Tag Archives: mortgage backed securities

Mortgage Bonds Getting A Second Look

Until there’s a growing demand for mortgage-backed securities (MBS), lenders are not going to have many funds available for lending for new mortgages. Now some of the same people who were selling MBS prior to 2007 are now buying them, … Continue reading

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The decline of commercial mortgage backed securities

More distressed commercial buildings will come up for foreclosure in 2012, lowering commercial rents. America has a glut of commercial property, much of it build up in the years before 2007. Atlanta is particularly hard-hit, echoing a theme in Tom … 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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Investors Relieved That Obama’s Refinancing Idea Not So Dramatic

So the Obama administration is going to make it possible for people with homes underwater to refinance their mortgages into lower rates. The private market won’t make such deals. It makes no sense to give a mortgage to somebody underwater … Continue reading

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Record Low Mortgage Interest Rates Boost Housing Industry

More people are refinancing their mortgages than was expected. This despite banks keeping their rates a little higher than necessary because the banks are short-staffed and are not prepared to deal with a deluge of refinance applications. A smaller response … Continue reading

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Economists Don’t Expect Mortgage Interest Rates To Decline Further

Notice how over the past four years, economists have kept saying that they don’t expect mortgage interest rates to decline further. And then the mortgage interest rate keeps going down. Economists are now saying that our record lows are not … Continue reading

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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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Blaming The Big Banks For The Housing Crash

Politicians want to blame the big banks and Wall Street for our recession and housing crash. They want to bleed the banks and make the big moneymen pay up to government and then distribute these payoffs to the politically connected. … Continue reading

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Were Fannie/Freddie Naive About Mortgage-Backed Bonds?

The federal agency managing Fannie Mae and Freddie Mac are suing 17 banks for selling toxic mortgage-backed bonds. Fannie and Freddie have been buying subprime mortgages for more than a decade. They were forced to by their political supervisors who … Continue reading

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Boom Time For Mortgage-Backed Bonds

Until investors are willing to once again pour hundreds of billions of dollars into mortgage-backed securities, lenders will not be willing to make many mortgage loans. They’ll restrict such loans to their best customers. Lenders need to be able to … Continue reading

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