Category Archives: Banks

Are Mortgage Standards Too Tight?

It used to be that you prior to 2007, you could get liar loans, aka mortgage loans without proof of income. Standards for mortgage lending were way too loose. Are they now too tight? If they are too tight, then … Continue reading

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Legislating Away Unpleasant Foreclosures

California’s Attorney General has called for a halt to foreclosures in the state. Such a move would gum up the free market, render housing business less efficient, and make investors less likely to put money into housing. Ahh, but it … Continue reading

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What Will Be The Cost To Taxpayers Of The Mortgage Settlement?

The late Nobel prize winner Milton Friedman summed up economics by saying, “There’s no free lunch.” So the Obama administration and state attorney generals extracted $26 billion from the five big banks to settle disputes over improper mortgage foreclosure paperwork … Continue reading

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After The Bank Foreclosure Deal, Now What?

The foreclosure market has been semi-frozen for the past year as banks negotiated with state and federal government to reach a deal over improper foreclosure paperwork processing. Now the banks have coughed up $26 billion to partially settle the claims … Continue reading

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Bank Of America Overwhelmed By Refinancing Demand

A new government program to boost mortgage refinancing is overwhelming some banks such as Bank of America. That bank has been telling some customers to wait 90 days before applying for a refinance. Banks have to staff up to handle … Continue reading

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Shoddy Mortgages Cost Big Five Banks $72 Billion

Paperwork processing problems have cost the big five banks about $72 billion according to this Bloomberg story. The banks are preparing to settle with state AGs for about $25 billion to satisfy many of the claims from robo-signing. Bloomberg says: … Continue reading

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Mortgage Bonds Pay Price For Obama’s Refinancing Scheme

Every time the government decides to do something, it is good news for parts of the economy and bad news for parts of the economy. Obama’s refinancing scheme for home underwater is undoubtedly good news for home owners in trouble … Continue reading

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Mortgage Relief Plan Close

The Attorney Generals of New York and California are expected to sign on to a major deal between state and federal government representatives and the biggest lenders. In exchange for paying out about $25 billion, the banks will settle claims … Continue reading

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Obama’s Refinancing Plan Causes Mortgage Bonds To Fall In Value

President Obama’s plan will make it easy for homeowners who are underwater on their mortgage to refinance into a low-interest mortgage. This is pushing down the value of mortgage-backed securities and increasing pressure for a rise in mortgage interest rates, … Continue reading

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President Obama’s Plan To Boost The Housing Market

With the housing market in the doldrums, it is difficult to have an economic recovery. Home prices are on average one-third below where they were in 2006. Mortgage interest rates are at record lows but most of the homeowners who … Continue reading

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