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Comments on Dell's decision to set up a special-purpose entity that will profit by packaging and selling one-quarter of the loans or leases originated at Dell Financial. How Dell's foray into financing is another example of its quest for profit growth; Views of analysts, including Toni Sacconaghi at Sanford C. Bernstein; Risks that captive financing units present to nonfinance companies; Why aggressive consumer lending can be perilous; Experience of Gateway Inc., which used a finance program to mask declining product sales; Outlook for Dell's financial business.

EARLY last year, Fannie Mae began offering a surprising option for struggling homeowners: an unsecured personal loan of up to $15,000 to cover missed mortgage payments. But vast numbers of borrowers who took out these loans ultimately defaulted. And though still in operation, that program, called HomeSaver Advance, is now being de-emphasized. [ABSTRACT FROM PUBLISHER]

Reports that Citigroup has stopped doing business with some independent loan brokers at its Associates Home Equity Services unit, citing ethical and legal concerns. Citigroup's acquisition of Associates First Capital; How Associates First Capital has been denounced for predatory lending practices; Attempts of Citigroup to improve the lending practices of the consumer loan unit; Response of consumer advocacy groups.