May 19, 2012

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Bair, Paulson Showdown Hits the (Public) Congressional Floor

November 19, 2008 By Leave a Comment
smackdown

We knew this was coming...the Bair/Paulson Smackdown. This is truly a rare event to watch two government agencies open up a public battle for power and leadership. The sides are aligned: Treasury Secretary Paulson/White House versus FDIC Chairman Bair (a Bush appointee)/Congressional Democrats. The strategy seems clear--Paulson is playing to hold the line for the next 9 weeks and Bair is playing for a longer term opportunity with the new Obama White House. Paulson stuck to his reversal in … [Read more...]

Loan Modifications Primer for Mortgage Industry

November 12, 2008 By 1 Comment
foreclosure sign

If you don't know loan modifications you are going to have a hard time surviving this mortgage business cycle. Despite all of the appealing government assistance and FHA mortgage refinance programs, banks and now the government is settling into massive programs to streamline loan modifications for troubled homeowners. Here is a quick primer on loan modifications to get you up to speed and help you spot opportunities for your mortgage business: FHFA endorsed Fannie Mae and Freddie Mac Loan … [Read more...]

AMEX Bank, ABA No New Regs, Big Bank Loan Modifications, Economist Turn Negative, 10 Benefits of Recession

November 11, 2008 By Leave a Comment
silver lining

American Express Becomes a Bank American Express becomes a bank, getting unprecedented speedy approval to become a Federally chartered bank. This is likely a smart preemptive move by American Express to hedge mounting credit card troubles by gaining access to TARP bailout funds. The cautionary part of this tale--how bad might those mounting losses be for the Federal Reserve to waive even the cursory 30-day waiting period? Bad! American Express Co. won U.S. Federal Reserve approval to become a … [Read more...]

Small Bank Bailouts, The Great Recession, JP Morgan Loan Modifications, Global ZIRP, PMI Losses, GM No Bailout Merger

November 3, 2008 By Leave a Comment
small bank

Small Bank Bailouts Financial market calamity was narrowly averted today as Farmers National Bank of Emlenton is expected to get a much needed capital injection from the US government. William Marsh, CEO led with this, "they were giving out free stuff"-type quote in the WSJ: "It seemed like the consensus in the industry was...go out and get this," said William Marsh, president and chief executive of Farmers National Bank of Emlenton, in Emlenton, Pa. Mr. Marsh said his bank is healthy and viable … [Read more...]

Mortgage Rates, Misery Index, Foreclosures, Case Shiller, OPEC, Credit Default Swaps

October 29, 2008 By Leave a Comment
misery-index_thumb

Mortgage Rates Rise as US Market Soars We get a big, even historic, upward bounce in the US stock market. Meanwhile mortgage rates are taking a negative bounce. The interesting part is that one of the stated US government bailout objectives was to preserve or even increase mortgage affordability. However, these same interventions into markets are causing precisely the opposite (possibly short-term) effect: With so much government debt guarantees in the bond market yield spreads between mortgage … [Read more...]

Mortgage Rates and Affordability from the Frontlines

October 22, 2008 By Leave a Comment
TheMortgageReports.com

Dan Green, a loan officer and sage of The Mortgage Reports, educates us on why waiting for mortgage rates to drop may hurt you. Private Mortgage Insurance (PMI) is on the rise due to skyrocketing defaults--this is when they pick up the tab on your mortgage. This is, according to Dan more than eating away at any rate advantage you may get by waiting. By the way, foreclosures and mortgage defaults are not dropping. In fact, there is reason to believe there are other market factors like the drying … [Read more...]