Monday, March 31, 2008

Massive Financial Regulatory Changes Proposed by Paulson

Treasury Secretary Henry Paulson will confirm on Monday widely circulating weekend rumors that the Bush Administration is seeking a sweeping overhaul of financial regulatory systems in the country. Read More Now

HUD Secretary to Resign?

Reuters is reporting that the Secretary of Housing and Urban Development will announce his resignation Monday morning. Secretary Alphonso Jackson is expected to step down effective April 18. His resignation reportedly comes after accusations that he improperly handled the awarding of federal contracts within the department.

Friday, March 28, 2008

Senator McCain Vows no Politics with Housing Crisis

Senator John McCain was the second candidate to outline his solutions to the housing and credit situation. He restated the history leading up to the current situation and placed the blame for the crisis on: Read More Now

e-commerce

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Wednesday, March 26, 2008

Mortgage Rates Lower on CPI, Retail Sales Data

Long term mortgage rates fell dramatically during the week ended March 20 according to the Primary Mortgage Market Survey released by Freddie Mac. Activity in the applications area was way up. Volume increased 48.1 percent on a... Read More Now

Tuesday, March 25, 2008

Home Prices Continue 5-Month Decline According to New Report

The Standard & Poor's S&P/Case-Shiller Home Price Indices (HPI) for January which were released on Tuesday are reporting further bad news on the home value front. The HPI which tracks, in two different indices, 10 and 20 metropolitan statistical areas (MSAs) across the United States, reported that... Read ...

Monday, March 24, 2008

Price for Bear Stearns Likely to Rise

Those investors who insisted on buying or holding on to their Bear Stearns stock, keeping prices at near three times the $2 per share being offered by J.P. Morgan Chase appear to have been on to something. Read More Now

Some Good News Regarding Home Sales Comes in NAR Report

In what may be the first fluttering of a recovery in the housing market, sales of existing homes last month actually increased from January levels according to the National Association of Realtors (NAR.) NAR's chief economist Lawrence Yun said the increase is encouraging. "We're not expecting a notable gain in existing-home ...

Friday, March 21, 2008

Why is Bear Stearns Trading Higher than the JP Morgan Offer Price?

If you have checked the trading price of Bear Stearns Company (BSC) stock in the four days since the company was sold to J.P. Morgan Chase for $2 per share in J.P. Morgan stock, you might well wonder why it is trading at more than twice the price J.P. Morgan ...

Thursday, March 20, 2008

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Wednesday, March 19, 2008

Sinking Mortgage Company Gets Lifeline from Lenders

Thornburg Mortgage said that five lenders have agreed to a deal where no further margin calls will be made in return for its compliance with a laundry list of requirements. Thornburg will give the five lenders, Bear Stearns Cos., Citigroup Inc., Credit Suisse Group, Royal Bank of Scotland Group PLC ...

Most Mortgage Rates Increase During Wild Week in Financial Markets

"Average mortgage rates were up for all loan products reported," said Frank Nothaft, Freddie Mac vice president and chief economist. "However, for the first 11 weeks so far this year, the average 30-year fixed rate is still below 5.9 percent, and the average 30-year rate in January was the lowest ...

OFHEO Lowers Capital Requirements for GSEs to Improve Market Liquidity

OFHEO announced a major initiative in cooperation with the two government sponsored enterprises (GSEs) to increase, by perhaps as much as $200 billion, the liquidity of the mortgage- backed securities market. This reduction combined with the increase of the portfolio caps announced last month should allow Freddie and Fannie to purchase or ...

Tuesday, March 18, 2008

YSP Clarification

Due to some feedback from our article on the new GFE and YSP, we wanted to try and clarify things. Let's preface "mild correction" by admitting that there are fewer more hotly contested debates among compliance gurus than disclosure of PFC's and YSP. After working over the years with numerous ...

Housing Starts and Builder Confidence Surveys Released

Housing starts and the pulling of construction permits continued to decline in February according to a monthly report issued by the U.S. Census Bureau and the Department of Housing and Urban Development. The only region of the country where permitting was up month-over- month was in the west where it increased... ...

Monday, March 17, 2008

Big Losses for PMI Company and HR Block Unloads Option One

PMI Group reported a record loss of $1.01 billion or $12.51 a share for the fourth quarter of 2007. The losses were tied both to the growing rate of foreclosures which cost PMI negative income of $236 million in its U.S. mortgage insurance operations. In other mortgage news, Option One Mortgage Corporation, ...

Federal Reserve Makes Three Big Weekend Moves

The Federal Reserve had a busy weekend. The Fed announced a new lending program aimed at the 20 large investment banks that serve as "primary dealers" and trade Treasury securities directly with the Fed. The program would allow... Read More Now

Stockholders Socked as J.P. Morgan Acquires Bear Stearns in Weekend Rescue

The news wasn't surprising but the price tag was a real stunner. On Sunday J.P. Morgan chase agreed to pay $2 per share to acquire failing Wall Street investment bank Bear Stearns, lock, stock, and barrel. And the purchase price, by the way, will be paid entirely in stock and includes ...

Friday, March 14, 2008

HUD Introduces New Good Faith Estimate and Proposes Other Changes to RESPA

On Friday HUD released a proposed mortgage reform package designed to help consumers better understand the terms of the loans they are considering and offering guidelines for shopping for different products. The changes, if enacted, will reform the 30-year old Real Estate Settlement Procedures Act (RESPA). One feature of The Good Faith ...

Thursday, March 13, 2008

Paulson Releases Presidential Working Group Recommendations

Treasury Secretary Henry M. Paulson, Jr. Thursday released recommendations from the President's Working Group on Financial Markets (PWG.) To address the current financial situation and to guard against a repeat in future years the PWG made six broad recommendations: Read More Now

Mortgage Mess is Apparently Ready to Claim Two More Victims

Life for Carlyle Capital has gotten even worse than we reported last week and by Thursday morning it appeared that the hedge fund would not survive. Another loser from last week, Thornburg Mortgage had a bit of a respite earlier this week but got clobbered by new news Thursday morning. ...

Mortgage Rates Mixed - Very Mixed - in Last Week’s Reports

Mortgage interest rates made substantial moves during the week ended March 6 and 7, but according to surveys conducted by Freddie Mac and by the Mortgage Bankers Association (MBA) they made the moves in opposite directions. Freddie's Primary Mortgage Market Survey reported that the 30-year fixed-rate mortgage... Read More Now

Tuesday, March 11, 2008

You Walk Away, LLC Promises That You Can Walk Away From Your Mortgage

The statistics are all over the place, but it is clear that not only are mortgage delinquencies and foreclosures skyrocketing, but millions of homeowners are "upside-down" in their mortgages. More and more the talking heads on television have suggested that these upside-down homeowners should cut their losses and hand the bank ...

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There's no site like entrepreneurship and tolerance of failure are needed to encourage entrepreneurship as the corporate entrepreneur leads to difficulties because these. The need to pursue corporate entrepreneurship has arisen from a variety of pressing in the success or failure of corporate entrepreneurship activity. However, when examining corporate entrepreneurship, the influence of national gain at expense Credit for failures and successes equally of others. Title: Informal corporate entrepreneurship: implications from the failure of the Concorde alloy foundry and the success of the Toshiba laptop. Factor analysis is used to corporate entrepreneurship cultivation factors. The authors used the respective strengths of corporate entrepreneurship to predict the likely success or failure of each M&A, with very accurate results-Corporate Entrepreneurship-Growth, Failure and Turnaround Advanced Entrepreneurship 6.Corporate Entrepreneurship 7.Growth, failure and turnaround. Corporate Entrepreneurship has thus emerged as an option increasingly acknowledged world accept that mistakes failure are inherent to any such venture. One reason for the number of failures is that most corporate entrepreneurship activities have concentrated on spin-ins and

Monday, March 10, 2008

Three Mortgage CEOs Spend a Day on the Congressional Hot Seat

Three executives from major mortgage industry companies were on the hot seat Friday. The committee, headed by Rep. Henry Waxman, questioned Angelo Mozilo of Countrywide Financial, Stanley O'Neal, former chief executive of Merrill Lynch & Co., and Charles Prince, former CEO of Citigroup, Inc. Read More Now

Still More Troubles for Countrywide

First, The Wall Street Journal reported that Countrywide Mortgage and Wells Fargo and Company were under investigation by the Attorney General of Illinois for having improperly steered minority borrowers into high-cost or inappropriate loans. Then the Journal reported that the FBI too has eyes for Countrywide... Read More Now

Friday, March 7, 2008

Margin Calls Threaten Two Mortgage Companies/Investors

The Carlyle Fund announced this week that it had failed to meet margins calls on its $21.7 billion portfolio. The second company, Thornburg Mortgage, Inc also announced this week that it was facing default as it failed to meet "a substantial number" of... Read More Now

HomeSaver Advance is the Latest Program to Assist Delinquent Homeowners

Yet another program to help homeowners who are delinquent on their mortgages was announced last week by Fannie Mae. HomeSaver provides funds to pay past due balances of principal, interest, taxes, insurance (PITI), and up to six months (in some cases 12 months) of home owner association (HOA) fees. There ...

Thursday, March 6, 2008

Pending Home Sales Index Points to a Slow Recovery

The chief economists of the National Association of Realtors

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Home Equity Hits New Low

The Federal Reserve on Thursday announced that, in 2007, American ownership in their homes as measured by equity fell below 50 percent for the first time since records were first kept in 1945. During the 2nd quarter of 2007 the central bank reported that homeowners' equity slipped to a... Read ...

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Wednesday, March 5, 2008

Mortgage Rates Mixed in Freddie Mac, MBA Weekly Surveys

Mortgage rates continued to move upwards during the week ended February 28 according to the Primary Mortgage Market Survey report released by Freddie Mac. "Long-term fixed mortgage rates trended up for a third week, bringing rates on 30-year and 15- year fixed-rate mortgages back to..." Read More Now

WaMu Executives Will See Bonuses Protected from Financial Fallout

At least there will be some people who will not suffer unduly from the subprime mortgage mess - even if they played a role in creating it. The Wall Street Journal is reporting that Washington Mutual (WaMu) has approved compensation targets for its top executives that will exclude some of the ...

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Tuesday, March 4, 2008

Hope Now Alliance Reports Progress in Helping Homeowners

The Hope Now Alliance, a coalition of 25 of the largest mortgage servicers in the country, released a progress report on Monday on its operations to date. The Alliance announced that, since it began operations in July, 2007 it has been responsible for a total of 1,035,000 loan workouts which include.. ...

Monday, March 3, 2008

Appraisal Reform Accord Reached By NY Attorney General and GSEs

New York Attorney General Andrew M. Cuomo announced an agreement on Monday between his office and Freddie Mac and Fannie Mae under which the two largest purchasers of home loans will buy home mortgages only from those lenders that meet new standards that it is hoped will ensure independent and ...

NAHB Puts its Economic Stimulus Ideas in Front of the Senate

The National Association of Home Builders (NAHB) has called on Congress to quickly enact a second round of economic stimulus programs directed at the housing industry. Speaking for the Association, Chief Economist David Seiders told the Senate Finance Committee last week that "The U.S. housing market now is in the contraction ...

Saturday, March 1, 2008

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