Free Republic 4th Quarter Fundraising Target: $85,000 Receipts & Pledges to-date: $22,963
27%  
Woo hoo!! And the first 27% is in!! Thank you all very much!!

Keyword: subprime

Brevity: Headers | « Text »
  • Subprime 2.0: 125% LTV Loans Are Coming Back

    05/15/2014 11:38:03 AM PDT · by Lorianne · 16 replies
    Zero Hedge ^ | 05 May 2014 | Tyler Durden
    Yesterday we mocked China for being desperate enough to push its tumbling housing market (which directly and indirectly accounts for some 80% of Chinese GDP per SocGen estimates) no matter the cost, that at least 20 developers were offering the kinds of mortgages that resulted in the first credit bubble crack up boom and collapse, namely "Zero money down." Little did we know that the US, never one to lag in the financial innovation department had once again one-upped China, by bringing back from the dead the company that according to Housing Wire was "once a poster child for pre-crash...
  • Top Clinton Aides Blew a Chance to Avert the Financial Crisis

    05/02/2014 6:47:48 AM PDT · by Oldeconomybuyer · 7 replies
    Business Week / Bloomberg | May 1, 2014 | By Peter Coy and Silla Brush
    LINK ONLY PER POSTING RULE? http://www.businessweek.com/articles/2014-05-01/clinton-officials-missed-chance-to-avert-2008-financial-crisis?google_editors_picks=true
  • Justice Dept. may seek $13B from Bank of America

    04/25/2014 9:53:13 AM PDT · by Oldeconomybuyer · 25 replies
    Market Watch ^ | April 25, 2014 | By Barbara Kollmeyer
    U.S. prosecutors could make Bank of America Corp. pay more than $13 billion to resolve probes into the lender's sale of bonds backed by home loans in the run-up to the 2008 financial crisis, Bloomberg reported on Friday. Last month, the bank agreed to pay $9.5 billion to resolve Federal Housing Finance Agency claims, and the new settlement would come on top of that, according to Bloomberg.
  • I Can't Believe the U.S. Government Wants to Unleash This on the Public

    04/09/2014 7:11:08 AM PDT · by Vigilanteman · 3 replies
    Money Morning ^ | 8 April 2014 | Shah Gilani
    Do you know Ally Financial Inc.? You've no doubt seen their commercials. They used to be all over the tube hawking their high-yielding certificates of deposit. Now they're all over the tube with their "no hidden fees" campaign. . . . But Ally isn't funny. It recently announced that it's launching an initial public offering (IPO) of its stock at a price per share of $25 to $28. The shares will be offered by the U.S. Treasury as part of its planned exit of its investment in Ally during the subprime crisis in 2008. I've heard some analysts say this...
  • Obamaloans

    01/15/2014 2:30:47 PM PST · by grimalkin · 7 replies
    NATIONAL REVIEW ONLINE ^ | 1/15/2014 | Iain Murray
    We know the pattern by now. A crisis arises. As my Competitive Enterprise Institute colleague Chris Horner puts it, this administration says, “There’s no time to waste, we must do something now, sign here, details to follow.” And every time, we discover that we have signed up for more than we bargained for. That was the case with the Dodd-Frank Act, passed in 2010 supposedly to solve the problems that caused the financial crisis. Only now are we seeing the details to follow. They amount to a government takeover of the financial industry and increased government control over our behavior,...
  • Exclusive: U.S. plans new bank fraud cases in early 2014 - attorney general

    12/04/2013 4:55:00 PM PST · by Oldeconomybuyer · 12 replies
    Reuters ^ | December 4, 2013 | by Karen Freifeld
    The U.S. Justice Department plans to bring mortgage fraud cases against several financial institutions early in 2014, using as a template the case that ended last month in JPMorgan Chase & Co's $13 billion settlement, U.S. Attorney General Eric Holder said on Wednesday. In an interview with Reuters, Holder would not say which companies or how many could face lawsuits but said the Justice Department was in contact with them and it was hard to say whether the talks would lead to settlements. "We have a number of investigations that are coming to a head at the same time," he...
  • ACORN Wannabes May Get $4 Billion [JP Morgan fine]

    12/04/2013 5:52:06 AM PST · by DeaconBenjamin · 8 replies
    Frontpagemag.com ^ | November 25, 2013 | by Matthew Vadum
    Radical in-your-face pressure groups that are part of President Obama’s political machine may soon reap a $4 billion windfall thanks to a huge cash settlement the administration extracted from lending giant JPMorgan. The settlement, which weighs in at a total of $13 billion, was unveiled last week by the Justice Department. In it JPMorgan acknowledged what DoJ called “serious misrepresentations to the public” about the mortgage securities transactions. The $4 billion is supposed to be used to provide relief to underwater homeowners and potential homebuyers. But there’s a catch. According to the Department of Justice, if JPMorgan fails to shell...
  • Next "Subprime Crisis" Expands As Student Loan Defaults Hit $146 Billion, Highest Default Rate

    10/01/2013 7:37:56 AM PDT · by Nachum · 14 replies
    Zero Hedge ^ | 10/1/13 | Tyler Durden
    lmost exactly one year ago we wrote "The Next Subprime Crisis Is Here: Over $120 Billion In Federal Student Loans In Default" in which we took the latest (2009 three year cohort) loan default data on Federal Student Loans released by the Department of Education and applied it to the total amount of student loans outstanding, which back then was $914 billion. Yesterday, ED.gov provided its annual update - this time to the 2010 three year and 2011 two year cohorts - and to nobody's major surprise, learned that things just got even worse. To wit: "The national two-year cohort...
  • Votes for Mortgages: If you liked the subprime crisis, you'll love what the feds are cooking up now

    08/12/2013 7:50:58 AM PDT · by SeekAndFind · 15 replies
    American Thinker ^ | 08/12/2013 | Joe Dantone
    Fannie and Freddie have been in operation for decades without problems until recently. Fannie began in 1938 as a quasi-governmental agency making affordable homes available to people by making the financing easier and funds more readily available by establishing a secondary market for mortgages. Previously banks had held onto their mortgages in a system called portfolio mortgages and were made mostly to their own account holders. With the homes as collateral, the banks then lent out that same money again to other local borrowers. If you remember the scene from It's a Wonderful Life when there is a run on...
  • Housing nominee Mel Watt helped create the subprime crisis

    05/06/2013 9:29:55 AM PDT · by grimalkin · 6 replies
    The Daily Caller ^ | 5/5/13 | Charles C. Johnson
    Mel Watt, President Obama’s nominee for director of the Federal Housing Finance Agency, pushed government programs to help welfare recipients buy homes during the creation of the subprime mortgage bubble. Watt, a 20-year Member of Congress from North Carolina’s 12th district, also had a hand in programs allowing borrowers with poor credit to buy homes with no down payment. The American financial system was subsequently destroyed when millions of bad borrowers defaulted on their loans, setting off a market crash that wiped out nearly 40 percent of the net worth of Americans. In 2002, Watt teamed up with Freddie Mac...
  • Advice from "beyond the echo chamber"

    02/06/2009 3:56:41 PM PST · by Cindy · 14 replies · 337+ views
    WHITEHOUSE.gov - blog ^ | Friday, February 6th, 2009 at 12:55 pm | n/a
    Note: The following text is a quote: http://www.whitehouse.gov/blog_post/beyond_the_echo_chamber/ Friday, February 6th, 2009 at 12:55 pm Advice from "beyond the echo chamber" We just learned the economy lost another 600,000 jobs last month. It's a staggering number, and it underscores just how deep this crisis is – and, as the President pointed out this morning, it’s accelerating. That's why he created the Economic Recovery Advisory Board -- to solicit ideas from "beyond the echo chamber of Washington, DC." "I’m not interested in groupthink, which is why the Board reflects a broad cross-section of experience, expertise, and ideology," he said. "We’ve recruited...
  • Obama to tap Pritzker, Froman for economic jobs

    05/02/2013 4:45:31 AM PDT · by TurboZamboni · 8 replies
    AP/pioneer press ^ | 5-2-13 | JULIE PACE
    WASHINGTON—President Barack Obama on Thursday will nominate a longtime fundraiser to run the Commerce Department and a top economic adviser as the next U.S. Trade Representative, a White House official said. Commerce nominee Penny Pritzker, a businesswoman, philanthropist and Hyatt hotel heiress, is Obama's final pick to fill vacancies among Cabinet secretaries in his second term. The Commerce post has been vacant since last summer, when former Secretary John Bryson resigned after he said he suffered a seizure that led to a series of traffic collisions. USTR nominee Michael Froman is one of Obama's senior economic advisers and a former...
  • A Snapshot of What Sub-Prime Buyers are Driving

    04/24/2013 1:55:31 PM PDT · by nascarnation · 25 replies
    The Truth About Cars ^ | 4/24/2013 | Derek Kreindler
    Sub-prime finance has attracted a bit of interest (no pun intended) over at TTAC lately, and the segment itself has experienced phenomenal growth in the post-bailout era. Auto lending site www.carfinance.com released a list of the top 10 most popular new and used vehicles as purchased by sub-prime buyers over the last six months. While it’s not the most complete list by any means, it does give us a glimpse into the choices of sub-prime buyers. As far as we know, no such list has ever been compiled prior to this.
  • Those who don’t learn from history are bound to repeat it… Obama pushes sub-prime mortgages… again!

    04/09/2013 10:03:10 AM PDT · by Starman417 · 9 replies
    Flopping Aces ^ | 04-09-13 | Vince
    There’s something macabre about an imminent train wreck, you know exactly what is coming but you can’t help but watching. Now imagine that instead of watching that train wreck from atop a building a safe distance away, you’re standing right between the train and the tanker truck that has stalled on the tracks. That’s a different story all together. At that point, rather than being a mere fascination it’s a matter of life or death. You’ve seen the damage a train wreck can do. That’s why it was fascinating in the first place. The difference now of courses is that...
  • Great news: Subprime auto loans up 18% in 2012

    04/04/2013 7:16:08 AM PDT · by SeekAndFind · 4 replies
    Hotair ^ | 04/04/2013 | Ed Morrissey
    Hey, who's up for burying consumers in ridiculous loans and selling them off as securities on Wall Street? I mean, it's not as is this has worked out badly in the past, is it? Well, okay, it didn't work out so well when Fannie Mae and Freddie Mac pulled this stunt with home loans, but it should work out wonderfully for automobiles. After all, they never lose value on the market. My dad’s 1978 green Pinto station wagon would be worth around $123,000 today, I’m sure, so at least the collateral would be worth it (via Ed Driscoll and Jim...
  • Obama administration to banks: Why aren’t you making higher-risk loans?

    04/04/2013 7:12:03 AM PDT · by SeekAndFind · 18 replies
    Hotair ^ | 04/04/2013 | Ed Morrissey
    On one level, it’s almost unbelievable that anyone would ask this less than five years after the housing-bubble crash and the near-wipeout of Western financial institutions. On another, it’s almost inevitable, given the efforts by the governing class and the media to ignore the central failure in that bubble, which was incentivizing increasingly risky loans with government cash and coercion, which created a false-equity trajectory that nearly ruined us. If that core cancer gets overlooked, it simply keeps coming back: The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit,...
  • Democrats Fully to Blame for Subprime Mortgage Crisis that Caused 2008 Financial Disaster

    12/22/2012 2:54:00 PM PST · by george76 · 46 replies
    Gateway ^ | December 22, 2012 | Jim Hoft
    In his early activist days, Barack Obama the community organizer sued banks to ease lending practices... During his time as a community organizer Barack Obama led several protests against banks to make loans to high risk individuals. ... A new study by the respected National Bureau of Economic Research found that Democrats are to blame for the subprime mortgage crisis. ... Republicans warned Democrats of the impending doom in 2004.
  • Approaching Crunch Time on the Student Loan Debacle (About to go the way of subprime mortgage mess)

    11/26/2012 11:10:43 AM PST · by SeekAndFind · 36 replies
    American Thinker ^ | 11/26/2012 | Gary Jason
    For a number of years now, a number of critics of the American system of higher education have rightly insisted that there is a "bubble" in the system, with more and more students running up loans in amounts they will find difficult to pay back. This bubble has been fueled by the federal government's lavish subsidization of the student loan program (which was nationalized four years ago), in a way similar to how the housing bubble was fueled by government agencies pushing subprime mortgages. This extensive government largess has produced a number of unintended -- though not necessarily unforeseeable --...
  • Morgan Stanley sued for subprime discrimination on blacks.

    10/15/2012 2:15:58 PM PDT · by ExxonPatrolUs · 24 replies
    Salon.com ^ | Oct 15, 2012 | NATASHA LENNARD
    The American Civil Liberties Union Monday filed a class action lawsuit against investment bank Morgan Stanley alleging racial discrimination in subprime mortgage practices. “The class-action lawsuit, submitted in a federal court a stones throw from the New York Stock Exchange, alleges that Morgan Stanley [via now-bankrupt financial agent, New Century Mortgage Company] intentionally steered blacks in the Detroit metropolitan region into subprime loans. Blacks who were credit-worthy and qualified for traditional mortgages were caught up in Morgan Stanley’s biased dragnet.” Of the 9 million foreclosures since 2007, four out of 10 have been against people of color. Both Bank of America...
  • ACLU sues Morgan Stanley over risky mortgages

    10/15/2012 7:46:22 AM PDT · by Oldeconomybuyer · 32 replies
    CNN Money ^ | October 15, 2012 | By Chris Isidore
    The American Civil Liberties Union sued Morgan Stanley on Monday, charging the Wall Street firm discriminated against African-American homeowners and violated federal civil rights laws by providing funding for risky mortgages. The suit, filed in U.S. District Court in New York, is the first that connects racial discrimination to the process of bundling subprime loans into mortgage-backed bonds that were then sold to institutional investors and pension funds. The lawsuit was filed behalf of five Detroit residents, and asks the court to certify the case as a class action. It argues as many as 6,000 black homeowners in the Detroit...
  • Vital Signs Chart: More Auto Loans Going to Subprime Borrowers

    09/10/2012 7:57:39 AM PDT · by KeyLargo · 4 replies
    WSJ ^ | Sep 10, 2012 | Ben Casselman
    September 10, 2012, 9:13 AM Vital Signs Chart: More Auto Loans Going to Subprime Borrowers By Ben Casselman More car loans are going to risky borrowers. Nearly 12% of new auto loans went to subprime borrowers — those with credit scores below 620 — in the second quarter, the most since the market for risky loans dried up in 2008. Somewhat safer “outside of prime” loans — those to borrowers with scores below 680 — rose to 25.4% in the second quarter, up from under 17% in 2009.
  • Obama suffers amnesia blaming Bush for economy

    09/05/2012 11:18:12 AM PDT · by wesagain · 8 replies
    WorldNetDaily ^ | Jerome R. Corsi
    "Democrats pumped subprime mortgage market, triggering banking collapse"In the current narrative presented by Democratic Party operatives, the banking industry collapse of September 2008 was caused by tax cuts under George W. Bush and supply-side economics tracing back to the era of Ronald Reagan. The narrative, however, ignores the personal responsibility Barack Obama and Democratic Party operatives played in creating the subprime mortgage market, beginning with the passage of the Community Reinvestment Act of 1977. The 2008 banking collapse was triggered by a series of failures in the mortgage-backed securities market resulting from massive defaults in the subprime mortgage market and...
  • Subprime Bubble: Obama 'Vampire Socialism' Built It

    09/04/2012 5:22:00 PM PDT · by raptor22 · 14 replies
    IBD EDITORIALS ^ | September 4, 2012
    Housing Crisis: Previously unpublished court documents reveal that as a young lawyer from Chicago, President Obama's lawsuit against big banks started inflating the housing bubble that created the mess he says he inherited. We have often written that the true roots of our current economic crisis lay in the excesses of the 1977 Community Reinvestment Act as redefined under the Clinton administration. We have explained how community outreach by banks, under pressure from groups such as Acorn, was transformed into the mandatory credit issuance based not of creditworthiness, but on the basis of "fairness." "Redlining," the activists argued, was the...
  • Obama, Subprime Pioneer

    09/03/2012 4:05:39 AM PDT · by republicangel · 22 replies
    The Daily Caller ^ | September 3, 2012 | Neil Munro
    President Barack Obama was a pioneering contributor to the national subprime real estate bubble, and roughly half of the 186 African-American clients in his landmark 1995 mortgage discrimination lawsuit against Citibank have since gone bankrupt or received foreclosure notices. As few as 19 of those 186 clients still own homes with clean credit ratings, following a decade in which Obama and other progressives pushed banks to provide mortgages to poor African Americans Read more: http://dailycaller.com/2012/09/03/with-landmark-lawsuit-barack-obama-pushed-banks-to-give-subprime-loans-to-chicagos-african-americans/#ixzz25P5AcZLx
  • Canadian Real Estate - Bubble, Bubble, Toil & Trouble (Get ready for the Canadian subprime crisis)

    08/24/2012 6:59:13 AM PDT · by SeekAndFind · 6 replies
    Euro Pacific Capital ^ | 08/24/2012 | Joelle Fricot & Chris Callahan
    It is almost four years after the global financial meltdown of 2008 and many parts of world are still trying to recover. Given the impact of the crisis, which rocked financial markets across the globe, it is shocking to many that Canada seems to be following many of the same lending trends as we saw in the United States in 2006. These trends were at the core of the subprime mortgage crisis, which led to the global recession of 2008. In the year and a half leading up to the crash housing prices rapidly increased in the United States, with...
  • Affirmative Action In Bank Lending Policy Promises Financial Disaster

    07/28/2012 7:28:45 AM PDT · by billflax · 15 replies
    Forbes ^ | 07/26/2012 | Bill Flax
    Welcome to the bizarre world of banking regulation. Despite the recent disaster wrought by affirmative action lending, Washington ratchets up still more politically correct requirements and shifts the measure of discrimination towards “disparate impact.” Even unbiased behaviors are subject to penalty unless they benefit protected classes. It’s no longer blind justice meted equally before the law. “Diversity” has become Washington’s Holy Grail, discharging unequal justice in preference for specific outcomes. The burden on businesses expands beyond banning discrimination into virtually requiring reverse discrimination. Recall before the Great Recession, banks supposedly did not sufficiently extend credit for minorities and less affluent...
  • GM Ramps Up Risky Subprime Auto Loans To Drive Sales

    07/27/2012 5:47:36 PM PDT · by Nachum · 22 replies
    INVESTOR'S BUSINESS DAILY ^ | 7/27/12 | DAVID HOGBERG
    President Obama has touted General Motors (GM) as a successful example of his administration's policies. Yet GM's recovery is built, at least in part, on the increasing use of subprime loans. The Obama administration in 2009 bailed out GM to the tune of $50 billion as it went into a managed bankruptcy. Near the end of 2010, GM acquired a new captive lending arm, subprime specialist AmeriCredit. Renamed GM Financial, it has played a significant role in GM's growth . The automaker is relying increasingly on subprime loans, 10-Q financial reports shows. Potential borrowers of car loans are rated on...
  • No Joke: The Regime Replicates the Policy That Created the Subprime Mortgage Crisis

    07/27/2012 5:05:41 PM PDT · by sheikdetailfeather · 8 replies
    The Rush Limbaugh Show ^ | 7-27-2012 | Rush Limbaugh
    BEGIN TRANSCRIPT RUSH: Folks, do you remember that the banks wouldn't lend to blacks and Hispanics 'cause they were racist? And then do you remember how Jimmy Carter and then Clinton and then, after that, Clinton came along and they passed something called the Community Reinvestment Act. And you remember what that did? The federal government forced banks to lend money to people who had no prayer of ever paying it back. Janet El Reno, the attorney general for Clinton, even threatened the big banks all over the country with investigations if they didn't do this. The Reverend Jackson was...
  • The Biggest Financial Scandal In History?

    07/05/2012 2:00:45 PM PDT · by blam · 6 replies
    TEC ^ | 7-5-2012 | Michael Snyder
    The Biggest Financial Scandal In History?Michael SnyderJuly 5, 2012 We always knew that the financial markets were rigged, but this is getting ridiculous. It is now being alleged that 20 major banks have been systematically fixing global interest rates for years. Barclays has already been fined hundreds of millions of dollars for manipulating Libor (the London Inter Bank Offered Rate). But Barclays says that a whole bunch of other banks were doing this too. This is shaping up to be the biggest financial scandal in history, and criminal investigations have been launched on both sides of the Atlantic. What those...
  • Will: The subprime education bubble

    06/10/2012 8:50:41 AM PDT · by Signalman · 22 replies
    VC Start ^ | 6/10/2012 | George Will
    <p>Many parents and the children they send to college are paying rapidly rising prices for something of declining quality. This is because "quality" is not synonymous with "value."</p> <p>Glenn Harlan Reynolds, University of Tennessee law professor, believes college has become, for many, merely a "status marker" signaling membership in the educated caste, and a place to meet spouses of similar status — "associative mating."</p>
  • The Big Flaws in Dodd-Frank

    04/14/2012 10:44:32 AM PDT · by reaganaut1 · 3 replies
    Barron's ^ | April 14, 2012 | Gene Epstein interviewing Charles Calomiris
    You mention toxic mortgages. How does Dodd-Frank address that problem?Not at all. There is no attempt in Dodd-Frank to address the key problem of government subsidization of mortgage risk, and the exposures of Fannie Mae [FNMA], Freddie Mac [FMCC], and the Federal Housing Administration are still growing. How do you explain the omission?There is a powerful political interest that wants real-estate lending to be sponsored by the government. Starting about 1830, an important influence on the politics of banking came from farming interests, which increasingly promoted bank exposure to farm real-estate risk. What has changed since World War II is...
  • The $26 billion crapshoot

    03/28/2012 12:00:59 PM PDT · by Oldeconomybuyer · 1 replies
    CNN Money ^ | March 28, 2012 | BY LES CHRISTIE
    Homeowners hoping the $26 billion foreclosure abuse settlement would mean big savings on their mortgages were mostly disappointed. Even though a million borrowers will have their principals slashed by as much as $100,000 or more, most are not eligible for a workout simply because the bank that issued their mortgages, didn't hold their mortgages. During the housing boom years of the early 2000s through 2007, about 20% of loans went into the bank's own portfolios. The rest were sold off, either to Fannie Mae or Freddie Mac or to investors. Only loans held by the banks and some of their...
  • Obama campaign co-chair tied to subprime mortgage crisis

    02/24/2012 9:05:26 AM PST · by Nachum · 6 replies
    The Daily Caller ^ | 2/24/12 | Will Rahn and Steven Nelson
    Massachusetts Gov. Deval Patrick, the Democrat who was named a national co-chair of President Obama’s re-election campaign on Wednesday, served on the board of a company that is widely blamed for helping start the subprime mortgage crisis in 2007. Beginning in 2004, Patrick served two years on the five-member board of ACC Capital Holdings, the parent company of Ameriquest Mortgage. He was paid a $360,000 annual salary for his efforts, according to “All The Devils Are Here,” a history of the financial crisis by Bethany McClean and Joe Nocera. Ameriquest had already been the subject of numerous criminal complaints when...
  • [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...
  • US charges ex-Fannie, Freddie CEOs with fraud

    12/16/2011 9:09:30 AM PST · by Justaham · 36 replies
    Associated Press ^ | 12-16-11 | Derek Kravitz
    The Securities and Exchange Commission has brought civil fraud charges against six former top executives at Fannie Mae and Freddie Mac, saying they misled the government and taxpayers about risky subprime mortgages the mortgage giants held during the housing bust. Those charged include the agencies' two former CEOs, Fannie's Daniel Mudd and Freddie's Richard Syron. They are the highest-profile individuals to be charged in connection with the 2008 financial crisis. Mudd, 53, and Syron, 68, led the mortgage giants when the housing bubble burst in late 2006 and 2007. The four other top executives also worked for the companies during...
  • A Mortgage Broker on Rapid Credit Rescores for Subprime Loans

    BEGIN TRANSCRIPT RUSH: Laurie, who can't say where she is. Is that right? She's worried about lawsuits, so she can't say where she is. Laurie, welcome to the EIB Network. You're worried about the lawsuits from what you're going to say here? CALLER: Well, it's possible, Rush, and, by the way, it's an honor to speak to you. RUSH: Thank you. CALLER: I worked as both a packager and an advertising executive for a mortgage brokerage firm. I saw the rise and fall of the housing market and what infuriates me about when Obama speaks or Barney Frank or anyone...
  • Rep. Barney Frank won't seek re-election

    11/28/2011 7:01:32 AM PST · by Sub-Driver · 236 replies
    Rep. Barney Frank won't seek re-election Posted by CNN Wire Staff (CNN) - Massachusetts Congressman Barney Frank, a 16-term Democrat, will announce Monday he does not intend to seek re-election in 2012........
  • The Virgin Crisis: Systematically Ignoring Fraud as a Systemic Risk

    11/21/2011 5:23:08 AM PST · by Pelham · 17 replies
    New Economic Perspectives ^ | NOVEMBER 08, 2011 | William K. Black
    The FBI warned in September 2004 that there was an “epidemic” of mortgage fraud and predicted that it would cause a financial “crisis” if it were not contained. The mortgage banking industry’s own anti-fraud experts reported in writing to nearly every mortgage lender in 2006 that: “Stated income and reduced documentation loans speed up the approval process, but they are open invitations to fraudsters.” ....stated income loans deserve the nickname used by many in the industry, the ‘liar’s loan’”. We know that accounting control fraud is itself criminogenic – fraud begets fraud. The fraudulent CEOs deliberately create the perverse incentives...
  • Post 2007 Obama says Sub Prime Mortgages: a GOOD IDEA!!

    10/13/2011 4:41:59 PM PDT · by Titus-Maximus · 5 replies
    Youtube ^ | 2008 | News clips
    Explosive Audio Unearthed: After the Sub Prime Crisis already started in 2007 Obama says Sub Prime Mortgages that gave houses to people WHO COULDN'T AFFORD THEM was a GOOD IDEA!!
  • NY's Cuomo supports Obama's millionaire's tax

    09/19/2011 4:51:52 PM PDT · by Oldeconomybuyer · 16 replies
    Wall Street Journal ^ | September 19, 2011
    New York Gov. Andrew Cuomo on Monday supported President Barack Obama's proposal to tax millionaires and corporations at a higher rate to pay for a jobs program. Cuomo initially declined to comment during a Monday press conference on Obama's proposal until he received "specifics." Hours later, Cuomo urged Congress to support the Democratic president's proposal. Cuomo killed a state proposal by his fellow Democrats in the Assembly earlier this year that would have increased the income tax on wealthier New Yorkers. He said it would hurt the economy and chase wealthier New Yorkers and employers to neighboring states.
  • Too Big To Fail, or Too Big Not To?

    09/18/2011 9:00:54 PM PDT · by stolinsky · 3 replies
    www.stolinsky.com ^ | 09-19-11 | stolinsky
      Too Big To Fail, or Too Big Not To? David C. Stolinsky Sept. 19, 2011 The Bank of America was founded in San Francisco in 1904 by A. P. Giannini, the son of Italian immigrants. He never attended a university, but he took courses at a private business school. He made money in the produce business. His friends complained that they could not obtain the loans they needed to enlarge their businesses, so he opened a bank. It was located in a building that had been a saloon. Originally the bank was called Bank of Italy. At the...
  • Settlement Said to Be Near for Fannie and Freddie [Government Struggles With: Define Subprime]

    09/09/2011 6:15:37 AM PDT · by fight_truth_decay · 6 replies
    NYT DealB%k ^ | September 8, 2011, 10:00 pm | BEN PROTESS ,AZAM AHMED
    Regulators are nearing a settlement with Fannie Mae and Freddie Mac over whether the mortgage finance giants adequately disclosed their exposure to risky subprime loans, bringing to a close a three-year investigation. The proposed agreement with the Securities and Exchange Commission, under the terms being discussed, would include no monetary penalty or admission of fraud, according to several people briefed on the case. But a settlement would represent the most significant acknowledgement
  • Man uses obscure law to claim ownership of $300k home in upscale Texas town... for just $16

    07/20/2011 11:19:26 AM PDT · by Do Not Make Fun Of His Ears · 99 replies
    Daily Mail ^ | 7/20/11 | Wil Longbottom
    If someone you knew claimed to have bought a new house for $16, you'd probably expect it to be a rundown hovel. But for Kenneth Robinson, that princely sum could see him as the new owner of a $300,000 home in an well-manicured part of Flower Mound, Texas. On June 17, Mr Robinson took advantage of a little known Texas law to move into the abandoned home. The house had been in foreclosure for more than a year and its owner walked away. Then, the mortgage company went bust. After months of research, Mr Robinson used the obscure law 'adverse...
  • Holder Launches Witch Hunt Against Biased Banks

    07/09/2011 7:11:24 AM PDT · by TimSkalaBim · 69 replies
    Investor's Business Daily ^ | 7/8/2011 | Paul Sperry
    In what could be a repeat of the easy-lending cycle that led to the housing crisis, the Justice Department has asked several banks to relax their mortgage underwriting standards and approve loans for minorities with poor credit as part of a new crackdown on alleged discrimination, according to court documents reviewed by IBD. [snip] Another Reno protege, Perez has compared bankers to Klansmen. Only difference is, he said, bankers discriminate "with a smile" and "fine print." He said this kind of racism, though more subtle, is "every bit as destructive as the cross burned in a neighborhood." Perez has put...
  • Interest-free federal loans offered to unemployed homeowners

    06/20/2011 6:56:59 PM PDT · by bushwon · 27 replies
    Boston.com ^ | June 20, 2011 | Jenifer B. McKim
    A long-delayed federal program aimed at helping hundreds of unemployed Massachusetts homeowners pay their mortgages is finally being launched today, with $61 million earmarked for the state. The US Department of Housing and Urban Development and the nonprofit NeighborWorks America said the program will provide hundreds of local borrowers with interest-free loans of up to $50,000 over a two-year period. In some cases, the money will not have to be paid back. The $1 billion national program is expected to benefit 30,000 unemployed homeowners in 27 states and Puerto Rico with financial assistance. Homeowners must file loan applications by 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...
  • The Subprime Crisis: Blame Washington, D.C., Not Wall Street

    05/12/2011 6:43:34 AM PDT · by SeekAndFind · 12 replies
    Subprime Scandal: The left is unhappy that no high-profile bankers have gone to jail in the financial crisis. But the real culprits were - and still are - in Washington. They've gotten off scot-free. A growing chorus is complaining that federal prosecutors have dragged their feet in the aftermath of the mortgage mess. Despite a raft of referrals against financial giants alleging securities fraud and "predatory lending," no senior bank executives have been charged or imprisoned. The media elite demand to know why it is that almost three years after the meltdown, Goldman Sachs CEO Lloyd Blankfein, ex-AIG CEO Hank...
  • Obama Regime Brings Back Subprime Mortgages

    05/11/2011 11:57:01 PM PDT · by neverdem · 23 replies · 1+ views
    RushLimbaugh.com ^ | May 11, 2011 | Rush Limbaugh
    RUSH: Now, I have a story here that's simply unreal, and it's from last week. I purposely sat on this story to see if I would see it anywhere else. I've had it in the stack since May the 5th, almost a week. It's from Business Week magazine, a story by Clea Benson, headline: "A Renewed Crackdown on Redlining -- In the wake of the subprime implosion, the Obama Administration has stepped up its scrutiny of disadvantaged neighborhoods' credit access. Community activists in St. Louis became concerned a couple of years ago that local banks weren't offering credit to the...
  • Mortgage default rates and borrower race (response to Holder's resurrection of sub-prime mortgages)

    05/11/2011 12:27:21 PM PDT · by E. Pluribus Unum · 10 replies
    The Journal of Real Estate Research ^ | Sep/Oct 1999 | Richard Anderson and James VanderHoff
    Abstract. We estimate a mortgage default model with national data on conventional mortgages that were current from 1986 to 1992. Our analysis confirms the results of previous analyses of Federal Housing Authority mortgages: Black households have higher marginal default rates, controlling for differences in borrower and property characteristics. Further, we do not find that Black borrowers have significantly more home equity. These results do not provide evidence of racial discrimination in mortgage lending and suggest that differences in default costs or transaction costs may explain differences in default rates. Introduction This article presents evidence that Black borrowers have higher default...
  • A Renewed Crackdown on Redlining,in the wake of the subprime implosion

    05/11/2011 12:04:38 PM PDT · by NoLibZone · 14 replies
    businessweek ^ | May 5 2011 | By Clea Benson
    Community activists in St. Louis became concerned a couple of years ago that local banks weren't offering credit to the city's poor and African American residents. So they formed a group called the St. Louis Equal Housing and Community Reinvestment Alliance and began writing complaint letters to federal regulators. Apparently, someone in Washington took notice. The Federal Reserve has cited one of the group's targets, Midwest BankCentre, a small bank that has been operating in St. Louis's predominantly white, middle-class suburbs for over a century, for failing to issue home mortgages or open branches in disadvantaged areas. Although executives at...