Posts filed under “Credit”

Fed to Curb Risky Lending (7 years too late)

The Fed slams the barn door shut:

"The Federal Reserve, acknowledging that home mortgage lenders aggressively sold deceptive loans to borrowers who had little chance of repaying them, proposed a broad set of restrictions Tuesday on exotic mortgages and high-cost loans for people with weak credit.

The new rules would force mortgage companies to show that customers can realistically afford their mortgages. They would also require lenders to disclose the hidden sales fees often rolled into interest payments, and they would prohibit certain types of advertising.

Borrowers would be able to sue their lenders if they violated the new rules, though home buyers would be allowed to seek only a limited amount in compensation.

“Unfair and deceptive acts and practices hurt not just borrowers and their families,” said Ben S. Bernanke, chairman of the Federal Reserve, “but entire communities, and, indeed, the economy as a whole.”

At least Bernanke got this right; if nothing else, he has that over Greenspan as Fed Chair.

Now, where did all those pesky horses go off to?

UPDATE: December 19, 2007 9:24am

Bloomberg gets the headline just right:

Fed Plans to Tighten U.S. Mortgage Rules After Crisis 
http://www.bloomberg.com/apps/news?pid=20601087&sid=aZt6NB.3Fpl4&

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Source:
In Reversal, Fed Approves Plan to Curb Risky Lending 
EDMUND L. ANDREWS
NYT, December 19, 2007
http://www.nytimes.com/2007/12/19/business/19subprime.html

Category: Credit, Federal Reserve, Real Estate

NYT: Blaming the Fed for the Sub-Prime Mortgage Crisis

Category: Credit, Federal Reserve, Real Estate, Taxes and Policy

FREDDIE MAC: Spending as if they had a good year

Category: Corporate Management, Credit, Derivatives

Reccession Odds: Greenspan 50%, Merrill 100%

Category: Credit, Economy, Fixed Income/Interest Rates, Media, Real Estate

Uh-Oh . . .

Shorter Fed Statement:

Cut 1/4 point federal funds rate
Cut 1/4 point discount rate
Growth slowing, inflation risks remain

Mr. Market no-likey the no-happy talk . . . Dow off 175 275 as I type this

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Complete Fed statement after the jump . . .

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Read More

Category: Credit, Economy, Federal Reserve, Fixed Income/Interest Rates, Inflation

No, Pending Home Sales Index Did Not Rise

Category: Credit, Data Analysis, Real Estate

How Big Is It?

Category: Credit, Derivatives, Real Estate

Housing Charts: Genesis of a Crisis

Category: Credit, Derivatives, Finance, Real Estate

SubPrime? So what?

I have long respected and enjoyed Jim Cramer, but jeez, could he have possibly been any more wrong than this?  Its one thing to be wrong about the future, but how about getting the present correct?

So Subprime Blows Up; So What, Says Cramer (Jim gives you the scoop on why the $500 billion market is no threat to
the market, even if it fully collapses. Added: July 16, 2007)

Geez, that makes 6,800 look good.

via ZackAttack (here)

Category: Credit, Derivatives, Video

More Trouble for Mortgage Securitizers?

Category: Credit, Real Estate, Taxes and Policy