Consumerist
confessions
Posts Tagged “
sub-prime meltdown
”
confessions
explainers
A lot of blame has sloshed around for the sub-prime meltdown, from greedy borrowers to greedy mortgage brokers to Alan Greenspan, but if you want the real culprit, it was the repeal of the Glass-Stegall Act. On November 12, 1999, the champagne must have been shooting from the walls at Citigroup, which had worked behind the scenes for over 30 years to get the act overturned. After recovering from their hangover, they and their banking buddies went on a sub-prime lending orgy. But what was Glass-Steagall and how did it use to protect us?
More »
Blame The Subprime Meltdown On The Repeal Of Glass-Steagall
A lot of blame has sloshed around for the sub-prime meltdown, from greedy borrowers to greedy mortgage brokers to Alan Greenspan, but if you want the real culprit, it was the repeal of the Glass-Stegall Act. On November 12, 1999, the champagne must have been shooting from the walls at Citigroup, which had worked behind the scenes for over 30 years to get the act overturned. After recovering from their hangover, they and their banking buddies went on a sub-prime lending orgy. But what was Glass-Steagall and how did it use to protect us?
More »
2:47 PM on Thu Apr 17 2008
By Ben Popken
19,055 views,
89 comments
Latest by mookiemookie: CRA had very little to do with why we're in the mess we're in. Robert Gordon goes into it all here: [www.prospect.org] more »
New trend: organized bus tours of foreclosed properties for potential buyers. [AP]
videos
Ex-Sub-Prime Borrowers Live In Tent Cities On LA Outskirts
[via Boing Boing]
Some of the same strategies that landed sub-prime borrowers in trouble are becoming increasingly popular among the rich as wealth-management tools. [NYT]
Smaller cities that missed the housing bubble have also missed its burst, and people are actually making money off the sale of their homes. [NYT]
foreclosures
California Foreclosures Hit New Quarterly Record: 16,683
The number of homeowners losing their house to foreclosure shot to a new record of 31,676 in the last quarter of 2007, Los Angeles Times reports. Research firm DataQuick says that 41% of homeowners currently in default can keep their homes if they bring their payments current, refinance, or sell their home, down from 71% the year prior. Hey, at least it's sunny.
Pain goes through the roof [Los Angeles Times] (Thanks to Nicole!)
graphs
Credit Slips' Adam Levitin takes a look into the possibly even grimmer future of the housing market. We'll let him explain it because he's smart:
Monthly Mortgage Rate Resets, 2007-2016
Credit Slips' Adam Levitin takes a look into the possibly even grimmer future of the housing market. We'll let him explain it because he's smart:...this graph from Credit Suisse is the most sobering thing I've seen in a while. Mortgage_rate_resets It shows that most of the interest rate resets ahead aren't subprime, but are instead Alt-A and option-ARMs...More »
FTC takes heat for giving credit bureaus a special exception that allowed them to make lists of people who just filled out a loan application and sell them as leads to subprime lenders. [USA Today via U.S. PIRG Consumer Blog]
sub-prime meltdown
Critics Decry Feds' Weak Predatory Lending Plan
The Fed proposed new sub-prime lending rules designed to protect consumers from predatory lending practices, in the future. You know, because the most important thing is to prepare for the next sub-prime meltdown. Critics were quick to lambaste the plans:
House Financial Services Committee chairman Barney Frank (D-MA): "We now have confirmation of two facts we have known for some time: one, the Federal Reserve System is not a strong advocate for consumers, and two, there is no Santa Claus. People who are surprised by the one are presumably surprised by the other."
Center For Responsible Lending: "riddled with loopholes"
More »
What if instead of bailing out SIV owners, we were bailing SUV owners? A satirical look at the subprime-meltdown. [Patrick.net via My Money Blog]
If you're facing foreclosure, you can call 888-995-HOPE and get free advice from non-profit counselors about how to save your house or at least minimize the damage.
Washington Mutual will lay off over 3,000 people. Sub-prime meltdown continues at brisk pace. [Seattle Post-Intelligencer]
sub-prime meltdown
Someone Should Have Stopped This Mortgage
Here's another mortgage that should have never been made: A single mother earning $34,000 a year buys a ranch house for $385,000 by taking out two mortgages. Her then boyfriend was helping with payments, but then there wasn't more more construction work. Blogger JLP figures she was probably putting 86% of her income towards the mortgage.
More »
The Fed infuses money supply to banks with $8 billion. Come on boys, we know you can avoid a recession, put your nose to the grindstone and win one for the Gipper! [NYT]
dont get excited
32 More Foreclosures Dismissed For Lack Of Documentation
In Ohio, judges have dismissed 32 more foreclosures due to insufficient documentation. This is no white-knight that's going to save homeowners at risk for foreclosure. One law prof told us that whenever we go through a glut of foreclosures, judges start clamping down and begin requiring the plaintiffs to have all their papers in order. It's all just a matter of getting the note from the loan originators, who usually hold on to all the proper paperwork.
32 More Foreclosures Dismissed for Lack of "Documentation" [LoanWorkout] (Thanks to Bill!)
help!
What To Do When Rental Gets Foreclosed?
My wife and I currently life in Orlando, FL and we are renting a condo conversion. We have been renting the place since Aug 06, with a lease set up between us and the private owner. We recently signed a new lease (as our old one expired) in August. Things seemed to be going ok.More »2 weeks ago both my wife and I got a summons, that let us know that our landlord was being sued by the bank he financed the house through, for not paying his mortgage since July of this year...
Deutsche Bank tried to foreclose on 14 properties in Ohio, but the federal court judge determined that the bank couldn't sufficiently prove that it actually owned the mortgage notes, and dismissed the case. [IamFacingForeclosure]
