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Category Archives: Mortgages

There’s No Shame in Renting, Home Prices Will Fall

Homeguide123.com is a great site IMO.  I love the easy to understand information about home buying and the mortgage market in general.

I particularly like the article above.  As I think the mortgage failout will last another 18, I will continue to rent.  The aritcle above describes how there is no shame in this game.

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How Missed Signs Contributed to a Mortgage Meltdown – New York Times

I worked at a wholesale lender from 2004 to 2006.  The prevalence of no doc and low documentation loans always surprised me.  I remember telling a b-school colleague who worked for Bain back in 2005 how bad it was going to be when all the ARMs and teaser rates reset.

It’s called “payment shock” when a borrower’s payment all of a sudden doubles and it is a consideration in the loan underwriting process.  However when a borrower and broker is applying for a low doc/no doc/liar loan, the income is usually inflated, the reserves sitting in the bank have been borrowed and recently seasoned.  It was really a lot of gaming the underwriting guidelines.  The broker’s knew what they could get a way with, bad deals were made and now we are reaping the results as uncertainty hits global markets.

Fed Feels Pressure to Protect Consumers (Wall Street Journal)
State Regulators Offer Guidance on Mortgages (American Banker)
First Rung on Property Ladder Gets Harder to Reach (USA Today)
Loan Spree to Come Back Against Small Banks (Wall Street Journal)
Lender Courting ‘Green’ Clients (Sacramento Bee (Calif.))
Countrywide Warns Defaults Rising (Investor’s Business Daily)
Subprime Lender NovaStar Gets $150 Mln Infusion (Reuters)
Finance: Alliance Bancorp (Investor’s Business Daily)
Congressmen Push for Disaster Insurance (Palm Beach Post (Fla.))

U.S. to China: Buy Mortgage Debt (Investor’s Business Daily)
U.S. Real Estate Going Global (Inman News)
GSEs Detail Purchasing Plans (American Banker)
Missouri Title Insurance Law to Aid Consumers (St. Louis Post-Dispatch)
Can REITs Tower Again? (Wall Street Journal)

Fitch May Downgrade Bonds Tied to Subprime Mortgages (New York Times)
House GOP Legislation Would License Mortgage Lenders (Delaware News Journal)
Panel OKs Loan, Real Estate Bill (American Banker)
General Electric to Sell WMC Mortgage, A Subprime Loan Unit (New York Times)
Countrywide Sued in Race Bias Case (Los Angeles Times)
Mortgage Rate Rose in Week (Wall Street Journal)
Probe Sought of New Century-KPMG Dealings (Washington Post)
Time to Collect From Ameriquest (Washington Post)

Strong Mortgage Data Draw Some Skeptics (Wall Street Journal)
Pipeline: Reverse Revolution? (American Banker)
New HUD Unit to Oversee Lending (Washington Post)
Lenders Targeted by NAACP Lawsuit (Cincinnati Enquirer)
Fed, Treasury Officials Say Subprime Losses Not a Risk (Worcester Telegram & Gazette (MA))
Fitch Sees Rising Shakiness in Commercial Mortgage Arena (Wall Street Journal)
NAR Cuts ’07 Housing Forecast (Investor’s Business Daily)
New Cash Idea for Homeowners (Christian Science Monitor)
2,200 to Get Reprieves on Foreclosures (Boston Globe)

Subprime Loans Re-Evaluated (Raleigh News & Observer (NC))
Housing Woes Hurt Retailers, Builders and Credit Markets (Investor’s Business Daily)
Thrift Regulator May Ban ‘Unfair’ Lending Practices (Wall Street Journal)
Study Finds Bias in Lending (Washington Post)
ABA Fights Real Estate Brokerage Ban (American Banker)
State to Refinance Troubled Mortgages (Boston Globe)
Fed Chairman’s Talk Further Dims Hope for a Rate Cut (New York Times)
REIT Returns End Seven-Year Climb (Wall Street Journal)

Why Applications’ Value as Yardstick May Be Shifting (American Banker)
HUD & GAO Argue Over FHA Policy (National Mortgage News)
Increasing Rate of Foreclosures Upsets Atlanta (New York Times)
Housing’s New Risks for the Economy (BusinessWeek)
A Little Help, Please (Wall Street Journal)
NAR ‘Legal Scan’ Highlights Agency and RESPA Issues (Realty Times)
Betting on a Building Boom (Investor’s Business Daily)

Sales of Existing Homes Fall to Lowest Level in 4 Years (New York Times)
Fannie’s Portfolio Grew 14 Percent in May (American Banker Online)
US Subprime Problems Largely Contained–Freddie Mac (Reuters)
Stocks Give Up Early Gains as Subprime Concern Grows (Wall Street Journal)
Legislative Briefing: Mortgage Fraud (Raleigh News & Observer (NC))
Guaranty Title Under Investigation (News-Leader)
IndyMac Starts Latino Niche Wholesale Group (National Mortgage News)

Mortgage Fraud Climbs 30 Percent (Inman News)
Reed Offers Bill to Block Foreclosures (American Banker)
Builders’ Permit Requests Tumble (Washington Post)
Changes Planned for FICO Method (Los Angeles Times)
Global Coalition to Make Buildings Energy-Efficient (New York Times)
New Bid for New Century (New York Post)
Fannie, Freddie Step Up PAC Donations (Washington Post)
New Database Targets Homeowners (DM News)