Category Archives: Risky Lending

“You find surprising linkages that you never would have expected”

Posted on August 12, 2007 by grim

From the NY Times: In a Credit Crisis, Large Mortgages Grow Costly When an investment banker set out to buy a $1.5 million home on Long Island last month, his mortgage broker quoted an interest rate of 8 percent. Three … Continue reading →

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Saying goodbye to easy money

Posted on August 10, 2007 by grim

From the Hartford Courant: Death Of Zero-Down In the latest sign that the nationwide credit crunch is worsening, lenders are saying no to borrowers who want no-money-down mortgages. The popular financing option – which required no down payments and financed … Continue reading →

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Will regulation restore confidence?

Posted on August 9, 2007 by grim

From the Wall Street Journal: New Laws Needed to Curb Unscrupulous Brokers August 9, 2007; Page A11 … Charles E. Schumer U.S. Senator (D., N.Y.) Washington As I have learned over the course of conducting several hearings on the subprime … Continue reading →

Posted in National Real Estate, Risky Lending | 3 Comments

Bringing the punchbowl back

Posted on August 8, 2007 by grim

From the Wall Street Journal: Fannie Mae to the Rescue August 8, 2007; Page A12 With Wall Street openly lobbying for someone to ride to its rescue in the credit markets, the news is that Fannie Mae and Freddie Mac … Continue reading →

Posted in National Real Estate, Risky Lending | 207 Comments

“Jacking up rates” on prime

Posted on August 7, 2007 by grim

From the Wall Street Journal: Mortgage Fears Drive Up Rates On Jumbo Loans By JAMES R. HAGERTY August 7, 2007; Page A1 Turmoil in the U.S. home-mortgage market is starting to pinch even buyers of high-end homes with good credit … Continue reading →

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“The market is in a panic”

Posted on August 6, 2007 by grim

From the Wall Street Journal: Housing Market to Weaken Even Further As Mortgage Industry Takes Cure By JAMES R. HAGERTY August 6, 2007; Page A2 After a binge of lax lending in recent years, the U.S. home-mortgage industry is finally … Continue reading →

Posted in Housing Bubble, National Real Estate, Risky Lending | 310 Comments

“We don’t think the banks will be that forgiving this time around”

Posted on August 2, 2007 by grim

From the Wall Street Journal: Lenders Tighten Standards, Pare Loans in Face of Debt By MICHAEL CORKERY, RANDALL SMITH and KATE KELLY August 2, 2007; Page C1 Banks and securities firms are trimming loans, especially to companies tied to the … Continue reading →

Posted in National Real Estate, Risky Lending | 278 Comments

“[W]here are the losses?”

Posted on August 2, 2007 by grim

From the Wall Street Journal: Subprime Detectives Search In Dark for Next Victim Wall Street Can Bury Mistakes in Fine Print By DAVID REILLY and KAREN RICHARDSON August 2, 2007; Page C1 Shoot first. That is what investors have been … Continue reading →

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“The market is pretty much terrified at this point”

Posted on August 1, 2007 by grim

From the Wall Street Journal: Wall Street, Bear Stearns Hit Again By Investors Fleeing Mortgage Sector By KATE KELLY, LIAM PLEVEN and JAMES R. HAGERTY August 1, 2007; Page A1 The nation’s weak housing sector sent another shudder through Wall … Continue reading →

Posted in Housing Bubble, National Real Estate, Risky Lending | 254 Comments

“[F]oreclosure activity shows no sign of slowing down”

Posted on August 1, 2007 by grim

From the Philly Inquirer: Mortgage foreclosure targets 58% higher in first half of ’07 than ’06 The number of U.S. homes facing foreclosure surged 58 percent in the first half of the year from the same period in 2006, a … Continue reading →

Posted in Housing Bubble, National Real Estate, Risky Lending | 2 Comments

“This problem is getting worse. It’s not getting better.”

Posted on August 1, 2007 by grim

From Bloomberg: Subprime Defaults Blamed for Corporate America Earning Setbacks Railroads, chemical producers and insurance companies are blaming the worst U.S. housing slump in 16 years for their earnings woes. Burlington Northern Santa Fe Corp., the second-biggest U.S. railroad, said … Continue reading →

Posted in Housing Bubble, National Real Estate, Risky Lending | 1 Comment

“Credit derivatives…finally being tested…are performing poorly.”

Posted on July 31, 2007 by grim

From the Financial Times: Subprime woes hit credit markets The cost of insurance against credit defaults hit record levels on both sides of the Atlantic on Monday amid concerns that some investors were being forced to sell assets to cover … Continue reading →

Posted in Economics, National Real Estate, Risky Lending | 226 Comments

“It’s perfect deniability”

Posted on July 31, 2007 by grim

From the Boston Globe: Tangle of loans feeds foreclosure crisis Each month, Stephen and Kim Martinelli sent their mortgage payment to Chase Home Finance, and when they fell behind, it was Chase that launched foreclosure proceedings, with an auction of … Continue reading →

Posted in National Real Estate, Risky Lending | 2 Comments

Not all boroughs bucking the trend

Posted on July 30, 2007 by grim

From the New York Daily News: City’s not quite home free When it comes to the one-two punch of risky mortgages gone bad and a housing slump, New York has largely bucked the national trend. But there are troubling signs … Continue reading →

Posted in National Real Estate, Risky Lending | 4 Comments

Contained?

Posted on July 30, 2007 by grim

From Bloomberg: Five Signs That Subprime Infection Is Worsening: Mark Gilbert The collapse in subprime mortgages doesn’t pose “any threat to the overall economy,” U.S. Treasury Secretary Henry Paulson said last week. He would, wouldn’t he? He’s hardly going to … Continue reading →

Posted in Housing Bubble, National Real Estate, Risky Lending | 4 Comments