Tag Archives: real estate boom

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 Brokers Leave Industry

Mortgage brokers got a ton of bad press during the housing crash. Brokers don’t make loans. It’s not their money that supplies a mortgage loan. They simply match up people looking for a home loan with lenders looking to make … Continue reading

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The More The Government Intervenes, The Worse The Housing Market Gets

The housing boom and bust was caused by government policies such as local land-use policies which reduced developable land, policies to lower standards for mortgage lending, forcing lenders to lend to risky borrowers who happened to be poor and/or minorities, … Continue reading

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Big Differences Between Our Recession & The Great Depression

Here’s a guest blog on the NYT’s Freakanomics blog: We had a huge real estate boom between 2000 and 2006. We’re now paying the bill for cheap money and lack of regulation for new financial vehicles. There were so many … Continue reading

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Real Estate Wrecked By Credit Tightening

From the New York Times: After seven years of nonstop construction, skyrocketing rents and sales prices, and a seemingly endless appetite for luxury housing that transformed gritty and glamorous neighborhoods alike, the credit crisis and the turmoil on Wall Street … Continue reading

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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

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What Is A Second Mortgage?

The Washington Post has an excellent real estate glossary, including this: · A mortgage with a lien position subordinate to the first mortgage. That means if the borrower defaults and the house is foreclosed upon, the second-lien holder will be … Continue reading

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The Mortgage Market Has Changed Dramatically In Six Months

Duh. For the past ten years, lending has been too easy. Standards have been too low. Real estate prices just kept rising. Now all those things have changed. The American Chronicle reports: Vancouver, WA – Sub-prime mortgages have now been … Continue reading

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