TARP 2 - Will Bad Loans Wipe Out Newly Raised Bank Capital?
Are The Banks Paying Back TARP Money Too Soon?
Since the beginning of the year, major banks have raised over $200 billion in capital, far in excess of the $75 billion of new capital that the government stress [...]
Banks Loss Reserves Can’t Keep Pace With Troubled Loans
The latest FDIC Quarterly Banking Profile reveals that banks increased loan loss reserves by 11.5% and the ratio of reserves to total loans increased to 2.5%, an all time high. Despite the large loan loss reserves, the [...]
Sanity Returns to Mortgage Lending - After Trillions In Losses
Liar Loans To Become Illegal
New legislation passed by the House will outlaw “stated income” mortgage loans (commonly called liar loans).
WASHINGTON — The House voted Thursday to outlaw “liar loans,” ballooning mortgage payments and other bank practices that [...]
FHA 203k Program - Financing Uninhabitable Homes
Good Intentions Gone Astray?
The Federal Housing Administration (FHA) currently provides over one third of all mortgage financing. One unique mortgage program the FHA offers is the “Rehabilitation Loan Program (203k)”.
The benefits and features of the 203k program [...]
Frugality The New Lifestyle For Many
Hard Times Bring Back Thrift
Without the aid of easy credit, matching income with expenses has required cutbacks in consumer expenditures and forced price reductions and layoffs by businesses. Frugality has become the new mantra for many as [...]
Banks And Consumers Say No To More Debt
More Debt Rejected As Solution For Debt Crisis
How many times since the current financial crisis began, have we been told by the Government that the key to an economic turnaround is easier credit and more lending? [...]
Banks Move Quickly From Bust To Boom
Things Change Quickly
Only a couple of months ago, the consensus view predicted a collapsing banking industry that would need to be nationalized. Banks were viewed as black holes with little chance of becoming profitable. Fortune Magazine was [...]
Some Banks Are Not Amused With 3.875% TARP Mortgages
TARP Dollars Deployed
It was previously discussed how two banks in Washington State are deploying their TARP funds to provide low rate financing for new home buyers. The program was limited in time and funding allocation as detailed [...]
Second Mortgage Investors Facing 100% Losses
Risky Lending
Second mortgage liens have always been considered risky lending. Investors in second mortgages are about to find out that the risk was higher than anticipated.
WASHINGTON, April 6 (Reuters) - The U.S. Treasury will soon finalize details [...]
