Besides closing the authorized user piggyback loophole, another change in the new FICO score system is that the number of categories for risky debtors will go from two to four, reports the News&Observer. There will remain 8 categories for good credit, brining the total number of rankings to 12.
mortgages
FICO Removing "Authorized Users" From Calculations; Credit Piggybackers Scores Dropping
By 8.13.07
No longer will consumer credit scores be able to get a free ride on another’s credit report; FICO has removed “authorized user” accounts from their calculations.
Subprime Meltdown Spreads To "Jumbo" Mortgages
By 8.13.07
The New York Times has an interesting article that explains the affect the subprime lending meltdown is having on so-called “jumbo” loans.
Attention: The Subprime Meltdown Will Be Politicized
By 8.8.07
The subprime meltdown has made its way into campaign speeches, thanks to one Sen. H. Clinton (D-NY).
WaMu To Stop Offering Cetain Types Of Subprime Mortgages
By 7.19.07
WaMu, the nations largest Savings & Loan, is going to stop issuing certain risky types of subprime loans.
$325 Million Amerquest Settlement Payout Might Average $812.15 Per Person
By 7.13.07
If you got a mortgage through Ameriquest from 1999-2005, you may be eligible for a $325 million settlement Ameriquest reached with 49 states over their shady lending practices, which included failing to disclose that the loans had adjustable rates, failing to disclose the terms of the loan, refinancing homeowners into inappropriate loans, inflating home appraisals, and charging excessive fees such as prepayment penalties and loan origination fees. Ameriquest did not admit wrongdoing.
New Record For Foreclosures In The First Half
By 7.13.07
Foreclosures hit an all time record in the first half of 2007, according to Bloomberg. Since the beginning of the year 926,000 foreclosures have been filed, 56% more than a year earlier.
By 7.12.07
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13 question free online calculator to help determine how much house you can really afford. [Bankrate]
Doomsday Coming in October For The Subprime Mortgage Industry
By 7.10.07
Many consumers who signed up for adjustable rate mortgages in 2004 and 2005 will see their mortgage payments jump this October, according to CNNMoney. With foreclosure rates already as high as one foreclosure filing for every 656 households in the US, this can’t be good news.
H&R Block Continues To Hemorrhage Money
By 7.5.07
The subprime lending arm of tax giant H&R Block continues to hemorrhage money, to the extent that it’s close to being unsalable, according to Bloomberg.
H&R Block Inc.’s mortgage unit lost a $1.5 billion credit line, falling “dangerously close” to the minimum amount demanded by a hedge fund firm that has agreed to buy the money-losing home lender.
Watch Out For "Equity Stripping" Scams
By 7.5.07
The New York Times has an article about a growing problem, a scam called “equity stripping.” Here’s how it works: You answer an advertisement targeting people who are facing foreclosure, but want to stay in their homes. You think you’re refinancing your loan at a lower rate, but in reality you’re transferring the deed to someone else. That person then takes out as much as they can against the value of your home. From the NYT:
Jessica Attie, co-director of the foreclosure prevention project at South Brooklyn Legal Services and the lawyer for the Johnsons, said her office was overwhelmed with homeowners who had handed over their deeds to people pretending to help “save” their homes.
We know times are tough and a lot of homeowners are facing difficult financial decisions, but make sure you know what you’re signing. If someone offers to “temporarily” buy your home, warning bells should go off.
By 7.4.07
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Homeowners in mortgage trouble need beware “equity stripping,” a scam where someone else takes over your deed, borrows as much as they can against the house, pockets the cash, and runs, leaving you to probably still lose your house.
GoogleMaps Mashup Of Minneapolis Foreclosures
By 7.3.07
A googlemaps mashup of 2007 foreclosures to-date in Minneapolis area puts the acceleration in failed mortgages into a different perspective.
Pending Home Resales Drop To Lowest Level Since September 2001
By 7.3.07
Pending sales of existing homes dropped for the third straight month as troubles in the mortgage industry continue to disrupt the housing market. Figures released today show a 3.5% drop in May, following April’s drop of 3.2% and March’s drop of 4.5%.
30 Free Personal Finance eBooks
By 7.2.07
Mint has collated a collection of thirty free ebooks on personal finance and money management. The selection ranges from budgets to credit cards to mortgages to general consumer advice. Each one is in PDF format. Check ’em out and get your learn on.
Fed Issues Guidelines To Prevent Subprime Implosion Redux
By 7.1.07
•Refinance Opportunities: Prior to any rate increase, consumers will have 60 days to refinance the loan.
Trade groups find fault with the regulations because they will prevent risky borrows from receiving credit:
H&R Block Subprime Lending Division Loses $676.8 Million
By 6.21.07
The company reported losing $85.5 million, or 26 cents per share, during the February-April period, which is when the nation’s largest tax preparer sees the majority of its revenue. By comparison, the company earned $587.5 million, or $1.79, during the same period a year ago.
H&R Block says it will sell its subprime lending operation to a private equity firm.
4 Things To Try Before Foreclosure
By 6.18.07
Usually one has somewhat of an advance notice that they’re going to miss a mortgage payment, so before that happens and the bank comes to take your house away, Kiplinger’s advises calling up your lender and discussing one of these four options:
