Retailers will default, no matter how many sweaters you buy today
Associated Press Nov 28, 08 9:02 AM CST
(AP)
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Black Friday shoppers hunting for holiday bargains won't be enough to stave off what's likely to become the next economic crisis. Malls from Michigan to Georgia are entering foreclosure, commercial victims of the same events poisoning the housing market. Hotels in Tucson, Ariz., and Hilton Head, SC, also are about to default on their mortgages.
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Bush camp opposes using bailout funds
Washington Post Nov 14, 08 8:42 AM CST
(Newser)
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Officials at the FDIC are butting heads with the Bush administration over the bailout once again, yesterday outlining a plan to prevent 1.5 million foreclosures in the coming year by having banks sharply reduce monthly payments on mortgages, the Washington Post reports. The government would guarantee half the losses should the banks lose money on modified loans, costing an estimated $24.4 billion to the government.
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The bank will amend mortgages to assist 130,000 borrowers
Wall Street Journal Nov 11, 08 7:31 AM CST
(Newser)
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Citigroup will modify up to $20 billion in mortgages for borrowers current on their payments but at risk of falling behind, the bank announced this morning, mirroring similar moves by Bank of America and JPMorgan Chase. Citi will reach out to half a million borrowers, ultimately reducing monthly payments for 130,000 whose payments exceed an average of 40% of income, Wall Street Journal reports.
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WaMu customers included in measure to avoid foreclosures
Bloomberg Oct 31, 08 2:22 PM CDT
(Newser)
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JPMorgan Chase will help distressed homeowners by reducing interest rates or principal balances for $110 billion in mortgages, Bloomberg reports. The restructuring applies to clients of Washington Mutual, which JPMorgan agreed to buy last month. Foreclosures will be suspended on all loans for the next 90 days while the relief efforts are implemented.
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Those who can pay mortgages feel cheated as neighbors get aid
New York Times Oct 31, 08 7:43 AM CDT
(Newser)
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As the feds move ahead with a plan to help homeowners on the brink of foreclosure, others are questioning the scheme's fairness and wondering if it's ripe for abuse, the New York Times reports. “I am beginning to think I would have rocks in my head if I keep paying my mortgage," said one Connecticut homeowner in a familiar boat—he can make his payments, but he owes more than his home is worth because of sinking real estate prices.
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Budapest secures huge loan to prevent default à la Iceland
New York Times Oct 17, 08 8:33 AM CDT
(Newser)
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The Hungarian government secured a $6.7-billion loan yesterday from the European Central Bank in an attempt to stave off an Icelandic-style national meltdown. The EU newcomer's troubles derive from loans denominated in euros or Swiss francs, rather than the softer Hungarian forint. Frozen credit markets have left Hungary's government and citizens struggling to repay their debts.
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From rapid expansion and growth to rapid decline, WaMu is in deep trouble
Wall Street Journal Sep 8, 08 5:38 AM CDT
(Newser)
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The enduring subprime contagion has claimed another victim, as downtrodden Washington Mutual has forced out CEO Kerry Killinger, reports the Wall Street Journal. Killinger, who has led the nation’s largest thrift since 1990, and has taken it from a small Seattle business into one of the nation’s largest mortgage lenders, will be replaced by Meridian Capital Group chairman Alan Fishman.
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OPINION
As both companies plummet, combining them might make sense
New York Times Sep 2, 08 10:54 AM CDT
(Newser)
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With Fannie Mae and Freddie Mac struggling to stay afloat, arguments for a merger are gathering steam. “Sometimes size can be a strength,” writes Andrew Ross Sorkin in the New York Times . The companies spent $1.825 billion in total overhead in the first half of 2008 doing exactly the same thing; a merged entity could save some $1.2 billion a year.
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Prime loans made in early 2007 are going bad at triple the rate of 2006 loans
Wall Street Journal Aug 7, 08 9:29 AM CDT
(Newser)
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Mortgages procured in 2007 are souring at a rate nearly triple that of 2006, reports the Wall Street Journal, suggesting that the wallop to the financial system from forclosures could be far from over. Analysis done for the paper finds 0.91% of the prime loans issued in the first part of the year in foreclosure, or more than 90 days past due, after 12 months. Just 0.33% of loans made during early 2006 went bad after a year.
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Bigger group of 'good' borrowers now face foreclosure
New York Times Aug 4, 08 8:11 AM CDT
(Newser)
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The flood of foreclosures on subprime mortgages seems to be ebbing, the New York Times reports, but a second, larger group of borrowers—those with better credit—are now expected to default in coming months . A continued weak economy, unemployment, and other economic factors helped to quadruple the percentage of borrowers one rung above subprime who defaulted in April, compared with the year before, and double the percentage of prime market borrowers who defaulted.
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Even well-managed regional banks no longer darlings
New York Times Jul 16, 08 7:39 AM CDT
(Newser)
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With the nation's banks under pressure from bad loans, and sources of credit scarce, bank customers aren't panicking, the New York Times notes, but investors are, fleeing an industry much more accustomed to being a Wall Street darling . Bank shares continued their downward spiral yesterday, with the S&P Regional Bank Index down 4% on top of Monday’s 11% drop.
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As more home loans fail, lenders ask more of beleaguered backers
Wall Street Journal Jul 15, 08 9:51 AM CDT
(Newser)
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Mortgage insurers facing mounting defaults are tightening their standards, adding another hurdle for potential homebuyers, the Wall Street Journal reports. Beleaguered and risk-averse banks are making more mortgage applicants apply for insurance, just as insurers are declaring more parts of the country “declining markets.” making insurance harder to obtain. The result is “wreaking havoc” on the industry, one bank representative tells the Wall Street Journal.
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One in 501 US households hit with filings last month as crisis rolls on
Associated Press Jul 10, 08 7:19 AM CDT
(AP)
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The number of homeowners stung by the rout in the US housing market jumped last month as foreclosure filings grew by 53% over June a year ago, according to data released today. One in every 501 US households was hit with a foreclosure filing last month.
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