FHA Introduces New Minimum 580 Credit Score Requirement
The FHA is introducing new guidelines on loan to value ratios and the minimum credit score required for FHA borrowers. As detailed in a Mortgagee Letter from the Department of Housing and Urban Development (HUD), the following [...]
Will Governor Schwarzenegger Trigger 55,000 California Foreclosures?
California’s long running budget crisis has now degraded to the point where Governor Arnold Schwarzenegger has ordered a pay reduction to the minimum wage rate of $7.25 an hour for 200,000 state employees. The California banking industry, [...]
US Treasury Calls TARP Repayments A “Milestone” While Ignoring The Elephants In The Room
Treasury’s Victory Call On Financial Bailout Premature The Treasury Department’s latest public relations effort to highlight the success of the financial system bailout focuses on the amount of TARP repayments versus total debt outstanding. In addition, the [...]
Federal Reserve Super Low Rate Policy Crushes Savers And The Elderly
Fed Sees Solution In Zero Rates The Federal Reserve recently vowed to keep interest rates “exceptionally low” for the foreseeable future in an attempt to revive the economy. Since mid 2006 the Fed has brought the [...]
The Correlation Between Incomes And Default Rates
The Marginalization Of Risk The massive number of loan defaults that has put the entire banking industry on the brink on insolvency did not happen by accident. Banks recklessly extended credit, even to low income borrowers who [...]
FDIC Considers Borrowing From Treasury As Banking Failures Increase
FDIC May Request Treasury Loan As Losses Grow The FDIC always takes pride in noting that it is self funding and covers failed bank losses by assessments on FDIC insured member financial institutions. Congress created the Federal [...]
Feds Finally Move To Restrict Excessive Bank Compensation And Risk
Bailout Funds Go To Bank Bonuses Banks that lost billions of dollars on speculative investments and poor loans have routinely been awarding thousands of employees massive bonus payments. Ironically, the only reason many of these banks are [...]
Long Overdue Mortgage Regulations To Curb Lending Abuses
Feds React To Mortgage Lending Fiasco In a move that can only be described as better late than never, various new Federal laws that restrict certain lending practices become effective on or after October 1, 2009. Other [...]
The FDIC Deposit Insurance Fund (DIF) – A Risky Game Of Confidence
FDIC Rightly Worries About Public Confidence Due to the large number of bank failures during 2009 the FDIC Deposit Insurance Fund (DIF) has fallen to the lowest level since March 1993. Numerous headlines are screaming that the [...]
