Tag Archives: wsj reports

Mortgage Insurers Face More Losses

The mortgage insurance industry has taken a big hit over the past five years and now the credit ratings on several big firms have been downgraded. Home prices have dropped each of the past three months. We are nowhere near … Continue reading

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Will The Federal Government Bail-out Irresponsible Home Owners

The Barack Obama administration is looking at ways to subsidize mortgage giants writing down mortgage principal. Republicans say this reduces moral hazard. Where are the incentives to be careful if your bad decisions are subsidized? The WSJ reports: Sen Bob … Continue reading

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Consumer Financial Protection Bureau Probes Lenders

Smaller lenders who are not quite banks are going to get the once over from the Obama administration’s new bureaucracy — the Consumer Financial Protection Bureau. The CFPB has all sorts of rules to enforce and they are going to … Continue reading

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Freddie Mac Gets Another Bailout

The final total for taxpayers will likely be near a trillion dollars. It will dwarf the settlement of the savings and loans scandal of the 1980s. I expect that President Obama’s executive order to allow underwater home owners to refinance … Continue reading

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U.S. Slowly Pulls Back From Mortgage Market

In 2008, the United States federal government essentially nationalized the mortgage market. Now Uncle Sam is erratically but surely pulling back. For the past three years, Fannie Mae and Freddie Mac have bought home loans up to $720,000. Now they’ve … Continue reading

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Mortgage Rates Stay Close To All Time Lows

With Wall Street plunging to its worst month in years in August, and the economic outlook uncertain at best, scared investors are plowing their funds into U.S. Treasury bonds, driving up prices and reducing yields. This in turns keeps mortgage … Continue reading

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Did Ratings Agencies Commit Fraud On Mortgage-Backed Securities?

Did the three ratings agencies do adequate homework before they bestowed ratings on mortgage-backed securities? The rating agencies obviously got it badly wrong and they’ve received much of the blame for the housing crash. Bloomberg first reported on S&P in … Continue reading

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Mortgage Rates Flat

Despite all the hubbub about the approaching Aug. 2nd deadline to raise the federal government debt ceiling, financial markets have stayed stable. Failure to raise the debt ceiling was expected to raise mortgage interest rates by nearly a percentage point. … Continue reading

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Higher Mortgage Costs Coming To America’s Most Expensive Zip Codes?

Have you ever considered why homes are so expensive in coastal California? They were not 40 years ago. So what has happened since? Well, since the 1970s, there has been an explosion in land-use regulations in places such as California, … Continue reading

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Will Abolishing Fannie Mae, Freddie Mac Be Difficult?

Liberals and conservatives agree that Fannie Mae and Freddie Mac need to be rolled up. These two agencies have cost taxpayers hundreds of billions of dollars in bailouts. If Fannie and Freddie were rolled up too quickly, however, the housing … Continue reading

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