Real Estate News Blog March Archive

Big Banks Come Out Swinging Against Subprime Originators

By Art C Ryter at 03/13/07 19:49

States that Morgan Stanley and other large banks are forcing subprime loan originators to buy-back/repurchase their loans. Forcolsures and defaults from mortgages granted in 2005 and 2006 are up to 13% of subprime loans. The forced repurchase of loans may push many mortgage companies into bankruptcy. I doubt that these companies would be able to refinance their loans, unless they have access in the foreign market.

Original source: Seeking Alpha. Big Banks Come Out Swinging Against Subprime Originators

Subprime Shakeout Will Erode New Home Sales - Analyst

Analysts predict that rising forclosures in the subprime mortgage market will stall new home sales. Subprime mortgages could be either in new home purchases or refinance existing loans. Forclosures on recently purchased homes will compete with new home sales as supply will increase and financing will be more difficult due to improved lending standards. With a downturn in the financial markets, there may be little help for people in forclosure which will also add to home supply inventory.

Original source: Seeking Alpha. Subprime Shakeout Will Erode New Home Sales - Analyst

U.S. Subprime Mortgage Delinquencies at 4-Year High

Casts the subprime mortgage market negatively based on increasing forclosures and little help for people looking to refinance their mortgages. The 4-year high in mortgage delinquencies is predicted to get worse as interest rates increase and Adjustable Rate Mortgages (ARMs) reset. Without money to refinance at higher interest rates, people seeking to stop their forclosure or other forclosure financial help may need look at selling their house for a loss and moving into more affordable homes.

Original source: Bloomberg. U.S. Subprime Mortgage Delinquencies at 4-Year High

Colorado Foreclosures: Mostly Comprised of ARM Loans and Loans f

77 is the unlucky number for financial investors as that is the percent of forclosures in the market from non-bank lenders and it is also the percentage of loans that are in the Adjustable Rate Mortgage (ARM) category. As the home owners and investors were already borrowing from the non-bank market, there may be little legitimate financial institutions can do to stop forclosure on their property or give them any forclosure help.

Original source: Default Servicing News. [404 Check: was link to http:/ / www. dsnews. com/ view_ story. cfm?id=913, anchor: Colorado Foreclosures: Mostly Comprised of ARM Loans and Loans from Non-Bank Lenders]

US Housing Market Crash to result in the Second Great Depression

Suggests that the impending crash of the real estate bubble in the United States will result a second Great Depression. The article is quite ideologically driven, but the data presented seems to forecast trouble for homeowners with Adjustable Rate Mortgages due to reset in 2007. Many real estate investors, however, have been taking profits and purchasing international real estate.

Original source: The Market Oracle. US Housing Market Crash to result in the Second Great Depression

Countrywide Financial's Delinquencies Rise

Countrywide Financial Corp., the biggest U.S. mortgage lender experienced an increase in delinquent, or late, payments in the final quarter of 2006. The subprime market has been the worst hit with delinquencies of over 20%. This could lead to rising concern of damage to the larger real estate market.

Original source: SeekingAlpha. Countrywide Financial's Delinquencies Rise