RegulationsFannie, Freddie Jump on GrenadeThis post first appeared on Minyanville. For anyone wondering where the billions of dollars in worthless mortgage-backed securities will wind up, look no further: The mirror. Fannie Mae (FNM) and Freddie Mac (FRE), the formerly quasi-public, now taxpayer-owned mortgage behemoths, are stealthily sopping up the worst of the structured mortgage debt Wall Street churned out [...] So, You Want to Fix the Housing Market?This post first appeared on Minyanville. Yesterday, I criticized Washington’s $700 billion financial bailout plan for missing the point. It fails to address the root of the problems facing the housing market and, by extension, the rest of the economy: Negative equity or a homeowner owing more on his house than it’s worth. On The [...] Washington Continues to Ignore Root of Housing ProblemThis post first appeared on Minyanville. Some say the definition of insanity is trying the same thing over and over again, expecting a different result. By that measure, voters should load up on straitjackets this November and drag everyone in Washington off to the nuthouse. Despite overwhelming evidence that we’re in the middle of a [...] Bailout Treats Symptoms, Not DiseaseThis post first appeared on Minyanville and our sister site Dawn Patrol. The bailout is done! Time to breathe a sigh of relief. Or is it? As details emerge about the financial bailout package that was jammed through Congress over 10 days of political theater at its most nauseating, there’s still a striking omission from [...] Housing MisconceptionsThis post first appeared on Minyanville. Washington is currently trying to sell the American public that its $700 billion bailout plan will help put a floor under falling home prices. And while the debate will rage over whether this is a good or bad thing, its not even true. The most beaten down real estate [...] Fannie and Freddie Have Been “Saved” — Now What?The former Goldman Sachs employees — err, the federal government — have decided to bail out Fannie and Freddie and the race to call another bottom in equities, not to mention housing, is on. Reality, however, is not a friend of these hopeful bulls. Let’s take a quick scan of the economic landscape and see [...] A Housing Solution that Focuses on (Gasp!) HousesThis post first appeared on Minyanville and our sister site, Dawn Patrol. Every once in a while, the most important news story of the day is the one the Wall Street Journal allots a mere 200 words. In a move that will soon be greeted with quiet mutterings of “I should have seen this coming,” [...] HOPE when?Cirios Real Estate Washington’s war on foreclosures, the latest in a string of sycophantic attempts to sway public opinion back in the favor of the very regulators that turned a blind eye to rampant irresponsible lending, is now being waged with carefully crafted press releases. In the past two days, strikingly contradictory reports have emerged [...] New Countrywide Suit Tries To Foreclose ForeclosuresThis post first appeared on Minyanville. When Bank of America (BAC) agreed to buy Countrywide, it didn’t just take on a mountain of questionably valued mortgage-related assets. It also took on huge legal liability. San Diego City Attorney Mike Aguirre, who has a penchant for punitive lawsuits that rarely result in much more than a [...] Mortgage Reform: Why Government Intelligence is OxymoronThis post first appeared on Minyanville and our sister site Dawn Patrol. After leading the banking sector to its largest ever one-day drop yesterday, Washington Mutual (WM), in an effort to assuage concerns that it’s facing a cash crunch, released a statement claiming that the bank is “well-capitalized.” Though the stock bucked the trend this [...] New Mortgages … Rule!Below are some details on the Fed’s proposed new mortgage rules courtesy of Briefing.com: New final mortgage rules ban prepayment penalties if payment can rise in first 4 years. New rules create category of ‘higher-priced mortgages’ including virtually all subprime loans. Lenders must verify repayment ability from income, non-home assets for higher-priced mortgages. Lenders must [...] Lone Voice Calls for Intelligent Mortgage ReformWhile Congress deliberates on the future of the nation’s mortgage market, some within the government are calling for restraint in regulatory reform. Housingwire.com reports William Emmons, an economist at the St. Louis Fed, is calling for patience and social support as the clearest way to economic recovery. Emmons makes the argument that government intervention, particularly [...] Credit Contraction ContinuesIn further evidence of the ongoing credit contraction, Mortgagedaily.com reports Lehman Brothers is shuttering its Small Business Finance unit. The division made small commercial mortgage loans to individuals and corporations. The closure is the latest in Lehman’s efforts to shrink its mortgage business and reduce exposure to the US housing market. Lenders everywhere are reducing [...] |