Thursday, September 24, 2009
Housing Crash to Resume on 7 Million Foreclosures, Amherst Says - Bloomberg.com
The crash in U.S. home prices will probably resume because about 7 million properties that are likely to be seized by lenders have yet to hit the market.
Tuesday, September 22, 2009
Monday, September 21, 2009
Housing: "Facing a triple whammy" at end of Year
"We could be facing a triple whammy at the end of the year: the expiration of the tax credit, the end of the Fed mortgage-buying program and rising foreclosures."
Thomas Lawler, housing economist
Unable To Sell Homes, Brokers Turn To Arson
A California couple was so dependent on the housing market that, facing economic ruin after they lost virtually all of their property wealth when the economy tanked, they allegedly burned down their own home for insurance money.
Sunday, September 20, 2009
Conditions build for another meltdown
excerpt:
One year after the demise of Lehman Brothers Holdings Inc. paralyzed the financial system, "mega-banks," as Fine's group calls them, are as interconnected and inscrutable as ever. The Obama administration's plan for a regulatory overhaul wouldn't force them to shrink or simplify their structure.
"We could have another Lehman Monday," Niall Ferguson, author of the 2008 book "The Ascent of Money" and a professor of history at Harvard University in Cambridge, Mass., said in an interview. "The system is essentially unchanged, except that post-Lehman, the survivors have 'too big to fail' tattooed on their chests."
"We could have another Lehman Monday," Niall Ferguson, author of the 2008 book "The Ascent of Money" and a professor of history at Harvard University in Cambridge, Mass., said in an interview. "The system is essentially unchanged, except that post-Lehman, the survivors have 'too big to fail' tattooed on their chests."
More proof that banks are kicking the can down the road.
Voltron says: 62% of the foreclosures in Nevada are "postponed" . . . what are they waiting for?
Mortgage mod rules favor Wells Fargo
Voltron says: Normally when a house goes into foreclosure, any second mortgage gets wiped out. There has been a lot of contention about what happens to a second mortgage when a mortgage gets modified. Wells Fargo has a huge exposure to home equity loans (second liens).
excerpt:
"BlackRock Inc. Chairman Laurence Fink said Obama administration programs to help homeowners stave off foreclosure may hinder the recovery of the mortgage market while benefiting banks that own second loans on the properties.""Fink said policies introduced this year to reduce foreclosures are flawed because they don’t require home-equity loans to be wiped out before the mortgage is modified. Instead, in a break with the intentions of contracts, the second loan’s terms may also be revised, spreading the financial loss among lenders, he said.""One concern is that many servicers, which handle billing and collection for mortgage owners, also hold home-equity loans that would lose all value in a foreclosure."...aid for consumers whose debt is greater than the value of their homes is being blocked because other loan changes allow second mortgages to be kept “on the books of the financial institution as a performing asset”“If you really want to protect the homeowner, wipe out the second lien, modify the first lien,” Fink said.
$30 billion home loan time bomb set for 2010
Next year, many option ARM payments will begin to readjust, slamming borrowers with dramatically higher monthly mortgage bills. Analysts say that could unleash the next big wave of foreclosures
Saturday, September 19, 2009
Strategic Default Data Suggests Foreclosure Prevention Tactics Useless
An interesting report in the Los Angeles Times shows that a person with super-prime credit scores is more likely to walk away from an underwater mortgage than a person with a subprime credit rating.
Suit Alleges Trusted Blacks Drew Minorities to High-Rate Loans
Voltron says: This Wells Fargo story won't go away.
http://washingtonindependent.com/59633/suit-alleges-trusted-black-figures-drew-minorities-to-high-rate-loans
http://washingtonindependent.com/59633/suit-alleges-trusted-black-figures-drew-minorities-to-high-rate-loans
Friday, September 18, 2009
Moody's bearish on housing recovery
Analysts say it will take more than 10 years to recapture peak home prices
Voltron says: Of course Moody's is wrong about this, like they are always wrong about everything. I expect that the government will try to paper it over with inflation; however, it's interesting that Moody's is admitting that there is a problem looming. Of course they probably won't change the rosy forecasts they use to rate mortgage pools.
Thursday, September 17, 2009
Subscribe to:
Posts (Atom)
