Frances Joy Taylor had had about $2 million in assets, which she intended to leave to her church, before she met a businessman named Tyrone Dash. Dash took over her affairs and “methodically liquidated or leveraged almost everything she owned: her bank accounts and securities, her insurance policies, her credit cards, her two apartment buildings and, ultimately, her home,” says the Seattle Times. Frances suffers from Alzheimer’s.
lending
Failure: H&R Block Shuts Down Subprime Lending Operation
By 12.4.07
H&R Block has decided to admit defeat after a plan to sell its troubled subprime lending operation to Cerberus Capital Management LP finally unraveled.
Who Has A Subprime Mortgage? People With Good Credit
By 12.4.07
The Wall Street Journal analyzed more than $2.5 trillion in subprime loans made since 2000 and found that as the number of subprime loans grew, the loans were being issued to borrowers with better and better credit scores—borrowers who could have qualified for traditional loans with more reasonable terms.
Bush Subprime Mortgage Plan Will Be Finalized Soon
By 12.1.07
ABC News has an interview with Treasury Secretary Henry Paulson in which he says that the administration’s plan to help subprime borrowers is nearing completion.
Mortgage Rates Are At 2 Year Lows
By 11.30.07
The Wall Street Journal is reporting that the national average interest rate on the benchmark 30-year, fixed-rate loan averaged 6.1% last week, the lowest rate since Oct 13, 2005.
Report Says Property Values Could Decline By $1.2 Trillion
By 11.27.07
An especially gloomy report by the U.S. Conference of Mayors says that property values across the U.S. could decline by $1.2 trillion next year, slashing tax revenue by $6.6 billion.
10 Best And 10 Worst Housing Markets
By 11.23.07
Forbes has put together a list of the best and worst housing markets in the U.S. Think every market is dropping? Apparently not. Salt Lake City, you’re doing just fine. So far. Overall, the picture isn’t as rosy:
Mortgage Related Losses Could Reach $300 Billion
By 11.23.07
The Organization for Economic Cooperation and Development is predicting that mortgage-related write-offs could reach $300 billion, says the New York Times. Although major U.S. financial institutions have placed their estimates at around $50 billion, the OECD says that “a rougher period may yet await financial markets.”
Helpful Website For Student Loan Borrowers
By 11.21.07
The National Consumer Law Center and the Project on Student Debt have launched a joint website that offerers information for student borrowers who are behind on their loans, or those who just want to learn more about their options.
Say Goodbye To Mark Ernst, CEO Of H&R Block
By 11.20.07
H&R Block Inc., our nation’s largest tax preparer, is now missing CEO Mark “Anybody Wanna Buy A Subprime Lender?” Ernst, after losing $1 billion in the subprime meltdown.
Freddie Mac Loses $2 Billion, Needs Cash
By 11.20.07
Government-sponsored mortgage lender Freddie Mac, the second largest U.S. mortgage company, posted a $2 billion loss for the third quarter and warned that it may not have enough cash to cover its mortgage commitments.
Subprime Meltdown Continues: Citigroup To Take $15 Billion Hit?
By 11.19.07
Goldman Sachs has downgraded Citigroup, the nation’s largest bank, estimating that it will have to take a $15 billion hit due to its exposure to the subprime meltdown. Two weeks ago, Citigroup estimated that its mortgage related write-downs would total from $8-$11 billion as its CEO, Charles Prince “resigned.”
HSBC Says Subprime Meltdown Spreading Into Credit Cards, Other Loans
By 11.14.07
HSBC warned today that the subprime meltdown is spreading into credit cards and other types of consumer loans, says the NYT. The bank announced that it will be taking a larger write down than it forecast, due to the spreading delinquencies.
"We've Built This Latest Economic Boom On Borrowed Money"
By 11.14.07
Elizabeth Warren of Harvard Law, our very favorite consumer debt expert, gave an interview to Marketplace this morning in which she talked about the rising cost of so-called “fixed expenses” and their affect on the American consumer.
Harvard Professor Elizabeth Warren has spent a career looking at personal debt. I asked her if consumers can sustain the engine of our economy much longer.
E*Trade: We're Not Going To Go Bankrupt, Honest
By 11.12.07
Analysts have downgraded E*Trade after the online broker announced further mortgage-related losses. E*Trade has responded with a message to their customers claiming that they could absorb a loss of $1 billion and still remain “well capitalized.” Translated, the message reads, “Please, please don’t pull your deposits!”
Citibank CEO Resigns, Additional $11 Billion In Subprime Damage Predicted
By 11.5.07
Citibank’s chairman and CEO Charles Prince announced his resignation Sunday, citing the subprime meltdown as the reason for his departure.
New York Sues First American For Conspiring With WaMu To Inflate Home Appraisals
By 11.1.07
New York Attorney General, Andrew Cuomo, announced today that he’s suing one of the nation’s largest real estate appraisal firms for conspiring with Washington Mutual to artificially inflate appraisals.
