Monthly Archives: February 2011

Housing Advocates = Left-Wing Activists

Minnesota public radio has a story on how “housing advocates” fear a federal government housing overhaul will make mortgages and housing more difficult to obtain. I bet many of these same activists were rallying for more government intervention when home … Continue reading

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The Moribund Mortgage-Backed Securities Market

The mortgage-backed securities market is but a shell of its former self. Since 2007, few people have wanted to buy mortgage-backed securities unless they were guaranteed by the federal government. Now the Obama administration and Congress wants to wind down … Continue reading

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American Home Prices Plunge 4.3% In Fourth Quarter

With more foreclosures yet to come to the market, real estate experts expect prices to decline another 10-15% in 2011. I don’t see why this is bad news. It is bad news for some — homeowners — and good news … Continue reading

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Private Markets Will Provide Mortgage Credit Provided They Have Incentive

When government guarantees and subsidizes mortgage loans, private lenders have a difficult time competing. Take away the government subsidies and the free market will extend credit to the extent that it can make a profit from doing so. Bloomberg reports: … Continue reading

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Fannie Mae, Freddie Mac Reduce Fourth Quarter Losses

The government must be ruing the day it decided to stand behind these mortgage giants and guarantee their obligations. Report: Freddie Mac (FMCC) on Thursday reported a fourth-quarter net loss of $113 million, and would need another sip from the … Continue reading

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30-year mortgage rates fall below 5 percent

Last November, 30 year fixed rate mortgages went for 4.17% according to Freddie Mac. Since then, they’ve risen by almost a full percentage point only to drop down over the past three weeks as rising oil prices have sabotaged the … Continue reading

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Bank of America Settles Another Countrywide Suit

The bank just paid out $600 million to a New York agency. Bank of America must be ruing the day it bought Countrywide and Merril Lynch and did irreparable damage to its stock price. The New York Times reports: The … Continue reading

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Reverse Mortgages – Benefits and Pitfalls

Reverse mortgages are for people 62 and over who own their homes outright and would like to start tapping some home equity to get them through the golden years. If they play by the rules with their reverse mortgage, they’ll … Continue reading

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Freddie Mac Loses $20 Billion In 2010

In the fourth quarter of 2010, Freddie Mac lost $1.7 billion. The Bush administration did its best to rein in Freddie and Freddie from risky lending but Barney Frank and Congress prevented substantive change. Now taxpayers are on the hook … Continue reading

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The Mortgage Securitization Market Is Dead

There’s no demand to buy stocks or bonds backed up by American mortgages. As long as the mortgage securitization market remains moribund, lenders won’t have money to lend for mortgages. Currently Fannie and Freddie back up 95% of new mortgage … Continue reading

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