Category Archives: Risky Lending

From MarketWatch: Troubles emerge in alt-A loans as delinquencies ratchet up The other shoe just dropped in the U.S. mortgage market. In the last month, pressure has intensified around mortgage securities made up of so-called Alt-A loans, fueling concerns that … Continue reading →

From the Wall Street Journal: Fannie, Freddie Set Stricter Appraisal Rules By JAMES R. HAGERTY and AMIR EFRATI March 4, 2008; Page A3 Fannie Mae and Freddie Mac announced an agreement with New York Attorney General Andrew Cuomo to discourage … Continue reading →

From the New York Times: No Lull in Mortgage Pitches The mortgage market may be in a historic upheaval, but mortgage companies continue to pump out upbeat advertisements. brags in its ads that “No one can do what Countrywide can” … Continue reading →

From the Wall Street Journal: Earlier Subprime Rescue Falters December Plan Has Done Little to Help Borrowers In Dire Circumstances By RUTH SIMON and TOM MCGINTY February 13, 2008; Page A3 As the Bush administration announced a fresh plan to … Continue reading →

From Reuters: Urban home foreclosures surge in ’07: RealtyTrac Home foreclosure filings surged in the largest metropolitan areas in the United States during 2007, with cities in California, Ohio, Florida and Michigan reporting among the highest rates in the country, … Continue reading →

From the New York Times: Mortgage Crisis Spreads Past Subprime Loans The credit crisis is no longer just a subprime mortgage problem. As home prices fall and banks tighten lending standards, people with good, or prime, credit histories are falling … Continue reading →

From the Washington Post: Don’t Blame Subprimes I am sick of everyone blaming the breakdown in the credit and housing markets on subprime loans. Subprime loans were certainly part of the problem, but they are a symptom of a deeper … Continue reading →

From CNN/Money: Troubled homeowners: Can’t pay? Just walk away Mortgage payments are set to jump. Home prices have plunged. “I’m outta here.” Homeowners are abandoning their homes and, more importantly, their mortgages, rather than trying to keep up with rising … Continue reading →

From the Wall Street Journal: Credit Tightens, Demand Falls By KELLY EVANS and DAVID ENRICH February 5, 2008; Page A3 Banks are tightening lending standards for businesses and consumers — even beyond real-estate loans — and companies’ demand for credit … Continue reading →

From the Wall Street Journal: Smaller Lenders Feeling Squeeze Of Credit Crunch By SCOTT PATTERSON February 4, 2008 The next phase of the financial crisis could be coming soon to a bank near you. The high-yield, or junk, bond markets … Continue reading →

From the WSJ: S&P Ramps Up Mortgage Downgrades By AARON LUCCHETTI and SERENA NG January 31, 2008 Standard & Poor’s downgraded or threatened to downgrade more than 8,000 mortgage investments and projected a widening array of financial institutions would ultimately … Continue reading →

From Yahoo News: The Politics of Foreclosure Who says bipartisanship is dead? From President Bush to Hillary Clinton, Barack Obama and John Edwards, to Mitt Romney and John McCain, virtually everyone in Washington agrees: The government must Do Something to … Continue reading →

From the Wall Street Journal: Foreclosure Filings Surged 75% In ’07 as Subprime Mess Grew By MIKE BARRIS January 29, 2008; Page D3 Foreclosure filings soared 75% in 2007 from a year earlier as credit trouble and falling home values … Continue reading →