Category Archives: Risky Lending

“The crisis will continue to loom large”

Posted on June 25, 2007 by grim

From the Wall Street Journal: Subprime Crisis Is Likely To Continue Its Sting By DEBORAH LYNN BLUMBERG and ANUSHA SHRIVASTAVA June 25, 2007; Page C4 Bond investors will keep one eye on the Federal Reserve and the other on the … Continue reading →

Posted in National Real Estate, Risky Lending | 2 Comments

Subprime Horror Stories

Posted on June 22, 2007 by grim

From the Philadelphia Inquirer: The Subprime Implosion Horror stories concerning so-called subprime mortgage loans have become common as more and more financially unsophisticated borrowers find themselves unable to pay their house notes. Adjustable interest rates have risen and balloon payments … Continue reading →

Posted in National Real Estate, Risky Lending | 1 Comment

Consumers simply do not understand their own mortgages

Posted on June 22, 2007 by grim

From the Baltimore Sun: FTC finds many borrowers don’t grasp mortgage terms With mortgage delinquencies and foreclosures soaring, federal researchers have identified a key contributing factor: Large numbers of consumers simply do not understand their own mortgages – especially subprime … Continue reading →

Posted in National Real Estate, Risky Lending | 1 Comment

Wave of foreclosures hits LI

Posted on June 22, 2007 by grim

From Newsday: Forestall foreclosure A wave of mortgage defaults and foreclosures has arrived on Long Island in the wake of the collapse of the subprime mortgage market. Hit by ballooning mortgage payments, many Long Islanders – especially first-time homeowners and … Continue reading →

Posted in National Real Estate, Risky Lending | 1 Comment

No skin in the game? Nothing to lose.

Posted on June 21, 2007 by grim

From BusinessWeek: Time to Give Up the House? For generations, homebuyers have had one simple rule drilled into their heads: Whatever happens, keep paying the mortgage. If you don’t, you risk losing your house and all the equity you’ve built … Continue reading →

Posted in Housing Bubble, Risky Lending | 220 Comments

Home [sellers] are still in for a tough year

Posted on June 21, 2007 by grim

From CNN/Money: When bad loans get worse More than $1 trillion worth of adjustable rate mortgages (ARMs) will be hit with higher reset rates this year, and that could add up to big trouble for many homeowners. Already, the rate … Continue reading →

Posted in Housing Bubble, Risky Lending | 14 Comments

“What would collapse of hedge funds mean?”

Posted on June 21, 2007 by grim

From the NY Post: BEAR MART SALE Merrill Lynch yesterday followed through with its plan to auction off assets belonging to a collapsing Bear Stearns hedge fund, providing more drama to a bond market that’s already licking its wounds from … Continue reading →

Posted in Risky Lending | 1 Comment

What the heck is the ABX?

Posted on June 21, 2007 by grim

From the Wall Street Journal: Index With Odd Name Has Wall Street Glued; Morning ABX.HE Dose By CARRICK MOLLENKAMP June 21, 2007; Page C1 When an upstart company called Markit Group Ltd. started indexes of the subprime-mortgage market last year, … Continue reading →

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Downturn “has turned ugly”

Posted on June 20, 2007 by grim

From Kiplingers: Voices from the Home-Loan Bust It wasn’t long ago that homeowners across the country were gloating over soaring home values in their neighborhoods. Now there’s blood in the streets. What at first looked like an inevitable downturn in … Continue reading →

Posted in Housing Bubble, National Real Estate, Risky Lending | 32 Comments

Tremors down Wall Street

Posted on June 19, 2007 by grim

From the New York Times: Mortgages Give Wall St. New Worries After the first cracks in the subprime mortgage business appeared late last year, several large lenders were forced into bankruptcy. Now, the stress is sending tremors down Wall Street, … Continue reading →

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No quick end to the subprime shakeout

Posted on June 18, 2007 by grim

From the Wall Street Journal: Ills Deepen in Subprime-Bond Arena More Downgrades Seen As Foreclosures Ripple By SERENA NG and KATE KELLY June 18, 2007; Page C1 few weeks ago, the market for bonds backed by risky home loans looked … Continue reading →

Posted in National Real Estate, Risky Lending | 2 Comments

Second leg down for ABX

Posted on June 16, 2007 by grim

From the NY Times: Slumping Confidence in Bonds Tied to Subprime Mortgages A series of indexes that gauge investor confidence in subprime mortgage bonds dropped sharply this week and neared the pessimistic levels that they last sank to in late … Continue reading →

Posted in National Real Estate, Risky Lending | 6 Comments

Subprime “on the block”

Posted on June 14, 2007 by grim

From the Wall Street Journal: Bear’s Fund Is Facing Mortgage Losses Bond Sale Set for Today in Attempt to Raise Cash; Woes Could Be Another Sobering Sign for Market By KATE KELLY and SERENA NG June 14, 2007; Page C1 … Continue reading →

Posted in National Real Estate, Risky Lending | 334 Comments

“Even well-educated people have trouble figuring it out.”

Posted on June 14, 2007 by grim

From the LA Times: Loan data proves baffling to many, FTC says If you were confused by the disclosure forms your mortgage lender gave you, you’re far from alone, according to the Federal Trade Commission, which says the industry can … Continue reading →

Posted in National Real Estate, Risky Lending | 1 Comment

Saying “no” to unqualified borrowers

Posted on June 13, 2007 by grim

From Bloomberg: Subprime Crash Squeezes First-Time Buyers Out of Housing Market Josh Tullis, who in his eight years as a senior loan officer rarely felt compelled to reject a first-time home buyer’s mortgage application, is saying “no” in 2007. Tullis’s … Continue reading →

Posted in Housing Bubble, National Real Estate, Risky Lending | 282 Comments