Tag Archives: subprime loans

The Fannie, Freddie Mess

Fannie Mae and Freddie Mac have run amok with subprime loans and the like over the past two decades. Taxpayers have had to bail out the agencies to the tune of $141 billion so far and there will likely be … Continue reading

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What The Subprime Market Gave In Loans, It Now Takes Away

Neighborhoods filled with subprime loans have had high rates of foreclosures over the past four years. As home values have plunged in these neighborhoods, banks have had no interest in refinancing loans underwater and no appetite for writing new mortgages. … Continue reading

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Fannie, Freddie Close To Admitting Their Role In Mortgage Meltdown

Fannie Mae and Freddie Mac are about to settle with the SEC over claims the mortgage giants did not adequately reveal their vulnerabilities to subprime mortgages. What is ironic is that the SEC has charged Fannie and Freddie with what … Continue reading

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SEC Imposes New Rules On Mortgage Backed Securities

I dig this New York Times article. There is no mention that the subprime market was ginned up by Bill Clinton and the Democrats forcing Fannie and Freddie to buy subprime loans extended to minority homeowners who would not qualify … Continue reading

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Political Investigations Widen Into Mortgage Backed Securities

Politicians from both parties, though mainly the Democrats, are eager to lay the blame for the housing crash at the feet of Wall Street and the banks. Investors bought mortgage-backed securities without really knowing what they were getting into. Risky … Continue reading

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Why Is The Government Insuring Subprime Loans?

The whole housing crash was caused by Fannie Mae, Freddie Mac and the federal government forcibly lowering standards for mortgage lending. And what have we learned? Apparently not much. The FHA and company are still insuring subprime loans and not … Continue reading

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Bargains To Be Found In Subprime Debt?

Subprime means mortgages that do not meet “prime” lending standards. These are mortgages to people with iffy credit. Because there’s more risk to investing in subprime loans, there’s more upside as well. (Reuters) Subprime mortgage-backed securities are a good deal … Continue reading

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Skipping Mortgage Payments But Staying In Their Homes

The Boston Globe reports on thousands of Massachusetts home owners who are skipping their monthly mortgage payments but staying in their homes and fighting foreclosure. Many of these folks are asking their lenders for mortgage modifications. Others have given up … Continue reading

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Basic Economics 4th Ed: A Common Sense Guide to the Economy by Thomas Sowell

Stanford economist Thomas Sowell was on Dennis Prager’s radio show today. Dennis: “What role did Wall Street play in producing the current recession?” Sowell: “They played the role of suckers who bought mortgages who weren’t worth what they paid for … Continue reading

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Another Sign Credit Crisis Is Easing

Since the subprime mortgage collapse of two years ago, banks have put in place measures to toughen up their lending practices. You now have to demonstrate income to get a loan. You have to fill out more paperwork. There aren’t … Continue reading

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