Tag Archives: bloomberg reports

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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Banks Gradually Clearing Backlog Of Mortgage Delinquencies

Overwhelmed by the number of mortgage delinquencies, banks are overcoming their paperwork processing issues to process more foreclosures and to sell these homes and move them through the system. With each foreclosure, banks lose on average more than $40,000. For … Continue reading

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Low Mortgage Interest Rates Do Nothing To Stimulate Demand For Homes

Mortgage interest rates hit 50-year lows today. They’re as low as anybody can remember. This will spur refinancing applications and have the potential to put more money back into the economy to boost demand. With U.S. unemployment at 9% and … Continue reading

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Mortgage Applications At Highest Level Of 2011

Mortgage interest rates are also at their lowest level in 2011. Still, despite these nearly record low rates, the housing market can’t get much traction, and experts predict another 5% decrease in home prices over the rest of 2011. Bloomberg … Continue reading

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U.S. Treasury Will Grade Lenders Over Mortgage Modifications

This reminds when the banks got public grades under the Clinton administration over their willingness to abide by CRA (Community Reinvestment Act). It’s a way to bend the banks to the political will. The sanctity of contracts and moral hazard … Continue reading

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Private Markets Will Provide Mortgage Credit Provided They Have Incentive

When government guarantees and subsidizes mortgage loans, private lenders have a difficult time competing. Take away the government subsidies and the free market will extend credit to the extent that it can make a profit from doing so. Bloomberg reports: … Continue reading

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Housing Starts At A One Year Low

Mortgage rates are dropping as housing starts are at a one-year low. Without subsidies, home prices, sales, mortgage applications keep falling. Why would builders bother to build in this climate? And who among the unemployed is going to be able … Continue reading

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America’s Four Biggest Banks To Take $55 Billion Write-down On Mortgage Servicing

Bloomberg reports that Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. increased the value of their contracts in the last quarter. Now they’re going to have to reduce them. We’re talking mortgage-servicing rights … Continue reading

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Credit Collapse Hurting Student Loans

Bloomberg reports that the decline of the $330 billion auction-rate securities market has stopped debt sales by U.S. public student-loan agencies. In the first quarter, there were no sales of municipal bonds supported by student loans. That has not happened … Continue reading

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