Category Archives: Risky Lending

“[S]tate legislators jumping to act.”

Posted on July 10, 2007 by grim

From Bloomberg: States Push Ahead With Subprime-Mortgage Laws as Congress Lags State lawmakers, faced with a record number of constituents who may lose their homes, are pressing to pass their own laws to halt mortgage-lending abuses, saying they can’t afford … Continue reading →

Posted in National Real Estate, Risky Lending | Comments Off on “[S]tate legislators jumping to act.”

“I’m telling you, it can’t miss,”

Posted on July 8, 2007 by grim

From the Baltimore Sun: Subprime snake-oil salesmen promised a quick flip Mom and apple pie may be next. The answer is it seemed such a tried-and-true concept that it fell victim to the same unbridled optimism that fueled the 1990s … Continue reading →

Posted in Housing Bubble, National Real Estate, Risky Lending | 7 Comments

Subprime guidance “won’t make a dent in the subprime crisis”

Posted on July 6, 2007 by grim

From the Baltimore Sun: New U.S. guidelines curb but don’t ban risky home loans It won’t mean the end to no-income verification or high-risk mortgages for subprime homebuyers, but new guidance from federal financial regulators will almost certainly cut their … Continue reading →

Posted in National Real Estate, Risky Lending | 1 Comment

Frank targets hedge funds

Posted on July 6, 2007 by grim

From the New York Post: HOUSE SET TO HOLD HEDGE FUND HEARINGS Hedge funds will come under scrutiny next week when two separate House panels hold hearings on the government’s oversight of the lightly regulated sector. House Financial Services Committee … Continue reading →

Posted in Politics, Risky Lending | 2 Comments

“We need to bring a sheriff to town.”

Posted on July 5, 2007 by grim

From the Wall Street Journal: Mortgage Mess Shines Light on Brokers’ Role Job-Hopping Mr. Shaikh Left Trail of Lawsuits, Failed License Exams By RUTH SIMON and JAMES R. HAGERTY July 5, 2007; Page A1 In 2005, World Savings Bank honored … Continue reading →

Posted in National Real Estate, Risky Lending | 173 Comments

“It’s naïve to assume the worst is past us…”

Posted on July 5, 2007 by grim

From Bloomberg: U.S. Subprime Defaults Set to Rise, Credit Suisse’s Parker Says Delinquencies and defaults on U.S. subprime mortgages will keep rising as problems in the housing market persist, said Robert Parker, vice chairman of Credit Suisse Asset Management. The … Continue reading →

Posted in Housing Bubble, National Real Estate, Risky Lending | 7 Comments

Does the guidance go far enough?

Posted on July 5, 2007 by grim

From Inman: Loan predators remain safe If there was ever a time when federal regulators should be knocking heads it’s now. The plain truth about the subprime meltdown is that investors got greedy and lenders began looking the other way. … Continue reading →

Posted in National Real Estate, Risky Lending | 1 Comment

NJ Legislators take aim at risky lending and fraud

Posted on July 4, 2007 by grim

From the Record: Lenders: Mortgage proposals fall short Lenders and investors are concerned over legislation taking aim at the mortgage industry in response to the subprime loan crisis. A package of bills under discussion would require mortgage solicitors to be … Continue reading →

Posted in New Jersey Real Estate, Risky Lending | Comments Off on NJ Legislators take aim at risky lending and fraud

PA Gov. warns on ‘teasers’, ‘payment spikes’

Posted on July 3, 2007 by grim

From the Pocono Record: ‘Teaser’ rates on mortgages expiring Gov. Ed Rendell urges homebuyers with adjustable rate mortgages to prepare for likely steep jumps in monthly payments and to tap state resources if they need help keeping their homes. Adjustable … Continue reading →

Posted in National Real Estate, Risky Lending | 2 Comments

Buybacks send lender into bankruptcy

Posted on July 3, 2007 by grim

From the Seattle Times: Debt buries mortgage lender In April, as he shut down the 300-employee mortgage business he’d built from scratch, Layne Sapp said he hoped to find a buyer who would resuscitate MILA. Instead, the Mountlake Terrace firm … Continue reading →

Posted in National Real Estate, Risky Lending | 2 Comments

New guidelines for subprime

Posted on June 30, 2007 by grim

From the Philadelphia Inquirer: A move to ensure people can repay Banking regulators completed guidelines yesterday that call on lenders to strictly evaluate borrowers’ ability to repay home loans. The guidance, issued by the Federal Reserve and the four other … Continue reading →

Posted in National Real Estate, Risky Lending | 13 Comments

The Ratings Game

Posted on June 29, 2007 by grim

From Bloomberg: S&P, Moody’s Hide Rising Risk on $200 Billion of Mortgage Bonds Standard & Poor’s, Moody’s Investors Service and Fitch Ratings are masking burgeoning losses in the market for subprime mortgage bonds by failing to cut the credit ratings … Continue reading →

Posted in Risky Lending | 4 Comments

“The subprime market is a total unmitigated disaster “

Posted on June 28, 2007 by grim

From Dow Jones: Subprime Mortgage Woes Just Beginning, Fund Manager Warns An end isn’t anywhere in sight to the meltdown in subprime mortgage markets, the chief investment officer at Los Angeles-based TCW Group Inc. warned a gathering of investment professionals … Continue reading →

Posted in National Real Estate, Risky Lending | 177 Comments

The meteoric rise of subprime

Posted on June 27, 2007 by grim

From the Wall Street Journal: LENDING A HAND How Wall Street Stoked The Mortgage Meltdown Lehman and Others Transformed the Market For Riskiest Borrowers By MICHAEL HUDSON June 27, 2007; Page A1 Twelve years ago, Lehman Brothers Holdings Inc. sent … Continue reading →

Posted in Economics, National Real Estate, Risky Lending | 19 Comments

Borrower’s Protection Act of 2007

Posted on June 26, 2007 by grim

From MarketWatch: Subprime market needs more rules, advocates say Greater regulation is needed to ensure that America’s most vulnerable home-loan borrowers are protected from unscrupulous lenders, as well as confusing and pricey mortgages, consumer advocates said Tuesday. “We have a … Continue reading →

Posted in National Real Estate, Risky Lending | 3 Comments