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Subprime Screwups Reap Subsidies

By Jane Yager, Newser Staff

Posted Aug 26, 2009 5:03 AM CDT

(Newser) – Many of the lenders eligible for $75 billion in taxpayer subsidies from the government's foreclosure prevention program are the very same subprime lenders who fueled the mortgage crisis in the first place, the Washington Post reports. According to a report to be released tomorrow, JPMorgan,... Read full story »

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'Serpent Pastor' Dies of Snake Bite

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Wells Fargo • Countrywide • JPMorgan Chase • subprime lender • Making Homes Affordable

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Top Subprime Lenders Owned by Bailout Banks

Analysis of gov't data reveals sources of the economic meltdown

(NEWSER) - Some 21 of the top 25 subprime lenders that triggered the global economic collapse were either owned or financed by banks that ended up needing bailouts, an analysis by the Center for Public Integrity finds. Among the backers, who make huge profits on the subprime business, were Lehman Brothers, Merrill Lynch, JPMorgan, Citigroup, Goldman Sachs, and AIG. More»

Subprime's New Frontier: Auto Loans

Banks jumping back into lucrative market

(NEWSER) - That whole "subprime crisis" hasn't scared banks away from the lucrative world of subprime lending. The nation's top subprime lenders—like Capital One, GM Financial, HSBC, and JPMorgan Chase—are all trying to woo back less-creditworthy borrowers, who tend to rack up late fees while paying rates as high as 29%, the New York Times reports. "It's clear that we are returning to business as usual," said a former Federal Reserve regulator. But that's not entirely true; the focus hasn't yet shifted to mortgages, it's on auto loans. More»

Calif., NY May Sign On to Robo-Signing Settlement

Obama administration nearing deal for mortgage relief

(NEWSER) - California and New York are close to signing on to the Obama administration's multibillion dollar mortgage robo-signing settlement, significantly expanding the deal, the New York Times reports. If California signs on, the settlement total will jump from $19 billion to $25 billion. In exchange, the states want measures to help individual homeowners, and the ability to investigate the banks' other past mortgage misdeeds. California also wants to ensure that big pension funds can still sue the banks for false claims about mortgage-backed securities. More»

BofA Offers More Ways Around $5 Debit Fee

$20K minimum balance isn't the only option

(NEWSER) - Turns out Bank of America customers won't have to maintain a $20,000 bank account to avoid monthly debit fees after all. With other banks canceling debit fee plans, BofA will now offer customers other means of avoiding its $5 monthly debit card payment —like having paychecks directly deposited, or using the bank's credit cards. Or customers can simply pay a $9-to-$20 monthly fee to avoid further penalties, Reuters reports. More»

Perry Gave Huge Tax Grants to Subprime Lenders

Countrywide, WaMu got $35M as they upped risky loans

(NEWSER) - Rick Perry handed mortgage lenders millions to draw them to Texas—right when their risky lending practices surged. The governor gave Countrywide $20 million and Washington Mutual $15 million in what he called an exemplary job-creation move; in effect, that $35 million subsidized dangerous subprime lending, an AP analysis of data and records finds. And when some began to fear the impending mortgage crisis, Perry's rep shrugged off their concerns as “slightly alarmist.” More»

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Subprime Screwups Reap Subsidies

Wells Fargo • Countrywide • JPMorgan Chase • subprime lender • Making Homes Affordable

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More Newser Stories

Top Subprime Lenders Owned by Bailout Banks

Analysis of gov't data reveals sources of the economic meltdown

Subprime's New Frontier: Auto Loans

Banks jumping back into lucrative market

Calif., NY May Sign On to Robo-Signing Settlement

Obama administration nearing deal for mortgage relief

BofA Offers More Ways Around $5 Debit Fee

$20K minimum balance isn't the only option

Perry Gave Huge Tax Grants to Subprime Lenders

Countrywide, WaMu got $35M as they upped risky loans

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