Tag Archives: risky loans

The Obama Administration Takes Down Banks, Sets Up More Bailouts

Sarah Palin gave a great speech about corporatism — about big government and big labor and big business doing cozy deals together. With the Obama administration’s restrictive regulations on banks, it is just setting up these institutions to need more … Continue reading

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U.S. About To Sue The Big Banks

The federal agency that oversees Fannie Mae and Freddie Mac is about to sue America’s biggest banks, accusing them of misrepresenting mortgages they sold to Fannie and Freddie. Whether this suit has merit or not, it is further downward pressure … Continue reading

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America’s Biggest Bank Is Bank Of America

Bank of America become so big thanks to some unwise acquisitions in 2008 — principally Countrywide and Merrill Lynch. The Countrywide purchase made Bank of America the nation’s largest supplier of mortgages but this came at a huge cost. Bank … Continue reading

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Banks Quietly Easing Terms On Dangerous Loans

Bank of America and Chase got many risky loans when they purchased troubled banks in 2008. Chase bought Washington Mutual. Bank of America bought Countrywide. Chase inherited 22,000 option ARM loans. Bank of America got 550,000 such loans. On these … Continue reading

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Fannie Mae, Freddie Mac Find It Difficult To Unload Their Assets

About half of the mortgage assets of Fannie Mae and Freddie Mac are toxic. They’re subprime loans wit huge default rates. Why are Fannie and Freddie in the subprime business? You can blame Bill Clinton for that. He wanted to … Continue reading

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New Rules For Mortgage Brokers

No matter how many new rules legislators and regulators pass, the mortgage business will still be operated in a confusing and obfuscating manner because that’s where the profits are — getting people to sign things that they do not understand. … Continue reading

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Tightening Regulation On Credit Ratings

One big slice of the blame for the mortgage mess is the credit rating agencies who were way off in their ratings of mortgage-backed securities. They rated a lot of stuff AAA — which means really good — that turned … Continue reading

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Thousands Rushing To Refinance

Interest rates are at their lowest point in more than 40 years. But you have to have good credit ratings to get loans. Banks have been burned by so many risky loans, subprime loans, and they’ve raised their standards. The … Continue reading

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Why The Citigroup Bailout Is Bad

Column: Freddie Mac and Fannie Mae were the catalyst for our current financial crisis. By buying up risky subprime mortgages, Freddie and Fannie encouraged banks to make risky loans to folks who otherwise wouldn’t have received mortgages. Freddie and Fannie … Continue reading

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Investing In Your Neighborhood

From the book Foreclosure Myths: Investing in your neighborhood can be very rewarding. Neighborhoods with lots of vacant properties can transform into crime-ridden slums almost overnight. By buying, fixing up, and selling foreclosures, you ensure that abandoned homes do not … Continue reading

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