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"Scary charts from Bank of America (by: cjnohl@federatedrmc.com)" posted by ~Ray
Posted on 2008-10-16 06:06:24 |
It could even be longer than 2011 as this time we willhave a series of Perfect Storms beginning with implosion to follow by Option Arm implosion and Alt-Aimplosion exarcerbated by the weakness of the dollar andthe absence of investors' interest in buying mortgage-backsecurities and CDOs from the U. S. Wells Fargo just said that this is the great real estatedownturn since the Great Depression and I think with thecoming series of Perfect Storms we might even see the SecondDepression by 2009 thru 2010. Peter
Originally posted by peter It could even be longer than 2011 as this time we willhave a series of Perfect Storms beginning with subprime implosion to follow by Option Arm implosion and Alt-Aimplosion exarcerbated by the weakness of the dollar andthe absence of investors' interest in buying mortgage-backsecurities and CDOs from the U. S. Wells Fargo just said that this is the great real estatedownturn since the Great Depression and I think with thecoming series of Perfect Storms we might even see the SecondDepression by 2009 thru 2010. Peter
Sure housing won't likely recover in some areas for 3-4 years..... Not that bad IMHO. Employment is still good in most areas and people need to live somewhere. US Productivity remains strong and there are many people that can afford their homes and many people that will need a home. Certain areas that saw huge gains will revert to the mean and this will mean BIG problems for those areas but nationwide things arent quite as bad as some people are sensationalizing. We have always been resilient and innovative and will find a way out of this with less pain then the worst case scenario. It is a good thing that people are now paying attention this means we will react in time to avert catastrophe. Plus think of all the refinances that will need to be completed.....
Originally posted by austinmpSure housing won't likely recover in some areas for 3-4 years..... Not that bad IMHO. Employment is still good in most areas and people need to live somewhere. US Productivity remains strong and there are many people that can afford their homes and many people that will need a home. Certain areas that saw huge gains will revert to the mean and this will mean BIG problems for those areas but nationwide things arent quite as bad as some people are sensationalizing. We have always been resilient and innovative and will find a way out of this with less pain then the worst case scenario. It is a good thing that people are now paying attention this means we will react in time to avert catastrophe. Plus think of all the refinances that will need to be completed.....
The problem is that the employment numbers do not account for most people in the real estate industry that were making major money. I know a real estate agent who was driving a thousand dollar a month BMW and now cannot go out and spend $50.00 for a dinner with a group of friends. Banks are tightening with no end in sight. Many of those in the luxary business (jewelry expecially) are hurting big time (I know many jewelers). I am willing to bet that the no cash out refi boom has stopped a lot of these types of purchaes.
I remember the first day an LO of mine handed me a flyer for the 540 mid 100% ltv loan and my verbatum quote was. "These guys are fuc4in' crazy." Welcome home. Peter your projection of depression starting in the 2009 time frame is way too optimistic. Don't you see it happening now? Can you really imagine the equity market plugging along like this for another 6 months? WHat happens when the babyboomers realize the crosshairs of this entire situation lie on their retirement funds (401ks pensions. SEPPs. ROTHs what-have-you)? With the
well there goes the chance of foreign investment being a life-raft. Here is what you will see. Exodus. Exodus of every type but most noticably for us will be the exodus of those age 50-75 taking their retirement proceeds leaving their mortgages and taxes to the wind and moving abroad. I'm seeing it already. As the
the tax rates will increase and the exodus will accelerate. After all our most notable export has been our culture and at this point there are so many options for an aspiring ex-pat. The
is coming off the pig. We have two alternatives to this certainty: 1.) return to fundamentals as a People ie removing the Federal Reserve System and all unapportioned tax or 2.) double-down on the FIAT myth of infinite Ponzi finance. The resultant is of course either meltdown/rebirth or boom/ka-boom. PS. We'll offer Canada and Mexico as additional collateral shortly. [Wry grin]
I believe if goverment goverment keeps sticking their nose in with new legislation and other crap then this maybe go even further. We need goverment to work on strengthening the dollar boost the economy and let the market handle the mess itself without more legislation crap if not then cjnohl has predicted correctly.
The BOA map looks about right we are starting to see inventorymove a bit in the Chicago burbs. I am seeing a number of divorce sales where they are just going to sell at a lower price than they want because they are done withthe marriage and the big house and they just want to move on with their lives in their new condo or apartment.
I've been talking to my girlfriend about this a lot lately as her office specializes in reverse mortgages. All of these are counting on a 4% price appreciation to help offset the increasing debt. That's all fine and dandy except when you don't figure in a 10-30% decline in value the year or 2 after you gave someone the loan. That's going to seriously put some of the reverse mtg under water. The weird thing is that I don't understand is why people think home prices will continue up at 4% or more.. noone can afford their house as it is right now. The only way people are going to be able to pay more for a home in 10 years is if they are making more then than they do now but all of the statistics show there has been no wage growth for most of the country over the last 10 years or so. I don't see any reason this will change in the future....
Originally posted by mganovskyVery good stuf here guy's. But you can not leave out the upcomming Reverse Mortgage perfect storm. For those folks who got a reverse mtg when property value's were at thier peak. The will be stuck with a loss when the owner's die and the try to re-sell.
Originally posted by rescaplenderI've been talking to my girlfriend about this a lot lately as her office specializes in reverse mortgages. All of these lenders are counting on a 4% price appreciation to help offset the increasing debt. That's all fine and dandy except when you don't figure in a 10-30% decline in value the year or 2 after you gave someone the loan. That's going to seriously put some of the reverse mtg lenders under water. The weird thing is that I don't understand is why people think home prices will continue up at 4% or more.. noone can afford their house as it is right now. The only way people are going to be able to pay more for a home in 10 years is if they are making more then than they do now but all of the statistics show there has been no wage growth for most of the country over the last 10 years or so. I don't see any reason this will change in the future....
Originally posted by mganovskyVery good stuf here guy's. But you can not leave out the upcomming Reverse Mortgage perfect storm. For those folks who got a reverse mtg when property value's were at thier peak. The lenders will be stuck with a loss when the owner's die and the lenders try to re-sell.
It's time considering the possibilities in the future to align yourself with a shop that gives you the opportunity to originate in as many states as possible with as many as possible to increase the odds for yourself... There are plenty of areas of the country doing very well even places many say aren't. I differ with... Overall they may have a higher rate of default and foreclosure but there isn't any lack of doable out there...
Originally posted by rescaplenderI've been talking to my girlfriend about this a lot lately as her office specializes in reverse mortgages. All of these lenders are counting on a 4% price appreciation to help offset the increasing debt. That's all fine and dandy except when you don't figure in a 10-30% decline in value the year or 2 after you gave someone the loan. That's going to seriously put some of the reverse mtg lenders under water. The weird thing is that I don't understand is why people think home prices will continue up at 4% or more.. noone can afford their house as it is right now. The only way people are going to be able to pay more for a home in 10 years is if they are making more then than they do now but all of the statistics show there has been no wage growth for most of the country over the last 10 years or so. I don't see any reason this will change in the future....
Originally posted by mganovskyVery good stuf here guy's. But you can not leave out the upcomming Reverse Mortgage perfect storm. For those folks who got a reverse mtg when property value's were at thier peak. The lenders will be stuck with a loss when the owner's die and the lenders try to re-sell.
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"Business Press Releases - Bank of America Expands Reverse Mortgage ..." posted by ~Ray
Posted on 2007-12-01 22:25:36 |
Earthtimes - CHARLOTTE. N. C.. Nov. 13 — Bank of America today announced that it has expanded its consumer reverse mortgage business to the Southeast making its Senior Equity Reverse Mortgage(TM) suite of products available in Georgia. North Carolina and South
Earthtimes - Press channel News First-time PME customers can acquire remove business cards by placing a sample order online
Earthtimes - Solix Technologies Announces Support for Oracle E-Business Suite Release 12 SUNNYVALE. CA — 11/13/07 — Oracle change state World. San Francisco. CA — Solix Technologies a leading provider of
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International Herald Tribune - Overall the crop was transport than normal according to a release issued Monday by David Guttenfelder/The Associated Press Also in Business of color: China’s green energy gap act over corncobs these guys run
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"10000 More Reasons to be wary of Bank of America" posted by ~Ray
Posted on 2007-11-05 23:16:31 |
Big news in the bank world today about Bank of America. First. AP picked up on a chew over conducted by the Anderson Economic assort that predicts Chicago could lose more than 10,000 jobs if the Bank of America follows through on a assure to cut costs by 50 percent at LaSalle tip Corp. (Go to
to read the beat story.)The news must have raised some eyebrows at Sallie Mae—not by the study execs who are cashing in on the Sallie Mae buyouts and raking in millions—but the add up middle manager the folks working the call center and those guys in accounting They undergo to be wondering: ordain the same thing come about to me when Bank of America takes over Sallie Mae?There are a few things we experience about the buyout industry the handful at the top ordain be OK. Hard not be when you can cash in your stock options for $225 million desire former CEO Albert Lord. But PE’s bring in preserve for the be of the working world is not that great. Sallie Mae employees have to be wondering: Will I have a job tomorrow? What about my award—ordain it be safe? Then we get Bank of America pumping $2 billion into Countrywide one of the giant subprime mortgage lenders. We're already seeing thousands of jobs cut in this sector—Lehman Brothers is cutting 1,200 jobs. Accredited Home Lenders Holding Co will cut 1,600—will B of A be involved in generating a bunch of pink slips at Countrywide too?"In related news. CNBC ran a piece on the 22nd that estimated more that 40,000 workers have lost their jobs since the go away of the year … estimating that the lending employment change “threatens to compete the massive layoffs in the airline industry that followed Sept. 11. 2001.“Since the go away of the year more than 40,000 workers have lost their jobs at lending institutions according to recent affiliate layoff announcements and data complied by global outplacement firm Challenger. color & Christmas Inc.”At least we can all be easy knowing those at the top are going to weather this credit act.
The function Employees International Union hosts this site to provide a forum for discussion about Sallie Mae. SEIU assumes responsibility solely for the circumscribe that it provides. Members of the public are accept to affix comments and SEIU will not alter those comments. SEIU does however keep back the right to remove comments that use profanity or that are racist misogynist or otherwise offensive.
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"Housing stalls - but don?t expect a crash" posted by ~Ray
Posted on 2007-10-04 00:54:35 |
NOT for the first measure the vultures are circling over the housing merchandise. America’s sub-prime mortgage merchandise has sneezed but some say we ordain end up with the beat cold.
Economic Outlook: David Smith. The Sunday Times - September 16. 2007
A conjoin in America’s Business Week warns of “Britain’s coming ascribe crisis” – it claims that British accommodate prices are 11 times the add up salary (almost double what they actually are) and says Britain could experience a worse ordain than America.
The Treasury/Bank of England bailout of Northern move back and forth. Britain’s fifth-biggest mortgage lender has echoes of past banking crises and appears to confirm the beat fears -
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"Mortgages for illegal immigrants" posted by ~Ray
Posted on 2007-10-01 18:24:51 |
As part of an effort to tap a burgeoning Hispanic merchandise banks are increasingly experimenting with mortgage loans that can be obtained by illegal immigrants.
A growing be of financial institutions including some in the Carolinas are accepting Individual Taxpayer Identification Numbers on give applications in lieu of Social Security numbers. The IRS issues so-called "ITINs" solely to process tax payments regardless of immigration status.
The loans which represent a fraction of the more than $2 trillion annual mortgage merchandise are legal. Banks are required to verify the identity of their customers for anti-terrorism and money-laundering purposes but don't undergo to analyse immigration status.
Mortgages are move of a broader displace by banks to challenge to a Hispanic demographic including immigrants and U. S citizens that is growing faster than the command population and has a lower homeownership evaluate. Banks and Hispanic community advocates say underserved Latinos be a chance at the American dream and financial stability. There's also big business at stake as much of the mortgage merchandise slumps.
Critics say lenders are encouraging illegal immigration and helping lawbreakers stay in the United States. Earlier this year they leveled the same criticism at Charlotte-based tip of America Corp for testing a credit card in Los Angeles that can be obtained by individuals without Social Security numbers.
The loans highlight the dual treatment of Hispanic immigrants in the U. S. While adjoin patrols be to stop them from entering the country businesses covet them as customers and the IRS issues them numbers to pay taxes. Legislation designed to ease this tension failed in the Senate last month amid complaints the bill would provide pardon to immigrants who had violated U. S laws.
There's no indications banks are breaking the law but the loans are "problematic" because they "aid the illegal presence of individuals in this country," said Homeland Security spokesman Russ Knocke. "What it underscores is the be for comprehensive immigration reform," he said.
ITIN mortgages began over the past few years with small community banks and ascribe unions but bigger banks are now eyeing the merchandise. Wells Fargo & Co and Citigroup Inc undergo control programs under way and JPMorgan follow & Co is considering one. In the Carolinas smaller institutions such as Banco de la Gente the Latino Community Credit Union and Citizens Home Loan Inc accept ITINs. Wachovia Corp and BB&T Corp take them in limited cases from customers allowed to be in the U. S. Banks that do not accept them consider Bank of America. SunTrust Banks Inc.. RBC Centura and First contract Corp.
A write of the merchandise's growth came late last year when the Hispanic National owe Association began a fit venture with Deutsche Bank to buy ITIN and other mortgages from the lenders that originate them. HNMA Funding packages the loans into securities for investors.
Such a secondary merchandise helps lenders move their assay obtain capital to alter more loans and offer better rates to borrowers. In the recent meltdown in the mortgage merchandise for borrowers with spotty ascribe however. Wall Street investors have faced blame for spurring riskier loans.
The new venture provides automated underwriting services designed to back up lenders analyze Hispanic borrowers with nontraditional or skimpy ascribe histories. So far. HNMA Funding has acquired more than $100 million in loans chief executive Leonardo Simpser said.
The ITIN mortgage merchandise has only generated about $2 billion in loans overall but it's growing. Simpser said. "Originations have been accelerating," he said. "and more and more players are in the merchandise."
Looking to change checking accounts money assign services and now loans they've hired bilingual tellers partnered with community groups and translated brochures into Spanish. tip of America and BB&T change surface support a Spanish mini-series called "Nuestro Barrio" that offers lessons about banking homeownership and other life skills. In the Charlotte area the Hispanic population was about 112,637 populate in 2005 or about 8 percent of the total. Latinos though accounted for only 2 percent of single-family domiciliate owners according to 2000 census data the latest available.
"It's really important to the economy as a whole and to the real estate merchandise in particular that Latinos be able to purchase a home," said Tim Ready director of investigate at the University of Notre Dame's Institute for Latino Studies which issued a inform measure month on Hispanic housing including the use of ITINs.
Hispanic immigrants however approach a number of challenges when buying homes experts said. Many Latinos are wary of accumulating debt which means they're not building a ascribe history. They have to beat an ingrained distrust of financial institutions and can assay making complex financial transactions in English.
Immigration status is another air. About 53 percent of Hispanic households are headed by individuals not born in this country according to the initiate for Latino Studies. The Pew Hispanic bear on has estimated there are as many as 12 million unauthorized immigrants in the U. S. -- about 390,000 in North Carolina and 55,000 in South Carolina.
The IRS issues ITINs to individuals required to file a tax go but who can't acquire a Social Security be. These may be used by visa holders legally in the U. S or spouses of U. S citizens but they also can be obtained by illegal immigrants. The IRS issued a be of 10.8 million ITINs from 1996 to 2006.
The National Association of Hispanic Real Estate Professionals estimates the potential ITIN mortgage market has grown to $80 billion from $44 billion just two years ago. Tim Sandos the organization's chief executive argues that these individuals deserve a chance to buy a home because they undergo declared themselves to the government and in many cases undergo begun the lengthy affect of earning permanent residence status or U. S citizenship.
Critics however insist banks should accept only verified documents that can be obtained by U. S citizens and legal residents. William Gheen head of Raleigh-based Americans for Legal Immigration PAC earlier this year launched a ostracise against tip of America over its ascribe separate program."It's against federal law to induce an illegal transfer to enter the U. S and aid and assist them staying in the country," he said.
In the measure session of Congress a Republican congresswoman from Banner Elk. Rep. Virginia Foxx introduced a bill that would require federal agencies that insure mortgage loans to analyse Social Security numbers of applicants. Foxx's spokesman said she opposes the use of ITINs for loans and plans to bring the account approve up again.
Meanwhile banks that evaluate ITINs say the loans have performed well. The Hispanic National Mortgage Association said less than 1 percent of the loans it has acquired are delinquent. In the $20 million-plus mortgage portfolio at Durham-based Latino Community Credit Union only one borrower facing a personal crisis is delinquent chief executive Luis Pastor said.
tip of America which has faced criticism for testing a credit card that doesn't demand a Social Security be has decided not to use Individual Taxpayer Identification Numbers for mortgages for "safety and soundness" reasons said Glenda Gabriel neighborhood.
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"bank of america mortgage green debt consolidation" posted by ~Ray
Posted on 2007-09-28 22:52:20 |
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"bank of america mortgage green debt consolidation" posted by ~Ray
Posted on 2007-09-23 15:27:35 |
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Posted on 2007-09-11 20:49:54 |
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"Trouble for Housing Market and Mortgage Lenders - Bear Call Credit ..." posted by ~Ray
Posted on 2007-09-01 11:28:28 |
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News reports on Thursday stated mortgage lender Countrywide Financial () has siphoned off an $11.5 billion credit facility to fund its operations as they are having an increasingly hard time raising money. This news prompted Fitch (a stock rating agency) to lower Countrywide’s long-term default rating from A to BBB+.
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The tighten has also stated it will be more cautious in determining which loans to fund. Countrywide recently said 90% of its loans ordain be prime credit; these are loans with historically lower default rates. Funds in the secondary mortgage market have become increasingly scarce as lenders worry more borrower defaults and homeowners being forced to sell a domiciliate worth less than is owed.
In the press release announcing the drawing down of funds. David Sambol. Countrywide’s president stated. “For many years. Countrywide’s liquidity management framework has focused on maintaining a diverse multi-layered assortment of financing alternatives. A primary component of this framework is a committed unsecured credit facility of $11.5 billion provided by a connect of 40 of the world’s largest banks. In response to widely reported market conditions. Countrywide has elected to displace upon this entire facility to supplement its funding liquidity lay.”
An LA Times story on the lending market woes quoted Merrill Lynch analyst Kenneth Bruce as saying. “If enough financial pressure is placed on Countrywide or if the market loses confidence in its ability to function properly then the copy can break.”
Some are predicting “chicken little” type scenarios where the world will crumble as the US housing market collapses. Other merchandise experts possibly with cooler heads are thinking this is all move of the long predicted housing correction. Either way it’s a very interesting puzzle from an investor’s standpoint.
Countrywide for their part has been fairly open in announcing its position. Last week in a regulatory filing the company said. “Unprecedented disruptions” could displace their earnings and financial instruct. The inform also stated. “The situation is rapidly evolving and the potential impact on the company is unknown.”
Countrywide makes 1 in 7 of the domiciliate loans in America. If they did go into bankruptcy it could be difficult for US economy to go unaffected.
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"Bank of america mortgage rate" posted by ~Ray
Posted on 2007-08-31 13:18:23 |
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"Amerisave Outranks Bank of America, Chase, E-Loan" posted by ~Ray
Posted on 2007-08-28 17:24:15 |
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"You can find over 300,000 blogs" posted by ~Ray
Posted on 2007-07-18 13:36:07 |
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"enjoy this bank of america mortgage blog from: FHA Blogs" posted by ~Ray
Posted on 2007-07-11 08:25:38 |
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"another bank of america mortgage source..." posted by ~Ray
Posted on 2007-07-06 12:39:17 |
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" Make this blog your communication portal for your surfers" posted by ~Ray
Posted on 2007-06-29 12:25:06 |
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