Category Archives: Subprime

Why The World Needs More Subprime Loans

Daniel Gross writes for Slate: What the world needs right now is more subprime lending—a lot more of it. The massive extension of credit to people who lacked extensive credit histories and documented wages seems, in hindsight, supremely stupid. But … Continue reading

Posted in Subprime | Tagged , , , , , | Comments Off on Why The World Needs More Subprime Loans

Who’s To Blame For The Subprime Debacle?

Daniel Gross writes for Slate: The subtext: If only Congress didn’t force banks to lend money to poor minorities, the Dow would be well on its way to 36,000. Loaning to minorities and risky folks is a disaster.” Investment banks … Continue reading

Posted in Subprime | Tagged , , , , , | Comments Off on Who’s To Blame For The Subprime Debacle?

Is It Kosher To Sell Subprime Loans?

Rav Adlerstein writes: A short few years ago, a young kollel-trained man had gotten some experience finding mortgages for prospective house buyers. Looking to improve his bottom line, he sent out feelers to various mortgage brokers. Each interview seemed to … Continue reading

Posted in Subprime | Tagged , , , , , | Comments Off on Is It Kosher To Sell Subprime Loans?

The Root of the Subprime Crisis

Letter to the Editor of the Washington Post: It wasn’t the CRA that created the subprime mess but the proliferation of unregulated mortgage originators during the housing boom, financed in part by the government-sponsored enterprises Fannie Mae and Freddie Mac. … Continue reading

Posted in Subprime | Tagged , , , , , | Comments Off on The Root of the Subprime Crisis

Subprime Brokers Charged

TEL AVIV (MarketWatch) – The Securities and Exchange Commission charged that five Los Angeles-area brokers “put their customers at risk by refinancing their homes with subprime mortgages that they could not afford.” The agency, in a statement on Friday, said … Continue reading

Posted in Fraud, Subprime | Tagged , , , , | Comments Off on Subprime Brokers Charged

FHA Buying Subprime Mortgages

From Bloomberg: Congress wants FHA to do more. “FHA has completely replaced subprime and Alt-A,” said Olson, former director of market research at Freddie Mac, the second-biggest mortgage buyer, who now runs Wholesale Access Mortgage Research & Consulting Inc. in … Continue reading

Posted in fha, Subprime | Tagged , , , , , | Comments Off on FHA Buying Subprime Mortgages

Subprime – Word Of The Year

From the New York Times: Exploding ARM sounds violent and is for many families. It describes an adjustable-rate mortgage for which the interest rate goes up so fast that borrowers, who could afford the monthly payments for the original mortgage, … Continue reading

Posted in Subprime | Tagged , , , , , | Comments Off on Subprime – Word Of The Year

Why Did Fannie Mae Pursue Subprime Loans?

From the Washington Post: Discussing the company’s successes, Mudd said one of Fannie Mae’s achievements in 2006 was expanding its involvement in the market for subprime and other nontraditional mortgages. A month later, Fannie Mae outlined plans to further expand … Continue reading

Posted in fannie mae, Subprime | Tagged , , , , , | Comments Off on Why Did Fannie Mae Pursue Subprime Loans?

Blackstone Says Subprime Market Has Bottomed Out

From the New York Times: Blackstone began betting against subprime in 2006, just as many home loans began experiencing trouble — though firms like Merrill Lynch and Citigroup continued to dive into the mortgages. Now the firm has started going … Continue reading

Posted in Subprime | Tagged , , , , , | Comments Off on Blackstone Says Subprime Market Has Bottomed Out

Who’s To Blame For The Subprime Mess?

David Corn writes for Mother Jones: Who’s to blame for the biggest financial catastrophe of our time? Now a well-paid executive at a Swiss bank, Gramm cochairs Sen. John McCain’s presidential campaign and advises the Republican candidate on economic matters. … Continue reading

Posted in Politics, Subprime | Tagged , , , , , | Comments Off on Who’s To Blame For The Subprime Mess?