Register or Sign in        Email This Page     Link To This Page    
Visit MND at MBA in NYC!
1,270
# of Questions
Select a Date
Use the calendar to view news headlines from a specific date.
Today  |  Yesterday  |  Random
Bottom Right Default
State Name:
State Name underscore:
State Name dash:
State Name lower underscore:
State Name lower dash:
State Name lower:
State Abbreviation:
State Abbreviation Lower:
Suggest a Story
Paste the URL of the story below to submit for editorial review and possible inclusion in ATW.
Please add 1 and 4 and type the answer here:
Leave this field blank.
What is Around the Web?
It is a continuously updated stream of news from around the web
Visit throughout the day for the latest breaking news.
» Click any link below to read more.
  • Mon, Sep 8 2008
  • 1:10 PM » TransUnion: Mortgage Delinquencies Rise Nine Percent, Will Fall in 2009
    Published Mon, Sep 08 2008 1:10 PM by www.thetruthaboutmortgage.com
    The rate of mortgage delinquency increased more than nine percent from the first to second quarter, rising to a national average high of 3.53 percent, according to credit bureau TransUnion. The delinquency rate, which includes borrowers 60 days or more past due, is up from the previous quarter’s 3.23 percent average and about 51 percent higher [...]
    Click Here to Read the Full Article

    Source: www.thetruthaboutmortgage.com
  • 1:09 PM » Option Arm Loans Being Phased Out by Regulators
    Published Mon, Sep 08 2008 1:09 PM by www.thetruthaboutmortgage.com
    Downey Savings and BankUnited, both prominent option arm lenders, saw their share prices plunge as the Office of Thrift Supervision told them to clean up their act. In separate notifications received late Friday, both banks were told their regulatory capital status had been reclassified to “adequately capitalized” from “well capitalized”. As a result, both banks are subject [...]
    Click Here to Read the Full Article

    Source: www.thetruthaboutmortgage.com
  • 11:26 AM » Asking for a Housing Bailout
    Published Mon, Sep 08 2008 11:26 AM by Seeking Alpha
    submits: File under "strange bedfellows": Over the weekend, both the of London and published desperate calls for the government to intervene to prop up the housing market. The Observer's is the one with the weakest logic:
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 11:10 AM » Number of Troubled Borrowers On Rise, TransUnion Says
    Published Mon, Sep 08 2008 11:10 AM by feeds.feedburner.com
    The percentage of borrowers 60 or more days behind on their mortgage increased for the sixth straight quarter, hitting a national average high of 3.53 percent in Q2, TransUnion said on Monday. That’s up more than nine percent from the previous quarter’s reading of 3.23 percent average, and up approximately 51 percent from the same [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 10:55 AM » Downey Gets Cease-and-Desist from OTS
    Published Mon, Sep 08 2008 10:55 AM by feeds.feedburner.com
    Troubles are continuing to mount at Newport Beach, Calif.-baed Downey Financial Corp. (DSL: 2.412 -22.19%), with the Office of Thrift Supervision issuing a cease-and-desist order that is regulators latest attempt to put the screws to the troubled option ARM specialist. A press release put out by the bank Friday didn’t refer to the order, but a [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 10:55 AM » Fannie and Freddie Shares Plummet Amid Takeover
    Published Mon, Sep 08 2008 10:55 AM by www.thetruthaboutmortgage.com
    As financial stocks enjoyed a broad rally Monday morning, shares of Fannie Mae and Freddie Mac plummeted. Yesterday morning, the Treasury formally announced the takeover of the two ailing mortgage giants, effectively wiping out common shareholders (and preferred) in the process. Under the terms of the takeover, the Treasury has enacted a four-part plan aimed at aiding [...]
    Click Here to Read the Full Article

    Source: www.thetruthaboutmortgage.com
  • 10:45 AM » Fannie, Freddie Bailout Necessary, But Not Enough
    Published Mon, Sep 08 2008 10:45 AM by www.minyanville.com
    First my apologies to all regarding Fannie Mae (FNM) and Freddie Mac (FRE) preferreds. I called it wrong. They weren't saved. But in trying to learn from my mistakes I would offer that regulators clearly knew who held them within the banking system and concluded that the holders -- unlike the subordinated debt -- weren't sufficiently entwined (nor the individual holdings material enough) to be significant.I would however add that I think regulators are sending an important message to investors: Given the increasing size of the problem more and more classes of security holders will be hurt. For bank investors ...
    Click Here to Read the Full Article

    Source: www.minyanville.com
  • 10:45 AM » Struggling Zillow + Failing Newspapers = ???
    Published Mon, Sep 08 2008 10:45 AM by www.bloodhoundrealty.com
    There was an interesting article just published in . (HT to for sending me this via email this morning) It describes the new real estate advertising deal between 282 newspapers and Zillow. Rather than offer my opinion(s) on this up front, I’d like to have Bloodhound Blog Readers take the time to read it and offer THEIR take in the comments section….here’s your chance to analyze today’s real estate news! (grin). Let me ask some questions to get the party started! Will this change SIGNIFICANTLY change the fortunes for either Zillow or the 282 papers? Will this add the local traffic that they are starving for? Which entity will get the “better end of the stick” in this deal? Is it really REALTORS vs everyone else in the battle for eyeballs? Will it be a saving move for both entities as they push for more traffic? OR is it rearranging deck chairs on the Titanic? Bonus research question: Is your location impacted by this deal? Ok, folks…if you have been longing to throw your views out there for a while and have not done so, here’s your chance! What say you? ( I will offer my opinion in the comments section after the conversation’s in full gear!) Copyright © 2008 . This Feed is for personal non-commercial use only. If you are not reading this material in your news aggregator, the site you are looking at is guilty of copyright infringement. Please contact legal@www.bloodhoundrealty.com so we can take legal action immediately. by
    Click Here to Read the Full Article

    Source: www.bloodhoundrealty.com
  • 10:45 AM » Building industry fighting retroactive code changes
    Published Mon, Sep 08 2008 10:45 AM by feeds.bizjournals.com
    With the D.C. Council reconvening Sept. 16, the apartment and building lobbies are gearing up a last-minute effort to derail what it calls costly retroactive changes to the building code.
    Click Here to Read the Full Article

    Source: feeds.bizjournals.com
  • 10:45 AM » How to keep tabs on your building’s aging condition
    Published Mon, Sep 08 2008 10:45 AM by feeds.bizjournals.com
    In the U.S. we are conditioned to assume that real estate appreciates. We figure that if we can get it built, our troubles are over, and appreciation will carry us into a valuable real estate future. Facility professionals tell us otherwise. Physical depreciation is real, and as any auto owner knows, everything wears out, usually quicker than we think.
    Click Here to Read the Full Article

    Source: feeds.bizjournals.com
  • 10:45 AM » The Fannie/Freddie Nationalization: Conservatives Acting Like Socialists
    Published Mon, Sep 08 2008 10:45 AM by Seeking Alpha
    submits: Gosh, boys, we truly must be in a mess of epic proportions. Sometimes it pays to watch CNBC, even if it is only to preserve my humor at a time when we see daily exemptions from hailed free market principles for troubled financial enterprises. Only 2 hours after star investor Jim Rogers reminded viewers that the government's nationalization of Fannie Mae (FNM) and Freddie Mac (FRE) potentially doubled US public debt overnight, US Treasury Secretary Henry Paulson sat in CNBC's studio to calm investors, repeating his statements from the weekend. You can guess the official stance: Taxpayers will be protected, the housing market will stabilize etc. Oh, and he also said, "this is not something we wanted to do." He was followed by the world's best investor and richest man, Warren Buffett, who said the Treasury's plan to inject $200 billion into the two companies was the best that could be done. Freddie Mac shares are coming from a 52-week high at $65.88 and were being quoted at $1.50/70 in pre market hours Monday.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 10:39 AM » Poole: GSE Bailout is "Stopgap", Expects Up to $300 Billion of Losses
    Published Mon, Sep 08 2008 10:39 AM by feeds.feedburner.com
    It will be interesting to see if this dose of cold water from former Fed governor William Poole will take any sizzle out of the forceful equity rally (the Nikkei is up 425 points as of this writing, and US stock futures say the US markets will also show an impressive move up). From : ``Some of this is a stopgap to try to prevent the mortgage market from falling apart,'' former Federal Reserve Bank of St. Louis President William Poole said on Bloomberg Radio. The federally chartered, shareholder-owned structure, with risks covered by taxpayers, is ``an unacceptable situation,'' he said, projecting the Treasury may need to cover as much as $300 billion of losses.. Bloomberg is running the Poole comment in its headline, so it will catch the eye of traders. The rest of the piece featured mainly positive reactions from the usual suspects. For instance: ``This action should lead to an increased availability of mortgage financing, which will help achieve stability in housing,'' Bank of America Corp. Chief Executive Officer Kenneth Lewis, said in e-mailed remarks... ``Paulson has threaded the needle just right by taking necessary action to stabilize U.S. financial markets while minimizing the liability for taxpayers,'' Schumer of New York, who heads the congressional Joint Economic Committee, said in a statement. ``This plan will be met with broad acceptance in Congress because it doesn't prejudge the ultimate fate of Fannie Mae and Freddie Mac.''
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 10:39 AM » Freddie, Fannie Notable Comments (Mainly Not Pretty)
    Published Mon, Sep 08 2008 10:39 AM by feeds.feedburner.com
    Not only is the commentary in the blogosphere on the Freddie and Fannie bailout program pretty skeptical, but even some normally staid MSM commentators have an eyebrow cocked. There is a from Barry Ritholtz. This post serves a different purpose and serves up some choice bits: Mohamed El Erian of Pimco, who ought to be delighted, instead : Unlike New Orleans, the levees of the global economy have broken, one after another. Also unlike New Orleans, a significant part of the global economy still lies in the path of this hurricane... First, the success of the action depends partly on whether it “crowds in” capital from both domestic and foreign sources....the US government is already running a growing fiscal deficit and the country as a whole has a current account deficit, its balance sheet must be supported by other capital inflows, especially on the part of foreign holders of US debt who have become increasingly skittish in recent weeks. Second, the action must be part of a broader policy response that has both a domestic and international dimension. In this regard I have been impressed by the repeated observations of officials from countries that previously experienced the brutality of deleveraging hurricanes, particularly in Asia in 1997-98. Noting the piecemeal nature of US policies in the past year, they stress the importance of a holistic response from the authorities, including meaningful co-ordination of an often-diffused domestic policy apparatus and explicit, timely and targeted international support. This means, at the minimum, alleviating the housing problem in other stretched jurisdictions. From at the New York Times: Who could have forecast that it would be under the Bush administration, which talked about restraining the growth of these behemoths, that they came to totally dominate the mortgage markets? Now the administration wants to have it both ways in that area as well. Fannie and Freddie are ordered to start shrinking — in 2010, after a new president...
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 10:39 AM » Comparing Fannie to Bear
    Published Mon, Sep 08 2008 10:39 AM by The Big Picture
    Interesting video discussion by John Authers of the FT: click for video: via FT, September 8 2008,
    Click Here to Read the Full Article

    Source: The Big Picture
  • 10:39 AM » Just one question on the Fannie and Freddie bailout
    Published Mon, Sep 08 2008 10:39 AM by themessthatgreenspanmade.blogspot.com
    The financial news media is all over today's nationalization of mortgage giants Fannie Mae and Freddie Mac by the U.S. government. Here's a list of links with enough reading material to keep anyone busy until sometime around mid-week: - Treasury Department - Federal Reserve - New York Times - Washington Post - Bloomberg - MarketWatch - AP - Reuters - The Big Picture There's just one question that comes to mind. One of the terms of the agreement stipulates that each GSE will receive up to $100 billion from the Treasury Department (at least, that's the ceiling for now) in return for preferred stock as needed in order for the mortgage giants to remain solvent. In an apparent effort to make it look like this takeover isn't going to cost the taxpayer a tidy sum over the next couple years, the GSEs are required to pay the Treasury a 10 percent annual dividend on this preferred stock once issued. Given the way things are going these days, these dividend payments could add up over time - after all, ten percent of half the current $100 billion ceiling would be $5 billion. Can the GSEs just sell more stock to the Treasury in order to make these payments? If so, that would be a sweet deal.
    Click Here to Read the Full Article

    Source: themessthatgreenspanmade.blogspot.com
  • 10:39 AM » WaMu names Alan Fishman as new CEO
    Published Mon, Sep 08 2008 10:39 AM by www.ft.com
    Washington Mutual, the giant US savings and loan hammered by mortgage losses, named veteran banker Alan Fishman as its new chief executive, succeeding the embattled Kerry Killinger, who agreed to retire.
  • 10:39 AM » Financial Stocks: Financial stocks surge after Treasury steps in
    Published Mon, Sep 08 2008 10:39 AM by Market Watch
    Shares of U.S. financial stocks rally strongly, leading the broader equities market higher, in reaction to the government's weekend move to take control of mortgage giants Fannie Mae and Freddie Mac.
  • 10:39 AM » Smoke yet to clear after Fannie, Freddie bazooka blast
    Published Mon, Sep 08 2008 10:39 AM by Market Watch
    U.S. Treasury Secretary Hank Paulson’s Sunday announcement of a massive bailout of troubled mortgage giants Fannie Mae (TICKER:FNM) and Freddie Mac (TICKER:FRE) lifted some of the gloom hanging over world financial markets, but creates new questions of its own, strategists and economists said.
  • 10:39 AM » Focus on Recession, Not Credit Crisis
    Published Mon, Sep 08 2008 10:39 AM by www.minyanville.com
    Editor's Note: The below is reprinted with Mike O'Rourke's gracious permission from Bedtime with BTIG. Mr. O'Rourke is the BTIG Chief Market Strategist.Someone in Washington has finally designed an intervention meant to reduce systemic risk. During every instance of market malaise over the past year Washington has administered a remedy in which 90% of the spoon was filled with sugar and only 10% was actual medicine. Secretary Paulson's latest plan to support the GSEs is akin to a dose that's 70% medicine and 30% sugar. Let's just begin by reiterating what everyone knew: The government was going to backstop ...
    Click Here to Read the Full Article

    Source: www.minyanville.com
  • 10:39 AM » Treasury's Double Jeopardy
    Published Mon, Sep 08 2008 10:39 AM by www.minyanville.com
    “I’ll take GSE’s for $200b Alex”“It screwed everyone involved including those who had no desire to get involved... but had no choice in the matter“"What is the Treasury’s GSE’s black-hole-from-hell conservatorship plan?”“Correct... you are our new champion!”I won’t be looking for that question on any soon-to-run Jeopardy episodes but the obscenity announced this weekend by Hank Paulson & Co. regarding -- Fannie Mae (FNM) and Freddie Mac (FRE) -- resets the bar in the art of throwing other people’s money down the rabbit hole and will certainly be worthy of future financial Trivia. The lowlights can be summed up as a $200 billion ...
    Click Here to Read the Full Article

    Source: www.minyanville.com
  • 10:39 AM » BankUnited Sees Regulatory Capital Status Downgraded
    Published Mon, Sep 08 2008 10:39 AM by feeds.feedburner.com
    The Office of Thrift Supervision has certainly been busy recently — after pushing out an MOU to Washington Mutual (WM: 4.30 +0.70%) over its risk management practices, Florida-based BankUnited Financial Corp. (BKUNA: 1.03 -13.45%) said Friday that it received notification that the OTS had reclassified the bank’s regulatory capital status from well-capitalized to adequately capitalized. [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 10:34 AM » Paulson Rolls The Dice At Taxpayer Expense
    Published Mon, Sep 08 2008 10:34 AM by feeds.feedburner.com
    The GSE deal has been announced. Here is the . The title of the statement suggests two things. 1. This agreement will not reduce risk on the financial markets 2. This agreement will not protect the taxpayer Let's take a look at excerpts to see how long it takes to verify that cynicism. To promote stability in the secondary mortgage market and lower the cost of funding, the GSEs will modestly increase their MBS portfolios through the end of 2009. Then, to address systemic risk, in 2010 their portfolios will begin to be gradually reduced at the rate of 10 percent per year, largely through natural run off, eventually stabilizing at a lower, less risky size. My Comment : That statement clearly spells out that increasing systemic risk will be ignored at a "modest rate" through the end of 2009. Then, assuming one believes the second statement (I don't) the portfolios will be reduced at a rate of 10% a year starting in 2010. This implies banks will be in condition to start taking over where GSEs left off in 2010. I doubt it. Treasury and FHFA have established Preferred Stock Purchase Agreements, contractual agreements between the Treasury and the conserved entities. Under these agreements, Treasury will ensure that each company maintains a positive net worth. My Comment : In theory this is a bottomless sinkhole, especially in light of the fact that systemic risk will be increasing over the next 16 months (and probably beyond that). This commitment will eliminate any mandatory triggering of receivership and will ensure that the conserved entities have the ability to fulfill their financial obligations. It is more efficient than a one-time equity injection, because it will be used only as needed and on terms that Treasury has set. With this agreement, Treasury receives senior preferred equity shares and warrants that protect taxpayers. These Preferred Stock Purchase Agreements were made necessary by the ambiguities in the GSE Congressional charters, which have...
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 10:34 AM » GSEs and Other Financial Institutions Overstate Capital Base
    Published Mon, Sep 08 2008 10:34 AM by feeds.feedburner.com
    In an easily believable story the New York Times is reporting . The government’s planned takeover of Fannie Mae and Freddie Mac, expected to be announced on Sunday, came together after advisers poring over the companies’ books for the Treasury Department concluded that Freddie’s accounting methods had overstated its capital cushion, according to regulatory officials briefed on the matter. The proposal to place both companies, which own or back $5.3 trillion in mortgages, into a government-run conservatorship also grew out of deep concern among foreign investors that the companies’ debt might not be repaid. My Comment : It's called "investing" for a reason. If there was no risk of loss it would not be called investing but rather "winning" or something similar. Investors who own the companies’ common and preferred stock will suffer. Holders of debt, including many foreign central banks, are expected to receive government backing. Top executives of both companies will be pushed out, according to those briefed on the plan. The cost of the government’s intervention could rise into tens of billions of dollars and will probably be among the most expensive rescues ever financed by taxpayers. My Comment : This is just a guess and I could be wildly off base but my range of taxpayer losses is $50 billion to $250 billion. The vast majority of Fannie and Freddie loans are not at risk. The takeover comes on the heels of a rescue of the investment bank Bear Stearns, which was sold to JPMorgan Chase in a deal backed by taxpayers. Already, the housing crisis has cost investors and consumers hundreds of billions of dollars. The big question now is whether the federal government’s move to take over Fannie and Freddie will restore investor confidence in the nation’s credit markets, help stabilize the stock market and keep loans flowing to creditworthy borrowers. My Comment : The only question is how badly this will blow up. Government bailouts are never confidence...
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 10:23 AM » August Foreclosures Jump 80 Percent: Report
    Published Mon, Sep 08 2008 10:23 AM by feeds.feedburner.com
    Nearly 102,000 homeowners lost their properties to foreclosure in August, up nearly 6 percent from July and more than 80 percent higher than in August 2007, according to data released Monday morning by real estate information data aggregator ForeclosureS.com. So far this year, lenders have repossessed a record 656,545 properties nationwide, and remain on track to [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 10:07 AM » Tech Roundup: Solidifi Launches National Appraiser Network
    Published Mon, Sep 08 2008 10:07 AM by feeds.feedburner.com
    Solidifi builds national appraiser network: Chicago-based Solidifi Inc., a provider of collateral valuation and risk management services to the mortgage lending industry, said that a company-wide expansion to nationwide appraiser coverage is progressing well ahead of schedule. Response from experienced appraisers coast-to-coast since Solidifi launched its registration process less than two weeks ago has well [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 9:52 AM » First Am Tackles Hidden Seconds
    Published Mon, Sep 08 2008 9:52 AM by feeds.feedburner.com
    Nearly every one of our key sources in the servicing market has warned privately on the coming impact of so-called “unattached seconds” — those second liens that weren’t made with the same lender that holds the first mortgages. A vast number of HELs and HELOCs are out there wholly separated from whomever holds the first, [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 9:52 AM » Poor, poor Manhattan
    Published Mon, Sep 08 2008 9:52 AM by feeds.feedburner.com
    Via the New York Times, news today that the nation’s foreclosure mess is starting to creep into the hallowed ground of New York’s Manhattan: … in recent months, mortgage lenders, real estate brokers and financial counselors have noticed that more apartment owners in Manhattan are missing payments, putting their apartments up for sale to avoid losing [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 9:20 AM » Silver State Bank Fails, Eleventh Bank to Crash this Year
    Published Mon, Sep 08 2008 9:20 AM by feeds.feedburner.com
    Somewhat overshadowed by the weekend government takeover of Fannie Mae (FNM: 7.04 0.00%) and Freddie Mac (FRE: 5.10 0.00%) — see HW’s coverage here — markets seem to be glossing over another Friday bank failure announced by the Federal Deposit Corp. This one isn’t as small as some of the others comprising the eleven banks [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 9:04 AM » Lehman Shakes Up Fixed Income Management
    Published Mon, Sep 08 2008 9:04 AM by feeds.feedburner.com
    Question: what’s the best way to shake up senior management without anyone noticing? Answer: when you announce said changes right after a historic government takeover of Fannie Mae (FNM: 7.04 0.00%) and Freddie Mac (FRE: 5.10 0.00%). Lehman Brothers Holdings Inc. (LEH: 16.20 0.00%) did just that on Sunday night, announcing that it had replaced its [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 9:04 AM » Tech Roundup: Solidify Launches National Appraiser Network
    Published Mon, Sep 08 2008 9:04 AM by feeds.feedburner.com
    Solidifi builds national appraiser network: Chicago-based Solidifi Inc., a provider of collateral valuation and risk management services to the mortgage lending industry, said that a company-wide expansion to nationwide appraiser coverage is progressing well ahead of schedule. Response from experienced appraisers coast-to-coast since Solidifi launched its registration process less than two weeks ago has well [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 8:49 AM » WaMu Boots Killinger; OTS Takes Action
    Published Mon, Sep 08 2008 8:49 AM by feeds.feedburner.com
    The latest victim of the mortgage crisis — no, not the GSEs — is Washington Mutual (WM: 4.27 0.00%) CEO Kerry Killinger, who helped turn the Seattle-based company into the nation’s largest thrift. WaMu said on Monday before market open that it has replaced the long-time CEO. The Wall Street Journal first reported on Killinger’s departure [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 8:33 AM » Fannie and Freddie: U.S. Government Takes Control
    Published Mon, Sep 08 2008 8:33 AM by Seeking Alpha
    submits: The US government has finally stepped in to stop the bleeding. Fannie Mae and Freddie Mac, the two giant government sponsored enterprises have been taken into conservatorship and are now government property. As I consider this move a bankruptcy, I will add these two to my list of Global Banking Bankruptcies. These are by far the largest bankruptcies in US history and the move to shore up Fannie and Freddie is unprecedented. The move was widely anticipated and pre-announced by Barney Frank, chairman of the Congressional Financial Services Committee. However, this is still an enormous financial event that will have major consequences on financial markets around the world. Fannie and Freddie make up half of the US home loan market. If this doesn't remind one of the Great Depression, then one needs to get in touch with what is really happening to the capitalist system.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 8:33 AM » Paulson Begins Gradual Wind-Down of GSEs Within Conservatorship
    Published Mon, Sep 08 2008 8:33 AM by Seeking Alpha
    submits: Prior to the announcement I was worried that [the Treasury] would maintain the status quo and continue to throw money at [the GSEs]… Now it appears they are fundamentally changing them, which is good. These companies are now in the process of going away. They even threw in the FHLB (via a secured lending facility) which is also a positive step as they need to go too. The first step is nationalization. Eventually they should sell them off as 10 different private companies with no more ties to the U.S. government. This is going to cost the Treasury A LOT of money, but is necessary to get them out of the mortgage market. Fannie was necessary in 1938 but not in 2008. It is going to strain the Treasuries' finances. It can also mean much higher Treasury interest rates, offsetting any narrowing of mortgage spreads. (Jim Bianco, Bianco Research, September 8, 2008) We congratulate Treasury Secretary Hank Paulson for finally acting on the advice of many in the market, including The IRA , and imposing a conservatorship on Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE). Moving a week after Labor Day is not bad timing at all and now enables us to focus on the next task, namely providing the financial resources to backstop the FDIC (see our earlier comment, "").
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 8:33 AM » Welcome to the Mortgage Business
    Published Mon, Sep 08 2008 8:33 AM by Seeking Alpha
    submits: NOTE: This first portion of this article was written after Sunday's detailed Fed announcement. The text below is taken directly from the government’s announcement.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 8:33 AM » Currency Market Predicts Bailout Is the End of the Credit and Housing Crunch
    Published Mon, Sep 08 2008 8:33 AM by Seeking Alpha
    John Verke submits: Last Friday, September 5th, the dollar was up almost half a percent against the Euro and most other currencies despite a spectacularly horrible jobs report, but it seems to be overshadowed by Freddie (FRE) and Fannie (FNM) in traders’ mind. In I had talked about the dominance of the currency markets over the equity and commodity markets in predicting the future market trends and overall state of the economy. I had reasoned that this relative power is due to the fact that currency markets are larger than the other two by a huge margin and therefore are not easily manipulated. Another interesting event that took place last Friday was that the banks bottomed around 11 am and rose through the remainder of the trading day, taking the whole market up with them. Now I am not one of those whiners who constantly complains about insider trading and how the Wall Street manipulates and robs the ordinary investor. However, given the sequence of events last Friday, it is not hard to imagine that a whole lot of people knew about the GSE rescue package before we, the ordinary folks, got the news after the closing bell.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 8:33 AM » J-REIT Consolidation and M&A Opportunities
    Published Mon, Sep 08 2008 8:33 AM by Seeking Alpha
    When property markets turn downward (or upward) investors tend to lump REITs, physical real estate and stocks in real estate companies all in the same basket, i.e., real estate plays, and avoid the lot. The Tokyo Stock Exchange J-REIT Index is now down a whopping 52% from a mid-2007 peak, and up to 90% of the 42 listed REITs are trading at a discount to NAV. There is no denying that credit has dried up for real estate developers and the number of property transactions has dropped off sharply. This is a double whammy for newly emerged real estate developers whose business model was dependent on a) readily available credit and equity, and b) active trading in real estate properties. As a result, many are failing and will continue to fail.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 8:33 AM » Pondering the 'Pain of Paying'
    Published Mon, Sep 08 2008 8:33 AM by Seeking Alpha
    submits: and part of the reason I decided to pull the plug on Mastercard (MA) Friday. As the U.S. "delevers" and the "credit contraction" spreads from Wall Street to Main Street, it could have some serious implications (deflationary) on the country. We are seeing some hints of this from the surge in debit cards in the US versus credit cards (this was in reverse order for many years). Deflation was the scourge of the Great Depression ... it can be best explained by "why should I buy something now when I can get it cheaper later?" This especially applies to big ticket items - the obvious example is homes. But homes go up and down over time in a cycle. More disconcerting are automobiles. New cars usually do not go down in price. But .
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • Sun, Sep 7 2008
  • 10:40 PM » Rhetorical questions and circular logic on Fannie, Freddie
    Published Sun, Sep 07 2008 10:40 PM by feeds.feedburner.com
    The WSJ’s Real-Time Economics blog posted copies of internal emails distributed to Freddie Mac employees by former CEO Richard Syron and new CEO David Moffett. Moffett’s best points: I can only imagine the pressure you have been under, and the frustrations you must have felt in recent weeks. This has been a difficult and draining period for [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 6:06 PM » History: Fannie, Freddie Seized by Federal Government
    Published Sun, Sep 07 2008 6:06 PM by feeds.feedburner.com
    September 7 will now be remebered as the day the U.S. government took over the mortgage market. What that means for financial markets going forward has never been less certain. This is no longer the worst mortgage crisis since the Great Depression; this is the worst mortgage crisis, period. It’s also the end of an era. [...]
    Click Here to Read the Full Article

    Source: feeds.feedburner.com
  • 5:51 PM » Manhattan Real Estate Is Teetering - Barron's
    Published Sun, Sep 07 2008 5:51 PM by Seeking Alpha
    With several large NYC apartment house deals faltering, the thus-far sturdy commercial-mortgage market may be in trouble, . The $5.4 billion purchase of Stuyvesant Town/Peter Cooper Village by Tishman Speyer and BlackRock (BLK) was predicated upon the notion that rental income from the predominately rent-controlled housing would rise as the apartments were quickly converted to market rate apartments. But rental income is declining - covering just 35% of estimated annual interest costs of $300M on the $4.4B loan developers took. The partners cite a high rate of new leases written, low vacancy rates, a long-term outlook and a $1B equity stake that should comfort investors. Yet Tishman and BlackRock could lose their entire $1B equity stake - and more on the loans - if the market keeps faltering. Debt investors will suffer too.
    Click Here to Read the Full Article

    Source: Seeking Alpha
Did you know?
You can see a list of all comments on MND by clicking the 'Read the Latest Comments' option under the 'Community' menu.
 

More From MND

Mortgage Rates:
  • 30 Yr FRM 4.15%
  • |
  • 15 Yr FRM 3.48%
  • |
  • Jumbo 30 Year Fixed 4.30%
MBS Prices:
  • 30YR FNMA 4.5 105-31 (-0-01)
  • |
  • 30YR FNMA 5.0 107-00 (-0-08)
  • |
  • 30YR FNMA 5.5 108-32 (-0-09)
Recent Housing Data:
  • Mortgage Apps 0.51%
  • |
  • Refinance Index -1.54%
  • |
  • Purchase Index 5.73%