Second Mortgage Investors Facing 100% Losses
Risky Lending Second mortgage liens have always been considered risky lending. Investors in second mortgages are about to find out that the risk was higher than anticipated. WASHINGTON, April 6 (Reuters) – The U.S. Treasury will soon [...]
Banks Offering 3.875% Fixed Rate Mortgages
TARP Dollars Deployed Two Washington State banks are now offering 30 year fixed rate mortgages at 3.875%. SPOKANE, Wash. – Spokane-based Sterling Savings Bank and Walla Walla-based Banner Bank are offering mortgages at interest rates below 4 [...]
Markets Plunging On Geithner’s Remarks
Geithner Does It Again The Treasury Secretary said Sunday that some banks will need large amounts of financial aid. Geithner’s comments seemed to imply that his recently announced rescue plan for the banking industry is only a [...]
HUD Imposes Dramatic Restrictions On FHA Cash Out Refinances
FHA Tightens Rules Again First there was an increase in the required credit scores to be eligible for FHA financing. (See FHA Increases Minimum Credit Score Requirement). Now comes a major tightening of the rules on FHA [...]
Are Geithner’s Days Numbered? Banks And Investors Have Zero Confidence
First Impressions Hard To Reverse The old saying in the recruiting business is that one is judged in the first 15 seconds of a job interview. Irregardless of what happens for the rest of the interview, that [...]
Banks Push Back On Bailout – Wells Fargo Calls Stress Test “Asinine”
Wells Fargo Discovers High Cost Of Government Help Wells Fargo Chief Calls Stress Test Asinine March 16 (Bloomberg) — Wells Fargo & Co. Chairman Richard Kovacevich criticized the U.S. for retroactively adding curbs to the Troubled Asset [...]
Banks Tighten Lending By Restricting FHA Cashout Refi
FHA Loans Become Tougher To Qualify For Effective January 1, 2009 HUD announced that any FHA cash out refinance would require two appraisals when the loan to value exceeds 85% – see FHA Takes A Closer Look [...]
Jumbo Mortgage Rates Reflect Default Risk
Economic Crisis Impacts All Borrowers Jumbo mortgages, typically loan amounts above $417,000, are defaulting at a rapid pace as the economic crisis affects borrowers at all income levels. Bloomberg is reporting that jumbo mortgages, typically associated with [...]
Defaults Everywhere – More Lending Is Not The Solution
Mortgage Defaults Only Part Of The Problem Mention loan defaults and most people probably think of mortgages. Home foreclosures due to mortgage defaults are getting the bulk of press coverage and the most attention in Washington. The [...]
