Bracing for the option ARM impact
Posted on September 18, 2009 at 2:35 pmQuick, who do you think said this: “Payment option ARMs are about to explode.”
A: Nouriel Roubini, aka Dr. Doom, arguably the most negative voice on the economy and markets
B: JPMorgan Chase CEO Jamie Dimon
C: Iowa Attorney General Tom Miller after speaking with President Obama
HT: Calculated Risk
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Newsflash: Loan mods stink
Posted on June 30, 2009 at 9:19 pm
More sobering news from the mortgage front: The OCC and OTS have released a report that chronicles the explosion in loan modifications early this year – up 55 percent from late 2008 – and gives us more evidence that those mods just don’t work well.
SEE ALSO: Our print edition cover story this week on foreclosures.
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High-end foreclosures mean housing recovery won’t come till ‘12
Posted on May 21, 2009 at 12:22 pm
That’s the message market watchers are taking away from a Credit Suisse chart that compiles when various mortgage loans will be repriced. A key cog in the machine are ‘Alt-A’ and option ARM loans, says Matthew Padilla: “Subprime resets are still going on, but decreasing in frequency over the rest of 2009. However, prime resets and resets on loans to people with decent credit scores but special circumstances (stated income) are heading straight up through early 2012.”
Zacks’ Dirk van Dijk says that, “unlike sub-prime mortgages, these were for the most part targeted at more upscale homeowners. The next wave of foreclosures will be in gated communities, not on the “wrong side of the tracks.”
As foreclosures move more upscale, we may well see an increase in median existing home sale price. I’m sure this will be spun as good news of a housing bottom. Don’t believe it — it just means that the cancer is spreading.
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Another loan mod push
Posted on April 21, 2009 at 11:32 pmReuters has the story on the Treasury’s unfolding plans to provide relief to holders of second liens. If it gets anywhere, the new proposals won’t go down well in some parts.
“Second-lien holders should get zero,” said Bill Frey, president of Greenwich Financial Services in Greenwich, Connecticut. “Why should a second lien holder get anything if the first lien holder takes a loss? That’s not the way the contracts work, that’s not the way privatization works, that’s not the way America works.”
RIP cruel arrogance
Posted on January 7, 2009 at 5:55 pmLocal mortgage broker Steve Curnutte writes about some of the ‘better’ casualties of the finance crisis.
I am deeply saddened by the real pain wrought by this economic crisis. I hear stories daily that are all too human and all too real. But I am glad for a few things. I am glad that it is dealing a crushing blow to the cruel arrogance of financial wizards and snake oil salesmen the world round.
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An addition to the local layoff list
Posted on December 11, 2008 at 11:27 pmInternational banking behemoth HSBC is laying off 35 mortgage employees in Nashville as part of cutbacks that will cost at least 200 people their jobs.
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Credit Suisse hikes foreclosure estimates
Posted on December 10, 2008 at 10:42 amThe bank’s researchers say one in six mortgages will head down the wrong road by 2012.
The report predicts 72 percent of subprime borrowers will have negative equity in their homes in the next two years, up from 48 percent that had negative equity as of September 2008.
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