Here are some mighty strong words: “The subprime lending debacle has caused the greatest loss of wealth to people of color in modern U.S. history.” That is the conclusion of the lead author of a new report by United for a Fair Economy, Amaad Rivera, as quoted in an excellent article in [...]

• 9 Comments

The Associated Press is reporting today that Wachovia Bank, the nation’s fourth largest bank in terms of assets, will be shutting down it’s mortgage lending division.
“Wachovia Corp. lost $8.86 billion in the second quarter, and said Tuesday it was slashing its dividend and cutting 6,350 jobs after losses tied to mortgages soared.” In addition, [...]

• 3 Comments

In a clear sign the federal government is far more concerned about the financial health of mortgage finance giants Fannie Mae and Freddie Mac than its public comments indicated as late as Friday, the U.S. government Sunday night announced what some are calling a “massive aid” package to the two shareholder owned and run companies [...]

• 6 Comments

By all accounts it seems the banking lobby will get everything they’ve been ask for from Congress over the past decade and in do so may legislate mortgage brokers out of existence.
A little history lesson is in order to understand all the political and media spin designed to sway their and public opinion away from [...]

• 9 Comments

INDYMAC IS OFFICALLY CLOSED!!!
In the past minutes newswires around the country and world are now reporting that the Federal Government has shut down IndyMac Bank and has handed it to the FDIC (Federal Deposit Insurance Corp.) as conservator.
Couple the shut down with the Fannie Mae/Freddie Mac troubles, and we’re in for some really rocky waters [...]

• 17 Comments

Fannie Mae and Freddie Mac, combined, own or back up some $5 trillion dollars of debt. That is about half of ALL the mortgages in the U.S. They have already lost some $11 BILLION since the current mortgage/credit crisis began, so it is easy to see why there is profound concern about their fiscal health–or [...]

• 4 Comments

Mortgage loans can be come from a variety of sources, private individuals, banks, mortgage brokers, mortgage bankers, credit unions, etc.
Investors need to understand that in most cases these lending sources are not actually making their own capital available for a mortgage. Instead, they are acquiring or borrowing the funds from another party. Pension fund, [...]

• 9 Comments