The volume of U.S. mortgage applications shot up dramatically in the latest week as borrowers sought to take advantage of low interest rates, according to the Mortgage Bankers Association Wednesday.
“Many borrowers missed an opportunity to take advantage when rates dropped sharply for a brief period when the GSEs were placed under conservatorship,” said Orawin Velz, associate […]

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It was bound to happen.  Sooner or later, an investor would question the validity of the mortgage bailouts for people who are in default on their mortgage.  Now we see an investor, William Frey, filing a lawsuit in New York State Supreme Court alleging that the proposed modification of some 400,000 home loans originally underwritten […]

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If you have been around the mortgage industry for very long, you are aware of Robert Shiller.  Shiller, a well-known economist and professor at Yale University, is predicting that the current financial crisis could go on for a good number of years.  This is probably more reality than we really care to look at.
I looked […]

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Interest rates on long-term U.S. home loans fell in the latest week, a reaction to the newly announced Bush administration’s $800 billion bailout package to provide more liquidity for consumer and mortgage debt markets, according to data from Freddie Mac.
“Interest rates for 30-year fixed-rate mortgages fell for the fourth consecutive week as signs the overall […]

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Although a great deal of the problems facing the mortgage market is focused on subprime, it is noteworthy to see that even prime mortgages are showing the strain.  In 1985, primes facing foreclosures stood at 1.97%.  Now, we are seeing 3.07% of prime mortgages that are either in foreclosure or are at least 60 days […]

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U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke faced bitter criticism Wednesday for their actions in the current mortgage foreclosure crisis, during a hearing before the House Financial Service Committee.
Paulson, who has headed up the $700 billion bailout program approved last month by Congress, recently announced his plans to use the funds […]

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Researching for today’s post led me to an editorial that made a lot of sense to me, and one that I hope is brought to fruition.  Basically, some members of Congress are advocating the restructuring of loans so that people who are in danger of foreclosure will be able to make the monthly mortgage payment.  […]

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The economy continues to look dismal.  Circuit City, the electronics retailer, has filed for Chapter 11.  Many retail stores are showing huge losses each quarter.  Now we see Freddie Mac dipping into the bailout money for the first time.  And AIG?  Gave out $500 million in bonuses.  I have to admit it - those folks […]

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The U.S. Treasury Department announced dramatic changes to the recently created $700 billion financial bailout package during a news conference Wednesday.
Congress passed the bailout bill last month with the understanding that the funds would go towards buying up bad mortgage debt from struggling banks and other lenders. Yet, Treasury Secretary Henry Paulson said that the […]

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The NBC Nightly News tonight reported on the hopes of the FDIC and IndyMac to be able to step in and modify mortgages for people who are in financial trouble and about to lose their homes.  This is a good move on their part - they will modify the loans by dropping the interest rates, […]

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