From Reuters: "Option" mortgages to explode, officials warn "Payment option ARMs are about to explode," Iowa Attorney General Tom Miller said after a Thursday meeting with members of President Barack Obama's administration to discuss ways to combat mortgage scams. ... [...more]
From the WSJ: Pick-a-Pay Loans: Worse Than Subprime For the third straight month, option adjustable-rate mortgages are generating proportionally more delinquencies and foreclosures than subprime mortgages ... As of April, 36.9% of Pick-A-Pay loans were at least 60 days past due, while 19% were in foreclosure, according to data from First American CoreLogic, a unit of Santa Ana, Calif.-based First American Corp. In contrast, 33.9% of subprime loans were delinquent, with 14.5% of those loans in foreclosure, the figures show. [...more]
Here is an interesting article on FirstFed in the Los Angeles Business Journal: Last One Standing (ht Will) Since souring option ARMs have taken down a number of big lenders, the big question looms: Will FirstFed, a savings and loan founded in Santa Monica on the eve of the Great Depression, be next? ... In January, regulators placed the thrift under a cease-and-desist order over concerns that its capital supply was rapidly depleting. [...more]
Given all the recent attacks, I'd be remiss if I didn't write something about Bernanke, but first ... I've been a regular critic of Ben Bernanke. I thought he missed the housing and credit bubble when he was a member of the Fed Board of Governors from 2002 to 2005 [...more]
Plummeting home prices. Skyrocketing unemployment. On average, then, the U.S. economy on solid ground. That is, if you subscribe to the notion that, on average, a human has one breast and one testicle. The fact that home prices are still falling, while unemployment claims are still rising is an equation that will yield one result...and it is in no way "average". Get ready for a new wave of foreclosures. And don't think Obama's anti-foreclosure plan is going to do anything to stop it. The fact that home prices are still falling, while unemployment claims are still rising is an equation that will yield one result...and it is in no way "average". Get ready for a new wave of foreclosures. And don't think Obama's anti-foreclosure plan is going to do anything to stop it. [...more]
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