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Keyword: housingcrisis

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  • So a President Wearing Clown Mask Goes to a Rodeo…

    08/17/2013 1:11:41 PM PDT · by Kaslin · 29 replies ^ | August 17, 2013 | John Ransom
    Let’s put this housing “boom” we’ve all heard about in perspective. Let’s look at it not just with Progressive-colored glasses, but also with the frank stare of Main Street watching a rodeo clown wearing a presidential mask. Stop me if you heard this one before: According to a report by Goldman Sachs all is not that rosy in real estate. The benefits of the housing recovery have been targeted to those who least likely need it. I’m not just talking about the widely reported disparity in prices between high-end and low-end homes. It goes much deeper than that.  Half of...
  • 5 Ways the Student Loan Bubble Mirrors the Housing Crisis

    10/26/2012 5:17:16 AM PDT · by SeekAndFind · 9 replies
    Fiscal Times ^ | 10/26/2012 | By SHERYL NANCE-NASH
    Is history about to repeat itself? There are some striking similarities between the private student loan market and subprime mortgage industry. A new report from the Consumer Financial Protection Bureau (CFPB), provides more evidence for the comparison.“Student loan borrower stories of detours and dead-ends with their servicers bear an uncanny resemblance to problematic practices uncovered in the mortgage servicing business,” said Rohit Chopra, student loan ombudsman for the CFPB who authored the report, in a prepared statement. “Consumers deserve clarity, not chaos and confusion.” RELATED: 11 Things You Didn’t Know About Student Loans The report analyzed roughly 2,900 complaints,...
  • Prepare For The Coming Housing Collapse Part Two

    09/06/2012 9:58:02 AM PDT · by blam · 22 replies
    TBI ^ | 9-6-2012 | Keith Jurow
    Prepare For The Coming Housing Collapse Part Two Keith Jurow, ContributorSeptember 6, 2012 Keith Jurow is a former senior economic writer for the Holt Investment Advisory, who researches and writes about the housing market. . Editor’s Note: BUSINESS INSIDER has been featuring Keith Jurow’s housing market articles regularly for the past two years. He is the author of’s Housing Market Report. In my last BUSINESS INSIDER article posted in May, I explained why a housing collapse in major metros was coming and why you needed to prepare now. Since then, Wall Street economists, analysts and other pundits have smugly...
  • How Obama Bankrupted Black Homeowners

    09/03/2012 10:21:40 PM PDT · by grundle · 19 replies
    Obama pushed thousands of credit-poor blacks into homes they couldn't afford. Many are now in foreclosure. In fact, the lead client has since lost her home and filed bankruptcy. Acorn even crashed the lobby of Citibank's headquarters in New York and accused it of discriminating against blacks. The pressure worked. In 1994, Clinton's top bank regulators signed a landmark anti-redlining policy that declared traditional mortgage underwriting standards racist and mandated banks apply easier lending rules for minorities. Also that year, Attorney General Janet Reno and her aide Eric Holder filed a mortgage discrimination case against a Washington-area bank that forced...
  • CBS, AP: Dem chair of House Oversight covered up ties to Countrywide for himself, colleagues,

    08/17/2012 7:14:11 AM PDT · by Hojczyk · 11 replies
    Hot Air ^ | August 17,2012 | ED MORRISSEY
    A Democratic committee chairman overrode his own subpoena three years ago in an investigation of former subprime mortgage lender Countrywide Financial Corp. to exclude records showing that he, other House members and congressional aides got VIP discounted loans from the company, documents show. The procedure to keep the names secret was devised by Rep. Edolphus Towns, D-N.Y. In 2003, the 15-term congressman had two loans processed by Countrywide’s VIP section, which was established to give discounts to favored borrowers. Issa exposed Towns’ coverup by issuing a second subpoena, which disgorged all of the records: The effort at secrecy was reversed...
  • And You Thought the Housing Crisis Was Over! The Community Reinvestment Act is back

    07/27/2012 5:37:12 AM PDT · by reaganaut1 · 70 replies
    The American Spectator ^ | July 27, 2012 | William Tucker
    Do you remember that thing about how the banks wouldn't lend to blacks and Hispanics because they were racists? And do you remember how they passed the Community Reinvestment Act so that banks were forced to reduce down payments practically to zero and lend to a lot of people they knew were bad credit risks? And do you remember how Wall Street bundled all these risky subprime mortgage and sold them to investors around the world so that when it became clear that those people weren't going to be able to pay their mortgages banks everywhere were left holding the...
  • Renting Prosperity

    05/05/2012 6:35:53 AM PDT · by jimbo123 · 4 replies
    Wall Street Journal ^ | 5/5/12 | DANIEL GROSS
    Americans are getting used to the idea of renting the good life, from cars to couture to homes. Daniel Gross explores our shift from a nation of owners to an economy permanently on the move—and how it will lead to the next boom. "The Great Gatsby," the pre-eminent American novel of financial ambition, overextension and downfall, offers a revealing vignette about the great American obsession: real estate. The narrator, Nick Carraway, can't afford to buy in the rarefied Long Island world inhabited by Gatsby, and by Tom and Daisy Buchanan. But he can afford to rent.

    04/28/2012 2:12:19 PM PDT · by Jerome Hudson · 9 replies
    big Government ^ | 04/28/2012 | wynton Hall
    The U.S. Federal Reserve estimates that of the 12 million American homeowners who have negative equity, 3 million--or 1 out of every 4--are borrowers with FHA-insured loans.
  • 69% Say Those Struggling With Mortgage Should Sell, Buy Cheaper Home

    03/26/2012 8:14:34 AM PDT · by reaganaut1 · 31 replies · 16+ views
    Rasmussen Reports ^ | March 22, 2012
    While most Americans agree now is not the best time to sell a home, they feel stronger than ever that those struggling to pay their mortgage should sell their home and buy a cheaper one rather than receive help from the government. The latest Rasmussen Reports national telephone survey of American Adults shows that just 19% believe the government should assist those struggling homeowners in making their mortgage payments. Sixty-nine percent (69%) think someone who can’t afford to make increased mortgage payments should sell their home and find a less expensive one. That’s up three points from January and the...
  • How to really Fix the Housing Crisis

    03/06/2012 7:12:06 AM PST · by SeekAndFind · 16 replies
    Townhall ^ | 03/06/2012 | Doug French
    The foreclosure crisis has crawled on for going on four years now with no end in sight. "Continued house price declines could lead to even more defaults, foreclosures and distress sales, undermining wealth, confidence and spending," William Dudley, president of the Federal Reserve Bank of New York said. "Breaking this vicious cycle is one of the most pressing issues facing policy makers." Every one of the Republican presidential candidates is being asked how they would handle the slow-motion housing wreck. Long shot Newt Gingrich says he would rewrite the rules to make it profitable for banks to renegotiate loan principal...
  • Couple Lives In $1.3 Million, 4,900 Sq. Ft. Home For 5 Yrs Without Making Single Mortgage Payment

    03/05/2012 5:11:32 PM PST · by SeekAndFind · 32 replies
    Zero Hedge ^ | 03/05/2012 | Tyler Durden
    Wonder how Americans can afford to buy millions of iGadgets, a second LCD TV for the shoe closet, and eat at restaurants more than almost any time in the past despite sliding personal income? Simple - increasingly fewer pay the biggest staple bill in a US household: their mortgage. The following story of Keith And Janet Ritter, who have lived in their Fort Washington, MD $1.29MM, 4,900 square foot McMansion for 5 years (which they purchase with no money down) without ever making a single mortgage payment, and who are not even close to being evicted, may explain much...
  • Governor Romney's Housing Crisis (FR Exclusive)

    01/27/2012 1:41:24 PM PST · by BuckeyeTexan · 88 replies
    FreeRepublic | 01/27/2012 | BuckeyeTexan and Danae
    <p>At the CNN Florida Republican Presidential debate in Jacksonville on January 26th, Governor Romney attempted to link Speaker Newt Gingrich to the 2007 Housing Crisis by questioning the Speaker’s role as a consultant at the troubled mortgage giant Freddie Mac. He made the same connection in the NBC debate on January 23rd. Governor Romney claimed in the debates that Speaker Gingrich peddled his influence in Washington D.C. to promote Freddie Mac when he should have been blowing the whistle on the government-sponsored entities' practices.</p>
  • [CA] sues for answers from Fannie Mae, Freddie Mac on housing meltdown

    12/21/2011 1:08:11 AM PST · by Cincinatus' Wife · 19 replies
    Los Angeles Times ^ | December 21, 2011 | Alejandro Lazo
    California Atty. Gen. Kamala D. Harris is suing Fannie Mae and Freddie Mac to force the mortgage giants to answer questions about their role in California's housing meltdown. In two suits filed Tuesday in San Francisco County Superior Court, Harris seeks to compel the companies to respond to subpoenas from her office that have been ignored so far. Harris is seeking information about the practices by Fannie and Freddie in California as part of her ongoing investigation into the mortgage industry. The suits ask a judge to order the two companies to answer a set of 51 questions served in...
  • No worries for Dodd and Frank

    12/08/2011 12:09:13 PM PST · by Graybeard58 · 3 replies
    Waterbury Republican-American ^ | December 8, 2011 | Editorial
    "Barney Frank: I've destroyed the economy, my work here is done." — Washington Times headline, Nov. 29 It was quite a confluence of news last week when in the span of hours came Rep. Frank's retirement announcement, a report on declining housing prices and home-ownership rates, and a poll belaboring the obvious about Americans' fears about the housing and stock markets. With his fellow Democrat, former Sen. Chris Dodd of Connecticut, Rep. Frank, D-Mass., shoulders much of the blame for today's economic catastrophe and the fiscal crises plaguing governments at all levels. They spent years pushing policies that ultimately required...
  • The Housing Recovery Will Take Many Years

    11/14/2011 6:38:56 AM PST · by SeekAndFind · 21 replies
    Washington Post via RealClearMarkets ^ | 11/14/2011 | Roebrt Samuelson
    We Americans think of ourselves as problem-solvers, but the housing collapse has so far eluded all solutions. Perhaps 10 million homes have gone into foreclosure since 2006; millions more will follow. From their peaks during the real-estate bubble, home prices are down 30 percent, new housing construction has dropped 75 percent and existing home sales are off almost 30 percent. Housing's collapse is one reason the economic recovery is so weak. Construction remains depressed, as are the appliance and furniture sales spurred by home buying. It may be that patience is the only cure. Home prices have to find bottom;...
  • Risk Rises for Housing Agency (projected losses of $50 bil for FHA)

    11/11/2011 10:35:14 AM PST · by reaganaut1 · 1 replies
    Wall Street Journal ^ | NOVEMBER 11, 2011 | NICK TIMIRAOS
    Concerns are rising that the Federal Housing Administration could run out money if the economy doesn't recover soon, raising the risk the agency would seek a taxpayer bailout for the first time in its 77-year history. Since the mortgage crisis erupted five years ago, the FHA has played a critical role in housing finance as private lenders retreated. It backs about a third of all new mortgages originated for home purchases, up from around 5% in 2006. But, as the FHA prepares to release its annual financial report next week, a forthcoming study by Joseph Gyourko, a real estate and...
  • Obama's new mortgage program is full of disappointing details

    11/11/2011 6:19:51 AM PST · by Driftwood1 · 12 replies
    The Heritage Foundation ^ | 11-11-11 | David C. John
    When you're in trouble, nothing beats a helping hand — provided you can reach it. Certain homeowners with "underwater" mortgages are about to find that out. Say you're a homeowner with such a mortgage. The value of your home has dropped over the last few years until it is much less than you owe. It looks like you'll never get any relief. Then the government announces another plan to help people like you — the ones who have struggled to pay their mortgages on time. So you apply. Surprise: there are technical terms (which nobody mentioned ahead of time) that...
  • Generation Jobless: Young Men Suffer Worst as Economy Staggers

    11/07/2011 5:30:01 PM PST · by MinorityRepublican · 12 replies
    The Wall Street Journal ^ | NOVEMBER 7, 2011 | CONOR DOUGHERTY
    Cody Preston, 25, keeps looking for work that will pay what he made installing granite counters. PORTLAND, Ore.—Few groups were hit harder by the recession than young men, like Cody Preston and Justin Randol, 25-year-old high-school buddies who didn't go to college. The unemployment rate for males between 25 and 34 years old with high-school diplomas is 14.4%—up from 6.1% before the downturn four years ago and far above today's 9% national rate. The picture is even more bleak for slightly younger men: 22.4% for high-school graduates 20 to 24 years old. That's up from 10.4% four years ago. In...
  • Freddie Mac CEO to step down

    10/26/2011 8:23:47 PM PDT · by rabscuttle385 · 28 replies · 2+ views
    The Hill, Washington, DC ^ | 2011-10-26 | Peter Schroeder
    Charles E. "Ed" Haldeman, Jr., has announced his plans to step down as chief executive officer of mortgage giant Freddie Mac sometime in the next year. The Federal Housing Finance Agency (FHFA), which regulates Freddie and its counterpart Fannie Mae, announced Wednesday that Haldeman is looking to leave the government-sponsored enterprise some time next year.
  • Here's The Fed Speech That Has Everyone Buzzing About 'QE3' Tonight

    10/20/2011 7:50:58 PM PDT · by blam · 23 replies
    TBI ^ | 10-20-2011 | Joe Weisenthal
    Here's The Fed Speech That Has Everyone Buzzing About 'QE3' Tonight Joe Weisenthal Oct. 20, 2011, 6:53 PM The big econ news of the night is this report from WSJ that the Fed is considering large-scale mortgage purchases to drive down rates even further. This talk appears to have been set off by a speech given by Fed Governor Daniel Tarullo given this evening at Columbia where he talks up precisely this: Mortgage purchases. Here's the relevant bit: Within the FOMC and in the broader policy community, there has been considerable discussion of possible additional accommodative measures, from communication strategies...
  • Occupy Astroturf

    10/17/2011 8:10:59 PM PDT · by Tolerance Sucks Rocks · 5 replies
    Rolling It Up the Hill ^ | October 17, 2011 | Sisyphus
    It is ironic that, as the President predictably endorses the violent, odiferous Occupy Astroturf movement, the demand was emitted for a trillion dollars to be spent repairing the environment. I knew they were disgusting, but in such few numbers their impact can’t be that bad.Some commentators have noted the irony of these dedicated and sincere foot soldiers of the Left decrying Wall Street while lauding Wall Street’s most notorious hired gun (which they, again ironically, share with Big Labor), Barack Hussein Obama.The real irony, of course, is in the pundits’ own failure to recognize the classic third year of a...
  • Banks turn to demolition of foreclosed properties to ease housing-market pressures

    10/14/2011 8:38:40 PM PDT · by FritzG · 24 replies
    The Washington Post ^ | 12 Oct 2011 | Brady Dennis
    The sight of excavators tearing down vacant buildings has become common in this foreclosure-ravaged city, where the housing crisis hit early and hard. But the story behind the recent wave of demolitions is novel — and cities around the country are taking notice. A handful of the nation’s largest banks have begun giving away scores of properties that are abandoned or otherwise at risk of languishing indefinitely and further dragging down already depressed neighborhoods. The banks have even been footing the bill for the demolitions — as much as $7,500 a pop. Four years into the housing crisis, the ongoing...
  • Mortgage rates drop below 4 percent for first time ever

    10/06/2011 10:57:40 AM PDT · by ilovesarah2012 · 2 replies
    msnbc ^ | October 6, 2011
    The average rate on the 30-year fixed mortgage this week fell below 4 percent for the first time ever, to 3.94 percent. For those who can qualify, it's an extraordinary opportunity to buy or refinance. And mortgage rates could fall even further now that the Federal Reserve plans to reshuffle its portfolio of securities to try and lower long-term rates. On Thursday, Freddie Mac said the average rate on a 30-year fixed mortgage dropped from 4.01 percent last week, the previous low. The average rate on a 15-year fixed loan, a popular refinancing option, dipped to 3.26 percent, also a...
  • Timeline shows Bush McCain Warning Dems of financial and housing crisis; meltdown - YouTube

    09/04/2011 10:24:05 AM PDT · by Sons of Union Vets · 163 replies · 1+ views
    Fox News ^ | Sept. 24, 2008 | Fox news
    From Fox News Channel Wednesday, September 24, 2008 Special Report With Brit Hume
  • Obama administration poised to become the world’s largest landlord

    Over the past three years the Obama administration has been secretly planning the largest redistribution of wealth in history. When President Obama took office, mortgage giants Fannie Mae and Freddie Mac held a staggering $6.1 trillion in subprime mortgages. If you’ll remember just prior to the 2008 election, President Bush signed the $300 billion Toxic Asset Relief Program better known as TARP. Two of the largest beneficiaries of this were the mortgage companies Fannie Mae and Freddie Mac. The two companies received a combined $169 billion in taxpayer funds. Upon taking office, the Obama administration gave instructions to the two...
  • Pending home sales slip 1.3% in July

    08/29/2011 8:23:11 AM PDT · by Free Vulcan · 3 replies
    Marketwatch ^ | 8.29.11 | Steve Goldstein
    WASHINGTON (MarketWatch) -- An index of pending home sales fell 1.3% in July, the National Association of Realtors reported Monday.
  • Pending sales of existing US homes fell in July (Beware of Happy Spin)

    08/29/2011 8:04:40 AM PDT · by tobyhill · 8 replies
    msnbc ^ | 8/29/2011 | msnbc
    Pending sales of existing U.S. homes fell in July from June in the latest sign of weakness in the housing industry, data from a real estate trade group showed on Monday. The National Association of Realtors Pending Home Sales Index, based on contracts signed in July, was down 1.3 percent to 89.7 from 90.9 in June. Economists polled by Reuters ahead of the report were expecting pending home sales to fall 1.3 percent. In a sign of how much the sector has recovered from a year ago, the index was up 14.4 percent from July of 2010.
  • Does Anyone Have a Real Economic Plan? The critical issue the candidates avoid: the voters are...

    08/16/2011 7:30:58 PM PDT · by neverdem · 21 replies
    Research Magazine ^ | August 2011 | Nicole Gelinas
    The critical issue the candidates avoid: the voters are deep in debt. Going into next year’s election, President Obama is in a heap of trouble over the economy. Some evidence: in June, only 29 percent of the people who participated in a Wall Street Journal / NBC News poll thought the country was “headed in the right direction.” A full 62 percent, by contrast, thought America was “on the wrong track.” A clear majority, too — 41 to 54 percent — disapproved of the president’s economic performance. The numbers aren’t moving in Obama’s favor, either. Another problem for the White...
  • Fannie Mae's dirty nonprofits helped torch US housing

    07/28/2011 9:15:10 AM PDT · by Edmunds mom · 4 replies ^ | 7/22/2011 | Scott Walter
    If “public-private partnerships” sound wonderful to you, please consider that the housing meltdown and the Great Recession we’re still struggling to escape were largely produced by a public-private partnership. ...the story’s essentials: oceans of tax dollars flowing to private groups – for-profit and nonprofit – that are praised by politicians who want credit for the subsidized housing boom, with the whole party lubricated by the dissolving of traditional lending practices, which in turn is justified by claims that unfettered lending will remedy racial disparities in housing. Those disparities, of course, are Exhibit A for advocates of “structural racism” theory, who...
  • Beginning of the end of the housing crisis? Some real estate ETFs recently hit 52-week highs.

    07/15/2011 6:59:41 AM PDT · by SeekAndFind · 22 replies
    Marketwatch ^ | 07/15/2011 | Mark Hulbert
    Well, what about housing? It’s been dead for so many years that its blood long ago stopped flowing. Surely this famous piece of advice from Nathan Rothschild doesn’t apply to that sector? Don’t be too quick to dismiss the possibility. Consider the iShares Dow Jones U.S. Real Estate Index fund, an ETF that is designed to represent the real-estate sector. Just one week ago, it traded at a 52-week high. The same goes for the iShares Cohen & Steers Realty Majors. What does the market know that the rest of us don’t? For answers, I turned to an investment service...
  • Foreclosure woes: For one homeowner, following bank's advice was bad news

    06/08/2011 8:01:42 PM PDT · by Jim 726 · 45 replies · 1+ views
    PANAMA CITY BEACH — Lindsay Hall took out a $200,000 loan in 2005 on her paid-off beach house with the understanding that her $600 monthly Social Security check would cover the mortgage payments. When her interest rate jumped more than a year ago, it raised her mortgage payments to $1,500. At that point, Hall started the fight to save her home. “I want to say I did my best to fight for the American dream,” said Hall, 70. Hall has negotiated with her loan servicer, IndyMac Mortgage Services, to modify her loan payments multiple times. Each time she negotiates payments...
  • Was Sarah Palin's New Home Purchase Preceded By A "Robosigned" (And Fraudulent) Title Release?

    05/26/2011 11:51:55 AM PDT · by SeekAndFind · 50 replies
    Zero Hedge ^ | 05/26/2011 | Tyler Durden
    Yesterday we reported that Sarah Palin has just purchased a new property in North Scottsdale, AZ for $1.75 million. We further speculated that there may have been some fishyness with regard to the terms of the purchase of the JPM short sale which was an over 100% flip in about a year. So far so good. Where this story takes yet another detour into the macabre, is a cursory analysis of the release deed of the prior mortgage holder of the property, one Steven Soraya, who had a loan amounting to $980,500.00 with Wells Fargo, which was released on July...
  • The True Story of the Financial Crisis

    05/15/2011 3:40:23 PM PDT · by TheFreedomPoster · 13 replies
    American Spectator ^ | May 2011 | Peter J. Wallison
    I believe that the sine qua non of the financial crisis was U.S. government housing policy, which led to the creation of 27 million subprime and other risky loans -- half of all mortgages in the United States -- which were ready to default as soon as the massive 1997-2007 housing bubble began to deflate. If the U.S. government had not chosen this policy path -- fostering the growth of a bubble of unprecedented size and an equally unprecedented number of weak and high-risk residential mortgages -- the great financial crisis of 2008 would never have occurred...
  • Housing tax credit cost more than it benefited — for homeowners (Suckers!)

    05/11/2011 1:31:23 PM PDT · by SeekAndFind · 3 replies
    Hotair ^ | 05/11/2011 | Ed Morrissey
    In my analyses of the homebuyer tax credits issued, renewed, and expanded by Democrats in response to the housing market collapse, I called it a waste of taxpayer money that only incentivized those already inclined and qualified to buy, skewed demand, and put off a much-needed correction in pricing. I left out something that the Wall Street Journal’s Smart Money noticed in Monday’s Zillow report, which is that it turned out to be a pretty bad deal for those who used the credit as well as taxpayers. Thanks to the artificially higher home prices that the tax credits provided, buyers...
  • The REAL Long-Term Return On Owning A Home: 0%

    05/09/2011 3:00:52 PM PDT · by SeekAndFind · 24 replies
    Business Insider ^ | 05/09/2011 | Gregory White
    Short-term terrible housing news is no surprise right now, but the long-term thesis that residential real estate is a good investment is starting to crumble too. Recent research from Wenli Li and Fang Yang (via Harvard Business Review) shows that the real rate of return on housing from 1975-2009 was actually negative.From Li and Yang:Assuming an annual depreciation rate of 2.5 percent, a property tax rate of 1.5 percent, a mortgage interest rate of 7 percent, and a marginal income tax rate of 25 percent for a typical taxpayer, the adjusted real rate of return on housing actually falls below...
  • Housing crash is getting worse: report

    05/08/2011 10:12:53 PM PDT · by george76 · 68 replies
    MarketWatch ^ | May 9, 2011 | Brett Arends
    If you thought the housing crisis was bad, think again. It’s worse. New data just out from Zillow, the real-estate information company, show house prices are falling at their fastest rate since the Lehman collapse. Average home prices are down 8% from a year ago, 3% over the quarter, and are falling at about 1% every month, according to Zillow. And the percentage of homeowners in negative-equity positions — with a home worth less than its mortgage — has rocketed to 28%, a new crisis high.
  • MERS LOSES (Quiet Title!)

    05/02/2011 1:35:54 PM PDT · by Kartographer · 18 replies
    Market-Ticker ^ | 5/2/11 | Karl Denninger
    Groves requested relief under the Declaratory Judgment Act, as well as “other and further relief to which [she] may be justly entitled.” The trial court’s judgment does not indicate that it granted her request to “quiet title” exclusively under the Declaratory Judgment Act. Accordingly, no error appears on the face of this record. See Tex. R. App. P. 26.1(c), 30; Alexander, 134 S.W.3d at 848. We overrule MERS’s first issue. ..... Groves alleged in her petition that MERS’s deed of trust “purported to create a lien for security purposes on Plaintiff’s property as described.” This alleged lien constitutes an adverse...
  • Community Reinvestment Act: Separating Fact From Fiction (Long Article)

    03/29/2011 5:31:52 PM PDT · by Kaslin · 21 replies
    IBD Editorials ^ | March 29, 2011 | Staff
    Cover-Up: Acorn clones using the Community Reinvestment Act to shake down banks aren't happy with our campaign to expose the truth about the CRA's central role in the financial crisis. The Greenlining Institute is typical. The Berkeley, Calif.-based community organizer fired off a letter to us complaining about our March 21 editorial "WaMu: Guilty Only Of CRA Compliance." In it, we argued that Washington Mutual, a CRA poster boy in the run-up to the crisis, is now a convenient whipping boy for the same regulators who pressured the bank into making the "reckless" multicultural loans they're suing it over today....
  • Without Loan Giants, 30-Year Mortgage May Fade Away

    03/06/2011 11:15:59 AM PST · by YankeeReb · 46 replies
    Yahoo Finance ^ | 3/4/11 | Binyamin Appelbaum
    How might home buying change if the federal government shuts down the housing finance giants Fannie Mae and Freddie Mac? The 30-year fixed-rate mortgage loan, the steady favorite of American borrowers since the 1950s, could become a luxury product, housing experts on both sides of the political aisle say. Interest rates would rise for most borrowers, but urban and rural residents could see sharper increases than the coveted customers in the suburbs. Lenders could charge fees for popular features now taken for granted, like the ability to "lock in" an interest rate weeks or months before taking out a loan....
  • A Bank Crisis Whodunit, With Laughs and Tears

    01/31/2011 3:12:44 PM PST · by neverdem · 12 replies
    NY Times ^ | January 29, 2011 | GRETCHEN MORGENSON
    TRULY startling revelations were few in the voluminous report, published last Thursday by the Financial Crisis Inquiry Commission on the origins of the financial panic. This is hardly a shock, given the flood-the-zone coverage and analysis of the crisis since it erupted four years ago. Yet the report still makes... --snip-- For those of you who’ve wondered why there have been so few prosecutions of mortgage fraud during this epidemic, your answer is on Page 164. “The terrible thing that happened,” said William K. Black, a former fraud investigator in the savings-and-loan crisis who is a professor at the University...
  • HOUSING: Researchers say exotic loans not to blame for foreclosure crisis

    09/28/2010 4:54:00 AM PDT · by SantaLuz · 12 replies
    North County Times ^ | September 27, 2010 | Eric Wolff
    The housing crisis wasn't caused by much-maligned exotic loans so much as lending huge sums of money to unworthy borrowers, a report released Monday suggested. The misdiagnosis of the housing bubble, whose implosion in 2007 knocked out the broader economy, drove Congress to overreact and ban useful tools, according to a report from the Corky McMillin Center for Real Estate at San Diego State University. The study examined lending practices in 12 countries and found that many make extensive use of loans in which the borrower avoids paying down principal for a fixed period. With the exception of the United...
  • The Thirteen Housing Markets That Will Never Recover

    05/17/2010 10:53:47 AM PDT · by STARWISE · 21 replies · 1,967+ views
    24/1 Wall St. ^ | 5-13-10 | 24/7 Wall St.
    New RealtyTrac numbers show that in April there were well over 300,000 foreclosures and the figure in on track to be higher in 2010 than in 2009. Several research firms say that underwater mortgages have moved above 11 million. The National Association of Realtors found that “in the first quarter, 91 out of 152 metropolitan statistical areas showed higher median existing single-family home prices in comparison with the first quarter of 2009.” But some cities posted double-digit drops for the period. 24/7 Wall St. reviewed the NAR data for the first quarter along with Bureau of Labor Statistics unemployment levels...
  • Foreclosure: 'This is like Pearl Harbor' (more whiny morons "losing their homes"

    07/25/2010 8:07:03 AM PDT · by Notary Sojac · 84 replies
    Suburban Chicago News ^ | 20 July 2010 | Cindy W. Cain
    MOKENA -- The foreclosure crisis has hit home for the Triezenbergs of Manhattan Township. Mark and Tia Triezenberg and their five young children, including one with severe disabilities due to autism, must leave their home by Aug. 29. The foreclosure, one of many nationwide and locally (see sidebar), caps a troubled couple of years for a family that saw its income soar with the home-building boom and plummet with the recession. "This is like Pearl Harbor," Mark said during an interview at a Mokena restaurant. "Only a few people saw this coming." The Triezenbergs still don't know where they will...
  • Less Than Half of All Home-Sale Attempts Successful in ‘09

    08/17/2010 9:11:41 AM PDT · by Notary Sojac · 26 replies
    Wall Street Journal | 16 Aug 2010 | Nick Timiraos
    A survey of seven major housing markets found that less than half of all attempts to sell a home in 2009 had, as of last Wednesday, resulted in a sale. The analysis, conducted by Redfin Corp., a Seattle-based brokerage that operates in nine states, shows just how tough the housing market has become–and just how many sellers are unwilling to lower their prices. The survey looked at how the 500,000 homes that were listed for sale last year in seven of the nation’s biggest counties had fared. Around 47% of those listings had sold by last week, while just 4%...
  • Existing home sales dive to 15-year low

    08/24/2010 10:28:02 AM PDT · by central_va · 15 replies
    yahoo ^ | 8/24/10 | reuters
    WASHINGTON (Reuters) - Sales of previously owned U.S. homes took a record drop in July to their lowest pace in 15 years, suggesting further loss of momentum in the economic recovery. As the National Association of Realtors issued the report, Chicago Federal Reserve President Charles Evans warned that the risk of a double-dip recession was higher than six months ago although he did not think output would contract, describing the recovery as ongoing but modest. Existing home sales dropped a record 27.2 percent from June to an annual rate of 3.83 million units, the lowest since May 1995. June's sales...
  • Economists Predict Home Values Will Continue to Drop Into Next Year As Foreclosures Rise

    07/27/2010 3:53:44 AM PDT · by jerry557 · 31 replies · 1+ views
    The Ledger ^ | 07/26/10 | Alan Zibel
    WASHINGTON | Thought the housing crisis was over? Not quite. Despite four years of falling prices and recent signs that they were finally bottoming out, homes are expected to lose still more value in many metro areas during the next year. Parts of the country already pummeled by the housing crisis, like Las Vegas, Phoenix and Miami, will be hit hardest. But even some places that have rebounded or held up relatively well - including New York, Los Angeles and Washington, D.C. - will suffer, too. That's the conclusion of economists who have been reducing their estimates for home prices...
  • Who Would Finance Mortgages If Fannie, Freddie Disbanded?

    07/02/2010 5:20:22 PM PDT · by CutePuppy · 38 replies · 3+ views
    CNBC ^ | July 02, 2010 | CNBC
    Big changes are in store for the banking system should Fannie Mae and Freddie Mac be revamped or eliminated—both of which are being discussed by housing experts and government officials to deal with the distressed real estate market. As the system works now with the two entities, Fannie and Freddie , banks write the mortgages, but they rarely hold them. The mortgages are sold off into pools, known as mortgage-backed securities (MBS). Fannie and Freddie guarantee the mortgage payments, so that the MBS buyer, be it the Chinese government or an American pension plan, has the security of the US...
  • The next di$a$ter -- Federal Mortgage Insurance.

    05/18/2010 6:44:07 AM PDT · by SeekAndFind · 8 replies · 400+ views
    New York Post ^ | 05/18/2010 | Stephen Meister
    The Federal Housing Administration, which insures home mortgages, not only failed to learn the lessons of the subprime meltdown, it's been doubling down on failure. As a result, this taxpayer-backed agency is headed for disaster. In 2006, the FHA insured just 3 percent of home mortgages; today, it insures one of every three. Together with Fannie and Freddie, the FHA is putting the risk for the entire, $11 trillion US home-mortgage market on the back of the American taxpayer. How did that happen? Simple. Private lenders responded to the bursting of the housing bubble and the subprime (and now prime)...
  • Strategic Default: Walking Away from Mortgages

    05/10/2010 4:49:21 AM PDT · by rightwingintelligentsia · 84 replies · 1,727+ views
    CBS News ^ | May 9, 2010
    (CBS) Despite some indications that the economy is recovering, the housing market remains a disaster area. Currently, about seven million homeowners are behind on their mortgages and that number is only getting worse. Banks, with the help of the government, are offering some relief to homeowners who've lost jobs and just can't meet their payments. But there's a growing number who can pay but are simply walking away from houses that are now worth as little as half of what they paid for them. It's called "strategic default." People have done the math and decided making those monthly payments is...
  • Senators Slam Goldman, Accuse Firm of 'Unethical' Bet Against Housing Market

    04/27/2010 8:09:19 AM PDT · by rightwingintelligentsia · 20 replies · 582+ views
    FoxNews ^ | April 27, 2010
    Senators accused Goldman Sachs of reaping huge profits from betting against the housing market in an "unethical," if not illegal, investment scheme, as a high-profile hearing on the Wall Street meltdown got under way Tuesday.