Tuesday, August 14, 2007

More Foreclosures Due To Mortgage Securitization

Daily Pundit: On June 20th, DP post Mortgage Chickens Roost At Bear Stearns included this passage: Housing and Urban Development Secretary Alphonso Jackson has a message to sub-prime lenders: We need to reach out to African-American, Hispanic and other first-time buyers with better loan concepts, more flexible ...more



JustQuotes: Forget Subprime In San Francisco, But How About Alt-A?


SocketSite: American Home Mortgage Investment Corp. shares sank on Monday after the home loan provider announced "major" writedowns, delayed a dividend and said lenders were demanding it put up more cash. The announcement late Friday evening reflects how liquidity and credit...more



Underwriting Re-discovered


Daily Pundit: IndyMac Bancorp Inc. is joining rival lenders in making “very major changes'’ to loan standards and raising interest rates because of a slump in mortgage securities, an e-mail to the company’s employees said. The market for mortgage bonds has become “very panicked and illiquid,'’ ...more



More Foreclosures Due To Mortgage Securitization


ParaPundit: Read this article by Gretchen Morgenson in the New York Times before you enter into another loan. Renegotiation of mortgage loan terms has gotten harder because loans are sold through and serviced through so many layers that terms can't get modified. And the very innovation that made mortgages so ...more



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posted by TR Loy @ 5:36 PM

Very Scary Things by Paul Krugman

Eschaton: The other part of the housing/mortgage meltdown is coming out - when your loans are bundled up and resold there's no one to negotiate with. In 2003, Dianne Brimmage refinanced the mortgage on her home in Alton, Ill., to consolidate her car and medical bills. Now, struggling with a much higher interest ...more



Notice to Loan Officers/Brokers


The Big Picture: The following comes from a major U.S. mortgage writer. It is typical of what has been going on in the mortgage business over the past few days: As you are probably aware, the mortgage industry is going through a major disruption. In response to these market conditions and to enable ******* to continue ...more



Roundup: Financial Market Freakout


Blogs of War: Forbes Don’t go on that vacation just yet. Evidence that U.S. subprime mortgage debt woes have spread to Europe has rattled investors, who dumped shares of major banks and brokers. MarketWatch In the past two weeks, another 13 corporate loan or bond deals have been postponed or reduced, representing ...more



Very Scary Things by Paul Krugman


The Village News: ***When liquidity dries up,
as I said, it can produce a chain reaction of defaults. Financial institution A can't sell its mortgage-backed securities, so it can't raise enough cash to make the payment it owes to institution B, which then doesn't have the cash to pay institution C - and those who ...more



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posted by TR Loy @ 5:36 PM