Borrowers Chose Strategic Default On Reverse Mortgages
When reverse mortgages were last reviewed, it was predicted that many unqualified borrowers would wind up defaulting, despite the fact that a reverse mortgage has no payment due. As originally conceived, reverse mortgages were designed to fulfill a [...]
Can The Unemployed Afford A Mortgage Payment?
Government Determined To Keep Unwilling Homeowners In Homes The FDIC announced a new initiative to reduce foreclosures on home mortgage loans held by failed banks that were acquired by another institution. This new FDIC program goes far [...]
How The Government Encourages “Ruthless Defaulters”
The Delusion of Lenders The old banking rule of lending only to those who had the capacity to repay was gradually relaxed and then completely abandoned over the past two decades. New techniques such as loan securitization [...]
High Risk Mortgage Lending Still Being Promoted By GSEs
Sufficient Income Key To Sound Home Ownership In an effort to prevent delinquent home owners from losing their homes to foreclosure, the Department of the Treasury recently issued guidelines to lenders. Under the Making Home Affordable mortgage [...]
Profile Of A “Making Home Affordable” Homeowner – Everyone Should Do It
Overburdened Homeowner Subsidized Loan modification programs have been seen as the answer to preventing foreclosures and allowing the housing market to stabilize. The programs have become progressively more aggressive as foreclosures continue to mount and housing prices [...]
Elderly Americans Last Refinance – Reverse Mortgages
Reverse Mortgages – More Easy Lending As originally conceived, reverse mortgages were designed to fulfill a legitimate borrowing need. Reverse mortgages were developed for elderly Americans who had a mortgage free home with substantial equity and wanted [...]
Bonds Sell Off, Credit Ratings In Doubt & Mortgages ReDefault
Every day there are many great posts on the web. Here are some from the past week that merit a full read. The listing order is random. Ok, I’m Done With Being Nice Karl Denninger does not [...]
Mortgage Mod And Foreclosure Scams: Saying Goodbye To The Mortgage May Be Better
FDIC Advice Good But Too Late The FDIC Consumer News is warning homeowners to avoid falling prey to loan modification and foreclosure rescue scams. Many financially distressed homeowners are preyed upon by firms that “guarantee” financial salvation, [...]
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 [...]
