01 AugStudy: Families Are Now Less Reliant on Loans for College

The cost of college continues to rise, but for the first time in several years families are starting to rely less on banks and foot more of the bill on their own.

Parents and students paid a combined 42 percent of their school costs this year, up from 40 percent–the first time in three years that that figure has risen, according to a study by financial services company Sallie Mae and market research company Ipsos Public Affairs. Meanwhile, the amount that students and parents borrowed dropped from 27 percent of college costs to 22 percent for the 2013-14 school year–the lowest it has been in five years.

Several factors could be causing this reversal. As the economy rebounds, families bank accounts are likely in better shape, so loans that were necessary to cover gaps a few years ago might not be today. The rising costs of tuition and the fact that more people are going to college might also be playing a role in the change, as families may be saving more in anticipation of college costs.

Of the 42 percent of the tuition that families cover, parents are paying about 30 percent of it, with students are picking up the remaining 12 percent through their own incomes and savings.

01 AugMillion-dollar housing loans surge to record

WASHINGTON — Banks are handing out mortgages of as much as $10 million to the wealthy in record numbers while first-time homebuyers struggle to get loans.

Erin Gorman, managing director at Bank of New York Mellon Corp., said shes fielding more requests for home loans of at least $2 million than ever before. She recently provided a mortgage of more than $6 million for a clients purchase of a second property in Colorado.

These high-net-worth borrowers do act differently than first-time buyers, who borrow because they have to, said Gorman, who serves as the national mortgage sales director. High-net-worth borrowers dont have to borrow. They choose to, so theyre very strategic about what, why, and when they borrow.

Americans from San Francisco to Boston are taking out a record number of mortgages in excess of $1 million while stiff lending standards crimp total loan volume. They are borrowing while mortgage rates are still low rather than liquidate their investments amid a stock market gain of 7 percent this year.

The number of loans from $1 million to $10 million to buy single-family homes in the 100 largest metropolitan areas surged to more than 15,000 in the second quarter, the highest ever, according to property data firm CoreLogic.

At the same time, banks are restricting home loans to first-time buyers who dont have high credit scores. In June, about 28 percent of total existing-home sales involved new buyers compared with an average of 35 percent since October 2008, according to the National Association of Realtors.

Jumbos, or loans of at least $417,000 in most areas, exceed the limit for government-controlled Fannie Mae and Freddie Mac to guarantee. The mortgages are made to the most creditworthy borrowers and are generally held by banks instead of being packaged into securities and sold to investors.

In Southern California, millionaires are boosting demand for the largest loans because of an improving economy and brisk sales of luxury homes gives them confidence in the market, said Mark Cohen, a mortgage broker at lender Cohen Financial Group in Beverly Hills. Cohen, whose average loan has increased to $1 million from $800,000 this year, said he gave a $9.9 million mortgage recently to an executive at a publicly traded company in Brentwood, a neighborhood in Los Angeles where former California Gov. Arnold Schwarzenegger, R, has lived.

Sales of homes costing at least $2 million in 30 of the biggest metropolitan areas during the first half of this year rose to the highest since at least 2006, according to CoreLogic.

Sales of existing homes of $1 million and more increased 8.5 percent in June compared with a year ago, the biggest jump among all price ranges, data from the National Association of Realtors show.

Some borrowers are reluctant to sell part of their portfolios to pay cash for a home as the stock market reaches new highs, said Jim Francis, head of consumer lending at MUFG Union Bank, NA, a subsidiary of Mitsubishi UFJ Financial Group. Many of the banks clients are business owners who would rather put money into their firms instead of using it to pay for a house, he said.

Union Bank originated more than 350 loans of at least $2 million this year, said Francis. Its average loan size is about $900,000.

Interest rates are also driving demand, with borrowers getting mortgages at less than 3.5 percent and expecting rates to rise in coming months. Some customers are opting for the seven-year adjustable-rate mortgage, which as of yesterday was offered at 3.15 percent, over the five-year loan, said BNY Mellons Gorman.

Loan requests at BNY Mellon for at least $2 million increased 30 percent this year compared with 2013.

The average mortgage increased to $1.1 million from $1 million last year, and clients generally put down about 30 percent, Gorman said.

There is the mentality that rates are moving up, said Gorman, whose largest loan this year was $7 million for the refinance of a second home in California.

BNP Paribas SAs Bank of the West is granting jumbo loans to customers with fluctuating income by including other assets in its calculations. In complying with the Dodd-Frank legislations ability to repay requirement, the bank considers assets in retirement accounts and other investments rather than just income, said Cyndee Kendall, a regional sales manager for Northern California. Thats helped the bank grant large loans to self-employed borrowers.

Those who are buying in the super-jumbo space often have more complex financial situations, said Kendall, whose bank received 20 percent more jumbo loan applications in the second quarter compared with the prior year. There are a lot of affluent borrowers with assets who may not have stable income. We still feel comfortable you can justify having the ability to repay by going into the next layers.

Some wealthy homebuyers still prefer to use cash rather than provide lenders with documentation of their assets, said David DeSantis, a Washington-based partner and managing broker at Sothebys International Realty.

Others avoid mortgages because they dont want to lose a bidding war to all-cash buyers, said Elyse Arbour, a real estate agent with Rodeo Realty in Brentwood.

All-cash sales made up 32 percent of existing home transactions in June compared with 31 percent a year ago, according to data from the National Association of Realtors.

Lenders are luring wealthy borrowers to try to build long- term relationships as total home lending slumps amid higher credit standards. Originations are forecast to drop to $267 billion for the three months ended June 30, which would be the lowest in 17 years for the second quarter, according to the Mortgage Bankers Association.

Its important to us because mortgages are very often how we meet a client, said Katherine August-deWilde, president of First Republic Bank, a jumbo lender with locations in California, Oregon, Connecticut, Florida and other states. We generally address pricing if you have a large relationship.

A Bank of the West wealth management client who takes out a $1.5 million loan and keeps $750,000 in a wealth management account is eligible to get half a point off the usual cost for an adjustable-rate mortgage, Bank of the Wests Kendall said.

Customers who have relationships with banks may get access to loan deals that arent advertised, such as borrowing against inherited investment assets rather than income, Sothebys DeSantis said. At BNY Mellon, more clients have been choosing a hybrid loan, which enables them to use two mortgages and get an overall lower blended rate, according to Gorman. Union Bank, Bank of the West and other lenders said they dont have set maximum amounts for mortgages and will consider any request.

Cohen, the Beverly Hills broker, said some of his million-dollar plus borrowers end up paying off their loans before the ARM-term expires.

These mortgages have a short shelf life, Cohen said. Thats just the mentality — move within five years.

01 AugDallas Area Home Loan and Refinance Shoppers are Now Getting Easy …

Dallas Area Home Loan and Refinance Shoppers are Now Getting Easy Approval Bad Credit Home Loans though Complete Home Loans
Residents of the Dallas area are taking advantage of the quick and easy loan approval process from the trusted home lending network.

01 AugBerkshire Bank renames mortgage lending division

PITTSFIELD – Berkshire Bank has renamed its mortgage lending division Berkshire Bank Home Lending. This line of business includes a home lending call center, operations, servicing and a team of mortgage loan originators.

The business line will transition Berkshires current mortgage affiliate, Greenpark Mortgage, into the Berkshire Bank Home Lending brand.

Berkshire has also launched a new consumer lending web site, BerkshireBankHomeLending.com. The site features areas to get pre-approved for a mortgage, apply for a mortgage, and login to check on an applications status. It also includes helpful information on topics including: mortgage application checklists; calculators; glossary of terms; and homeowners insurance.

01 AugK-State expert dissects changes to student loan rules

K-State expert dissects changes to student loan rules

By LINDSEY ELLIOTT
K-State News and Editorial Services

MANHATTAN — Whether youre struggling to pay off student loan debt or considering taking out your first loan for college, a Kansas State University financial counselor says there are many changes to federal loans you need to know about.

Individuals still trying to manage payments on their previous college loans now have another repayment option called the Pay As You Earn program. Jodi Kaus, director of the universitys Powercat Financial Counseling, says this option adjusts the monthly repayment amount based on your discretionary income. But eligibility for this program is limited.

The only borrowers who are eligible for this program are people who have no outstanding loan balances as of Oct. 1, 2007, and who also have a new direct loan obtained after Oct. 1, 2011, Kaus said. It can be a better option than some of the other repayment plans, but its a limited amount of borrowers who are going to be able to benefit. Its a good way to stay in good standing on your loan if youre in a high-debt, low-income situation and you want to make sure youre not ruining your credit by not paying the appropriate amount each month.

Other options are available for those who dont qualify for the Pay As You Earn program include income-based repayment, which adjusts the loan payment based on annual salary. While having a lower monthly payment may make it more manageable, plans involving smaller payments mean it will take longer to pay off the loan, ultimately accruing more interest. Kaus recommends getting back onto the standard repayment plan when it is affordable, unless you are eligible for a loan forgiveness program.

What many students and recent graduates arent aware of is there are loan forgiveness programs for federal loans, Kaus said. One of these programs is the Public Service Loan Forgiveness. If youre working for a nonprofit or government agency and making loan payments on time for 10 years, at the end of the 10 years — which dont have to be consecutive — the remaining balance of your loan is forgiven.

Other forgiveness programs are geared for specific careers such as teaching or based on your location. Kansas offers the Rural Opportunity Zone Program, which pays up to $15,000 of an individuals student loan debt if her or she works in rural counties in the state.

Kaus said its important to make some type of payment on your loans because its a debt that cannot be removed from your credit or removed in bankruptcy. She also said having an idea of your future career and salary is important when considering student loans for college.

Loan calculators like those found at SALT, an online program that helps students manage their money and student loans, or the federal student aid site, https://studentaid.ed.gov/, can help you determine how much your monthly loan repayment would be depending on the amount you take out. But Kaus said to keep in mind that federal student loan details can change annually.

For instance, federal loans issued after July 2015 will have a higher interest rate because the loans are connected to the interest rate on 10-year treasury notes. That means changes in the market can increase the rate. Another change is that graduate students are no longer eligible for federal subsidized loans. Options are now limited to unsubsidized loans or graduate PLUS loans.

All these changes can be confusing, so Kaus warns to watch out for scams involving student loans.

You shouldnt have to pay for any advice or services with your loans, Kaus said. A lot of these scams are promising things that arent available because the federal lenders have to abide by certain rules and regulations. Theres really no way around those rules, so if someones making promises that dont sound legitimate, its not correct.

If you suspect a scam, contact the Consumer Financial Protection Bureau to find out if the company is legitimate, Kaus said and added that the best way to find out about federal loan changes is through your service provider or the governments federal student aid website.

31 JulMillion-dollar US housing loans surge to record

Banks are handing out mortgages of as much as $10 million to the wealthy in record numbers while first-time homebuyers struggle to get loans.

Erin Gorman, managing director at Bank of New York Mellon Corp., said she’s fielding more requests for home loans of at least $2 million than ever before. She recently provided a mortgage of more than $6 million for a client’s purchase of a second property in Colorado.

“These high-net-worth borrowers do act differently than first-time buyers, who borrow because they have to,” said Gorman, who serves as the national mortgage sales director at Bank of New York Mellon’s wealth management group based in Boston. “High-net-worth borrowers don’t have to borrow. They choose to, so they’re very strategic about what, why, and when they borrow.”

Americans from San Francisco to Boston are taking out a record number of mortgages in excess of $1 million while stiff lending standards crimp total loan volume. They are borrowing while mortgage rates are still low rather than liquidate their investments amid a stock market gain of 7 percent this year.

The number of loans from $1 million to $10 million to buy single-family homes in the 100 largest metropolitan areas surged to more than 15,000 in the second quarter, the highest ever, according to property data firm CoreLogic.

At the same time, banks are restricting home loans to first-time buyers who don’t have high credit scores. In June, about 28 percent of total existing-home sales involved new buyers compared with an average of 35 percent since October 2008, according to the National Association of Realtors.

Luxury homes

Jumbos, or loans of at least $417,000 in most areas, exceed the limit for government-controlled Fannie Mae and Freddie Mac to guarantee. The mortgages are made to the most creditworthy borrowers and are generally held by banks instead of being packaged into securities and sold to investors.

In Southern California, millionaires are boosting demand for the largest loans because of an improving economy and brisk sales of luxury homes gives them confidence in the market, said Mark Cohen, a mortgage broker at lender Cohen Financial Group in Beverly Hills. Cohen, whose average loan has increased to $1 million from $800,000 this year, said he gave a $9.9 million mortgage recently to an executive at a publicly traded company in Brentwood, a neighborhood in Los Angeles where former California Gov. Arnold Schwarzenegger has lived.

Sales of homes costing at least $2 million in 30 of the biggest metropolitan areas during the first half of this year rose to the highest since at least 2006, according to CoreLogic. Sales of existing homes of $1 million and more increased 8.5 percent in June compared with a year ago, the biggest jump among all price ranges, data from the National Association of Realtors show.

Low rates

Some borrowers are reluctant to sell part of their portfolios to pay cash for a home as the stock market reaches new highs, said Jim Francis, head of consumer lending at MUFG Union Bank NA, a subsidiary of Mitsubishi UFJ Financial Group Inc. Many of the bank’s clients are business owners who would rather put money into their firms instead of using it to pay for a house, he said.

Union Bank originated more than 350 loans of at least $2 million this year, said Francis. Its average loan size is about $900,000.

Interest rates are also driving demand, with borrowers getting mortgages at less than 3.5 percent and expecting rates to rise in coming months. Some customers are opting for the seven-year adjustable-rate mortgage, which as of yesterday was offered at 3.15 percent, over the five-year loan, said BNY Mellon’s Gorman.

Dodd-Frank

Loan requests at BNY Mellon for at least $2 million increased 30 percent this year compared with 2013. The average mortgage increased to $1.1 million from $1 million last year, and clients generally put down about 30 percent, Gorman said.

“There is the mentality that rates are moving up,” said Gorman, whose largest loan this year was $7 million for the refinance of a second home in California.

BNP Paribas SA’s Bank of the West is granting jumbo loans to customers with fluctuating income by including other assets in its calculations. In complying with the Dodd-Frank legislation’s ability to repay requirement, the bank considers assets in retirement accounts and other investments rather than just income, said Cyndee Kendall, a regional sales manager for Northern California. That’s helped the bank grant large loans to self-employed borrowers.

Special discounts

Lenders are luring wealthy borrowers to try to build long- term relationships as total home lending slumps amid higher credit standards. Originations are forecast to drop to $267 billion for the three months ended June 30, which would be the lowest in 17 years for the second quarter, according to the Mortgage Bankers Association.

“It’s important to us because mortgages are very often how we meet a client,” said Katherine August-deWilde, president of First Republic Bank, a jumbo lender with locations in California, Oregon, Connecticut, Florida and other states. “We generally address pricing if you have a large relationship.”

A Bank of the West wealth management client who takes out a $1.5 million loan and keeps $750,000 in a wealth management account is eligible to get half a point off the usual cost for an adjustable-rate mortgage, Bank of the West’s Kendall said.

Customers who have relationships with banks may get access to loan deals that aren’t advertised, such as borrowing against inherited investment assets rather than income, Sotheby’s DeSantis said. At BNY Mellon, more clients have been choosing a hybrid loan, which enables them to use two mortgages and get an overall lower blended rate, according to Gorman. Union Bank, Bank of the West and other lenders said they don’t have set maximum amounts for mortgages and will consider any request.

Cohen, the Beverly Hills broker, said some of his million-dollar plus borrowers end up paying off their loans before the ARM-term expires.

“These mortgages have a short shelf life,” Cohen said. “That’s just the mentality — move within five years.”

31 JulAustralia more vulnerable to risks than before global financial crisis, OECD …

A senior economist with the Organisation for Economic Co-operation and Development (OECD) has issued a stark warning about the risks still facing the global economy.

Australian-born Adrian Blundell-Wignall, who is based in Paris as the OECDs director of financial and enterprise affairs, says his home country is more vulnerable now than it was when the global financial crisis (GFC) hit.

Dr Blundell-Wignall told an Australian Business Economists event in Sydney about the risks and potential solutions.

First on his list is the continuing growth of emerging economies, which he says now account for 50 per cent of global production.

Dr Blundell-Wignall says currency and capital controls by economies such as China have kept costs down, but the growth cannot continue.

Imagine in the future that the OECD is only 10 per cent of the world economy and the emerging markets are 90 per cent of the world economy, he said.

Is 90 per cent of the world economy going to be able to have export-led growth to 10 per cent of the world economy? Of course not.

So this model cannot continue. The only question you have to ask yourself is, how is this going to change?

Is it going to change by a co-operative solution where they gradually liberalise and adopt the OECD model of how to manage your business?

Or not, in which case theres going to be like a clash of civilisations issue where the markets will have to force the issue, and of course thats going to be a very, very interesting time.Worlds banks taking too much for themselves 

Another factor which Dr Blundell-Wignall says is holding back the recovery from the GFC is bank earnings.

If you go back to 1980 the earnings of the financial sector of the SP 500 companies was less than 10 per cent.

He says the proportion of Wall Street earnings by finance stocks is now more than 30 per cent, having risen above its share when the GFC hit.

The financial sector is supposed to be the sector that intermediates between real savers and real investors. Thats what greases the wheels of capitalism, he said.

Where do we get off thinking that the financial sector can just rip one third of the earnings for themselves?

People want to understand why investment is a problem … theres no inflation and the recovery is very problematic everywhere.

Monetary policy can only do so much and you need an investment cycle to follow. And the investment cycle really isnt following.Australia has been a well-run country

Dr Blundell-Wignall says when the GFC hit he knew Australia was well placed to escape its worst effects.

But he says the inevitable slowing in growth for key economies to Australia such as China is a danger.

He says when the US dollars value begins to rise, that will also pose a risk to commodity prices.

At the moment one of them might be starting, which is the slow-down in Asian emerging markets, which isnt great, he said.

Then the other one will be if the US dollar turns, then wed better hope that this period strength in the Aussie dollar [continues].

Weve been sucked kicking and screaming into this whole, you know, zero rates, quantitative easing world.

Weve been a well-run country. We didnt deserve to have to have such low interest rates, which are now helping push up house prices.

But you get pushed into that, because if you dont then the Aussie dollar goes up even further.Overseas investors could lose confidence quickly

These concerns were echoed by a ratings outlook for the Australian Government issued by Standard Poors yesterday.

While the agency says Australias top notch AAA credit rating is safe for the foreseeable future, it did warn about Australias reliance on China, the banking sectors reliance on foreign borrowing to fund home lending and the risks if the Federal budget deteriorated substantially.

We could lower the ratings if external imbalances were to grow significantly more than we currently expect, either because the terms of trade deteriorates quickly and markedly, or the banking sectors cost of external funding increases sharply, noted SP analyst Craig Michaels in the report.

We could also lower the ratings if significantly weaker than expected budget performance leads to net general government debt rising above 30 per cent of GDP.

Jeremy Lawson, the chief economist with UK based Standard Life which manages nearly half a trillion dollars, says overseas investors are gradually becoming more alert to these risks.

The short term demand for Australian assets could fade very quickly if there were to be a change in interest rates and a shock from abroad, particularly if it was concentrated in China, investors would very, very quickly change their view on the Australian outlook, he warned.

Mr Lawson says Spain provides a cautionary example against Australian complacency, with its public finances in quite a reasonable position until its housing market collapsed, and its banking system required a bailout.

He says Australias risks are not so much internal as stemming from over-reliance on the nations major trading partner.

Theres now a greater awareness to some of the downside risks to the Chinese economy – China is over-leveraged and capital has been misallocated, a lot of that in the sectors that Australia exports a lot of its products to, he said.

So, if China were to experience a significant downturn at some point in the next few years, Australia would be one of the most exposed economies in the world.

31 JulNAB To Sell $1.1 Bln Portfolio Of UK Commercial Real Estate Loans To Cerberus

The deal will help reduce the gross loans balance of the banks UK CRE portfolio by 20 percent to 2.38 billion pounds as at 30 June 2014, and reducing gross impaired loans by 48 percent.

Weve progressively reduced our exposure to UK commercial property loans through organic run-off. This sale represents a substantial de-risking of the non performing portion of the NAB UK CRE portfolio, Incoming CEO Andrew Thorburn said in a statement.

The companys outgoing CEO Cameron Clyne had revealed in May that he has been reducing risk in its business over the past five years. It has reduced exposure to higher risk segments including the UK CRE and parts of Australian business lending, and increased home lending exposure.

As we signaled at the interim results in May we continue to look at opportunities to optimize return on equity by accelerating the sale of non-core assets, Thorburn stated today.

Thorburn added that said a focus on opportunities to accelerate the run-off in the NAB UK CRE portfolio had resulted in this transaction. However, the company continues to face some challenges related to the costs involved during the accelerated divestiture of the UK CRE portfolio.

Thorburn, who has been serving as the managing director and CEO of Bank of New Zealand since October 2008, will take over as the CEO of National Australia Bank effective August 1.

Thorburn has been part of the NAB Group Executive team that developed the Banks successful strategy focusing on building a stronger Australian and NZ franchise.

Cerberus also agreed in December 2013 to acquire a portfolio of UK corporate real estate loans from Britains largest mortgage lender Lloyds Banking Group Plc. (LYG, LLOY.L) 1.032 billion euros in cash, or about 860 million pounds, which comprised non-core European and Nordic loans.

National Australia Bank and other global lenders are in the process of divesting real estate portfolio to boost their cash reserve and to adhere to new regulations.

NABZY closed Fridays trading at $32.80, down $0.08 or 0.49% on a volume of 42,789 shares, while NAUBF closed at $32.38, up $0.04 or 0.12% on a volume of 300 shares.

In Mondays regular trading session, NAB.AX is currently trading on the ASX at A$34.67, up A$0.08 or 0.23% on a volume of 1.57 million shares.

For comments and feedback: contact editorial@rttnews.com

http://www.rttnews.com

31 JulBerkshire Bank Renames Its Mortgage Lending Division

PITTSFIELD, Mass. – Berkshire Bank has renamed its mortgage lending division to Berkshire Bank Home Lending.
The line of business includes a home lending call center, operations, servicing and a team of best in class mortgage loan originators.

This business line will transition Berkshires current mortgage lending affiliate, Greenpark Mortgage, into the Berkshire Bank Home Lending brand.

Along with its new home lending call center and loan servicing operations, Berkshire Bank Home Lending includes more than 90 mortgage loan originators located in offices throughout New England and New York. These offices and teams enable Berkshire Bank Home Lending to have a significant market presence while providing portfolio lending with competitive rates and fees to consumers with hands-on service and fast decision-making.

Included in the business unit roll-out was the launch a new consumer lending web site, BerkshireBankHomeLending.com. The new web site features areas to get pre-approved for a mortgage, apply for a mortgage, and login to check on an applications status. It also includes helpful information on topics including: mortgage application checklists; calculators; glossary of terms; and homeowners insurance.

Berkshire Bank Home Lendings goal is to provide individualized home mortgage solutions because we know no two customers are alike, said Kevin Inkley, senior vice president of retail lending. With our network of local loan originators, competitive pricing, home lending call center and web site, we partner with our customers to keep them informed ensuring the highest-quality service and long-term satisfaction.

Berkshire Bank is the preferred mortgage lender for the Massachusetts Teachers Association, and named among the top ten banks in Massachusetts and Rhode Island for residential mortgage volume by Banker amp; Tradesman in 2013. For more information about Berkshire Bank Home Lending or to connect with a loan originator in your region, call the customer service center at 866-475-4663) or visit BerkshireBankHomeLending.com.

31 JulThe state of GFEBS: Departing PM takes stock

Were there any other challenges that you would point out?

On implementation, just developing that standard solution with that level of complexity — requirements complexity — in the system. So the more complex it is, the more difficult or the more costly that implementation will be, whether it’s configuring your COTS [commercial-off-the-shelf] product or building extensions to the COTS products based on DOD regulation statutes.

And then another one is just keeping pace with the compliance standards. The Federal Financial Management Improvement Act [FFMIA] is really the heart of the requirements for the financial management system and it has about a thousand-plus requirements specified. It’s also referred to as the DFAS Blue Book. Those requirements change periodically; sometimes they change annually. The business enterprise architecture changes, standard financial information structure changes, and there are other compliance changes. Just trying to keep pace with those changes to ensure you continue to maintain an auditable system, and maintain auditable processes is a bit challenging too. And there are other regulations and statutes that require systems to make changes; so in the middle of developing the system, deploying and sustaining the system, you still have to keep pace with changes in our statutes and regulations.

Those are requirements changes. So they require us to either reconfigure this COTS product or make technical changes to the solution. We try to stray from making changes to the core, commercial-off-the-shelf product and we build extensions to that product to be able to execute within our Department of Defense framework. So we want to try to minimize changes to the COTS product as much as possible; so yeah those are requirement changes.

It sounds like quite a juggling act. And of course we’ve all heard the stories about how constant meddling with the requirements leads to out-of-control projects and it sounds like you were able to be resilient with those changes and keep things on track nevertheless. How did you do that?