New Government Regs Will Add Weeks To Mortgage Transactions
Deluge Of Government Regs For Mortgages
The new rules on home appraisals courtesy of the Home Valuation Code of Conduct (HVCC) can sometimes add weeks of delay to a mortgage transaction. With the mortgage industry still digesting the [...]
“Liar Loans” - RIP - October 1, 2009
Liar Loans To Be Prohibited
No income verification and stated income mortgage loans have been available to borrowers for many years. As originally conceived, a no income verification loan was a sound product, offering highly qualified borrowers [...]
Mortgage Refinances Drop 11% As Rates Remain Low
Refinances Decline as Rates Stabilize
The latest weekly survey from the Mortgage Bankers Association showed a decrease of 6.3% in mortgage loan applications. Application volume compared to the previous year increased by 16%.
The interesting aspect of the latest [...]
The Fed’s Contribution To Ponzi Schemes
12% Returns - “Guaranteed”
You don’t know whether to laugh or cry every time another Ponzi scheme comes to light.
July 28 (Bloomberg) — The U.S. Securities and Exchange Commission said it halted a $50 million Ponzi scheme near [...]
How The Government Encourages “Ruthless Defaulters”
The Delusion of Lenders
The old banking rule of lending only to those who had the capacity to repay was gradually relaxed and then completely abandoned over the past two decades.
New techniques such as loan securitization spread the [...]
Time Shares - Another Shattered Dream
Vacation Turns Into Financial Nightmare
Anyone who has vacationed to a tropical resort cannot be blamed for thinking how great it would be to own a piece of paradise. Those who succumbed to the charms of the omnipresent [...]
Will Mortgage Rates Soar As Fed Programs Wind Down?
Fed Support No Longer Unlimited
There seems to be near unanimous agreement at all levels of government that a recovery in housing prices is essential for economic stabilization and future growth. The Federal Reserve has supported this effort [...]
Are The Benefits Of Unrestricted Lending Worth The Costs?
Advanta & CIT - Same Customers Equal Same Results
In early May, when Advanta Corp (ADVNA) announced that it was suspending all new credit card lending, it was speculated that many borrowers would simply stop paying. The fact [...]
CALPERS Pleads Stupidity On Subprime Mortgage Losses
Calpers Blames Rating Agencies For Losses
Fallout from the financial world’s past love affair with subprime mortgages continues as the California Public Employees’ Retirement System (Calpers) announced it is suing the rating agencies.
NEW YORK (Reuters) - Calpers, the [...]
