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  • Tue, Jan 13 2009
  • 9:59 AM » Citi's Flip-Flop on Mortgage Cramdowns: A Really Bad Idea
    Published Tue, Jan 13 2009 9:59 AM by Seeking Alpha
    submits: Whoa. Citigroup (C) really has become a wholly owned agency of the federal government. How else to explain the bank’s the Democrats’ disastrous mortgage-cramdown bill? I understand corporate executives occasionally lose sight of the interests of their shareholders. But in this case, Vikram Pandit hasn’t just forgotten his shareholders’ interests; he’s put Citi in a position to oppose them outright. This is what happens when the federal government becomes your biggest shareholder: people like Durbin and Chuck Schumer get a hand in running things, and they don’t always have profit maximization (or even fiscal prudence) at the top of their minds. Instead, they seem to want to turn Citi into a publicly traded version of ACORN. If the term “mortgage cramdown” sounds vaguely unattractive, it may be because, from the lender’s perspective, it is—and costly, too. In particular, the Democrats’ bill in Congress would give a bankruptcy judge the right to unilaterally alter the terms of a bankrupt borrower’s mortgage loan. The judge, of course, would be accountable to no one. Yet he could arbitrarily lower the principal balance, for instance. Or cut the loan’s interest rate. Which is to say, the judge would have the right to vaporize a bank’s assets with the stroke of a pen, and without recourse by the lender. Vikram Pandit now somehow seems to believe this is a wonderful idea.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • Mon, Jan 12 2009
  • 11:33 PM » Meet Lady Subprime
    Published Mon, Jan 12 2009 11:33 PM by Washington Post
    The French have the comely Marianne, the British have the fetching Britannia, and we have the welcoming Lady Liberty. May I now suggest, at least for the duration of the current recession, a new feminine emblem of our times: Marvene Halterman of Avondale, Ariz. At age 61, after 13 years of uninterrupted unemployment and at least as many years of living on welfare, she got a mortgage.
    Click Here to Read the Full Article

    Source: Washington Post
  • 11:33 PM » J.P. Morgan to report quarterly results ahead of schedule
    Published Mon, Jan 12 2009 11:33 PM by Market Watch
    J.P. Morgan Chase & Co. says it plans to report quarterly results almost a week ahead of schedule; however, that may not mean the giant bank has better news for investors.
  • 11:17 PM » More CRE Woes: Multifamily housing
    Published Mon, Jan 12 2009 11:17 PM by Calculated Risk Blog
    From Dow Jones: (hat tip Robert) The rapid reversal of fortunes in commercial real estate is taking down yet another sector: multifamily housing. ... While sharp declines in retail and office sectors of commercial real estate have commanded attention in recent months, some analysts say deterioration in the multifamily sector is quickly catching up. ... Much of the multifamily sector's problems center around troubles in converting apartments to condominiums, as is the case in Miami, or the challenges in converting rent-controlled units to market-rate apartments, as in Manhattan. In Florida, California, Arizona and Nevada, the flood of unsold condominiums is entering the apartment market and the excess supply is lowering rents in those areas, Barclays Capital analysts say. That's resulted in lower revenues for owners, which in some cases is making it more difficult to keep up with mortgage payments. ... In November, the delinquency rate on securitized loans to apartment and condominium properties rose to 1.9%, a dramatic jump from the 0.9% at the start of the year, according to Realpoint LLC ... This is a great follow up to my post last Friday: . I noted that despite the increase in demand for rentals, rents are now falling because of the rapid increase in supply due to condo "reconversions", builders changing the intent of new construction (started as condos but became rentals), and other reasons. And falling rents means rising delinquencies for properties purchased with overly optimistic pro forma projections.
    Click Here to Read the Full Article

    Source: Calculated Risk Blog
  • 11:17 PM » Obama to Limit Dividends by Some Banks That Get Aid
    Published Mon, Jan 12 2009 11:17 PM by ml-implode.com
    Barack Obama will direct his Treasury Department to restrict executive compensation and dividends for financial institutions that get “exceptional assistance” from the financial bailout fund, Larry Summers, a top economic adviser to the president-elect, told Congress. Some good, common-sense stuff in here -- let's hope these demands have teeth. Of course, it would be better if this were not in the context of requesting another $350B of graft; but at this point if ANY of the money is to go to community banks or foreclosure aid, the next "tranche" is needed.
    Click Here to Read the Full Article

    Source: ml-implode.com
  • 4:10 PM » Bank of America stock drops on loss worries
    Published Mon, Jan 12 2009 4:10 PM by Reuters
    NEW YORK (Reuters) - Bank of America Corp shares skidded 11.2 percent on Monday after an analyst said the largest U.S. bank might suffer a $3.6 billion fourth-quarter loss and again slash its dividend.
  • 4:10 PM » What Is Worse - Personal Bankruptcy Or Foreclosure?
    Published Mon, Jan 12 2009 4:10 PM by CNBC
    Posted By: As the countdown to the Obama administration falls into single digit days, the rhetoric over how to reverse the housing crisis is heating up, and much of the chatter is focusing on bankruptcy and “walkaways”. All of this leads me to ask the question, which is worse to your financial future: personal bankruptcy or foreclosure? Topics: | | | | | | | Sectors: | MEDIA:
  • 2:36 PM » HUD Auditor Says FHA in Need of Reform
    Published Mon, Jan 12 2009 2:36 PM by www.thetruthaboutmortgage.com
    The increasingly popular Federal Housing Association is in need of reform, according to testimony from James Heist, assistant inspector general for audit with the Department of Housing and Urban Development. While testifying at a House Financial Services Committee meeting Friday, Heist noted that the FHA’s large share of the loan origination market calls for increased personnel, [...]
    Click Here to Read the Full Article

    Source: www.thetruthaboutmortgage.com
  • 2:20 PM » Over 300 Mortgage-Related Failures
    Published Mon, Jan 12 2009 2:20 PM by Google News
    The number of non-bank mortgage companies to close eased last year, but bank and credit union failures soared, according to data released Monday by the Mortgage Graveyard, a journal of failed, ailing and acquired lenders. During 2008, 116 mortgage bankers and financial institutions were closed down, according to the Mortgage Graveyard, which is maintained based on [...]
  • 2:20 PM » Effective Immediately - No Refi’s For Borrowers with Modified Loans
    Published Mon, Jan 12 2009 2:20 PM by mrmortgage.ml-implode.com
    GMAC on Fannie/Freddie loans: 1/5 EFFECTIVE IMMEDIATELY - Modified Loans are Ineligible For Fannie/Freddie Refi’s. FHA MAY Be Eligible. Note - I have not verified this with the GSE’s personally. I have second-hand verification from the GSE’s and first-hand with three national Fannie/Freddie seller-servicers in the past week. In an interesting move announced early last week by GMAC to select correspondents, they will not be accepting any Fannie/Freddie refi’s that have been previously modified/restructured. In my experience most mods result in one of more of their definition of ‘restructured’. A restructured loan or short payoff is a mortgage loan in which the terms of the original transaction have been changed resulting in either absolute forgiveness of debt or a restructure of debt through either a modification of the original loan or origination of a new loan that results in: Forgiveness of a portion of principal and/ or interest on either the first or second mortgage; Application of a principal curtailment by or on behalf of the investor to simulate principal forgiveness; Conversion of any portion of the original mortgage debt to a “soft” subordinate mortgage; or Conversion of any portion of the original mortgage debt from secured to unsecured debt At first I thought this was a GMAC specific event but in their note they specifically say “Fannie Mae and Freddie Mac will not purchase or accept delivery of a restructured loan refinance. Therefore, all restructured loans are ineligible for conforming loan financing.” All Sorts of Consequences This has all sorts of consequences for homeowners, banks, distressed loan and debt investors, broader refinancing, future loan defaults, walk-aways and foreclosures etc. It may even give us a glimpse of where this is all going – towards principal balance reductions as the best method of quickly force-deleveraging homeowners, making it so they are free to sell, buy, refi, save and shop. As soon as I received this announcement, I immediately...
    Click Here to Read the Full Article

    Source: mrmortgage.ml-implode.com
  • 2:20 PM » Banks Failing to Reform Risk Management Practices
    Published Mon, Jan 12 2009 2:20 PM by Seeking Alpha
    submits: Despite the continued fall-out from the financial crisis across the banking industry, it appears that not enough institutions are planning to make fundamental changes to their risk frameworks, according to KPMG. The results of a new survey show that 90 percent of the 400 banking execs surveyed by the Economist Intelligence Unit on behalf of KPMG have carried out — or plan to carry out — a review of the way they manage risk. Yet only 42 percent of respondents have made — or plan to make — fundamental changes to their risk processes.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 10:41 AM » Foreclosure Scam Alert: The Land Patent Fraud
    Published Mon, Jan 12 2009 10:41 AM by loanworkout.org
    Prosecutors said Smith and the others sold “land patents” to homeowners facing foreclosure and told them that the patents would make them a sovereign nation that would be protected from the banks. He said the banks would own the homes but not the land underneath them, and essentially, the homes would not be foreclosed on because they would be worthless to the banks without the land, said prosecutor Eric Ludwig. At least 17 people fell for the scheme, prosecutors said, and lost tens of thousands of dollars. The District Attorney's Office is still investigating.
    Click Here to Read the Full Article

    Source: loanworkout.org
  • 10:40 AM » Congress Forces Mortgage Modifications
    Published Mon, Jan 12 2009 10:40 AM by www.minyanville.com
    The road to over-regulation has begun. In an effort protect struggling homeowners Senate Democrats are advocating new bankruptcy laws that allow judges to alter mortgage terms known as a "cramdown " during a Chapter 13 bankruptcy filing. Lawmakers hope the new rules will prevent foreclosures help borrowers in danger of losing their homes and begin to stabilize the reeling housing market. Despite good intentions however these efforts will raise the cost of borrowing for everyone reduce the availability of mortgage credit and prolong the housing market's recovery. According to the Wall Street Journal the proposal's backers won a major ...
    Click Here to Read the Full Article

    Source: www.minyanville.com
  • 10:40 AM » Deleveraging Through Loan Modification
    Published Mon, Jan 12 2009 10:40 AM by Seeking Alpha
    Shanghai Watcher submits: With all the de-leveraging, especially when it comes to the price of real estate, I was wondering what can be done about homeowners who are under water. These people have seen their equity disappear. Importantly, many of them can still afford to make their mortgage payments, but they no longer have a stake in the game. They now have a house worth the amount of the outstanding loan amount or worth less than the loan amount. Their quandary is whether to keep paying their mortgage or walk away, take the hit on their credit rating and go lease until they save enough money to re-enter the housing market after prices stabilize. I’ve seen estimates that it costs a lender $50,000 to $80,000 on average to liquidate homes that have been foreclosed or handed back to the lender. My idea is that instead of a viable mortgage payer walking away and a lender taking a huge hit, what if there was a way to keep the homeowner in the house and protect the lender as much as possible.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 10:40 AM » Lennar Refutes Allegations After Stock Drops 20%
    Published Mon, Jan 12 2009 10:40 AM by feeds.foxbusiness.com
    Lennar Refutes Allegations After Stock Drops 20%
    Click Here to Read the Full Article

    Source: feeds.foxbusiness.com
  • 8:18 AM » Citi nears Morgan Stanley brokerage deal
    Published Mon, Jan 12 2009 8:18 AM by Reuters
    LONDON/NEW YORK (Reuters) - The break-up of U.S. banking powerhouse Citigroup moved a step closer, and Britain took control of a big stake in another top lender on Monday as the reshaping of the global financial landscape gathered pace.
  • 8:18 AM » Sparking Lending From the Bully Pulpit
    Published Mon, Jan 12 2009 8:18 AM by Washington Post
    Back in the early 1990s, when Fed Chairman Alan Greenspan was still considered "the Maestro," I asked him what he thought of the Reagan administration's economic program. I anticipated a discussion of 1980s tax and interest rate policy. That's not what I got.
    Click Here to Read the Full Article

    Source: Washington Post
  • 8:18 AM » David Lereah - now even more pathetic
    Published Mon, Jan 12 2009 8:18 AM by themessthatgreenspanmade.blogspot.com
    The saga of David Lereah, the former Chief Economist for the National Association of Realtors, is getting more and more interesting and, as might be expected, more and more pathetic. Recall that last week, in a CNN/Money , he essentially confessed to being a paid shill for the realtors' trade group and was the subject of ridicule and elsewhere ( was not nearly as kind as ) This week, in a appearing in tomorrow's Wall Street Journal, he bares even more of his soul and the details that emerge raise the "creepy" factor by at least an order of magnitude. ( Note: The image above comes courtesy of the and, yes, just like his entry, the WSJ story mentions Baghdad Bob.) Disturbing new revelations include the following: the NAR won't return his phone calls (stop calling!) he works out of a home office that doubles as an exercise room he drives to McDonald's or Dunkin' Donuts everyday and eats in his car Seriously. You have to wonder what he held back... Mr. Lereah, who says he left NAR voluntarily, says he was pressured by executives to issue optimistic forecasts -- then was left to shoulder the blame when things went sour. "I was there for seven years doing everything they wanted me to," he said, looking out his window to his tree-filled yard in this Washington suburb. Mr. Lereah now works at home, trying to rebuild his career and saddled with a sagging portfolio of real-estate investments. ... During the boom years, Mr. Lereah was eager to profit himself. He snapped up condos, including two in Washington in 2003 and 2004 and one each in Tampa, Richmond, Va., Alexandria, Va., and Naples, Fla. By 2006, he says, he owned six condos worth between $150,000 and $400,000 apiece. ... In April 2007, Mr. Lereah left NAR, and after working about a year on a start-up venture, took some time off for a few months. He cruised around on his 29-foot sport-fishing boat and played golf at the country club. He eventually started consulting on the real-estate...
    Click Here to Read the Full Article

    Source: themessthatgreenspanmade.blogspot.com
  • Fri, Jan 9 2009
  • 1:59 PM » Bankers Believe Lax Underwriting Root of Credit Crisis
    Published Fri, Jan 09 2009 1:59 PM by www.thetruthaboutmortgage.com
    While many of us are still coming to terms with the ongoing credit crisis, others are looking for answers as to how things got so bad, so quickly. And while it’s hard to nail down one single cause, a new banker survey pins much of the blame on lax underwriting. The results of Grant Thornton LLP’s 16th [...]
    Click Here to Read the Full Article

    Source: www.thetruthaboutmortgage.com
  • 1:43 PM » Video-O-Rama: Figuring out the lie of the financial land
    Published Fri, Jan 09 2009 1:43 PM by The Big Picture
    In addition to more “Outlook for 2009″ videos (dealt with in last week’s ), the past week saw material covering a hodgepodge of topics. Although the topics were varied, good viewing material was produced, with the likes of Marc Faber, Peter Schiff, Martin Feldstein, Barton Biggs, Jeff Saut and Bill Gross in attendance. A few of the more interesting clips that attracted my attention are shared below, including a few items warning about a bubble in government bonds. But before we get to the economy and the financial markets, please spend a few minutes viewing a worthwhile three-part production by the Wall Street Journal entitled the “End of Wall Street” - What happened? Why did it happen? And what happens next? The Wall Street Journal: End of Wall Street Chapter one: What happened? . In the first of this three-part series, Journal reporters explain how the housing bubble inflated and burst, and why easy money led to the collapse of Wall Street’s biggest financial institutions. Click or on the image below for Chapter one. Chapter two: Why did it happened? What was going through the minds of CEOs, corporate boards, fund managers and mortgage lenders as they created hard-to-understand derivatives Warren Buffett once called ‘weapons of financial mass destruction’. Click for Chaper two. Chapter three: What happens next? This final chapter of the crisis on Wall Street tells the story of the $700-billion bailout, as seen through a reporter’s eyes, and looks at what’s ahead for the global economy. Click for Chapter three. Source: , January 5, 2009. Bloomberg: Faber on outlook for financial markets “Marc Faber, publisher of the ‘Gloom, Boom & Doom Report’, talks with Bloomberg’s Carol Massar, Erik Schatzker and Ellen Braitman about the outlook for industrial commodities and gold prices. Faber, speaking from New York, also discusses the potential for ‘disaster’ from government intervention in the economy, the outlook for the financial markets and his investment strategy.” Source...
    Click Here to Read the Full Article

    Source: The Big Picture
  • 11:42 AM » CITI and Mortgage Cramdowns
    Published Fri, Jan 09 2009 11:42 AM by Mortgage News Daily
    [userbadgearea] TODAY'S HEADLINES () () () () LATEST VIDEO The market is seeing some sign of liquidity, reports CNBC's David Faber Bovis says 2008 home sales fell 38% on U.K. property slump; Bovis agreed refinancing package with banks last month; Bovis shed 40% of workforce in 2008 Bovis is one of the "best of breed house builders" and the fact that it has apparently paid roughly $13 million to extend its credit facilities Discussing the current state of the Manhattan real estate market, with Ivanka Trump, The Trump Organization executive VP, development/acquisitions AROUND THE WEB POPULAR FORUM DISCUSSIONS WIKI QUESTIONS AND ANSWERS Recent Questions Recent Answers Mortgage News Daily
    Click Here to Read the Full Article

    Source: Mortgage News Daily
  • 9:34 AM » Robert Shiller Discusses His New Book
    Published Fri, Jan 09 2009 9:34 AM by The Big Picture
    Robert Shiller visits Google’s Mountain View, CA headquarters to discuss his book “The Subprime Solution: How Today’s Global Financial Crisis Happened, and What to Do About It.” This event took place on October 30, 2008, as part of the Authors@Google series.
    Click Here to Read the Full Article

    Source: The Big Picture
  • 8:17 AM » Merrill's Rosenberg on Real Estate
    Published Fri, Jan 09 2009 8:17 AM by Seeking Alpha
    submits: David Rosenberg of Merrill Lynch* appeared on CNBC a few moments ago to discuss the relationship between deflation in residential real estate--which he called a "$20 trillion beast,...the backbone of the household balance sheet and the cornerstone of the collateral in the financial system"--and the slowdown of credit and economic activity in general. Rosenberg is exactly right here, as he so often is. His conversation this morning drew on in the Financial Times. Here are a couple key excerpts (emphasis added in italics):
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 8:16 AM » NASDAQ Offers New Index Tracking TARP Companies
    Published Fri, Jan 09 2009 8:16 AM by Seeking Alpha
    submits: Less than two weeks before President-elect Barack Obama takes office, a new index is coming out that will track stocks tied to companies participating in the Troubled Asset Relief Program. The NASDAQ OMX Group (NDAQ) said on Thursday that its Government Relief Index will follow not only those getting financial backing through TARP but also any firm receiving direct government investments from other programs. Presumably, that could include President-elect Obama's proposed $775 billion in additional bailout support to boost jobs and the economy.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 8:15 AM » Citi Supports Mortgage Cram-Downs
    Published Fri, Jan 09 2009 8:15 AM by Calculated Risk Blog
    From CNBC: Citigroup has agreed to a plan that would let bankruptcy judges alter mortgages in an effort to prevent more housing foreclosures. Until now, the banking industry has been ardently opposed to the proposal, which key Democratic lawmakers aim to attach to President-elect Barack Obama's economic stimulus legislation. ... The National Association of Home Builders has dropped its opposition to the plan and the National Association of Realtors is debating whether to end its opposition. Cram-downs makes sense. For a discussion of the cram-down issue, see Tanta's: Oct, 2007
    Click Here to Read the Full Article

    Source: Calculated Risk Blog
  • 8:15 AM » Citi reaches deal with lawmakers on home loans
    Published Fri, Jan 09 2009 8:15 AM by Washington Post
    WASHINGTON -- Democratic lawmakers have reached a deal with Citigroup Inc. on a plan to let bankruptcy judges alter home loans in an effort to prevent foreclosures and urged other lenders to follow suit.
    Click Here to Read the Full Article

    Source: Washington Post
  • 8:15 AM » Lenders Backlogged By Refinancing Rush
    Published Fri, Jan 09 2009 8:15 AM by Washington Post
    Borrowers are rushing to refinance their mortgages at record low interest rates but face unexpected delays as swamped lenders struggle to cope with the surge at a time when layoffs have sharply cut staffing.
    Click Here to Read the Full Article

    Source: Washington Post
  • Thu, Jan 8 2009
  • 3:46 PM » Fannie and Freddie give borrowers more time
    Published Thu, Jan 08 2009 3:46 PM by CNN
    Mortgage giants Fannie Mae and Freddie Mac have extended a moratorium on foreclosure suspensions for another three weeks, directing the mortgage servicers they work with to postpone any foreclosure or eviction proceedings through January 31.
  • 2:56 PM » Housing: Declining Rents
    Published Thu, Jan 08 2009 2:56 PM by Calculated Risk Blog
    With investors buying low priced homes to rent (see previous post) and the economy in recession, guess what happens? More rental supply, less demand and falling rents ... From the LA Times: (hat tip Charlie) After rising for several years, rents in the Los Angeles area are declining because of the economic recession and depressed home prices, researchers, real estate agents and property managers say. The lower local rents match a national trend, according to a report released Wednesday showing apartment rents fell in 54 out of 79 U.S. metropolitan areas in the fourth quarter of 2008. Softening rents add another obstacle to a housing market recovery, economists say, because tenants with low rent payments feel less urgency to buy a home. Nationwide, apartment rents eased 0.1% in the fourth quarter, the first drop since 2002, according to the analysis by research firm Reis Inc.
    Click Here to Read the Full Article

    Source: Calculated Risk Blog
  • 2:09 PM » No Recovery for Real Estate as Speculators Dominate Sales
    Published Thu, Jan 08 2009 2:09 PM by ml-implode.com
    As the U.S. housing recession enters its fourth year, there’s no sign of a recovery because speculators account for most of the rise in sales. While the purchases are trimming the inventory of unsold properties, most of those bought by speculators will likely return to the market when prices rise again, hampering any recovery, said Nobel laureate economist Joseph Stiglitz and Yale University Professor Robert Shiller in interviews.
    Click Here to Read the Full Article

    Source: ml-implode.com
  • 11:15 AM » GMAC says backs ResCap, without committing to it
    Published Thu, Jan 08 2009 11:15 AM by Reuters
    NEW YORK (Reuters) - Finance company GMAC LLC expressed support for its money-losing Residential Capital LLC mortgage unit on Thursday but stopped short of a commitment to keep the big home loan provider in business.
  • 9:57 AM » China Losing Taste for Debt From U.S.
    Published Thu, Jan 08 2009 9:57 AM by ml-implode.com
    "In the last five years, China has spent as much as one-seventh of its entire economic output buying foreign debt, mostly American. In September, it surpassed Japan as the largest overseas holder of Treasuries. But now Beijing is seeking to pay for its own $600 billion stimulus — just as tax revenue is falling sharply as the Chinese economy slows. Regulators have ordered banks to lend more money to small and medium-size enterprises, many of which are struggling with lower exports, and to local governments to build new roads and other projects. 'All the key drivers of China’s Treasury purchases are disappearing — there’s a waning appetite for dollars and a waning appetite for Treasuries, and that complicates the outlook for interest rates,' said Ben Simpfendorfer, an economist in the Hong Kong office of the Royal Bank of Scotland."
    Click Here to Read the Full Article

    Source: ml-implode.com
  • 9:41 AM » Keepin' It Real Estate: Rich Get Stuck in Subprime Slime
    Published Thu, Jan 08 2009 9:41 AM by www.minyanville.com
    From expansive estates in the Hamptons to mansions on the Malibu cliffs the rich are watching their vast real-estate wealth evaporate before their eyes. Perhaps no market epitomizes the ultimate surrender of high-end real estate than the island of Manhattan where housing prices had held relatively stable until quite recently despite broad declines across the country. Turmoil on Wall Street the collapse of Lehman Brothers and layoffs at big employers like Citigroup (C) JPMorgan (JPM) Morgan Stanley (MS) and Goldman Sachs (GS) have finally taken their toll on the once-proud market for overpriced undersized refuges from the concrete jungle. The Wall ...
    Click Here to Read the Full Article

    Source: www.minyanville.com
  • Wed, Jan 7 2009
  • 11:32 PM » Wells Fargo CEO sees job cuts after Wachovia deal: report
    Published Wed, Jan 07 2009 11:32 PM by Reuters
    NEW YORK (Reuters) - Wells Fargo & Co Chief Executive Officer John Stumpf, whose company acquired Wachovia Corp, said on Wednesday that minimizing job losses will be a priority but added that some cuts would begin this year.
  • 11:31 PM » Homebuilders push housing aid plan
    Published Wed, Jan 07 2009 11:31 PM by Washington Post
    WASHINGTON -- With lawmakers angling to pass an economic recovery package by the middle of next month, desperate homebuilders from around the country flew to Washington to spend Wednesday pushing a $150 billion plan to revive the housing market.
    Click Here to Read the Full Article

    Source: Washington Post
  • 11:31 PM » Commercial Delinquencies Double over last 90 days
    Published Wed, Jan 07 2009 11:31 PM by Calculated Risk Blog
    From the WSJ: Delinquencies on mortgages for hotels, shopping malls and office buildings were sharply higher in the fourth quarter ... New data from Deutsche Bank show that delinquencies on commercial mortgages packaged and sold as bonds, which represent nearly a third of the commercial real-estate debt market, nearly doubled during the past three months, to about 1.2%. ... The delinquency rate will likely hit 3% by the end of 2009, its highest point in more than a decade, says Richard Parkus Deutsche Bank's head of research on such bonds, known as commercial-mortgage-backed securities, or CMBS. This is not only a problem for CMBS, but many banks and thrifts have excessive exposure to CRE loans: According to research firm Foresight Analytics, soured commercial mortgages on banks' books jumped to 2.2% as of the third quarter of last year, from 1.5% at the end of 2007. The research firm estimates that the rate could rise to 2.6% in the fourth quarter of 2008. ... Banks and thrifts would suffer in a commercial-real-estate downturn because they own nearly 50% of all commercial mortgages outstanding. ... According to Foresight Analytics, as of Sept. 30, 2008, some 1,400 commercial banks and savings institutions had more than 300% of their Tier 1 capital in commercial mortgages. Here are some comments from Fed Vice Chairman Donald L. Kohn back in : Setting aside the 100 largest banks, the share of commercial real estate loans in bank loan portfolios nearly doubled over the past 10 years and is approaching 50 percent. The portfolio share at these banks of residential mortgage and other consumer loans, which are more readily securitized, fell by 20 percentage points over the same period. This is a key point that we've been discussing for a few years - most small to mid-sized institutions were not overexposed to the housing bubble because those loans were mostly securitized. Therefore the housing bust led directly to relatively few bank failures over the last couple...
    Click Here to Read the Full Article

    Source: Calculated Risk Blog
  • 11:31 PM » Shilling: Housing Market Could Fall Another 20 Percent
    Published Wed, Jan 07 2009 11:31 PM by ml-implode.com
    "The already crumbling housing market could plummet an additional 20%, says Gary Shilling, president of A. Gary Shilling & Co., and author of the popular INSIGHT newsletter"
    Click Here to Read the Full Article

    Source: ml-implode.com
  • 5:44 PM » The Easiest Hardest Mortgage Question Ever
    Published Wed, Jan 07 2009 5:44 PM by Seeking Alpha
    submits: I was reading recently (I know, I’m behind on everything… I’m posting on that soon too) where he cites a , and it prompted me to have a very specific memory. Here’s my email to Felix…
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 2:21 PM » Heloc Delinquencies Rise to Highest Level Ever
    Published Wed, Jan 07 2009 2:21 PM by www.thetruthaboutmortgage.com
    Both home equity line and indirect auto loan delinquencies reached the highest levels ever recorded during the third quarter, according to the American Bankers Association’s Consumer Credit Delinquency Bulletin. Home equity line delinquencies increased seven basis points to a record high 1.15 percent during the quarter, while indirect auto loans, which account for 90 percent of [...]
    Click Here to Read the Full Article

    Source: www.thetruthaboutmortgage.com
  • 1:33 PM » Mortgage Applications Slow as More Borrowers Wait?
    Published Wed, Jan 07 2009 1:33 PM by www.thetruthaboutmortgage.com
    Mortgage application volume slipped 8.2 percent on a seasonally adjusted basis for the week ending January 2, the MBA said today. On an unadjusted basis, the home loan application index fell 8.9 percent compared to the previous week, but was still up 28.3 percent compared to the same period a year earlier. The refinance index decreased 12.3 [...]
    Click Here to Read the Full Article

    Source: www.thetruthaboutmortgage.com
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Mortgage Rates:
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