The subprime crisis is threatening to plunge the US into its’ first recession since 2001 — if it hasn’t already done so. The Wharton School at the University of Pennsylvania has done a great job of explaining the cascade of events, proposed remedies, and response of the Federal Reserve. This is well worth reading. See Inside the Subprime Crisis.
The newspapers were full of news today about the US Attorney’s probe of mortgage fraud which led to the arrest of 400 people nationwide. A headline in the Chicago Tribune screamed “67 from Chicago area charged in U.S. Crackdown on mortgage fraud”. We played a small role in helping to bring down one of these rings. Here’s our story. Continue reading
What is the controversy over LIBOR and why are some experts suggesting that banks replace it with a different index? Continue reading
The widely watched S&P/Case-Shiller Home Price Index released on Wednesday showed home prices declining 14% from the same period last year. These are scary numbers for both homeowners and lenders. Why are some financial institutions gearing up home equity and mortgage lending in the face of this negative trend? Precision targeting is the key. Continue reading
PMI Mortgage Insurance recently released their analysis of housing trends and ranked the nation’s 50 largest metropolitan statistical areas (MSAs) according to the likelihood that home prices will be lower in two years. Scary stuff Continue reading
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