Archive for July, 2007
Next Entries »NAACP Subprime Discrimination Suit
Monday, July 16th, 2007We
Advancement of Colored People (the NAACP) has filed a class
action suit against more than a dozen subprime
lenders in an effort to stop those lenders from engaging in what
the suit calls “systematic, institutionalized racism in making home
mortgage loans.”
The NAACP suit specifically names 14
lenders: Ameriquest, Wells Fargo…
Subprime Disaster Continues To Unfold
Friday, July 13th, 2007It seems that nary a week can pass without a subprime
disaster of some type. This week is no exception although there
was at least a bit of variety due to bad news coming from other parts of
the housing industry.
Here is the rundown…
Mortgage Rates Move In Opposite Directions on Surveys
Thursday, July 12th, 2007According to the Freddie Mac Primary Mortgage Market Survey for the
previous week, long term interest rates were down for
the third week in a row. However, the Weekly Mortgage Market Survey
released by the Mortgage Bankers Association reported quite the opposite
results with rates up sharply from a week earlier.
“Long-term mortgage rates continued to move lower for a third
consecutive week, in part reflecting a moderation in core inflation,”
said Frank Nothaft, Freddie Mac vice president and chief
economist. “In the statement accompanying their decision to leave the
target federal funds rate unchanged, the Fed noted that…”
Pros and Cons of the Various Housing Indicators
Wednesday, July 11th, 2007The Office of the Chief Economist of Freddie Mac issued its monthly
economic outlook for July on Monday and, in the narrative provided a
helpful analysis of the reasons for the
confusing messages emerging from various reports on
current house prices.
Each of the reports that the housing
industry, the stock market, and the media relies on has advantages…
Two MBA Surveys Paint Picture of Mortgage Market in 2006
Tuesday, July 10th, 2007The Mortgage Bankers Association released the results of two
surveys covering the mortgage world in the second half of 2006 on
Tuesday.
84 lenders participated in the Mortgage Originations
Survey, including almost all of the top 30 mortgage originators.
During the survey period these respondents originated $681 billion in
first mortgages and $163 billion in second mortgages.
The survey found that…
Federal Agencies Issue Final Guidance On Subprime Mortgages
Friday, July 6th, 2007The Federal Reserve Board released the final statement of federal
regulatory agencies on subprime mortgage lending
recently. The release was done on behalf of the Federal Reserve’s Board
of Governors, the Office of the Comptroller of the Currency, the Federal
Deposit Insurance Corporation, Office of Thrift Supervision, and the
National Credit Union Administration (the Agencies.)
The guidelines were first published for comment in March of this year.
The proposed statement provided guidance on the measures lenders should
use in assessing a borrower’s ability to repay a loan
and…
Alt-A Lender Recinds Earnings Guidance In Wake Of Loan Losses
Thursday, July 5th, 2007Another big mortgage corporation has sent out early warning signals
about its financial health in the wake of the virtual
collapse of the subprime mortgage market.
So what? Subprime lenders have been falling under the
bus for months; at least a dozen have shuttered offices, had warehouse
lines closed by big banks, or stopped accepting loan applications and
started auctioning portfolios. But American Home is not a subprime
company. In fact in March the company issued a press release to clear up
any “confusion” about the type of loans it offers: at that point subprime
mortgage represented less than 1% of its total loan portfolio.
The company specializes in so called Alt-A loans.
Mortgage Rates Curbed By Housing Recession
Thursday, July 5th, 2007Mortgage rates decreased for the second week in a row
according to the results of Freddie Mac’s Primary Mortgage Market Survey
for the previous week.
According to Frank Nothaft, Freddie Mac vice president and chief
economist, “Mortgage rates edged down slightly for the second week in a
row after having risen over the previous month and a half, and as
financial markets prepared for the June 28th Federal Open Market
Committee’s announcement on monetary policy.”
“This week we saw further effects of the current housing
recession…”
Home Fire Sprinklers - A Great Idea That Has Not Happened Yet
Tuesday, July 3rd, 2007Every few years there is a calamitous fire high in loss of life that
pushes fire sprinkler systems into the public
discussion. Recently it was the furniture store fire in Charleston, South
Carolina that killed nine of that city’s firemen.
…So, with such overwhelming evidence that
residential sprinklers can save both lives and property, why the
reluctance to mandate them in all new residential construction?