Subprime meltdown equals credit crunch equals huge losses for big companies
Submitted by Naomi M on Wed, 11/07/2007 - 15:44.Merrill Lynch could face as much as $10 billion in additional write-downs on collateralized debt obligations, subprime-mortgage bonds and the like, according to Deutsche Bank's Mike Mayo. That's on top of the $8.4 billion that helped trigger the ouster of former Chief Executive Stan O'Neal.
Mortgage lenders lost money last year
Submitted by Naomi M on Thu, 10/11/2007 - 00:45.The Mortgage Bankers Association, in a report based on 2006 data collected from 189 companies that make up more than half of total U.S. mortgage lending, said lenders lost an average of $50 per mortgage last year. That was down from a profit of $258 per loan a year earlier.
The narrow gap between short- and long-term interest rates along with high staffing levels made lending unprofitable for many companies, the report said.
The narrow gap between short- and long-term interest rates along with high staffing levels made lending unprofitable for many companies, the report said.
Risky Mortgages Push More Homeowners Into Foreclosure
Submitted by Naomi M on Thu, 10/04/2007 - 21:54.As more of those risky, but alluring teaser-rate, adjustable mortgages reset, homeowners are in a squeeze, unable to make their mortgage payments.
There was a 93 percent increase from a year ago in Notice of Defaults, scheduled auctions or bank repos.
California, Florida, Michigan, Ohio and Georgia made up more than half of the country's total filings.
California foreclosure filings are triple the previous year totaling 39,013.
New Proposed Mortgage Reform Bill Designed to Squash Predatory Lending Practices
Submitted by Naomi M on Tue, 10/23/2007 - 20:00.On Monday, Reps. Brad Miller (D-NC), Mel Watt (D-NC) and Barney Frank (D-MA) introduced a mortgage reform act into the US House of Representatives, according to a joint press statement issued by the House Financial Services Commitee. "The Mortgage Reform and Anti-Predatory Lending Act of 2007", is said to be the most comprehensive legislation to combat abuses in the mortgage lending market, and to provide basic protections to mortgage consumers and investors.
Citigroup takes steep loss due to mortgage default increase
Submitted by Naomi M on Mon, 10/15/2007 - 18:28.Citigroup, the largest U.S. bank, posted its steepest loss in almost seven weeks after Chief Financial Officer Gary Crittenden said late
payments on home loans may worsen in the fourth quarter. Citigroup Inc.said defaults will plague the financial industry for the rest of the year, reports Bloomberg.
Washington Mutual takes a gut-wrenching $348-million loss on its home loans
Submitted by Naomi M on Mon, 10/22/2007 - 16:57.Q3 profits for Washington Mutual Inc., the largest U.S. savings and loan, plummeted 72%, hurt by mounting mortgage losses, largely due to the housing slump, according to the LA Times.
Housing difficulties helped push profit down 18% at its retail banking unit and cause a $348-million loss in its home loans unit, compared with a $23-million loss a year earlier. Earnings fell in all four of the thrift's units.
WAMU experienced a significant falloff mid-2007 and it has continued in the fourth quarter, accelerated by the lack of liquidity in the capital markets.
Housing difficulties helped push profit down 18% at its retail banking unit and cause a $348-million loss in its home loans unit, compared with a $23-million loss a year earlier. Earnings fell in all four of the thrift's units.
WAMU experienced a significant falloff mid-2007 and it has continued in the fourth quarter, accelerated by the lack of liquidity in the capital markets.
Mortgage Lender, Thornburg, Takes a Greater Loss Than Estimated
Submitted by Naomi M on Tue, 10/09/2007 - 14:44.Thornburg Mortgage Inc., based in Santa Fe, New Mexico, lost 27 percent more than it had expected selling off adjustable-rate mortgages since August, after the collapse of the sub-prime market this summer.
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