mortgage crisis: Sluggish Fed, Why its bad for the Economy? - 01/07/08 04:06 PM
In recent months, fallout from the sub-prime mortgage scandal has been estimated in the hundreds of billions, up from figures of $100 billion maximum from the Federal Reserve only three months ago. While the Fed has, in an unprecedented move, cut interest rates three consecutive times in as many months, their cuts have always given investors the impression that a later cut was inevitable, cycling in a self-fulfilling prophesy that has played out poorly for the American economy as investment and stocks have been relatively cool. This behavior reflects a prevalent attitude that the situation will get worse before it gets … (0 comments)

mortgage crisis: Worst Idea Ever to Fix the Housing Downturn - 10/10/07 09:18 PM
Ok so the national real estate market is doing poorly. Many markets are seeing falling prices. When prices are falling, people with low savings that are forced to sell can find themselves facing foreclosure. The credit crunch is lowering the number of buyers further depressing prices. What are some steps to help the market and avoid a record number of defaults?
1) Lower interest rates
2) Help buyers avoid foreclosure by offering buyers flexibility on loans
3) Construct a bunch of houses and dump them on the market further depressing prices.
Wait what? Yes the House is looking … (1 comments)

mortgage crisis: Is 0 Down for Investment Loans Dead - 09/28/07 06:59 AM
So with all the changes in the loan industry and the credit crunch I had a few questions and I thought active rain would be a good place to post. What is the lowest downpayment possible on a home purchase and an investment purchase. In particular I am interested in loan officers that if not located in Texas at least are capable of offering services in Austin Texas. I would of course prefer programs with 30 year amortized for my real estate clients but would be interested in hearing about the different possibilities.
Ki Gray is a realtor in Austin … (3 comments)

mortgage crisis: Possible Countrywide Bankruptcy Part 2: Bank of America to Invest 2 Billion dollars - 08/22/07 01:14 PM
Let's start off with a little back story. Countrywide spent the real estate boom times growing to be the largest mortgage company in the United States. They had very lax restrictions on who they gave loans to. Consequently now that people are worried about homeowners not paying their loans, investors have been focusing on Countrywide. A lot of investors on Wall Street have been selling Countrywide short assuming a looming bankruptcy.
The problem is a Countrywide bankruptcy could have an extremely negative affect on the financial markets not to mention weakening the national real estate market. Having the largest mortgage … (1 comments)

mortgage crisis: Will Buffett save Countrywide from a Possible Bankruptcy - 08/21/07 02:23 PM
Poor Poor Countrywide Financial. They've been under the gun for the last few weeks. After the fall of American Home Mortgage, there has been alot of focus on Countrywide from Wall Street. Things got really bad on August 15th when a Merrill Lynch analyst raised the prospect of a Countrywide bankruptcy in a research note.
During the boom times, Countrywide was known for their relatively lax lending practices. Their stock, once as high as, 45.26, closed at 19.81, Ausgust 20th, a slide of over 55% percent. Additionally, since the bankruptcy possibility was raised, Countrywide customers have started to pull out. … (5 comments)