From MarketWatch:
Mortgage delinquency rates in America’s lowest-income areas haven’t been this high since 2016
More homeowners — particularly those who live in lower-income areas — are struggling to make their mortgage payments, driving up delinquency rates to a 10-year high, new data show.
The increase represents yet another distress signal coming from within the housing market.
Mortgage delinquencies rose sharply among homeowners living in lower-income ZIP codes in the fourth quarter of 2025, according to new data released Tuesday by the Federal Reserve Bank of New York.
Among people in all income groups who are more than 90 days late on their mortgage, borrowers in the lowest-income ZIP codes saw delinquency rates jump from about 0.5% in 2021 to 3% by late 2025. Mortgage delinquency rates were artificially low during the pandemic years, when households were receiving government stimulus payments and banks were offering relief programs to struggling borrowers, the Fed researchers said.
But by the end of 2025, the delinquency rate among borrowers who live in the lowest-income areas had hit the highest level since 2016.
A homeowner is considered to be seriously delinquent when they are 90 days late on their mortgage payment. This can result in late fees and a drop in their credit score and can even lead to a foreclosure, which could ultimately cost them their home.
Mortgage delinquencies have not reached alarming levels — the overall serious delinquency rate was 1.3% in 2025, while during the 2007-09 recession, over 8% of borrowers were seriously delinquent on their mortgage payments — but there’s been a sharp increase from years past.
“It’s no surprise that serious delinquencies have increased most among lower-income borrowers, in places where the unemployment rate has increased and where houses haven’t gained much in value and may have lost value,” Brad Case, chief residential economist at Homes.com, told MarketWatch.
“What we’re seeing here is normal,” he added, “and doesn’t give us any reason to be concerned about the broader market.”
Fridt!
What a great life of the Boomer always sleeping in, while the illegal Venezuelans gets ready to go to work
Current administration destroying the lives of the poor
“ More homeowners — particularly those who live in lower-income areas — are struggling to make their mortgage payments, driving up delinquency rates to a 10-year high, new data show. ”
4
>:-(
“The increase represents yet another distress signal coming from within the housing market.”
And then…
“What we’re seeing here is normal,” he added, “and doesn’t give us any reason to be concerned about the broader market.”
That former statement is lazy. Aside from the contrast in the two statements above, filler is just lazy. As for the housing market in general, we’re seeing cycles repeat as they normally do. There are no anomalies emerging other than a transition in select areas of the country where housing has become a luxury asset.
Sex
Our Govenor is busy picking a fight with Trump..
He latest pronouncement says ICE cannot operate from state lands. She even says “roads” and her new State Prosecutor says they will go after and arrest ICE agents?
How much federal funding are we going to lose over it?
So bend over?
Zuck is starting to look like Sam Brinkman Fried
Meta Platforms’ latest annual report contained an unusual, cautionary note for investors.
From a report: The tech giant’s auditor, Ernst& Young, raised a red flag over the financial engineering Meta used to keep a $27 billion data-center project off its balance sheet. While EY ultimately blessed Meta’s accounting treatment, the firm flagged it as a “critical audit matter.” This means it was one of the hardest, riskiest judgments the auditor had to make. Such a warning label is rare for a specific, high-profile transaction at a major audit client. Meta moved the data-center project, called Hyperion, off its books in October into a new joint venture with Blue Owl Capital. Meta owns 20% of the venture; funds managed by Blue Owl own the other 80%. A holding company called Beignet Investor, which owns the Blue Owl portion, sold a then-record $27.3 billion of bonds to investors. The joint venture is known in accounting parlance as a variable interest entity, or VIE. Meta said it isn’t the “primary beneficiary” of this entity and so didn’t have to put the venture’s assets and liabilities on its own balance sheet. Meta’s assertion that it lacks power over the venture is debatable and has drawn scrutiny from investors and lawmakers. Meta is a hyperscaler and knows how to run data centers for artificial intelligence, while Blue Owl is a financier. Whether the venture succeeds economically will come down to Meta’s decisions and know-how. In its report, EY said auditing Meta’s decision “was especially challenging due to the significant judgment required in determining the activities that most significantly affect the VIE’s economic performance.”
*Bankman-Fried
BREAKING: Russia is considering moving back to the US Dollar as part of a wide-ranging economic partnership with President Trump, per Bloomberg.
The partnership would include:
1. US and Russia working together on fossil fuels
2. Joint investments in natural gas
3. Offshore oil and critical raw material partnerships
4. Windfalls for US companies
5. Russia’s return to the USD settlement system
If finalized, this deal would change the global economy.
re: ” Russia is considering moving back to the US Dollar”
Yes our Dollar Hegemony…default global reserve currency with 88% of foreign exchange transactions.
Russians no likely Dollar Hegemony sanctions it’s been four years now since the Russian Oligarchs could freely prance around the world on their yachts and spend their money as it was flowing from an endless river of oil and mineral wealth.
Sanctioned Russians lost an estimated $95 billion in 2022 alone by now many have been forced to rely on complex money “shell games” to maintain even a fraction of their global footprint. Heck our sanctions task force know as KleptoCapture grabbed a yacht in Fiji owned by Russian Oligarch Kerimov….We just sold it off at auction…a few months ago…
https://www.yachtbuyer.com/en-us/news/106m-seized-luerssen-superyacht-amadea-sold-at-auction
re: Meta and AI Data center that cost 27 Billion.
You are going to get your AI from Meta even if we have to plant a chip in your brain to make you love it.
Project Hyperion down in middle of nowhere Louisiana…
Here is an overlay of the data center size over Manhattan.
https://www.datacenterdynamics.com/en/news/meta-purchases-additional-1400-acres-for-hyperion-mega-data-center-expansion/
https://www.google.com/maps/@32.475542,-91.6390971,1500m/data=!3m1!1e3?entry=ttu&g_ep=EgoyMDI2MDIxMC4wIKXMDSoASAFQAw%3D%3D
US debt forecast to hit $64T in a decade as Trump policies widen deficit
https://www.politico.com/news/2026/02/11/us-debt-forecast-to-hit-64t-in-a-decade-as-trump-policies-widen-deficit-00775726
If the economy is doing great as this regime claims, shouldn’t we close the deficit gap?
Rent – My read on the CBO estimate is about 10 trillion less give or take, but hey these days it’s a just a few more trillion per year…with just a bout a trillion a year in interest payments.
Either way your representatives in Congress have no stomach to either slash spending or increase taxes. It’s been that way for about 26 years now. I don’t see them changing their stripes anytime soon.
When you backtest CBO predictions, they are now off more than 10 trillion on these things.
BRR – flawed modeling, nah…
Cannot account for 20 year wars, pandemics or well just plain run away inflation in any model.
Look….. this is just a stupid blog where we just argue with each other, but that said, I am not going to let something patently wrong go unchallenged. I’m sorry, you are wrong, and you cannot equate this accounting maneuver with SBF. You are approaching Pumpkin level ridiculousness.
This has to do with whether or not a project gets consolidated on the balance sheet of Meta, or is merely treated with Equity accounting. It is an extremely aggressive action, but the economics and financing are no different. Only Zuck, the CFO, the CAO, and their bankers can explain the motivations.
To be clear, GAAP et al. is always form over substance. So follow the form only to the extent necessary to get the outcome you want. If there is some qualification for a different nexus (e.g., Louisiana versus Silicon Valley), there could be ACTUAL income tax savings.
https://viewpoint.pwc.com/dt/us/en/pwc/accounting_guides/consolidation_and_eq/consolidation_and_eq_US/chapter_1_an_introdu__1_US/11_background_US.html
No One: PLEASE KEEP ME HONEST
RentL0rd says:
February 12, 2026 at 9:14 am
Zuck is starting to look like Sam Brinkman Fried
Meta Platforms’ latest annual report contained an unusual, cautionary note for investors.
From a report: The tech giant’s auditor, Ernst& Young, raised a red flag over the financial engineering Meta used to keep a $27 billion data-center project off its balance sheet. While EY ultimately blessed Meta’s accounting treatment, the firm flagged it as a “critical audit matter.” This means it was one of the hardest, riskiest judgments the auditor had to make. Such a warning label is rare for a specific, high-profile transaction at a major audit client. Meta moved the data-center project, called Hyperion, off its books in October into a new joint venture with Blue Owl Capital. Meta owns 20% of the venture; funds managed by Blue Owl own the other 80%. A holding company called Beignet Investor, which owns the Blue Owl portion, sold a then-record $27.3 billion of bonds to investors. The joint venture is known in accounting parlance as a variable interest entity, or VIE. Meta said it isn’t the “primary beneficiary” of this entity and so didn’t have to put the venture’s assets and liabilities on its own balance sheet. Meta’s assertion that it lacks power over the venture is debatable and has drawn scrutiny from investors and lawmakers. Meta is a hyperscaler and knows how to run data centers for artificial intelligence, while Blue Owl is a financier. Whether the venture succeeds economically will come down to Meta’s decisions and know-how. In its report, EY said auditing Meta’s decision “was especially challenging due to the significant judgment required in determining the activities that most significantly affect the VIE’s economic performance.”
I thought Pret said there would be no more writedowns?
chifi,
not SBF, that’s just seat of the pants lying.
The worst one could say is that’s Enron-ish behavior, trying to keep debt and assets off balance sheet. But it’s unclear if this investment is included in their large announced capex budgets, or it’s in addition to what they announced.
More likely, it’s closer to what Coca Cola has done for decades, where they keep the highest margin elements of their business in their financials, and then puts the capital intensive, lower margin businesses like bottling in non-consolidated associate companies.
What’s unclear is how the ROI of the project is shared between Meta and the external investors. Someone else is providing most of the capital, and they think they are going to get an ROI. Is it like an asset leasing arrangement? I’ll bet that the datacenter will only sell computing to Meta, and that it’s something like a take or pay, where Meta can’t say they changed their mind in 5 years, actually they don’t need that compute.
Someone is investing $30b, they probably expect to earn $2b a year from Meta for its services. A long term operating lease would still get counted as debt. Maybe they put enough variability into it that it doesn’t get counted as a lease.
I’m not an accountant, just studied and used it, normally outsource the digging and adjusting. I will probably be seeing more articles in coming years about suggested ways to account for off-balance sheet activities like these, if they keep growing. For now Meta, Alphabet, etc, have lots of cash and cashflow to spend, so it’s likely more about optical earnings management than it is financial strength.
Another great day to be overweight treasuries
BREAKING: Russia is considering moving back to the US Dollar as part of a wide-ranging economic partnership with President Trump, per Bloomberg.
The difference between leadership and dead politicians. One side rules by committee for personal gain and the other side has an innate need to make the USA the undisputed powerhouse of the world. The other side says don’t believe what you see, listen to what we tell you and give us your money, too.
Deported venezuelan not only got deported but also their oil.
To pay for Universal Healthcare for Boomer aka Medicare
US citizenship in exchange for largest oil reserves in the world would had been a good deal
Art says:
February 12, 2026 at 6:32 am
What a great life of the Boomer always sleeping in, while the illegal Venezuelans gets ready to go to work
BREAKING NEWS!
UPDATED FRI, FEB 13 2026
3:24 PM EST
Dow drops 300 points, S&P 500 sheds 1% as AI disruption fears spread: Live updates
Sean Conlon
Sarah Min
Reuters headline is on point:
For stock market, AI turns from lifting all boats to sinking ships
On one hand investors keep asking for ROI and on the other fear it will destroy it all.
jj Lives (Collegiate Edition):
My son’s friend goes to Indiana. His economics lecture was cancelled due to an unforseen emergency.
https://www.reddit.com/r/IndianaUniversity/comments/1r2xd2h/iu_director_arrested_for_child_solicitation/
Remember that Qanon was quite intense about the E pstein file.
And now?
Home sales fell 8.4% in January, the biggest monthly decline since February 2022, after snowstorms and low consumer confidence slowed a housing market that was showing signs of recovery.
Sales of existing homes fell from the prior month to a seasonally adjusted annual rate of 3.91 million, the National Association of Realtors said Thursday.
Oopsy
https://cybersecuritynews-com.cdn.ampproject.org/v/s/cybersecuritynews.com/paragon-spyware-control-panel-on-linkedin/amp/?amp_js_v=0.1&_gsa=1#webview=1&cap=swipe
I have been seeing some deeper dives into yesterday’s jobs report.
From Jan 25 to Jan 26, all the job growth in the US was in healthcare; all other sectors (including manufacturing) actually lost jobs.
OC1 says:
February 12, 2026 at 7:01 pm
“seeing some deeper dives into yesterday’s jobs report.”
Funny, you never cared to dive deeper into any of SlowJoe’s jobs reports — when all of the growth was in the government. As Pumpkin noted yesterday, we’re now getting solid numbers despite a massive contraction in government jobs. Enjoy this amazing transformation.
Art says:
February 12, 2026 at 4:23 pm
“Remember that Qanon was quite intense about the E pstein file. And now?”
I remember when you were quite intense about egg prices. And now?
Funny, you never cared to dive deeper into any of SlowJoe’s jobs reports
And all Obamas Job gains we McJobs!
AI in action: https://youtube.com/shorts/R3cfTL0Oltw?si=xTedyALxUHIcNnjR
5:28 – Grim will be happy to note that this blog is not on the compromised list!
Just unbelievable how deep Israel shabak is embedded into the apps.
7:01 – OC1 – Just incredible. Thanks for digging through the dirt.
Why would good sleuths on the ground block the FBI?
Only one reason – they don’t trust the FBI.
https://www.foxnews.com/us/arizona-sheriff-blocking-fbi-from-key-evidence-escalating-guthrie-case-source
When FBI is monitoring congress’s browsing history of the Epstein files.. you know nothing is to be trusted.