Posts Tagged ‘mortgages’

NYT on how Moody’s triple-A security ratings led to the subprime meltdown. | crosspost: Consumerist

Call it what you will, the borrower bailout/rescue/whatever does not seem to be working. Foreclosures are still on the rise along with defaults and sad stories. And while those numbers go up, the economy continues to worsen.
This is not doing the banks any good, either. Banks lose a ton of money every time they have [...]

This is at once quite funny and quite instructive.

Lenders around the country are apparently offering 9-year auto loans mortgages. I am willing to make a sizable wager that 90% or more of the people who take out a 9-year auto loan will be upside-down on their loan when they trade in their whip for a shiny new one.
[photo: Kerry A Adamo]
P.S., I am [...]

Sure you owe somebody for your mortgage loan, but who? Since lenders buy and sell loans so frequently, many are unable to prove they own the loans they hold, resulting in as much as $2.1 trillion in “orphan” loans. Says former foreclosure victim Joe Lents: “If you’re going to take my house away from me, [...]

[Consumer Law & Policy Blog crosspost]
According to a Freddie Mac study, 57% of homeowners are unaware of the workout options that could help them avoid foreclosure. And this is an improvement, up from 61% in 2005. Will the lender actually work something out? It’s worth a try, and lenders do know that allowing a house [...]

I am torn. I don’t know whether I should post this link or hope it dwindles into obscurity (unlikely). The website says it all:

You Walk Away promises to help homeowners walk away from their current mortgage with no debt, no strings, and says ballsy things like this:
You will immediately know the exact amount of days [...]

This morning, the Federal Reserve Board of Governors made an “emergency” rate cut today of .75% to the federal funds rate. (Federal Reserve press release.) The Fed, in addition to everyone else, seems to be worried about the state of the economy and the potential for recession.
But what does this really mean? If you already [...]

A colleague who recently purchased a home passed along the following:

When I purchased my home this summer, I contacted my mortgage consultant about one month in advance and told her that I wanted to see all my loan documents prior to closing so that I could read them over. [ . . . S]he told [...]

It appears that late last year several of the companies that packaged up the securitized mortgages started to divest themselves of the securities. Apparently Goldman Sachs started divesting late last year but continued to sell $6 billion worth of subprime mortgage securities.
Apparently their clients interest don’t always come first.