Wal-Mart's Banking Dream Rains on Others Parade

Bentonville, Ariz.-based Wal-Mart Stores Inc. is ruining it for everybody, according to The Wall Street Journal. The retail giant caused a six-month ban on approvals of industrial loan corporations, hurting other companies such as The Home Depot Inc., General Motors Corp., and BlueCross BlueShield Association.

An ILC approval would give nonfinancial businesses the right to offer loans to their customers and process financial transactions, such as credit card or personal check sales.

Wal-Mart’s application caused a stir with critics suggesting the retailer will use this as an entrance into retail banking — a fear for competing retail and community banks.

The six-month delay has also caused Omaha, Neb.-based Berkshire Hathaway Inc and Pasadena, Calif.-based Wescom Credit Union to pull their ILC applications.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.