Tag Archives: credit crisis

Requiring 20% Down Payments To Get A Mortgage

The more money you have invested in your home, the less likely you are to default on your mortgage. This is common sense. With all the fancy mortgages of the past decade, many people were able to buy homes for … Continue reading

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Mortgage Rates And Home Sales

Analysts believe that the continuing US credit crisis is linked largely to failures on the part of both banks and the sub-prime mortgage industry. After the last recession in the 1990s, US banks and mortgage brokers were allowing high risk … Continue reading

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The Next Housing Crash

We are just one point from the worst point ever in the mortgage industry from two years ago. The average time it takes for a bank to sell a foreclosed home is now 27 months. The average was 12 months. … Continue reading

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How To Value Mortgage Bonds

The government mandates that three organizations rate and evaluate securities (stocks and bonds). So we have these impossibly complicated stocks and bonds backed by mortgages. The government forces Moodys, Standard and Poors etc to rate stuff nobody understands. DealBook reports: … Continue reading

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What To Do With Fannie Mae (FNMA) and Freddie Mac (FMCC)?

The Obama administration will release its plans for Fannie Mae (FNMA) and Freddie Mac (FMCC) this month. Will the government guarantee the mortgage bonds and debt securities? That is the key question of investors. How big of a market are … Continue reading

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Will Debt Problems In Greece, Portugal and Spain Hurt You?

Yeah. We live in a global village. It sounds like Germany is underwriting bailouts of Greece. Germany is the European country best situated to ride out this storm. Remember how the Bush administration kept assuring us in 2007 that the … 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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Securitization Industry Still Locked Up

Until loans can be packaged up and sold as securities, lending will remain restricted around the world. American Securitization Forum’s conventions used to be in glitzy Las Vegas. Those were the days when mortgage loans could be easily sold as … Continue reading

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How The Credit Crisis Has Hit Me

In early 2008, though I was only earning about $1200 a month at the time, about a $1,000 a month less than my living expenses, I had access to about $100,000 worth of credit via various credit cards. More credit … Continue reading

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Banks Writing Off Bad Loans At A Record Pace

The credit crisis is showing no signs of dissipating. That despite trillions of dollars of intervention to try to loosen up credit and restart lending. There’s a fundamental lack of trust in the economy. Debt-securities are selling at low rates. … Continue reading

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