You are browsing the archives of Subprime.

Read more »

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets — including the New York metropolitan [...] Read more »

This country is probably beyond hope…
http://michellemalkin.com/2008/01/30/stimulating-tax-rebates-for-illegal-aliens/
The really sad thing is no one currently running for President has any real interest in solving the continual hostile invasion coming from south of the border.
Read more »

Over 150 lenders have already gone out of business since the peak of the sub-prime orgy.
This year over 1,000,000 yes, one million individual foreclosures are expected to happen.
Over $300,0000,000,000 that’s three hundred billion dollars of loans have been written off by the lending institutions and the best estimate is we are a little over half [...] Read more »

Bank of America is in talks to take over Countrywide in an all stock transaction. The announcement could come as early as today.
This will be interesting to watch because although Bank of America infused over $2 Billion dollars into Countrywide in the summer of 2007 in the form of loans, they are not Countrywide’s primary [...] Read more »

Cash is King and the best deals will always be had by those with the means to act quickly and decisively.
There are some media reports talking about some very well funded groups taking advantage of the housing market problems, especially in Florida. Many of these reports try to portray these groups as predatory and swooping [...] Read more »

This is a soft number, the expectation was about 130,000.
But, grow is stable and the overall unemployment number is still relatively stable at 4.6%.
Based on this the Fed is not likely to change the overnight rate.
Many are still calling this a Goldilocks situation. To a large degree they are right.
The jobs numbers continue to be [...] Read more »

The Mortgage Bankers Association is reporting a 50% reduction in the number of loan originators from the peak of the sub-prime boom time.
50% reduction!
This is actually a very good thing and is part of the shakeout needed to start to get the industry back on track.
But, 50% is not enough, it is very likely we [...] Read more »

In June I talked about why lenders don’t do more short sales. So, it should come as no surprise the lenders are facing increased pressure from the investors who bought the packaged loans to hold the line on modifications. They are pressing the servicing companies to only modify the loan when it looks like there [...] Read more »

It is a very valid comparison. See, CDO Hedge Funds = Enron?
But, what does it mean to the larger market and especially to small to medium real estate investors?
It depends.
If you are using these hedge funds as part of your investing strategy, you probably have a lot to worry about.
If you are heavily leveraged in [...] Read more »