinical study to develop, validate and bring to market a pipeline test for
inflammatory skin diseases. Also, during the year ended December 31, 2021, we
expanded evidence supporting our portfolio of tests with 15 peer-reviewed
publications and initiated our collaboration with

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NCI/SEER. We plan to continue to increase our research and development expenditures as we fund ongoing evidence development for our existing products as well as additional pipeline programs.

Selling, general and administrative expenses


SG&A expense increased by $38.6 million, or 80.2%, for the year ended
December 31, 2021 compared to the year ended December 31, 2020. Approximately
67% of the increase is attributable to higher personnel costs, particularly due
to increased headcount, which includes salaries, stock-based compensation and
bonuses. We expanded our sales organization headcount in the third quarter of
2020 in preparation for the commercial launch of our DecisionDx DiffDx-Melanoma
test and further expanded our sales team during the first and second quarters of
2021, bringing our dermatology-facing commercial team to the mid-60s. The higher
personnel costs also reflect expanded headcount in our administrative support
functions. Stock-based compensation expense included in SG&A expense was $15.2
million for the year ended December 31, 2021 compared to $5.8 million for the
year ended December 31, 2020. The remainder of the increase in SG&A expense was
primarily associated with training events, travel, professional fees and other
general increases. The higher expenses for training events and travel reflect
both a higher headcount as well a return to more in-person activities in 2021 as
result of easing of COVID-19 restrictions.

Amortization of acquired intangible assets


Amortization of acquired intangible assets was $2.0 million for the year ended
December 31, 2021 and was entirely associated with amortization of developed
technology attributable to the acquisitions of Myriad myPath, LLC and Cernostics
in May 2021 and December 2021, respectively. There was no such amortization
during the year ended December 31, 2020. Amortization of acquired intangible
assets is projected to be approximately $6.7 million for the year ending
December 31, 2022, but may increase in the future to the extent we complete
additional acquisitions.

Other exploitation products


Other operating income of $1.9 million for the year ended December 31, 2020
consisted entirely of the automatic payment received from HHS pursuant to the
CARES Act for provider relief funds. We initially recognized income attributable
to the payment in the second quarter of 2020 based on our expectation of meeting
the requirements to retain the funds. However, due a change in requirements of
the program in the third quarter of 2020, we reversed this income. However, in
the fourth quarter of 2020, a legislative change was enacted affecting the
program, under which we concluded it is reasonably assured we will qualify to
retain the funds. Accordingly, we recognized the income again in the fourth
quarter of 2020. There were no similar transactions during the year ended
December 31, 2021. See Note 2 to the consolidated financial statements for
additional information.

interest income

Interest income decreased by $0.3 million for the year ended December 31, 2021compared to the year ended December 31, 2020due to lower interest rates, despite our higher average cash and cash equivalent balances.

Interest charges


Interest expense was essentially zero for the year ended December 31, 2021
compared to $2.6 million for the year ended December 31, 2020. The decrease is a
result of the early termination and repayment of all amounts due on our term
loan facility in December 2020.

Loss on extinguishment of debt


We recorded an extinguishment loss of $1.4 million during the year ended
December 31, 2020 related to the early repayment and termination of our term
loan facility. The extinguishment loss was attributable to the write-off of the
unamortized discount and issuance costs as well as early termination and
prepayment fees. There were no similar transactions during the year ended
December 31, 2021.

Income tax expense (benefits)


Income tax (benefit) expense was $(8.7) million for the year ended December 31,
2021 compared to $0.1 million for the year ended December 31, 2020.
Substantially all of the income tax (benefit) in the year ended December 31,
2021 was attributable to a reduction in our valuation allowance on net deferred
tax assets resulting from our acquisition of Cernostics in December 2021.
Specifically, we took into consideration the additional deferred tax liabilities
resulting from the acquisition and determined that a portion of our existing
valuation allowance should be reduced to offset this liability. Other than this
item, the recorded income tax (benefit) expense includes minimal amounts because
in both the years ended December 31, 2021 and 2020, the income tax benefit of
the net loss was largely offset by corresponding changes in the valuation
allowance on net deferred tax assets, as we have determined that it is more
likely than not that these benefits will not be realized.

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Stock-based compensation expense


Stock-based compensation expense, which is allocated among cost of sales,
research and development expense and SG&A expense, totaled $21.7 million for the
year ended December 31, 2021 compared to $8.3 million for the year ended
December 31, 2020, which we attribute in part to the addition of 144 employees
in 2021, a 71.6% increase from 2020. We expect material increases in stock-based
compensation expense in future periods, reflecting additional awards outstanding
due to expected growth in our headcount. As of December 31, 2021, the total
unrecognized stock-based compensation cost related to outstanding awards was
$99.3 million, which is expected to be recognized on a straight-line basis over
a weighted-average period of 3.3 years.

Cash and capital resources

Sources of liquidity


Our principal sources of liquidity are our cash and cash equivalents and cash
generated from the sale of our products. As of December 31, 2021 and 2020, we
had cash and cash equivalents of $329.6 million and $409.9 million,
respectively. In addition to the revenue generated from the sale of our
commercial products, we have financed our operations through our IPO in July
2019, two follow-on public offerings of common stock in June 2020 and December
2020, and a $25.0 million secured term loan credit facility, which we repaid in
full in December 2020.

On December 14, 2020, we filed an automatically effective shelf registration
statement on Form S-3 (File No. 333-251331) with the SEC as a "well-known
seasoned issuer." The registration statement allows us to issue an indeterminate
number or amount of common stock, preferred stock, debt securities and warrants
from time-to-time in one or more offerings. However, there can be no assurance
that we will complete any such offerings of securities. Any future offerings
under this registration statement will be dependent upon, among other factors,
market conditions, available pricing, our financial condition, investor
perception of our prospects, our capital needs and our ability to maintain
status as a well-known seasoned issuer.

Public offerings of ordinary shares


On June 29, 2020 and July 2, 2020, we issued and sold 2,000,000 and 300,000
shares of our common stock, respectively, of our common stock in a follow-on
public offering at a price of $37.00 per share. We received $79.5 million in
aggregate net proceeds, after deducting underwriting discounts and commissions
and offering costs. The shares issued and sold on July 2, 2020 reflect the
underwriters' exercise in full of their 30-day option to purchase additional
shares at the public offering price, less underwriting discounts and
commissions.

On December 18, 2020, we issued and sold 4,600,000 shares of our common stock
(including the exercise in full by the underwriters of their option to purchase
an additional 600,000 shares) in a follow-on public offering at a price of
$58.00 per share. We received $250.5 million in aggregate net proceeds, after
deducting underwriting discounts and commissions and offering costs (excluding
$0.4 million in offering costs that were incurred but not paid as of December
31, 2020). The shares issued and sold includes the underwriters' exercise in
full of their 30-day option to purchase additional shares at the public offering
price, less underwriting discounts and commissions. On December 21, 2020, we
used a portion of these proceeds to repay, in full, our outstanding term loan
credit facility. See "Long-Term Debt" below for additional information.

As mentioned above, we plan to use some of these products, as well as the few $65.9 million of the net proceeds of our IPO in July 2019to further support and accelerate our research and development activities, including the aforementioned clinical studies.

Prepayment of health insurance


On April 16, 2020, we received an advance payment of $8.3 million ("the Advance
Payment") from CMS under its Accelerated and Advance Payment Program, which was
expanded to provide increased cash flow to service providers during the COVID-19
pandemic. CMS began recoupment of the Advance Payment in April 2021 by applying
25% of the Medicare payments otherwise owed to us against the balance of the
Advance Payment. Recoupment of the full amount of the Advance Payment was
complete by December 31, 2021.

Material cash needs


Our primary uses of capital are, and we expect will continue to be, compensation
and related expenses, clinical research and development services, laboratory
operations, equipment and related supplies, legal and other regulatory expenses,
general administrative costs and, from time to time, expansion of our laboratory
and office facilities in support of our growth. We anticipate that a substantial
portion of our cash requirements in the foreseeable future will relate to the
further commercialization of our currently marketed products, the development of
our future product candidates in our pipeline and the potential
commercialization of these pipeline products, should their development be
successful.

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In the past 12 months we completed two strategic opportunities, which we funded
using our available cash on hand, and in the longer-term may evaluate and
consummate other strategic acquisitions of businesses, assets, products or
technologies, which we expect to be able to fund from our available cash and
cash equivalents. In May 2021 and December 2021, we completed the acquisitions
of the Myriad myPath Laboratory for $32.5 million and Cernostics, Inc. for $30.7
million, respectively. In both cases, the source of funding was from our
existing cash and cash equivalents. Under the definitive agreement with
Cernostics, we have also agreed to pay up to an additional $50 million in cash
or our common stock, at our sole discretion, based on the achievement of certain
commercial milestones relating to the year ending December 31, 2022. Our
liability with respect to the commercial milestone payments will depend on our
ability to successfully integrate Cernostics into our suite of commercial
product offerings, while future cash requirements arising from any additional
strategic acquisitions will depend on, among other things, our identification of
a target company with a product offering that we view as complementary to our
product offerings. See Note 5 to the consolidated financial statements for
additional information on recent acquisitions.

Since our inception, we have generally incurred significant losses and negative
cash flows. For the year ended December 31, 2021 we had a net loss of $31.3
million and an accumulated deficit of $93.8 million as of December 31, 2021. Our
ability to generate revenue sufficient to achieve profitability will depend
heavily on the successful commercialization of our currently marketed products
and the products we plan to launch in the future as well as our spending on
research and development activities. We expect to incur additional expenses and
losses in the future as we invest in the commercialization of our existing
products, the development of our future product candidates and the
commercialization of our product candidates. Further, we expect that any
acquisitions of businesses, products, assets or technologies will also increase
our expenses. We believe that our existing cash and cash equivalents and
anticipated cash generated from the sale of our commercial products will be
sufficient to fund our operations for the next twelve months. We believe we will
meet longer-term expected cash requirements and obligations through a
combination of existing cash and cash equivalents, anticipated cash generated
from sales of our products and issuances of equity securities or debt offerings,
including through our shelf registration statement on Form S-3 that became
automatically effective in December 2020. However, we have based these estimates
on assumptions that may prove to be wrong, and we could utilize our available
capital resources sooner than we expect. There are numerous risks and
uncertainties associated with developing genomic tests, including, among others,
the uncertainty of:

• successful initiation and completion of clinical study protocols;

•successful identification and acquisition of tissue samples;

•the development and validation of genomic classifiers; and

•the acceptance of new genomic tests by doctors, patients and third-party payers.


Because of the numerous risks and uncertainties associated with research,
development and commercialization of product candidates, we are unable to
estimate our exact working capital requirements. Our future funding requirements
will depend on, and could increase significantly as a result of, many factors,
including those listed above as well as those listed in the section titled "Risk
Factors."

We do not currently have any committed external source of funds. In the event
additional funding is required, we expect that we would use a combination of
equity and debt financings, which may not be available to us when needed, on
terms that we deem to be favorable or at all. To the extent that we raise
additional capital through the sale of equity or convertible debt securities,
the ownership interest of our stockholders will be diluted, and the terms of
these securities may include liquidation or other preferences that adversely
affect the rights of common stockholders. Debt financing and preferred equity
financing, if available, may involve agreements that include covenants limiting
or restricting our ability to take specific actions, such as incurring
additional debt, making acquisitions or capital expenditures or declaring
dividends. Any disruptions to, or volatility in, the credit and financial
markets or any deterioration in overall economic conditions may make any
necessary debt or equity financing more difficult to obtain, more costly and/or
more dilutive. If we are unable to raise additional funds through debt, or
equity financings or other arrangements when needed, we may be required to
delay, limit, reduce or terminate our product discovery and development
activities or future commercialization efforts.

Leases


We have entered into various operating and finance leases, which are primarily
associated with our laboratory facilities and office space. Total undiscounted
future minimum payment obligations under our operating leases and finance leases
as of December 31, 2021 totaled approximately $10.6 million, of which $1.4
million is payable in 2022 and $9.2 million is payable through the end of 2033.
The leases expire on various dates through 2033 and provide certain options to
renew for additional periods. We expect our lease obligations will increase in
the near term as we expand our facilities, operations and headcount in support
of the anticipated growth in our portfolio of commercial products and pipeline
tests. Refer to Note 9 to the consolidated financial statements for additional
information on our leasing arrangements.

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Cash flow

The following table summarizes our sources and uses of cash and cash equivalents for each of the periods presented (in thousands):

                                                                          Years Ended December
                                                                                   31,
                                                                                       2021               2020
Net cash (used in) provided by operating activities                                $ (18,983)         $   9,865
Net cash used in investing activities                                                (66,657)            (4,748)
Net cash provided by financing activities                                              5,421            305,890
Net change in cash and cash equivalents                                              (80,219)           311,007
Cash and cash equivalents, beginning of year                                         409,852             98,845
Cash and cash equivalents, end of year                                             $ 329,633          $ 409,852


Operating Activities

Net cash used in operating activities of $19.0 million for the year ended
December 31, 2021 was primarily attributable to the net loss of $31.3 million,
deferred income taxes of $8.7 million, recoupment of the Advance Payment of $8.3
million and increases in accounts receivable of $4.6 million, partially offset
by stock compensation expense of $21.7 million, increases in accrued
compensation of $6.2 million, depreciation and amortization of $3.4 million and
increases in other accrued liabilities of $2.3 million.

Net cash provided by operating activities was $9.9 million for the year ended
December 31, 2020 and was primarily attributable to net non-cash charges of
$10.5 million (consisting of $8.3 million in stock-based compensation expense,
$1.4 million of loss on extinguishment of debt, and $0.8 million in amortization
of debt discount and issuance costs), the receipt of the Advance Payment of $8.3
million, increases in accrued compensation of $3.3 million and decreases in
accounts receivable of $1.7 million, partially offset by the net loss of $10.3
million and increases in prepaid expenses and other current assets of $2.8
million, other assets of $1.4 million and inventory of $1.0 million.

Investing activities


Net cash used in investing activities for the year ended December 31, 2021 was
primarily attributable to our asset acquisitions of Myriad myPath LLC and
Cernostics (which collectively totaled $63.2 million) and purchases of property
and equipment of $3.5 million.

Net cash used in investing activities for the year ended December 31, 2020
entirely made up of purchases of property, plant and equipment.

Fundraising activities


Net cash provided by financing activities for the year ended December 31, 2021
consisted primarily of $4.2 million of proceeds from exercise of common stock
options and $2.3 million of proceeds from contributions to the employee stock
purchase plan, partially offset by payment of employees' taxes on vested
restricted stock units of $0.8 million and payment of common stock offering
costs of $0.3 million. We did not complete any public offerings of common stock
during the year ended December 31, 2021.

Net cash provided by financing activities for the year ended December 31, 2020
consisted primarily of $330.0 million of proceeds from two public offerings of
our common stock (net of underwriting discounts, commissions and issuance
costs), $1.6 million of proceeds from contributions to the employee stock
purchase plan and $1.6 million of proceeds from exercise of common stock
options, partially offset by repayments of term debt, including extinguishment
costs, of $27.4 million.

Inflation

We do not believe that inflation has had a material impact on our results of
operations during the periods presented. However, recently, the rate of
inflation in the U.S. has risen to levels not experienced in decades. We have
begun to see some inflationary pressures, primarily in personnel and related
costs. The extent of any future impacts from inflation on our business and our
results of operations will be dependent upon how long the elevated inflation
levels persist and if the rate of inflation were to further increase, neither of
which we are able to predict.

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Critical accounting estimates


Our consolidated financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America. The preparation
of our consolidated financial statements and related disclosures requires us to
make estimates and judgments that affect the reported amounts of assets,
liabilities, costs and expenses, and the disclosure of contingent assets and
liabilities in our consolidated financial statements. We base our estimates on
historical experience, known trends and events and various other factors that we
believe are reasonable under the circumstances, the results of which form the
basis for making judgments about the carrying values of assets and liabilities
that are not readily apparent from other sources. We evaluate our estimates and
assumptions on an ongoing basis. Our actual results may differ from these
estimates under different assumptions or conditions.

While our significant accounting policies are described in more detail in Note 2
to our audited consolidated financial statements, we believe that the following
accounting policies are those most critical to the judgments and estimates used
in the preparation of our consolidated financial statements.

Revenue recognition


We recognize revenue is recognized in accordance with ASC 606. In accordance
with ASC 606, we follow a five-step process to recognize revenues: (1) identify
the contract with the customer, (2) identify the performance obligations, (3)
determine the transaction price, (4) allocate the transaction price to the
performance obligations and (5) recognize revenues when the performance
obligations are satisfied. We have determined that we have a contract with the
patient when the treating clinician orders the test. Our contracts generally
contain a single performance obligation, which is the delivery of the test
report, and we satisfy our performance obligation at a point-in-time upon the
delivery of the test report to the treating physician, at which point we can
bill for the report. The amount of revenue recognized reflects the amount of
consideration to which we expect to be entitled, or the transaction price, and
considers the effects of variable consideration.

All of our revenues from contracts with customers are associated with the
provision of diagnostic and prognostic testing services. Most of our revenues
are attributable to DecisionDx-Melanoma for cutaneous melanoma. We also provide
a test for UM, DecisionDx-UM. We launched a test for patients with cutaneous
SCC, DecisionDx-SCC in August 2020 and launched a test for use in patients with
suspicious pigmented lesions, DecisionDx DiffDx-Melanoma in November 2020. We
began offering a test for difficult-to-diagnose melanocytic lesions, myPath
Melanoma, following an asset acquisition completed in May 2021 and began
offering the TissueCypher® Barrett's Esophagus Assay for patients with BE
following an asset acquisition completed in December 2021. Information on the
disaggregation of revenues is included below.

Once we satisfy our performance obligations and bill for the service, the timing
of the collection of payments may vary based on the payment practices of the
third-party payor and the existence of contractually established reimbursement
rates. Most of the payments for our services are made by third-party payors,
including Medicare and commercial health insurance carriers. Certain contracts
contain a contractual commitment of a reimbursement rate that differs from our
list prices. However, absent a contractually committed reimbursement rate with a
commercial carrier or governmental program, our diagnostic tests may or may not
be covered by these entities' existing reimbursement policies. In addition,
patients do not enter into direct agreements with us that commit them to pay any
portion of the cost of the tests in the event that their insurance provider
declines to reimburse us. We may pursue, on a case-by-case basis, reimbursement
from such patients in the form of co-payments and co-insurance, in accordance
with the contractual obligations that we have with the insurance carrier or
health plan. These situations may result in a delay in the collection of
payments.

The Medicare claims that are covered by policy under an LCD are generally paid
at the established rate by our Medicare contractor within 30 days from receipt.
Medicare claims that were either submitted to Medicare prior to the LCD's
effective date or are not covered by the terms of the LCD, but meet the
definition of being medically reasonable and necessary pursuant to the
controlling Section 1862(a)(1)(A) of the Social Security Act are generally
appealed and may ultimately be paid at the first (termed "redetermination"),
second (termed "reconsideration") or third level of appeal (de novo hearing with
an ALJ). A successful appeal at any of these levels results in payment.

In the absence of LCD coverage or contractually established reimbursement rates,
we have concluded that our contracts include variable consideration because the
amounts paid by Medicare or commercial health insurance carriers may be paid at
less than our standard rates or not paid at all, with such differences
considered implicit price concessions. Variable consideration attributable to
these price concessions is measured at the expected value using the "most likely
amount" method under ASC 606. The amounts are determined by historical average
collection rates by test type and payor category taking into consideration the
range of possible outcomes, the predictive value of our past experiences, the
time period of when uncertainties expect to be resolved and the amount of
consideration that is susceptible to factors outside of our influence, such as
the judgment and actions of third parties. Such variable consideration is
included in the transaction price only to the extent it is probable that a
significant reversal in the amount of cumulative revenue recognized will not
occur when the uncertainties with respect to the amount are resolved. Variable
consideration may be constrained and excluded from the transaction price in
situations where

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there is no contractually agreed upon reimbursement coverage or in the absence
of a predictable pattern and history of collectability with a payor. Variable
consideration for Medicare claims that are not covered by an LCD, including
those claims subject to approval by an ALJ at an appeal hearing, is deemed to be
fully constrained due to factors outside our influence (i.e., judgment or
actions of third parties) and the uncertainty of the amount to be received is
not expected to be resolved for a long period of time. Variable consideration is
evaluated each reporting period and adjustments are recorded as increases or
decreases in revenues. Included in revenues for the years ended December 31,
2021 and 2020 were $3,324,000 and $176,000, respectively, of revenue increases
associated with changes in estimated variable consideration related to
performance obligations satisfied in previous periods. These amounts include (i)
adjustments for actual collections versus estimated amounts and (ii) cash
collections and the related recognition of revenue in current period for tests
delivered in prior periods due to the release of the constraint on variable
consideration.

Consolidation of DecisionDx-Melanoma Claims


In June 2017, we submitted to OMHA a formal request to participate in a program
that OMHA developed with the intent of providing appellants a means to have
large volumes of claim disputes adjudicated at an accelerated rate. The program
consolidates outstanding claims at the ALJ level and uses a statistical-sampling
approach where five ALJs will determine reimbursement results for a sample of
claims which are then extrapolated to the universe of claims. Our consolidation
includes 2,698 DecisionDx-Melanoma claims dating from 2013 through spring 2017.
Hearings were held in April 2019 with a supplemental hearing in May 2019. On
March 12, 2020, OMHA issued a decision denying payment on all claims in the
consolidation. We have filed an appeal to the decision, although no ruling on
such appeal has been issued to date. In accordance with ASC 606 and consistent
with prior periods, we have not recognized (fully constrained the variable
consideration) any revenues attributable to these claims in our consolidated
financial statements pending the outcome of this matter.

Stock-based compensation


Stock-based compensation expense for equity instruments issued to employees and
non-employees, including stock options, restricted stock units ("RSUs") and
purchase rights issued under our 2019 Employee Stock Purchase Plan ("ESPP") is
measured based on the grant date fair value of the awards. For stock options and
purchase rights granted under the ESPP, we estimate the grant date fair value
using the Black-Scholes option-pricing valuation model. For RSUs, we use the
closing price of our common stock on the date of grant to determine the fair
value. We recognize compensation costs on a straight-line basis for all
stock-based compensation awards over the requisite service period of the awards,
which is generally the awards' vesting period, typically four years for options
and RSUs and the two-year offering period for the ESPP. Forfeitures are
accounted for as they occur.

Below is a description of the key assumptions used in the option pricing model:


•Expected term. The expected term is the period of time that granted options are
expected to be outstanding. For stock options, we have set the expected term
using the simplified method based on the weighted average of both the period to
vesting and the period to maturity for each option, as we have concluded that
our stock option exercise history does not provide a reasonable basis upon which
to estimate the expected term. For the ESPP, the expected term is the period of
time from the offering date to the purchase date.

•Expected volatility. Previously, because of the limited period of time our
stock had been traded in an active market, we calculated expected volatility by
using the historical stock prices of a group of similar companies looking back
over the estimated life of the option or the purchase rights under our ESPP and
averaging the volatilities of these companies. In the third quarter of 2021, we
adjusted this calculation to include our own stock price on a relative basis to
the peer group in the calculation of expected volatility, as our common stock
has now been traded in an active market for more than two years.

•Risk-free interest rate. We base the risk-free interest rate used in the Black-Scholes pricing model on the prevailing market yield at the time the option is granted and on the offer date for the ESPP provided by the Federal Reserve Board Statistical releases and historical publications of the Treasury
constant maturity rates for equivalent residual terms.


•Dividend yield. We have not paid, and do not have plans to pay, cash dividends.
Therefore, we use an expected dividend yield of zero in the Black-Scholes option
valuation model.

The fair value of our common stock is also an assumption used to determine the
fair value of stock options. Prior to our IPO, the estimated fair value of our
common stock had been determined by our board of directors as of the date of
each award, with input from management, considering our most recently available
third-party valuations of common stock and our board of directors' assessment of
additional objective and subjective factors that it believed were relevant and
which may have changed from the date of the most recent valuation through the
date of the grant, which intended all options granted to be exercisable at price
per share not less than the per share fair value of our common stock underlying
those options on the grant date.

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Subsequent to our IPO, the fair value of our common stock is the closing selling
price per share of our common stock as reported on the Nasdaq Global Market on
the date of grant or other relevant determination date.

The following table sets forth the assumptions used to determine the fair value
of stock options:

                                                     Years Ended December 31,
                                                2021                          2020
     Average expected term (years)               6.1                           6
     Expected stock price volatility       66.50% - 68.83%              
59.57%- 67.02%
     Risk-free interest rate                0.51% - 1.48%                0.28% - 1.76%
     Dividend yield                              -%                            -%

The following table presents the assumptions used to determine the fair value of the call rights issued under the ESPP:


                                                     Years Ended December 

31,

                                               2021                           2020
    Average expected term (years)               1.2                           1.2
    Expected stock price volatility       61.13% - 86.50%              
56.80% - 100.49%
    Risk-free interest rate                0.06% - 0.20%                 0.12% - 0.95%
    Dividend yield                              -%                             -%


Intangible Assets

Our intangible assets, which are comprised primarily of acquired developed
technology, are considered to be finite-lived and are amortized on a
straight-line basis over their estimated useful lives. Estimating the useful
lives of our intangible assets requires considerable judgment. In determining
the estimated useful lives, management considers factors such as historical
experience, industry and regulatory factors, competition, patent expirations and
commercial plans. If new information becomes available in future periods, we may
be required to revise our estimated useful lives. If the revised useful lives
are shorter than originally estimated, our future amortization expense will
increase.

Conditional consideration


Under the terms of business combinations or asset acquisitions, we may be
required to pay additional consideration if specified future events occur or if
certain conditions are met. With respect to the additional consideration that
may be payable in connection with our acquisition of Cernostics, which was
treated as an asset acquisition for accounting purposes, we account for the
contingent consideration as liability in accordance with ASC 480, Distinguishing
Liabilities from Equity ("ASC 480"), under the guidance for obligations that
must or may be settled by issuance of a variable number of shares. In accordance
with ASC 480, we record the contingent consideration initially and subsequently
at fair value with changes in fair value recorded in the statements of
operations and comprehensive loss each period. This liability is classified as a
"Level 3" fair value measurement (as defined in Note 11 to our consolidated
financial statements) due to the use of significant unobservable inputs and a
Monte Carlo simulation to determine its fair value. The Monte Carlo simulation
uses projections of the commercial milestones for the applicable period as well
as the corresponding targets and approximate timing of payment based on the
terms of the arrangement. The analysis also uses assumptions for expected
volatility of the financial metrics and a risk-adjusted discount rate. The
assumptions and estimates we use in the Monte Carlo simulation require
considerable judgment and may change in future periods as a result of new
information.

Recent accounting pronouncements

See Note 2, “Summary of Significant Accounting Policies,” in the Notes to our Consolidated Financial Statements included with this Annual Report on Form 10-K for a discussion of recent accounting pronouncements.

Accounting election of the JOBS law


Previously, we were an emerging growth company within the meaning of the JOBS
Act. Section 107(b) of the JOBS Act provides that an emerging growth company can
leverage the extended transition period, provided in Section 102(b) of the JOBS
Act, for complying with new or revised accounting standards. However, because
the market value of our common stock held by non-affiliates exceeded $700.0
million as of June 30, 2021, we are no longer an emerging growth company
effective December 31, 2021. As a result, we now apply public company adoption
dates for new or revised accounting standards. Further, we were required to
comply with the auditor attestation requirements of Section 404(b) of
Sarbanes-Oxley regarding our internal control over financial reporting as of
December 31, 2021.

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© Edgar Online, source Previews

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What is a payday loan? https://www.sociologyesoscience.com/what-is-a-payday-loan/ Fri, 25 Feb 2022 22:26:00 +0000 https://www.sociologyesoscience.com/what-is-a-payday-loan/ What is a payday loan? payday ready are generally short-term unsecured loans characterized by high interest rates that generally do not require a credit check. Although there is no exact and universal definition of the term, the US Consumer Financial Protection Bureau indicates that this type of loan is usually $500 or less and is […]]]>

payday ready are generally short-term unsecured loans characterized by high interest rates that generally do not require a credit check.

Although there is no exact and universal definition of the term, the US Consumer Financial Protection Bureau indicates that this type of loan is usually $500 or less and is usually due on the borrower’s next payday. States have different laws governing these types of fast loans, but they may be available to Americans through in-store payday lenders or in line, depending on location. The due date on payday loans is generally two to four weeks from the date of issuance, and lenders generally do not consider borrowers’ credit scores or their ability to meet other financial obligations when approving the loan.

Compare offers

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To secure a payday loan, payday lenders often require a personal check from the borrower for the loan amount, plus interest and fees, for a future deposit. They often require direct access to the borrower’s bank account.

Payday lenders hold the personal check until the borrower receives their next paycheck, direct deposit or social Security Payment. Depending on the terms of the loan and the laws of the state in question, some payday lenders offer long-term repayment plans that allow them to make multiple electronic withdrawals from the borrower’s bank account.

The average term for payday loans is about two weeks, and loans typically range between $50 and $1,000. In exchange for quick loans that don’t require a credit check, payday borrowers typically pay exorbitant interest rates and fees on their loans. Payday lenders often charge annual percentage ratesor APR, of 400% or more on their loans, plus finance charges of between $10 and $30 for every $100 borrowed.

The only requirements to qualify for most payday loans are an opening Bank account relatively good standing, a regular income and a source of identification.

Because little consideration is given to the financial condition or creditworthiness of borrowers, the CFPB has found that payday loans have a high default rate of around 20%. Additionally, approximately 80% of payday borrowers renew or re-borrow their loans within 30 days of their initial loan.

Qualified state borrowers can apply for a payday loan online from companies such as MoneyMutual, CashUSA.com, and BillsHappen. Many payday lenders also have thousands of physical stores in the United States.

In times of financial emergency or life or death situation, payday loans may be one of the only places Americans have bad credit can turn to temporary financial assistance. However, due to widespread deception and predatory behavior in the payday loan industry, the CFPB, Federal Trade Commission, and other federal and state regulators have repeatedly warned Americans of the dangers of payday lending. payday and imposed restrictions on the activities of payday lenders.

A 2016 five-year study by Pew Charitable Trusts found that 12 million Americans take out payday loans each year, and those borrowers collectively pay $9 billion a year in loan fees alone.

  • Speed. Payday loans are fast, and lenders often approve the same or next day.
  • Ease of use. It’s usually easy to get approved for a payday loan as long as the applicant has a stable source of income, a bank account in good standing, and proper identification. Borrowers can even get payday loan approval online. While some critics say payday loans are inherently predatory, there are laws in place to protect the rights of borrowers.
  • Availablity. Depending on the situation, payday loans may be one of the only viable sources of emergency cash for borrowers with bad credit.

  • High cost. Payday loans can come with annual interest rates of 400% or more, and finance charges can be 15% to 30% of the loan amount. These high interest rates stand out even more compared to the national average of around 16.17% credit card interest rate or the average interest rate of 4.25% over 30 years mortgage end of February 2022.
  • Debt cycle. Due to interest and fees, a payday loan can easily force the borrower to put off the majority of their next paycheck, creating an opportunity for borrowers to fall into a cycle of repeat loans.
  • Harassment. Payday lenders have a reputation for exploiting financially vulnerable borrowers and using aggressive and harassing collection practices.

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Guide on How to Take a Loan with No-Credit-Check Quickly https://www.sociologyesoscience.com/guide-on-how-to-take-a-loan-with-no-credit-check-quickly/ Tue, 22 Feb 2022 03:07:33 +0000 https://www.sociologyesoscience.com/?p=2734 Guide on How to Take a Loan with No-Credit-Check QuicklyIt’s not difficult to obtain a loan even with no credit and friendly terms and conditions. But, you need to conduct an extensive study. After analyzing the various policies of the company, you must also have an approach to obtain the most effective no-credit-check loans quickly. The following are the criteria to consider: GreenDayOnline Perform the credit report […]]]> Guide on How to Take a Loan with No-Credit-Check Quickly

It’s not difficult to obtain a loan even with no credit and friendly terms and conditions. But, you need to conduct an extensive study. After analyzing the various policies of the company, you must also have an approach to obtain the most effective no-credit-check loans quickly. The following are the criteria to consider: GreenDayOnline

Perform the credit report

Before you can reach your lender who does not require credit checks it is important to check your score on the internet. To do this, avail of the services of a credit-related site or credit card company. This will provide you with the information you need to know if you qualify to borrow money and, should you not be, the steps to become eligible.

Make a plan prior to choosing an option

Before you decide on the loan conditions it is essential to determine the exact amount you’ll have to take out. Planning should take into account your financial crisis along with your spending plan. This is a matter of factors like savings, spending as well as debt repayment, among other factors. After analyzing, you can do a real-time calculation using online calculators to determine the exact amount to borrow.

Compare rates of interest

The second and most crucial stage is the comparison of interest rates since they determine the cost for the borrowing. Many lenders are able to offer pre-approval for their customers. Therefore, ensure that you select only the lenders you prefer and review all the conditions, terms, and interest rates prior to accepting the offer.

Look for frauds

Scams are commonplace in the field of lending. Don’t ignore a scam even if you are in an unfounded doubt regarding the business. For example, if it tries to force you to conclude a deal or requests an advance, the business could be deceptive.

Make a plan for your repayment process

As an unsecured borrower, you should always plan out how you will repay the loan. In the end, you’ll avoid lots of fines, negative effects on your credit as well as late charges. The reason is that should you fail to pay one EMI that will turn into a huge loss to you. Additionally, interest rates will increase dramatically, adding to your total loan.

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Personal lenders will take on more subprime borrowers in 2022, TransUnion says https://www.sociologyesoscience.com/personal-lenders-will-take-on-more-subprime-borrowers-in-2022-transunion-says/ Tue, 08 Feb 2022 20:51:32 +0000 https://www.sociologyesoscience.com/personal-lenders-will-take-on-more-subprime-borrowers-in-2022-transunion-says/ Personal loans are expected to grow 11% in 2022 among unpreferred borrowers with fair or poor credit scores, according to TransUnion. (iStock) Personal loans offer fast, lump-sum financing that can be used to consolidate high-interest debt, pay for home renovations, and finance major purchases. At the start of the coronavirus pandemic, personal loans fell sharply […]]]>

Personal loans are expected to grow 11% in 2022 among unpreferred borrowers with fair or poor credit scores, according to TransUnion. (iStock)

Personal loans offer fast, lump-sum financing that can be used to consolidate high-interest debt, pay for home renovations, and finance major purchases. At the start of the coronavirus pandemic, personal loans fell sharply – but they are expected to make a strong comeback in 2022.

According to Consumer credit forecast 2022 from the TransUnion credit bureau. Lenders should increase personal loans to primary borrowers with excellent credit and subprime borrowers with credit scores below 660.

“Lenders are eager for continued growth, including returning to the unpreferred consumer segment,” said Charlie Wise, senior vice president of TransUnion.

Personal loan production will increase in 2022

YOU COULD SEE A LOWER TAX REFUND THIS YEAR, AND THAT’S WHY

Personal loans are expected to exceed pre-pandemic levels, with TransUnion forecasting 20 million loans in 2022. That’s a dramatic increase from 14.2 million loans in 2020.

“This growth will be spurred by an eventual return in demand for credit card consolidation loans as card balances increase,” said Liz Pagel, senior vice president of TransUnion.

Keep reading to learn more about TransUnion’s predictions for the unsecured loan market in 2022, and visit Credible to buy personal loans from multiple lenders at once.

PERSONAL LOAN SETUP FEES: ARE THEY WORTH THE COST?

Personal lenders will again focus on subprime borrowers

Over the past year, the personal loan industry has seen significant growth among borrowers with credit scores between 300 and 660. In the fourth quarter of 2021, personal loans to non-preferred borrowers skyrocketed by 47% over the previous year, according to TransUnion’s Quarterly Credit Industry Outlook Report Q4 2021.

TransUnion expects this trend to continue in 2022 as lenders continue to increase short-term loans to borrowers with subprime credit histories.

“The economy is normalizing and continuing to grow, and these signs of renewed strength encourage lenders not only to focus on lower-risk consumers, but to provide better access to people who may be considered risky. higher credit ratings,” Wise said.

Q4 2021 Personal Loan Growth Trends

WHAT THE NEW FED ECONOMIC POLICY MEANS FOR MORTGAGE RATES

TransUnion expects personal loans to grow 11% for non-preferred borrowers in 2022, slightly lower than the 14% growth expected among preferred consumers. But due to the increase in subprime loans, delinquencies are expected to increase somewhat.

“While the increase in subprime issuance has led to a slight increase in delinquencies, they remain well below pre-pandemic levels, and delinquencies by risk level remain fairly stable,” Pagel said.

This renewed interest in subprime loans will give consumers with fair or poor credit the opportunity to borrow personal loans to pay off higher interest rate debt and finance major expenses. Subprime borrowers with low credit ratings who are considering taking out a personal loan should shop around with multiple lenders to avoid bad loans with high interest rates.

You can browse current personal loan rates in the table below and visit Credible to see your estimated loan terms for free without affecting your credit score.

93% OF LOAN BORROWERS REGRET MAKING THEIR LOANS

Credit card consolidation will drive personal loan growth in 2022

Demand for personal loans remained weak through early 2021 as consumers received stimulus checks and reduced spending. But amid the economic recovery, consumer spending and revolving credit balances continue to rise — and many borrowers will be looking to unsecured loans to pay off their credit card debt.

Revolving credit balances, April 2020 - present

“With consumer spending expected to increase in 2022, TransUnion forecasts predict this could lead to a continued rebound in the consumer loan market, especially as consumers begin to seek unsecured personal loans again to shore up growing balances. of their cards,” the report said.

Unsecured personal loans give borrowers the ability to pay off high-interest credit card debt at a low, fixed rate. While the average credit card interest rate is 16.44%, according to the Federal Reserve, the average rate for a two-year personal loan is at an all-time low of 9.09%.

Average two-year personal loan rate, Federal Reserve

17 BEST PERSONAL LOANS

Personal loans make it easier to pay off revolving credit card balances because they are repaid in fixed monthly installments. Thanks to lower interest rates, well-qualified borrowers could save nearly $2,400 in interest charges by consolidating credit card debt with this type of loan, according to a recent analysis by Credible.

You can learn more about credit card consolidation loans by contacting a knowledgeable loan officer at Credible. You can also use a personal loan repayment calculator to see if this debt repayment strategy is right for you.

CAN YOU USE A PERSONAL LOAN TO PAY OFF YOUR CAR LOAN?

Do you have a financial question, but you don’t know who to contact? Email the Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

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What should you consider when considering getting a payday loan? https://www.sociologyesoscience.com/what-should-you-consider-when-considering-getting-a-payday-loan/ Fri, 21 Jan 2022 10:45:37 +0000 https://www.sociologyesoscience.com/what-should-you-consider-when-considering-getting-a-payday-loan/ Once the loan is accepted by the credit company, the amount is immediately credited to your account. Online payday loans are received simply and in a timely manner. Online payday loans are a fantastic choice for people who have little money to meet their needs. Regardless of the name, these loans are rather short term […]]]>

Once the loan is accepted by the credit company, the amount is immediately credited to your account. Online payday loans are received simply and in a timely manner. Online payday loans are a fantastic choice for people who have little money to meet their needs. Regardless of the name, these loans are rather short term with higher interest rate while people can get anywhere from $50 to $1500. These loans are available without any restriction if used wisely. Online payday loans are a type of advance for lenders in the United States, Great Britain, and other countries where they are in demand and legal.

Potential of payday loans

Online payday loans are exactly the case when the borrower installs some sort of security for the borrowed money. A person can get payday loans online at the best possible price if they apply for it. Usually people choose loans when they are short of money. In line payday loans were designed to create a good borrowing experience and almost everyone is qualified.

Online loans can also be considered an ideal solution if you have a bad credit report, says Dan Carpenter, CEO of MoneyZap.com. Cash loans can be used for whatever money you want. Payday loans are considered an option these days if you want to borrow funds to use on the day. Lenders give you the money you need when needed without the hassle and red tape in the long run, which also allows you to solve financial problems.

Some are much better than others and are one of the best options for getting quick cash. Payday loans without credit checks are difficult compared to the borrower’s salary. In other words, unlike next month’s salary. Instead, seek out the help an MFI can offer. Payday loans provide quick access to cash assistance and meet all demands.

How to get payday loans online?

You can get funding from virtually anywhere in the United States. Completing an online application is all you need to do to get a 12 month loan. Online loans allow you to reach your goals quickly, pay all the bills you need, and get your loan back with reasonable interest rates and coverage periods. Online loans are a great way to get instant funds.

Loans without credit check is a line of credit specially designed for poor lenders to help them with quick financial relief. Make sure you are ready to repay the loan without delay. Online payday loans can be obtained from $100 to $1000. Secured loans, credit checks are not observed in the form of secured and unsecured properties.

Canadian individuals can get a minimum of US$100 for short-term loans with bad credit. However, they cannot get more than 1500 US dollars as this is the maximum limit. People apply for a large number of loans when faced with a very low interest rate. Compared to secured loans, pre-paycheck online loans charge a slightly higher interest rate. Moreover, online payday loans do not need collateral.

What should you know about online payday loans?

There is nothing wrong with borrowing money or taking out payday loans online. Having a well-managed debt is actually an important part of the practice. However, it is common knowledge that a personal loan is difficult to manage because it has very high fees and interest rates. This type of loan is for people already living on paychecks and who may have difficulty repaying the debt in full.

Commissions and interest

The commission for a payday loan can be a percentage of the amount borrowed or a fixed commission depending on the increase in the money borrowed. For example, for a loan of $100, the commission could be $15 with an additional $15 for every $100. The fee is reloaded each time the loan is renewed or renewed if the borrower is unable to repay the loan within a time limit. specified period of time.

Payday loans will also have an annual percentage rate (APR) which depends on many factors and further increases the amount. People who live paycheck to paycheck find it especially difficult. Paying off a payday loan means they don’t have enough money to pay. In this situation, another loan is often taken out with the same fees and the same annual interest rate. Once you enter this cycle, you pay off the payday loan to take another because it becomes extremely difficult to survive until the next paycheck.

Regular fees and short repayment periods

Regular fees, short payment terms, and small payment amounts mean that the cost of getting a payday loan adds up very quickly. This is often mentioned by companies providing employer-sponsored financial advice.

Should I take out a payday loan?

Experts agree that payday loans should be approached with caution. They can solve a short-term financial crisis. But if you can’t pay off your original loan with the money you have left to avoid borrowing another one, they can cause you even bigger problems. However, financial instinct does not outweigh the urgency that many people feel when they are unable to buy basic necessities or pay their bills.

If you need to borrow money and cannot borrow responsibly from family or friends, explore short-term payday loan alternatives first. They offer a small loan from your credit union, bank or small loan company. Be sure to pay attention to the fine print to understand the associated fees and interest rates to ensure this is a smarter option than a payday loan. If a loan is still your only option, choose a loan with the lowest fees and interest rates.

Lenders are required by law to disclose the cost of the loan. Borrow only what you owe and make it less than your salary so you can repay the loan at no extra cost. Ideally, you have enough money left over to pay your next paycheck. So you don’t have to borrow more money to fill the gap. While researching loan options, regardless of your loan or income, beware of apps that promise to lend money fast. Many offer small cash loans for a few days and often don’t have a check. They are a safer and smarter alternative to payday loans.

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What is a quick personal loan and how do I get one? https://www.sociologyesoscience.com/what-is-a-quick-personal-loan-and-how-do-i-get-one/ Thu, 30 Dec 2021 16:30:56 +0000 https://www.sociologyesoscience.com/what-is-a-quick-personal-loan-and-how-do-i-get-one/ [ad_1] Our goal here at Credible Operations, Inc., NMLS number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are ours. Looking for quick cash to cover […]]]>


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Our goal here at Credible Operations, Inc., NMLS number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are ours.

Looking for quick cash to cover a big expense or a financial emergency? Quick personal loans are a useful option to consider. Compare loan rates and terms. (iStock)

Your refrigerator is dying. Your car’s transmission turns off. You need urgent medical attention. Sometimes you have to quickly find the money to cover an expense.

If you face an unexpected bill, you may be able to cover your costs with a quick personal loan. In many cases, you may receive approval the same day you apply. But while quick personal loans can help you overcome a financial emergency, you could end up paying more than you could pay if you can wait a few days to get your money back.

Credible, it’s easy to compare personal loan rates from several lenders.

What is a quick personal loan?

A personal loan is a type of installment loan that you can use for anything from paying an unexpected expense to consolidating higher interest credit card debt. The interest rates for personal loans are generally lower than the interest rates for credit cards. Applying for and approving a personal loan can take several days.

A quick personal loan helps borrowers who need funds quickly, as approval times tend to be shorter. Online lenders are popular providers of quick personal loans. Most online lenders offer a streamlined process for faster approval and funding, all of which can be done without leaving your home.

Although loan approvals are never guaranteed, lenders typically approve quick personal loan applications as long as you meet their requirements. Your chances of getting approved are better when you have a good credit rating, stable income, and low debt ratio.

How fast are we talking?

The standard financing time for most personal loans from a bank or credit union is one to seven business days. Online banks are generally faster and can process and fund your loan within five business days.

But some lenders, such as Avant and LightStream – two credible partner lenders – specialize in providing quick personal loans, with funds deposited into your bank account as quickly as the same day or day after approval.

Lenders to Consider for Quick Personal Loans

Not all personal lenders offer quick personal loans. The following credible partner lenders all offer same day or next business day financing.

Before

  • Funding time: From the next working day (if approved before 4.30 p.m. CT on a weekday)
  • Minimum credit score: 550
  • Minimum income: $ 1,200 per month
  • Loan amounts: $ 2,000 to $ 35,000
  • Loan term (years): 2 to 5

Axos

  • Funding time: Next working day
  • Minimum credit score: 700
  • Minimum income: Do not disclose
  • Loan amounts: $10,000 at $ 50,000
  • Loan term (years): 3 to 6

To discover

  • Funding time: From the working day following acceptance
  • Minimum credit score: 660
  • Minimum income: $ 25,000
  • Loan amounts: $ 2,500 to $ 35,000
  • Loan term (years): 3 to 7

Loan point

  • Funding time: From the next working day
  • Minimum credit score: 580
  • Minimum income: $ 20,000
  • Loan amounts: $ 2,000 to $ 36,500
  • Loan term (years): 2 to 4

LightStream

  • Funding time: From the same working day
  • Minimum credit score: 660
  • Minimum income: Do not disclose
  • Loan amounts: $ 5,000 to $ 100,000
  • Loan term (years): 2 to 7

OneMain Financial

  • Funding time: Same day, but usually requires a visit to a branch
  • Minimum credit score: Nothing
  • Minimum income: Do not disclose
  • Loan amounts: $ 1,500 to $ 20,000
  • Loan term (years): 2 to 5

Universal Credit

  • Funding time: During the day, once approved
  • Minimum credit score: 560
  • Minimum income: Do not disclose
  • Loan amounts: $ 1,000 to $ 50,000
  • Loan term (years): 3 to 5

To improve

  • Funding time: In the day following the clearance of the necessary verifications
  • Minimum credit score: 560
  • Minimum income: Do not disclose
  • Loan amounts: $ 1,000 to $ 50,000
  • Loan term (years): 2 to 7

How Much Can I Borrow With a Quick Personal Loan?

You may be able to obtain a personal loan of a minimum amount of $ 1,000 up to a $ 100,000 maximum, and a loan term ranging from 12 to 84 months. The amount you may be eligible for will depend on many factors including your credit history, credit score, length of loan, amount you are applying for, and other factors.

  • Credit score and history Your credit plays an important role in determining whether a lender will approve you for a loan, the interest rate, and the loan amount. If your credit scores are low or if your credit report has derogatory ratings or late payments, the lender may offset their perceived risk by offering you a lower loan amount and a higher interest rate.
  • Income – Lenders want to see a stable job and income that shows you have sufficient resources to pay back the money you borrow.
  • Debt-to-income ratio (DTI) – Your DTI is the amount of your income that goes to pay off your monthly debt payments. A low DTI demonstrates your ability to pay off the loan with less risk of default. As a general rule, the lower your DTI, the more likely you are to qualify for a loan at the lower rate.
  • Term of the loan – If your loan term is longer, your payments may be lower, making them more manageable, even though you will be paying more interest over the loan term.
  • Amount of the loan – Avoid paying interest whenever possible. For this purpose, only ask for the amount you need to borrow.

Want to see where you stand? To consider prequalification for a loan – without affecting your credit – to determine how much you could borrow and the interest rate you could receive.

How much does a quick personal loan cost?

To illustrate how the terms of a loan, as well as your credit rating, can influence the cost of a loan, consider the following examples:

Pros and Cons of Quick Personal Loans

Quick personal loans can be beneficial if you want to access quick cash to pay for an unforeseen expense. But personal loans also have drawbacks. So, before taking out a quick personal loan, it is important to balance the pros and cons of your unique financial situation.

Advantages

  • Apply online quickly – You can usually complete the loan application within minutes and get a decision immediately.
  • Quick financing – No need to wait weeks or even months to receive the loan funds. You can often receive funds the same day or the next business day after approval.
  • Lower interest rate – With personal loans, you can pay much less interest than you would with other quick cash options, such as payday loans or credit cards.

Disadvantages

  • Original costs – Many online quick loan providers don’t charge a set-up fee, but if a lender charges one, the fee can be anywhere from 1% to 8%. That is why it is so important to shop around and find loans with the most favorable terms and the lowest fees.
  • It might be more expensive than waiting – If you need the money right away, you may be more inclined to rush into a loan offer with less than desirable terms. Even if you are facing a financial emergency, it is a good idea to carefully consider the terms, fees, and obligations of the loan before signing.
  • Higher interest rates – If your credit is poor, you might receive loan offers with interest rates of up to 36%. In this case, it may be worth your while to improve your credit before you apply for a quick loan.

Alternatives to Quick Personal Loans

Quick personal loans are a solid option when you need the funds quickly. But they are not the only option. Here are some alternatives to personal loans to consider:

Payday loans often have a fee equivalent to an annual percentage rate (APR) of 400% or more. Plus, these loans are usually due in full on your next payday, which can be very difficult, especially if you are strapped for cash. The typical auto title loan is around $ 700 with an APR of 300%, according to the Bureau of Consumer Financial Protection. If that is not enough, failure to repay the loan can lead to foreclosure of your vehicle, which happens to 20% of borrowers.

Compare personal loan rates is a matter of minutes when you use Credible to check the rates of several lenders.

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Lend money to the family? Of course if it’s Uncle Sam https://www.sociologyesoscience.com/lend-money-to-the-family-of-course-if-its-uncle-sam/ Mon, 20 Dec 2021 14:38:18 +0000 https://www.sociologyesoscience.com/lend-money-to-the-family-of-course-if-its-uncle-sam/ [ad_1] You’ve gathered all your paperwork and gone through all of TurboTax prompts (not to mention three cups of coffee). With one final click, here’s what you’ve been waiting for – the part that makes blowing an entire Saturday worth it: your official tax refund amount. Maybe that’s enough to pay off the last of […]]]>


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You’ve gathered all your paperwork and gone through all of TurboTax prompts (not to mention three cups of coffee). With one final click, here’s what you’ve been waiting for – the part that makes blowing an entire Saturday worth it: your official tax refund amount.

Maybe that’s enough to pay off the last of your Christmas credit card bills. Maybe you’ll use it to repair the house or finance your family’s summer vacation, or to pay off a large chunk of student loan debt. Awesome, isn’t it?

Well, a lot of personal finance experts will tell you that is stupid – that you have basically given an interest free loan to the government in the last 12 months.

If you had invested that money instead, logically you would have earned interest or even investment gains.

And yes, it is… in theory. But for most of us, that’s not the case.

Fifty-nine percent of all credit card holders currently have a balance on at least one card. Of those who are in debt, 56% have been in debt for at least a year, according to a 2019 CreditCards.com survey. And since the global coronavirus pandemic, 63% said they were living paycheck to paycheck.

If there’s one thing most of us desperately need, it’s someone who forces us to save our money, even if it’s our cranky old Uncle Sam. “On MY day, we saved up on a car and bought it in cash! he howls. And he’s right.

We often lament about disappearance of pension plans, but they were essentially no more than forced savings vehicles, siphoning off a fairly large chunk of an employee’s salary in exchange for a set monthly payment upon retirement. Meanwhile, the shift to “letting us invest this money on our own instead” – the age of 401 (k) and IRA – has led to a nationwide pension crisis.

The lesson is clear: Most of us cannot be trusted to spend our money responsibly, or are simply unable to keep up with stagnant salaries and rapidly growing expenses such as college, health care, and the big monthly bills that didn’t even exist 25 years ago, like smartphone and internet plans.

So don’t let anyone tell you that getting a big refund check from your old Uncle Sam is a bad financial blow. Forcing yourself to save is almost always a good idea.

And with interest rates so low, even if you had Had been diligent enough to put that money into a high yield savings account, you would have earned $ 15 in interest on an average repayment of $ 2,800.

However, you are not completely off the hook. What matters most is what you do with that money now.

What to do with your tax refund

It can be extremely tempting to splurge on yourself when you end up with a check for a thousand dollars or more – and, okay, a good dinner isn’t going to derail your retirement plans. But make sure you do something productive with most of that big check, instead of wasting it on fleeting purchases that you won’t remember in a month.

Here are some great ways to use your tax refund:

Pay off the debt

If you’re swimming in high interest credit card debt or student loans, paying off a large chunk of it all at once will seem like a major victory that can keep you attacking yourself. Plus, it’ll give you immediate leeway by lowering your minimum payments and the amount of interest you owe each month.

Start an emergency fund

It cannot be stressed enough: you need an emergency fund. Unforeseen emergencies can create serious financial and emotional stress, but a good-sized emergency fund, enough to cover three to six months of expenses, can alleviate some of that stress.

Start your emergency fund with a $ 1,000 tax refund. Then automatically add a few more dollars to it every week and don’t stop.

Open or fund a Roth IRA

One of the best ways to save for retirement is to a Roth IRA if your income falls below acceptable limits (which from $ 129,000 for single tax filers and from $ 204,000 for married couples for 2022).

This is because with a Roth, unlike a 401 (k) or a traditional IRA, you can withdraw your contributions as well as any investment gains. completely tax exempt upon retirement. You pay taxes upfront with a Roth, investing after-tax dollars, like your tax refund or one of your net earnings

Planning a vacation

A June poll by American Express Travel found that affluent travelers expect to spend an average of $ 4,790 on luxury travel by 2022. Depending on the amount of your reimbursement – and your family – see if you can plan your entire summer vacation for less than what you received from the IRS. (Don’t worry, you don’t need to take Uncle Sam with you.)

While we never feel bad about our vacation expenses here, there are plenty of ways to lower the cost of a trip so your tax refund will cover it. Try camping some of the time, visiting national parks or other frugal destinations, or collecting credit card reward points.

Buy something that will save you money

While we don’t advocate throwing your refund check on a new flat screen TV or going to the mall, many purchases can save you more money than they cost in the long run. A slow cooker can pay for itself quickly if it means you’re cooking at home more often. A bike to get to work can save you money on gas, parking, and expensive wear and tear on your vehicle.

Start investing

Whether in an IRA or a traditional brokerage account, most mutual funds (even low cost index funds) require an initial deposit of $ 1,000 or $ 3,000, but then allow you to contribute more. small amounts in the future, like $ 100 per month. When it comes to investing, it’s always best to start early, and the average tax refund can get you up and running.

Tackling a Home Renovation Project

Spring and summer are the perfect seasons to take on some neglected home repairs or a big remodeling project, and making smart home improvements is usually a pretty smart investment if you don’t burn yourself out doing it.

Start a down payment for your next car or house

When it comes to buying a car or a home, the more down payment you can make, the less you’ll need to borrow, which means lower monthly payments and often better loan terms. If you are planning to make a large purchase in the next couple of years, start with a specially designated down payment fund.

[This article was originally published on The Simple Dollar in February, 2020. It was updated in November, 2021.]

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Move over Fannie, the non-QM loan is on the fast lane https://www.sociologyesoscience.com/move-over-fannie-the-non-qm-loan-is-on-the-fast-lane/ Fri, 10 Dec 2021 18:08:00 +0000 https://www.sociologyesoscience.com/move-over-fannie-the-non-qm-loan-is-on-the-fast-lane/ [ad_1] In the world of mortgage financing, there is a product line defined by what it is not: an unqualified mortgage (non-QM), a non-senior, agency-less loan, or a loan with alternative documentation. According to Dane Smith, president of Compared to mortgage capital. “We are waiting for the total [private-label] the issuance for 2021 will be […]]]>


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In the world of mortgage financing, there is a product line defined by what it is not: an unqualified mortgage (non-QM), a non-senior, agency-less loan, or a loan with alternative documentation.

According to Dane Smith, president of Compared to mortgage capital.

“We are waiting for the total [private-label] the issuance for 2021 will be around $ 25 billion, ”Smith said, referring to the non-QM private label securitization market. “By 2022, we expect emissions to exceed $ 40 billion.”

Until November of this year, Versus sponsored 10 non-QM private label securitizations valued at over $ 5 billion, according to a review of bond rating reports,

Even if the non-QM private label market reaches $ 40 billion next year, this is still only a fraction of the market’s lending potential. Manish Valecha, head of client solutions at Angel Oak Capital, which is part of the Angel Oak Companies, says the non-QM market “as a percentage of the overall market is around 10% to 12% in a standardized environment” – adding that was the size of the non-QM market in the early 2000s, before the global financial crisis.

“This implies a market size [today] somewhere between $ 175 billion and maybe $ 200 billion, ”he said. “We just see a great opportunity. “

Angel Oak, through its affiliates, originates and securitizes non-QM loans. So far this year, the company has brought to market seven non-QM private label deals valued at nearly $ 2.5 billion, according to bond rating reports.

A technical sheet prepared by Kroll Bond Rating Agency which includes most, but not all, of private label transactions through mid-November of this year shows a total of 68 non-QM securitization transactions involving loan pools valued in total at over $ 21 billion. dollars. This represents an increase from 54 transactions valued at nearly $ 18 billion for all of 2020 – a year disrupted by the emergence of the pandemic.

The universe of non-QM single-family mortgage products is large and difficult to define in a few words, but the definition is important because a large portion of borrowers in this non-QM category represent the heart of the US economy. Within its scope are self-employed people as well as entrepreneurs who buy single-family investment property – and who cannot qualify for a mortgage using traditional documents, such as salary income. As a result, they must rely on alternative documents, including bank statements, assets or, in the case of rental properties, debt service coverage ratios.

“If you look over the past 15 to 20 years, the self-employed portion of the country has increased every year,” said Keith Lind, executive chairman and chairman of Acra loan (formerly known as Maintenance of the citadel). “The pandemic has only accelerated this, with more and more workers self-employed or eager to become entrepreneurs. It’s a huge tail wind [for the non-QM market.]

This sweet spot includes the odd-job economy, which accounts for between 11% and one-third of the U.S. workforce, according to the source of analysis.

Lind says Acra and other non-QM lenders are well positioned to tap this demand and the aftermarket created in its wake. He said Acra did a small securitization of non-QM loans this year, worth around $ 51 million, but next year he said the company was ready to make more deals and “was exploring [its] options in the securitization market.

Non-QM mortgages also go to a tranche of borrowers with credit problems, such as recent bankruptcy or slightly out of range credit scores. Loans can include interest only, 40-year terms, or other creative financing features often designed to lower monthly payments at the start of the mortgage – often with a view to refinancing or selling the property in the short term.

It’s important to note, however, that non-QM (or non-prime) mortgages are not the same as subprime loans, which were high-risk, poorly underwritten loans – often involving little or no documentation – mortgage loans that helped trigger the housing stock market crash some fifteen years ago. Today’s non-QM / non-prime loans are underwritten at much higher credit, income and asset standards and involve a range of buyers beyond people with poor credit – and even these loans must adhere to federal repayment capacity rules. The group of non-privileged borrowers also includes real estate investors, real estate investors, foreign nationals and business owners.

Non-QM mortgages, Lind said, include anything that cannot be guaranteed by a government or an “agency” through Fannie mae, Freddie mac or through another government-backed loan program offered by agencies such as the Federal Housing Administration Where Department of Veterans Affairs. This is a large and growing segment of the mortgage finance market that is expected to grow as rising house prices, changing employment dynamics and rising interest rates push further home. borrowers to get out of the agency’s envelope.

However, some mortgages fall in a gray area outside of the agency space, but also don’t fit perfectly into the non-QM category, such as senior jumbo loans – which otherwise meet to agency lending guidelines, except for their size. Also in this gray area are some mortgages for investment property and second homes to individuals (as opposed to partnerships or legal persons) who qualify for agency guarantees – but have been excluded from a stamp Fannie Mae and Freddie Mac for much of this year due to volume caps since suspended.

In fact, jumbo loan securitizations were the spearhead of the private label market in 2021, with private label transaction volume of $ 44 billion through October of this year, according to one. loan aggregator report. MAXEX. The pace of jumbo loan securitizations in 2021, however, has been driven, to a large extent, by loan refinancing, and rising rates are expected to cool the market in 2022.

“As rates start to rise, the supply of [jumbo] loans will decrease and we will probably see less securitization volume, ”says the MADEX report.

The opposite is the case for the non-QM market, however, given a rising rate environment, in the absence of sharp peaks and volatility, creates opportunities for this market, both in terms of loan origination. and securitizations.

“Think of all mortgage brokers [this year] who didn’t care about non-QMs and are focusing on agency and jumbo products because that’s the fruit at hand, ”Lind said. “Guess what? If the prices go up a bit, they’ll have to find new products to focus on.

Lind added that a “50 or 75 basis point move” upward in rates is starting to push the market away from refinancing jumbo loans and agency loans and towards a greater range of home loan products. purchase, such as non-QM products.

“I think that’s one of the biggest tailwinds, the fact that you will have more brokers focusing on the [non-QM] product, ”Lind said.

However, not all is a tailwind in the market. Smith of Verus Mortgage said, although he believes the outlook for the non-QM market is quite strong for the year ahead, “we see the potential for volatility in the face of the Federal Reservetapers [reduction of bond purchases] and changes in interest rate policy.

“Despite the potential for increased volatility on the horizon,” he added, “we believe the market is mature enough to effectively digest higher emissions and continue to grow.”

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German foreign policy could be Scholz’s biggest puzzle | See https://www.sociologyesoscience.com/german-foreign-policy-could-be-scholzs-biggest-puzzle-see/ Fri, 10 Dec 2021 10:06:05 +0000 https://www.sociologyesoscience.com/german-foreign-policy-could-be-scholzs-biggest-puzzle-see/ [ad_1] The opinions expressed in View articles are solely those of the authors. The new German government is full of contrasts. Composed of a political mix of Social Democrats, Greens and Liberals, it marks a clear break with the increasingly cozy Grand Coalitions of Angela Merkel. However, with former Finance Minister Olaf Scholz now appointed […]]]>


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The opinions expressed in View articles are solely those of the authors.

The new German government is full of contrasts.

Composed of a political mix of Social Democrats, Greens and Liberals, it marks a clear break with the increasingly cozy Grand Coalitions of Angela Merkel. However, with former Finance Minister Olaf Scholz now appointed Federal Chancellor, Germany has continuity at the top.

The government has an ambitious and progressive agenda for Germany which, if successfully implemented, will radically change the country and the European Union along the way.

For only the eighth time since the founding of the EU in 1957, a new German Chancellor has taken office. Olaf Scholz heads the first tripartite coalition to rule Germany as a member state. This shift from two-to-three arrangements in Berlin reflects the same erosion of the great volksparten already seen in many other European countries.

Multi-party coalitions are inherently less stable than governments with only one or two groups, making Scholz’s domestic political power base weaker than that enjoyed by the former German rulers. He is therefore less likely to hold the post of Chancellor for as long as Angela Merkel, for example, and may not acquire the European gravity and the longevity in the office accorded to its predecessors. Scholz will find it difficult to replicate Angela Merkel’s recent political domination in the European Council.

But, at the same time, Scholz, as social democratic leader, enters the Chancellery at a rather favorable moment, while the center-right European People’s Party (EPP), the political formation traditionally preponderant in European politics , is a hollow shell of his former self.

Now derived from national leadership in all major Member States, the EPP is fighting to maintain the control over the EU political process it has enjoyed over the past decades.

Instead, Scholz, along with his socialist colleague Pedro Sánchez in Spain and tax militant leaders in France and Italy, sit at the end of the table in major capitals.

The next 18 months will see key negotiations in Brussels around, among others, reform of fiscal rules (officially, the Stability and Growth Pact), the long-term sustainability of the € 750 billion EU stimulus fund (Next Generation EU) and the huge investment must decarbonise and digitize the entire economy. All of this offers Olaf Scholz a rare opportunity to set the EU’s long-term agenda alongside what appear to be – on paper, at least – like-minded EU leaders.

In addition, Scholz becomes German Chancellor at a time when the EU – as usual – seeks German leadership, although today the challenges facing the bloc are very different from the internal financial and migration crises so common in the country. Merkel era.

Today, Germany and the EU face high external threats from a Increasingly belligerent Russia, a rising China and the United States ever more concerned with mobilizing their political and military resources in Asia. This inventory will require a new kind of political leadership from Scholz and the end of Germany’s long tradition of alleging “historical reasons” for simply focusing on exports and avoiding engagement. in thorny political and military disputes around the world.

Given the very different overall visions within the SPD, a party containing a powerful pro-Russian faction, compared to both the Greens and the FDP, for whom human rights, democracy and environmental issues are at stake. far more important role, dramatic clashes within the coalition over the direction of German foreign policy will be inevitable. Keeping the three parties together on various international crises may prove to be Scholz’s biggest political puzzle as Chancellor.

Nationally, the new German coalition – made up of social democrats, who campaigned mainly on social issues such as minimum wages and higher pensions; the Greens, who pushed for more ambitious climate investments; and liberals, always keen to avoid higher taxes and larger deficits, must transcend traditional cracks in economic policy.

A coalition of traffic lights simply cannot, simply by virtue of its membership, become a traditional free market and liberalized government, nor a government that pursues a conventional desire of the 20th century left for more state intervention.

In contrast, Scholz is to chair an executive that will strengthen the financial and lending capacity of major German state-owned enterprises, such as the KfW development bank, enabling him to leverage public money outside the usual debt brake. Combined with the technical changes in the implementation of the debt brake and its continued suspension during the pandemic era throughout 2022, the cabinet will manage to find the additional resources needed for its ambitious climate goals. , digitization and social policy.

This new funding will not be done in the original austere spirit of the German debt brake and is certain to invite legal challenges to the Constitutional Court. Yet this reflects a new political and economic reality and shows that Olaf Scholz’s Germany has definitely emerged from the Great Recession. The industrial power today has different needs and fiscal capacities to face a European economy which risks falling into a Japanese era of permanent stagnation and low interest rates.

It seems clear that such a national budget about-face in Germany, even if it is legal under the existing debt brake, will at least have some loosening effect on the parallel negotiations around the fiscal rules of the EU. EU.

Perhaps this is what Olaf Scholz wanted in the first place: to change Europe as he changes Germany.

Jacob F. Kirkegaard is Principal Investigator at the Peterson Institute for International Economics (PIIE) and the German Marshall Fund (GMF).

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