Tag Archives: falling house prices

Do Lenders Have The Proper Incentives To Modify Loans?

I don’t understand why lenders would want to modify mortgage loans. For starters, most lenders do not own their mortgage loans. They’ve already sold them. The loans have been packaged as MBS (mortgage-backed securities) aka bonds and sold off on … Continue reading

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A Good Time To Buy A Home?

Brooke writes: House prices continue to fall in America as the fall-out from the subprime mortgage borrowing problems remain unresolved and are combined with ongoing global uncertainty. This potent mix means that the largest banks in the United States are … Continue reading

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Private Funding For U.S. Residential Mortgage Market Remains Tiny

There’s just no investor demand right now for residential mortgage-backed securities (RMBS). The returns on the falling number of existing RMBS is dropping. Private RMBS used to provide most of the funding for America’s housing boom, which peaked in 2005 … Continue reading

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Messing With Mortgages

Why do politicians like John McCain think they know how much houses should be worth? Why is the government simultaneously funding cheap housing and considering plans to shore up housing prices? From the LAT: During the Oct. 7 presidential debate, … Continue reading

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Mortgage Options Narrow In Britain

From the BBC: The number of mortgages available to buyers with a 5% deposit is shrinking fast, as lending is cut because of the credit crunch and falling house prices. There are only 60 such deals currently available from lenders, … Continue reading

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Economy on the Brink

Mike Whitney writes for Counterpunch: People are scared and removing their money from the banks and money markets. This is intensifying the freeze in the credit markets and driving stocks into the ground like a tent stake. Secretary of the … Continue reading

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Canceling A Tax On Home Ownership

James R. Haggerty writes for the WSJ: Fannie Mae plans to cancel a planned increase in fees that would have raised costs for home mortgage borrowers. The companies’ regulator, the Federal Housing Finance Agency, and the Treasury have been working … Continue reading

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Prime Borrowers Falling Behind On Their Mortgage Payments

From FT.com: Falling house prices, tighter lending standards and rising foreclosures have created a vicious circle for struggling US homeowners, sucking in growing numbers of borrowers who cannot sell their homes or cover their mortgages. Fitch Ratings has also conducted a … Continue reading

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Countrywide Under Scrutiny

From the USA Today: Countrywide Financial announced Tuesday that it will restructure or refinance $16 billion in adjustable-rate mortgages that have recently reset to higher rates or will reset by the end of next year, stretching some homeowners to the … Continue reading

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Ed McMahon – The Face Of Foreclosure?

From the New York Times: The Times reported this morning that about 1 in 11 people with mortgages face loan problems, a striking yet altogether faceless statistic. Leave it to Ed McMahon, the jovial sidekick to the late Johnny Carson … Continue reading

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