The Orange Man pioneered the distribution of neg-am mortgages to the masses, and then hoodwinked Wall Street into thinking the loans were worthy of buying in tranches - yet he didn't want to take the blame and instead enjoyed his retirement as a member at all the...
Hat tip to both Rick and Richard sent in this article from the WSJ on alternative underwriting for mortgages, which is on the rise: https://www.wsj.com/articles/no-pay-stub-no-problem-unconventional-mortgages-make-a-comeback-11548239400 Excerpted - bold added: Aryanna...
In what has to be one of the most bizarre developments in real estate this year, the ivory-tower folks at the Fed, of all people, dreamed up a creative new loan that would not require a down payment. Then they used the dreaded COFI term from neg-am mortgage days! No...
Hat tip to Wendy for sending in this article on subprime vs. prime mortgages causing the crisis. The authors probably didn't catch the fact that prime borrowers were getting neg-am loans based on FICO scores only, and those weren't considered subprime loans:...
I'm not sure if this displayed previously, but it was researched by one of the big data gatherers (initials C-L) about the Carmel Valley zip code 92130: Total number of homes in that zip code: 14,331 Total number of Neg Am loans: 282 Total number of SFRs with neg-am:...
From Reuters: Remember way back in 2006, when everyone was in a frenzy to buy a house, any house, with whatever mortgage they could grab? In many cases, it meant signing up for adjustable-rate mortgages that would reset in half a decade. Move forward those five years...
Carl Levin is the chairman of the subcommittee that investigated the WaMu disaster - from the latimes.com: "Washington Mutual built a conveyor belt that dumped toxic mortgage assets into the financial system like a polluter dumping poison into a river," Levin said....
From our friends at the W-S-J: The struggling housing market appears as if it will sustain less damage than expected this year from a spike in the monthly payments on hundreds of thousands of exotic adjustable-rate mortgages. The number of such loans scheduled to...
Our old friend Zach Fox has moved on to more illustrious things than the NC Times, he now works for a big-time financial publication back east. But he hasn't forgotten us little guys, especially the data geeks: Jim, We’re finally sending out some free links as we...
A candid conversation with a Wells vice president, from within the machine – a couple of excerpts:
“We still have work cut out for us. We have customers where the administration has extended it four to five payments. We have a few borrowers sitting in that situation. We have heavy, heavy lifting to do in the next couple months to pull these customers through.”
“We have lower redefault rates. Our key to these pay-option ARMs, if a customer is able to make a payment, we have to find a way to continue to allow that payment to be able to be made. What we are doing is restructuring the loan looking at net present value. It’s been very effective. Many of these customers need to be bridged from a negative amortization to an interest only. If you took them to a fully amortized product, there’s no way they are going to be able to make it. Over time, they will from an IO, step up, so there’s no payment shock.”
