Ar_home_b_search
 



mortgage crisis: FNMA in trouble? asking for more money - 05/08/09 12:51 PM
The most recent reports about Fannie Mae do not sound good. AP news writer Alan Zibel published an account of Fannie Mae's recent quarterly loss.
In the article Alan Zibel writes, "In a regulatory filing the company said "there is significant uncertainty as to our long-term financial sustainability." Even more government aid, it added, "may not be sufficient to keep us in a solvent condition."
Fannie Mae and Freddie Mac's troubles began a couple years ago when they decided to enter the Alt A and Subprime market as a large end investor. They never made these loans directly, but did make … (5 comments)

mortgage crisis: FannieMae boss no raise - 04/20/09 05:07 PM
The Wall Street Journal has just reported that Michael J Williams, the Chief Operating Officer of Fannie Mae, has just been promoted to the position of president and CEO.  He will evidently not will not receive a raise this year along with his promotion. He will have to be satisfied with a base salary of $676,000 and incentives of about $1.04 million.
He has been with Fannie Mae since 1991, making him a part of the rise and fall of Fannie Mae, and a large part of the billion dollar losses the company has suffered in the credit crash since the fateful decision … (2 comments)

mortgage crisis: Credit defaut swaps - congressional approved swindle - 10/30/08 09:16 PM
Over the last several months, my persistent question is how 6% foreclosure rate can bring down a housing market, then a credit market, then a banking industry, then a national economy, then a global economy.
The numbers have never added up.
The Great Depression had 25% unemployment. We have been in the 5% unemployment range. GDP fell this quarter, but less than expected. Not a definition of crippling credit crisis and global recession.
The numbers do not add up.
FNMA and Freddie Mac made A paper loans, full documentation. How did they get in shape to require a bailout?
The numbers do … (17 comments)

mortgage crisis: Bailout money rich richer - money directed toward bank acquisition - 10/28/08 06:35 AM
There is more on the use of bailout funds in today's AP press. Banks are apparently using the capital investment funds to purchase other banks. At least a partial purpose for these acquisitons was mentioned to ease the possible need for Federal takover of weaker banks and to strenghten the overall banking system.
This may be a good policy goal, although it looks more like government is now in the business of determining which banks will win out and which banks will lose.
To me it just seems like more indication that the bailout lacks direction and its effectiveness may very well be … (11 comments)

mortgage crisis: Bailout plan without direction - 10/27/08 12:56 PM
One of the problems with approving the initial bailout plan was that there were few details about the details and the mechanics of purchasing defaulted loans. Further problems with passing the bailout was concerns whether purchasing the mortgages would actually help with the mortgage markets. Questions were also asked as to how the bailout purchases would help struggling homeowners and slow foreclosure trends.
The plan was passed after much pressure and much pork was added.
Then the plan was changed to focus more on purchases of bank stock, with the idea that adding capital rather buying defaulted mortgages would have greater impact on market liquidity.
Over the weekend it appears … (4 comments)

mortgage crisis: House rejects bailout - good or bad? UPDATED 9/30 - 09/29/08 01:00 PM
The house vote has come in - the answer NO.
Is it back to the drawing board to rework the bailout plan?
Is it a total rejection of this type of solution? Let the market sort out the troubles?
Main street evidently won the vote by overwhelming the representatives with their anger over the bill.
Not even sure that Wall Street wanted the bailout.
With the President, the Treasury Department, the Federal Reserve, the Speaker, the Chairman of the House Financial Services, both Presidential candidates and many others telling the world that this is necessary or else, what happens now?
There … (12 comments)

mortgage crisis: Bailout - enough? right problem? - 09/29/08 10:09 AM
The $700 billion bailout has a goal of restoring market confidence and stability, but is it enough, and does it even address the right problem?
Because of the make up of the pieced mortgage security pools, it is impossible to determine the value of the securities. It is impossible to determine how much is needed to purchase the bad mortgages. It is impossible to determine the potential loss.
The markets are not really responding well to the hope of the rescue plan. The Asian markets have dropped. The Wachovia sale has been announced today, despite the hope of this rescue. Two … (4 comments)

mortgage crisis: Bailout plan compromise reached - 09/29/08 06:45 AM
This morning after midnight the final details of the bailout plan were reached. The bill goes to the House today for a vote. The Senate is expected to vote by Wednesday. The plan follows the basic outline of the initial Treasury proposal presented to key lawmakers September 18. It calls for $700 billion from the US Treasury to be used to purchase mortgage securities.
Largest government intervention since Great Depression, action taken because of concerns resulting from bank to bank short term lending freeze that occurred two weeks ago. Several national central banks coordinated efforts to put $180 billion into the markets … (1 comments)

mortgage crisis: Federal Bailout Delayed? - parties fight to add extra provisions - 09/22/08 06:59 AM
The $700 billion bailout debate began in earnest yesterday. There is much to consider - the amount of the bailout, the wisdom of risking tax payer money to bail out the market, the inclusion of foreign financial institutions, the details of what loans can be purchased, what form the purchasing agency will take, how long the agency will last, the need for and the type of tax payer safeguards.
What is being debated though is additional provisions.
This bill needs to be focused, quick, simple.
Presidential candidate Obama says, "Swift and unprecedented action to shore up Wall Street must come alongside … (10 comments)

mortgage crisis: Liquidity and home prices - The federal bailout, a $700 Billion surge against market declines - 09/21/08 01:02 PM
The surge in Iraq has been credited with turning the tide in that war. This bold plan to invest up to $700 billion to purchase mortgage securities seems to take a similar approach against the growing crisis in the mortgage and financial markets.
Last week the global economy came near a complete standstill, with banks refusing to provide short term loans to each other, choosing instead to hold on to whatever liquid assets they had. The world central banks, except for Russia, came together in a cooperative effort to pump billions of dollars into the world financial system to restore liquidity.
… (6 comments)

mortgage crisis: FannieMae FreddieMac Federal Control- Treasury Department bailout places mortgage agencies under conservatorship - 09/07/08 05:03 PM
The Treasury Department acted quickly over the last two days to implement the plan to put Fannie Mae and Freddie Mac under federal control. The rew regulatory agency, Federal Housing Finance Agency, will open Fannie and Freddie Monday morning with the full backing of the US Treasury.
The move is intended to add liquidity to the mortgage markets. The Treasury has committed to invest $100 billion to each agency, on the condition that the agencies are restructured. This move should restore a measure of investor confidence in the guarantee of mortgage backes securities.
The start of the restructuring is replacing both current CEO's … (30 comments)

mortgage crisis: Bank failures, mortgage lending - another one bites the dust - 08/23/08 09:45 PM
Another bank failure was reported today. Again the FDIC was prepared with a buyer and acted swiftly to be ready to reopen on Monday.
The bank that failed this time is Columbian Bank and Trust Company out of Topeka, Kansas. The failed bank's assets will be taken over by Citizens Bank and Trust . This is the 9th bank to fail this year, and the 2nd bank to fail in Kansas.
Losses in residential real estate lending were cited as the cause for the bank's failure to maintain adequate capital reserves.
This new bank failure takes place as the Federal Reserve is holding its annual … (29 comments)

mortgage crisis: FannieMae FreddieMac AltA Lending - 08/10/08 08:21 PM
FannieMae and FreddieMac are chartered to ensure mortgage banks have enough money to lend home buyers at low interest rates. They are supposed to ensure affordable housing, by maintaining market place liquidity.
What they have been doing though is purchasing Alt A and subprime loans. This explains the recent mounting losses that both lenders have been experiencing. The losses were inexplicable to me because FannieMae and FreddieMac guarantee conventional loans, or so I thought. The lowest risk loans - fully documented, lower LTV's, full amortization loans, best credit, MI covered loans.
Why were these two companies suffering losses?
Well, they had begun to venture … (17 comments)

mortgage crisis: Video Home Price RollerCoaster - Shiller Home Price Index 1890 to 2007 - 08/06/08 09:59 PM
It is a roller coast visualization of home prices since 1890.
I came across this while preparing for an upcoming FTHB seminar this weekend. You have to watch it.
Robert Shiller of Home Price Index fame . I have not followed him, but I plan on adding him to my regular reading list. (A list much expanded since joining AR). He seems to have more than a clue.
The years are indicated periodically in the lower left blue bottom of the video.

Home Price Roller Coaster http://www.speculativebubble.com/videos/real-estate-roller-coaster.php
The video was on this blog.
http://www.consumerismcommentary.com/category/real-estate/
Of course there was an Active Rain … (6 comments)

mortgage crisis: FannieMae, FreddieMac, Federal Reserve - Mortgage lending changes coming? - 07/14/08 04:45 PM
Three separate events had significant impact on mortgage markets last week.  The Home Protection bill is being debated. IndyMac Bank announced it was closing it wholesale operations. Then on Friday the bank was taken over by federal regulators. Finally Fannie Mae and Freddie Mae stock values dropped by nearly 50% amid concerns over the two companies ability to maintain their capitalization requirements necessary to meet their obligations.
It was quite a week.
Sunday the Treasury Department announced that the Federal Reserve and the Treasury department would step in with measures that would ease short term capital requirements.
•1.       The Federal Reserve opened … (2 comments)

mortgage crisis: Bear Sterns Mortgage Fraud Arrests - 06/19/08 11:36 AM
The heads may be starting to roll as a result of mortgage fraud probes. Generally the fraud arrests are focused on the local broker or appraiser. With this new development that was anticipated in the internet news yesterday, and just now announced.
I read the announcement in MSN.com .
This has more to do with a larger scale fraud towards secondary investors.
Other headlines in some newsletters.
Key senators being investigated
Former BofA exec faces 35 years
This may be the first of many.
I will update more as I read further.
Richard
American Acceptance Mortgage, Inc You will find a mortgage … (11 comments)

 
Richard_smith_photo Rainmaker_large

Richard Smith FHA VA Rural Development in TN GA

Chattanooga, TN

More about me…

Address: 1961 Northpoint Blvd, Suite 110, Chattanooga, TN, 37343

Office Phone: (423) 280-0345

Cell Phone: (423) 280-0345

Email Me



Listings

Links

Archives

RSS 2.0 Feed for this blog