Tag Archives: housing slump

Credit Ratings Cut For Bank Of America, Wells Fargo

Bank of America and Wells Fargo have a disproportionate share of their assets in mortgages and have been particularly hard hit by the housing slump. Their stock has taken a beating over the past four years. Now Moody’s has lowered … Continue reading

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Mortgage Modifications Don’t Work

You thought when Obama’s HAMP (Home Affordable Modification Program) came out that it would save eight million foreclosures? Think again. Many observers thought banks would jump at the opportunity to score some free government money to modify mortgages but the … Continue reading

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Bank Of America Still Cleaning Up Its Countrywide Mess

Bank of America originates more home mortgages than anybody, thanks to its 2008 purchase of Countrywide for $4 billion. Since then, Bank of America has shelled out $30 billion to settle claims related to Countrywide. Bank of America also took … Continue reading

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Troubles with residential mortgage-backed securities

RMBS = residential mortgage-backed securities. The poor performance of mortgage loans is hurting mortgage bonds. Yields on these bonds are unlikely to go lower. Yields and bond prices run inversely. A bond that guarantees say, a 3% return per annum … Continue reading

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The Home Mortgage Deduction

I have about $35,000 in credit card debt. The interest on that debt is not tax deductible, but if I were paying off a mortgage, the interest would be tax deductible. Making mortgage interest payments tax deductible is one of … 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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AIG To Sell Mortgage Insurer

Insuring mortgages. That would not be a business I would want to be in right now with real estate values crashing and mortgage defaults soaring and unemployment rising and GDP falling. AIG has taken tens of billions from the US … Continue reading

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Downey Savings Update

From the Los Angeles Times: The Downey Savings & Loan branch in Burbank seemed to be doing business as usual today under its new ownership: Minneapolis-based U.S. Bank. Federal regulators seized Newport Beach-based Downey and PFF Bank & Trust late … Continue reading

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Cheap Mortgages Dead

From the Scotsman: Financial experts said the UK government’s decision to nationalise Bradford & Bingley was the final nail in the coffin of the “pile ’em high, sell ’em cheap” mortgage market. “Widespread expectations that house prices will continue to … Continue reading

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Mortgage Apps Down 11%

From Bloomberg: Sept. 24 (Bloomberg) — Mortgage applications in the U.S. fell last week as higher borrowing costs and tougher lending rules hurt purchases and refinancing. The Mortgage Bankers Association’s index of applications to purchase a home or refinance a … Continue reading

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