Tag Archives: subprime mortgages

Housing Decline Worst Since Great Depression

The home ownership gap between blacks and whites has grown to its widest disparity in 40 years, erasing decades of progress by blacks. Why? Because blacks disproportionately bought subprime mortgages and when the recession hit in 2008, they often found … Continue reading

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U.S. Justice Department Goes After Ratings Agency S&P

It sure looks like payback for S&P’s downgrade rating on U.S. debt. Justice is looking at S&P’s ratings from 2006 and 2007 on various mortgage securities. Did S&P expect to make more money by giving positive ratings on these securities, … Continue reading

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Justice Department Goes After Standard & Poor’s

This investigation was launched prior to S&P’s downgrade of the U.S. credit rating. Still, it is hard to imagine that this investigation is not in large part payback for the downgrade. At issue here is S&P’s ratings of various mortgage … Continue reading

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Reining In Fannie Mae, Freddie Mac

Fannie Mae and Freddie Mac were given monopolistic powers. As GSEs, they were backed by the federal government. They could borrow money more cheaply than their competition. Fannie and Freddie loosened the standards on the types of mortgage they would … Continue reading

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America’s Mortgage Bond Slump

As long as mortgage-backed bonds are slumping in price, lenders will have restricted capital to lend for new mortgages. Unless mortgages can be securitized, only a comparatively small amount of money will be available to lend out. A turnaround in … Continue reading

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CA’s Mortgage Fraud Strike Force

California’s Attorney General is eager to marshal all the weapons at her disposal to crack down on mortgage fraud. California has been particularly hard hit by mortgage scammers and by the housing crash. Subprime mortgages were particularly popular in California … Continue reading

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Is This A Bad Joke? WP: Wells Fargo, NAACP open financial literacy center

Why would a bank open up a financial literacy center with a leftist advocacy group? Because it had no choice. Wells Fargo, like the other major banks, get periodically shaken down by leftist advocacy groups like the NAACP and ACORN. … Continue reading

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Who Qualifies For The Safe New Mortgage Rules?

Bill Clinton plunged Fannie Mae and Freddie Mac into buying subprime mortgages. The government owned over 70% of them before the housing crash hit in 2007. So now we have new rules on mortgage lending. Who qualifies? The WSJ says: … Continue reading

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Restructuring Plan For Fannie Mae, Freddie Mac Due Out Next Week

The plan is not in final form yet but expect it to announce a massive reduction of the government role in the mortgage market. Currently Fannie and Freddie underwrite 95% of new mortgages. This plan will call for reducing that … Continue reading

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The New Consumer Financial Protection Bureau

This new bureaucracy is the result of the massive financial overhaul bill passed by the Democrats and signed by President Obama. Few, if any, of those politicians who voted for the bill read the bill. They just have faith in … Continue reading

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