http://www.freerepublic.com/tag/mortgage/ en-us Sat, 26 Jul 2008 19:35:21 GMT Focus Forum 15 http://www.freerepublic.com/focus/f-news/2051801/posts The Senate gave final approval to a housing bill to help struggling homeowners and support struggling mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE) Saturday. rttnews.com http://www.freerepublic.com/focus/f-news/2051801/posts#comment Sat, 26 Jul 2008 19:35:21 GMT http://www.freerepublic.com/focus/f-news/2051753/posts WASHINGTON -- U.S. Senate lawmakers on Saturday overwhelmingly passed a broad package of housing legislation, hoping to send a calming message to financial markets and voters amid the ongoing deterioration of the housing market and a growing number of bank failures. Meeting in a rare weekend session, the Senate voted 72-13 in favor of the bill, which includes tax breaks for homeowners, a $300 billion program to refinance loans for struggling borrowers, and a dramatic rescue plan for embattled mortgage finance firms Fannie Mae and Freddie Mac. Other provisions include an increase in the federal debt limit to $10.6 trillion... Wall Street Journal http://www.freerepublic.com/focus/f-news/2051753/posts#comment Sat, 26 Jul 2008 17:25:38 GMT http://www.freerepublic.com/focus/f-news/2051600/posts If you are ignoring the housing bailout bill because you think it benefits only troubled homeowners, you may miss out on a windfall. The housing bill, expected to be passed by the Senate in the next few days and then signed by President Bush, does offer incentives to certain overextended borrowers and their mortgage lenders. But it also includes many handouts to first-time homebuyers, longtime homeowners, returning veterans and senior citizens seeking to tap their home equity without getting hit with big fees. Millions of people have the potential to benefit in some way. Huge numbers of people buying homes... NYT http://www.freerepublic.com/focus/f-news/2051600/posts#comment Sat, 26 Jul 2008 06:58:37 GMT http://www.freerepublic.com/focus/f-news/2051434/posts This paper estimates the evolution of equilibrium real home prices in the United States and finds that despite recent declines, single-family homes remained 8 to 20 percent overvalued as of the first quarter of 2008. In the short run, the gap between actual and equilibrium prices does not exert powerful influence over price dynamics. Instead, that dynamics is driven by the inventory-to-sales ratio and by foreclosure starts in a highly inertial relationship. Taken together, this implies that price declines are likely to continue, including past the point where overvaluation is eliminated. The paper also finds that from the early 1990s... International Monetary Fund http://www.freerepublic.com/focus/f-news/2051434/posts#comment Fri, 25 Jul 2008 22:20:25 GMT http://www.freerepublic.com/focus/f-news/2051428/posts WHO'S ZOOMIN' WHO?: The House has passed a housing bill that is designed to encourage delinquent mortgage borrowers to refinance into FHA-insured mortgages and to stimulate sales of empty houses, among other things. The Senate is expected to pass the bill, called the Housing and Economic Recovery Act of 2008 (H.R. 3221), and the president is expected to sign it. As a taxpayer, there's some stuff you won't like, and some stuff that you'll appreciate. (That's a pun, one that I'll explain shortly.) I also recommend that you read Kay Bell's tax blog today, too. She addresses some of these... Bankrate http://www.freerepublic.com/focus/f-news/2051428/posts#comment Fri, 25 Jul 2008 22:04:20 GMT http://www.freerepublic.com/focus/f-news/2051366/posts SAN FRANCISCO (MarketWatch) -- Shares of Washington Mutual Inc. slipped again on Friday on concern unsecured creditors are losing confidence in the nation's largest thrift. Protection against a default by the company got more expensive. However, the company said on Friday that it has boosted liquidity to more than $50 billion this month. At the end of the second quarter, liquidity was more than $40 billion. Liquidity usually refers to access to cash and other assets that can be sold easily. WM lost more than 30% of its market value on Wednesday and Thursday. A report by Gimme Credit analyst... MarketWatch http://www.freerepublic.com/focus/f-news/2051366/posts#comment Fri, 25 Jul 2008 20:31:41 GMT http://www.freerepublic.com/focus/f-news/2051213/posts Pelosi: Dems saved Bush’s 'chestnuts' By: David Rogers July 25, 2008 11:51 AM EST After driving a hard bargain, Speaker Nancy Pelosi is now taking credit for pulling President Bush’s “chestnuts out of the fire” in winning House approval of a landmark home mortgage bill expected to clear Congress this weekend. “We pulled the president’s chestnuts out of the fire,” Pelosi told Politico. “Without the Democratic votes he would have had no bill… He would have had no bill.” On an 80-13 vote Friday morning, senators moved to cut off debate, and final passage is expected early Saturday. Thirty-one Senate... The Politico http://www.freerepublic.com/focus/f-news/2051213/posts#comment Fri, 25 Jul 2008 16:08:29 GMT http://www.freerepublic.com/focus/f-news/2050803/posts Mortgage rates took a big jump this week, to their highest point in a year. There's no single explanation for the rise. The benchmark 30-year fixed-rate mortgage rose 35 basis points, to 6.77 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.45 discount and origination points. One year ago, the mortgage index was almost the same, at 6.75 percent. Four weeks ago, it was 6.62 percent. The benchmark 15-year fixed-rate mortgage rose 37 basis points, to 6.32 percent.... Bankrate http://www.freerepublic.com/focus/f-news/2050803/posts#comment Thu, 24 Jul 2008 22:05:16 GMT http://www.freerepublic.com/focus/f-news/2050254/posts NEW YORK (CNNMoney.com) -- The House on Wednesday voted 272-152 to pass sweeping legislation that will offer up to $300 billion in assistance to troubled homeowners and throw government support behind mortgage finance giants Fannie Mae and Freddie Mac. The nearly 700-page measure will now go back to the Senate, where final passage is expected. But it's not clear when the vote will occur because of a Republican filibuster threat. -snip- CNN http://www.freerepublic.com/focus/f-news/2050254/posts#comment Thu, 24 Jul 2008 00:32:04 GMT http://www.freerepublic.com/focus/f-news/2050123/posts SAN DIEGO (Reuters) - San Diego City Attorney Michael Aguirre said on Wednesday he had filed a lawsuit against Bank of America Corp (BAC.N) and its Countrywide unit to prevent the mortgage lenders from foreclosing on homes in his city, which he aims to make a "foreclosure sanctuary." Reuters http://www.freerepublic.com/focus/f-news/2050123/posts#comment Wed, 23 Jul 2008 20:17:28 GMT http://www.freerepublic.com/focus/f-news/2050051/posts I recount all this now because it illustrates the perverse nature of Fannie and Freddie that has made them such a relentless and untouchable political force. Their unique clout derives from a combination of liberal ideology and private profit. Fannie has been able to purchase political immunity for decades by disguising its vast profit-making machine in the cloak of "affordable housing." To be more precise, Fan and Fred have been protected by an alliance of Capitol Hill and Wall Street, of Barney Frank and Angelo Mozilo. I know this because for more than six years I've been one of their... Wall Street Journal http://www.freerepublic.com/focus/f-news/2050051/posts#comment Wed, 23 Jul 2008 18:02:04 GMT http://www.freerepublic.com/focus/f-bloggers/2049603/posts Explaining the status of the economy to a closed-door fundraiser last week, President Bush said, "Wall Street got drunk." "There's no question about it," Bush said. "Wall Street got drunk, that's one of the reasons I asked you to turn off the TV cameras. It got drunk and now it's got a hangover. The question is how long will it sober up and not try to do all these fancy financial instruments." Bush made the remark at a closed-door fundraiser for Republican Pete Olson, who is challenging Rep. Nick Lampson (D-Texas) No cameras were allowed in the fundraiser, but an... EconomicPolicyJournal.com http://www.freerepublic.com/focus/f-bloggers/2049603/posts#comment Tue, 22 Jul 2008 22:11:15 GMT http://www.freerepublic.com/focus/f-news/2048011/posts "Raise less corn and more hell," Mary Elizabeth Lease harangued Kansas farmers during America's Populist era, but no such voice cries out today. America's 21st-century financial victims make no protest against the Federal Reserve's policy of showering dollars on the people who would seem to need them least. Long ago and far away, a brilliant man of letters floated an idea. To stop a financial panic cold, he proposed, a central bank should lend freely, though at a high rate of interest. Nonsense, countered a certain hard-headed commercial banker. Such a policy would only instigate more crises by egging on... Wall Street Journal http://www.freerepublic.com/focus/f-news/2048011/posts#comment Sat, 19 Jul 2008 15:02:48 GMT http://www.freerepublic.com/focus/f-bloggers/2047978/posts Citigroup chairman Win Bischoff has warned that house prices in Britain and the United States are likely to keep falling for another two years. Bischoff told the BBC in an interview that he expects it will take two years for the markets to stabilise... EconomicPolicyJournal.com http://www.freerepublic.com/focus/f-bloggers/2047978/posts#comment Sat, 19 Jul 2008 13:17:07 GMT http://www.freerepublic.com/focus/f-news/2047558/posts Add another quote to the litany of idiocy issued by Sen. Christopher J. Dodd, D-Conn., over the years. "To suggest somehow that (Fannie Mae and Freddie Mac) are in trouble is simply not accurate," Sen. Dodd said during CNN's "Late Edition" Sunday. "The facts are that Fannie and Freddie are in sound situations. They have more that adequate capital, in fact more than the law requires." Recall the scene in the film "Animal House," in which the character played by Kevin Bacon attempts to block a stampede of panicked citizens by crying, "All is well!" Sen. Dodd performs a credible... Waterbury Republican-American http://www.freerepublic.com/focus/f-news/2047558/posts#comment Fri, 18 Jul 2008 16:38:22 GMT http://www.freerepublic.com/focus/f-news/2047357/posts Worst Case ScenarioBy John RileyChief Strategist07/15/08 What a year - bank and brokerage failures, Federal bailouts, sub-prime mortgage mess and a looming derivative disaster. What would happen if things continue to unravel? What would that look like?Runs on the BanksWith the failure of IndyMac, we’ve already seen a run on a bank force its closure. What if a few more banks had runs? Depositor panic could cause runs at several banks that are on the edge of failure. A run could push them over. The FDIC is spending about 10% of its reserves on bailing out IndyMac. How many more... Cornerstone http://www.freerepublic.com/focus/f-news/2047357/posts#comment Fri, 18 Jul 2008 08:24:49 GMT http://www.freerepublic.com/focus/f-news/2047314/posts High gas prices are getting most people down these days -- unless, perhaps, they live in San Francisco. The city was named the country's most walkable, according to a list released on Thursday by Walk Score, a Web site that assigns grades to addresses based on the proximity of amenities surrounding them. Chinatown, Financial District and Downtown were the most walkable neighborhoods in the city, according to the site. New York followed at a close second, mainly due to the high walkability of neighborhoods including Tribeca, Little Italy and Soho. The rest of the top 10 walkable cities were (in... MarketWatch http://www.freerepublic.com/focus/f-news/2047314/posts#comment Fri, 18 Jul 2008 04:02:12 GMT http://www.freerepublic.com/focus/f-bloggers/2047128/posts In case you missed it, Angelo Mozilo retired from Countrywide Financial on Tuesday July 1, as Bank of America took over the firm. There does not appear to be a press release announcing his retirement...Mozilo's controversial reign ended with him facing a barrage of lawsuits from investors, borrowers and state regulators as he stepped up sales of his own Countrywide stock in late 2006 and unloaded more than $130 million of stock in the first half of 2007, while the stock was collapsing and he was reassuring shareholders... EconomicPolicyJournal.com http://www.freerepublic.com/focus/f-bloggers/2047128/posts#comment Thu, 17 Jul 2008 21:29:48 GMT http://www.freerepublic.com/focus/f-news/2046753/posts The financial crisis in the United States and worldwide entered a new phase this week, as Fannie Mae and Freddie Mac, the two huge US home-loan institutions, began what appears to be a "death spiral" similar to that which claimed Bear Stearns four months ago. Fannie and Freddie are unique institutions and will almost certainly be bailed out by the long-suffering taxpayer. However, for the first time, the specter has been raised of a general financial meltdown, . . . [snip] Fannie and Freddie are probably toast, and about time too. Federal Reserve Board chairman Ben Bernanke's statement on Friday... Asia Times http://www.freerepublic.com/focus/f-news/2046753/posts#comment Thu, 17 Jul 2008 06:00:50 GMT http://www.freerepublic.com/focus/f-news/2046783/posts Forget soccer moms and NASCAR dads. It looks like the swing voter this election year is going to be the “deadbeat borrower.” In Congress, Republicans and Democrats are pushing Barney Frank’s $300 billion boondoggle to underwrite bad loans given to worse customers... And now, activists for the newest civil right - the right to skip your mortgage payments - have taken to the streets of Roxbury. On Tuesday, around 60 local housing activists gathered outside the condo of Paula Taylor. Led by Steve Meacham of the group City Life, they sang the civil rights anthem “‘We Shall Not Be Moved”... Boston Herald http://www.freerepublic.com/focus/f-news/2046783/posts#comment Thu, 17 Jul 2008 10:45:59 GMT http://www.freerepublic.com/focus/f-news/2046764/posts WASHINGTON -- Failed lender IndyMac Bank is among nearly two dozen banks under scrutiny by the Federal Bureau of Investigation for possible mortgage fraud, U.S. officials said. The big Pasadena, Calif., bank was seized by regulators last week, the third-largest bank failure in U.S. history. It specialized in home loans to borrowers who lacked full documentation for their income or assets and have a higher default rate than other loans. The IndyMac investigation began shortly before the bank was seized last week, a law-enforcement official said. The Wall Street Journal http://www.freerepublic.com/focus/f-news/2046764/posts#comment Thu, 17 Jul 2008 07:33:28 GMT http://www.freerepublic.com/focus/f-news/2046738/posts Will Fannie and Freddie Go to Zero? By Morgan Housel July 16, 2008 Comments (2) If you'd seen the title of this article one year ago -- heck, one week ago -- I'd expect you to laugh at me. But this isn't a joke. Shareholders' faith in the country's two mortgage powerhouses is growing slimmer by the day. And if one high-profile investor gets his way, as he has in the past, current shareholders will be left with nothing but worthless share certificates to line the walls of their homes -- 0.6% of which have already been foreclosed on this... Motley Fool http://www.freerepublic.com/focus/f-news/2046738/posts#comment Thu, 17 Jul 2008 04:49:47 GMT http://www.freerepublic.com/focus/f-news/2046486/posts Drudge is reporting that the FBI has been investigating failed bank IndyMac for mortgage fraud in loans made to risky borrowers. Countrywide is also under investigation. Drudge Report http://www.freerepublic.com/focus/f-news/2046486/posts#comment Wed, 16 Jul 2008 19:30:28 GMT http://www.freerepublic.com/focus/f-bloggers/2045852/posts Oppenheimer & Co.'s Meredith Whitney, the analyst who, very early in the game, correctly predicted Citigroup would reduce its dividend, even when Citigroup denied that they would, says the housing decline will continue and that it won't be over until house prices drop more than 33% from thier peak levels, in an interview on Bloomberg Television with Carol Massar. Whitney also downgraded Wachovia Corp and said the earnings outlook for Wachovia. has ``dramatically diminished''. She also said that she remains negative on Citigroup, Wells Fargo and Bank of America... EconomicPolicyJournal.com http://www.freerepublic.com/focus/f-bloggers/2045852/posts#comment Tue, 15 Jul 2008 17:22:16 GMT http://www.freerepublic.com/focus/f-news/2045706/posts ...Stung by growing defaults, lenders are offering borrowers fewer ways to avoid purchasing private mortgage insurance. Mortgage insurance, required for buyers who are unable to make a full down payment or who have insufficient credit histories, reimburses lenders in the event of a borrower default. But over the past few months, mortgage insurers have been declaring more and more of the U.S. a "declining market," raising the requirements and making such insurance harder to obtain. ...For a time, it seemed mortgage insurers were going the way of the dinosaur. During the housing boom, when lending standards loosened drastically, borrowers often... Wall Street Journal http://www.freerepublic.com/focus/f-news/2045706/posts#comment Tue, 15 Jul 2008 12:28:30 GMT