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Keyword: subprime

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  • 'Zombie mortgages’ come back to haunt thousands of homeowners now facing foreclosure

    06/20/2024 6:31:07 AM PDT · by CFW · 48 replies
    New York Post ^ | 6/20/24 | Ariel Zilber
    Thousands of homeowners face the risk of losing their homes due to “zombie mortgages” bought by companies — with some forcing foreclosures without their knowledge, according to a shocking report.. Many of the stunned homeowners took out second mortgages during the subprime lending housing bubble between 2004 and 2008 that they believed were written off — only to learn the mortgages have come back to haunt them. An investigation by NPR found at least 10,000 old second mortgages that foreclosure activity had been initiated on in just the last two years. [snip] But their was a “zombie” mortgage on her...
  • Economic Warning: Bank Liquidity Plummets, Subprime Auto Loans in Crisis

    12/04/2023 3:09:26 AM PST · by davikkm · 9 replies
    In a concerning economic landscape, bank liquidity and funding are rapidly declining, and the Business Term Funding Program (BTFP) is running out of time, with just three months left. The situation is exacerbated by subprime debt, comprising 21% ($332 billion) of outstanding auto loans, of which roughly $24.5 billion is severely delinquent. Renowned investor Howard Marks warns, “Securing loans is becoming tougher, posing challenges for businesses needing refinancing.” This sentiment points to impending obstacles for businesses seeking financial support.
  • ‘Tip of the negative equity iceberg’: A record number of Americans are grappling with $1,000 car payments and many drivers can't keep pace — stay ahead by dodging these 2 loan mistakes

    02/26/2023 2:25:29 PM PST · by RomanSoldier19 · 198 replies
    monewise via msn ^ | 2/24/23 | Bethan Moorcraft
    With a record 16% of American consumers paying at least $1,000 a month for their cars, it's no surprise that drivers are starting to fall behind on their bills. The percentage of borrowers at least 60 days late on their car payments is higher today than it was during the peak of the Great Recession in 2009.There are multiple factors driving this trend. Car financing costs are climbing as the Federal Reserve continues its aggressive campaign of interest rate hikes to combat persistent inflation. At the same time, used car values are dropping, leaving debtors at risk of owing more...
  • More Subprime Borrowers Are Missing Loan Payments

    05/19/2022 9:37:14 AM PDT · by NautiNurse · 48 replies
    WSJ ^ | 19 May 2022 | AnnaMaria Andriotis
    Borrowers with limited or troubled credit histories are defaulting on credit cards, car loans and personal loans Consumers with low credit scores are falling behind on payments for car loans, personal loans and credit cards, a sign that the healthiest consumer lending environment on record in the U.S. is coming to an end. Delinquencies on subprime car loans and leases hit an all-time high in February, based on Equifax’s tracking that goes back to 2007. (Subprime defined as credit score below 620). [Snip] The jump in subprime delinquencies could reduce lenders’ willingness to make loans to riskier borrowers. [Snip] Fewer...
  • The Holy-Cow Moment for Subprime Auto Loans; Serious Delinquencies Blow Out

    11/14/2019 2:09:46 PM PST · by LesbianThespianGymnasticMidget · 91 replies
    Wolf Street ^ | Nov 13, 2019 | Wolf Richter
    But it’s even worse than it looks. And this time, there is no jobs crisis. This time, it’s the result of greed by subprime lenders. Serious auto-loan delinquencies – auto loans that are 90 days or more past due – in the third quarter of 2019, after an amazing trajectory, reached a historic high of $62 billion, according to data from the New York Fed today: This $62 billion of seriously delinquent loan balances are what auto lenders, particularly those that specialize in subprime auto loans, such as Santander Consumer USA, Credit Acceptance Corporation, and many smaller specialized lenders are...
  • Mortgage Market Reopens to Risky Borrowers

    08/21/2019 8:25:03 AM PDT · by Mariner · 20 replies
    The Wall Street Journal ^ | August 21st, 2019 | By Ben Eisen
    The risky mortgage is making a comeback. More than a decade after home loans triggered the worst financial crisis in a generation, the strict lending requirements put in place during its aftermath are starting to erode. Home buyers with low credit scores or high debt levels as well as those lacking traditional employment are finding it easier to get credit. The loans have been rebranded. Largely gone are the monikers subprime and Alt-A, a type of mortgage that earned the nickname “liar loan” because so many borrowers faked their income and assets. Now they are called non-qualified, or non-QM, because...
  • Radical-in-Chief

    02/23/2015 8:08:47 AM PST · by Ray76 · 13 replies
    Frontpage Magazine ^ | January 13, 2011 | Stanley Kurtz
    [I begin] with the story of a series of Socialist scholars conferences that Barack Obama attended when he lived in New York City between the years 1983 and 1985. And when I finally reconstructed what had gone on at these Socialist conferences that Barack Obama attended, I truly was amazed because what I saw was a kind of map of Barack Obama’s entire subsequent political career. It was at this Socialist conferences in New York in the mid-’80s that Barack Obama encountered the groups, the strategies, and the mentors who would guide him throughout his entire political career. [T]hese Socialist...
  • U.S. Justice Department charges ex-Deutsche Bank subprime trader with civil fraud

    09/11/2017 4:22:39 PM PDT · by HLPhat · 11 replies
    Reuters via Yahoo News. ^ | Sep 11, 2017 | By Sarah N. Lynch
    WASHINGTON (Reuters) - The U.S. Justice Department on Monday charged Deutsche Bank's former head of subprime mortgage trading with civil fraud in connection with conduct dating back to the 2007-2009 financial crisis. Paul Mangione, the former trader, is accused in the complaint of misrepresenting information about the loans underpinning two residential mortgage-backed securities that were sold to investors. The government's case against the former trader, filed in a federal court in Brooklyn, came after the bank in January reached a $7.2 billion settlement in a related case over risky mortgage securities sold to investors.
  • Canada's Subprime Lenders Collapse; Has The Bubble Popped?

    05/01/2017 8:29:47 AM PDT · by SeekAndFind · 5 replies
    Seeking Alpha ^ | 05/01/2017 | Ian Bezek
    Summary Home Capital plunged as much as 60% last week.Equitable Group fell around 40% in sympathy.Home prices appear to have topped in Vancouver.Has the long-running Canadian housing bubble finally started to pop?What happens with the big five banks? It's long been argued that Canada's housing market is immune to normal financial rules, such as debt/income ratios. Given that Canada is a relatively small country, and there had been (at least in theory) a ton of foreign capital wanting to invest, there was supposedly near-infinite demand for Canadian housing in its big cities.This foreign money theory has come under scrutiny. 2016...
  • As subprime auto borrowers default, collection suits pile up in local courts (St. Louis)

    06/06/2016 3:08:08 PM PDT · by dynachrome · 41 replies
    St. louis Post-Dispatch ^ | 6-6-16 | Walker Moskop
    In August 2008, William Lesinski walked into a Car Credit City in Bridgeton and made a decision that would be far more expensive than he ever imagined. Wanting to buy his son a car as a high school graduation gift, Lesinski put $1,750 down and drove off the lot in a 2003 Ford Mustang. The loan for the car was $11,367, and it carried 29 percent annual interest over nearly four years. His son would make the payments, but the loan was in Lesinski’s name. After paying the balance down to a little more than $10,000, his son, who had...
  • Credit-Card Debt Approaching Pre-Collapse High — Thanks To Subprime Lending

    05/21/2016 11:10:01 AM PDT · by MarvinStinson · 31 replies
    HotAir ^ | May 20, 2016 | Ed Morrissey
    Today’s Wall Street Journal report on record levels of credit-card and auto-loan debt sound like a stroll down Memory Lane: U.S. credit-card balances are on track to hit $1 trillion this year, as banks aggressively push their plastic and consumers grow more comfortable carrying debt. That sum would come close to the all-time peak of $1.02 trillion set in July 2008, just before the financial crisis intensified, and could signal an easing of frugal habits ingrained by the recession. The boom has been driven by steady economic conditions and an improving job market that have made creditworthy consumers less reluctant...
  • The Subprime Auto Loan Meltdown Is Here

    02/24/2016 5:36:40 PM PST · by SkyPilot · 29 replies
    The Economic Collapse ^ | 24 Feb 16 | Michael Snyder
    Uh oh - here we go again. Do you remember the subprime mortgage meltdown during the last financial crisis? Well, now a similar thing is happening with auto loans. The auto industry has been doing better than many other areas of the economy in recent years, but this "mini-boom" was fueled in large part by customers with subprime credit. According to Equifax, an astounding 23.5 percent of all new auto loans were made to subprime borrowers in 2015. At this point, there is a total of somewhere around $200 billion in subprime auto loans floating around out there, and...
  • New Study Finds CRA 'Clearly' Did Lead To Risky Lending [Daniel 4]

    08/04/2015 7:52:58 AM PDT · by Jan_Sobieski · 24 replies
    Investor's Business Daily ^ | 12/20/2012 | PAUL SPERRY
    Democrats and the media insist the Community Reinvestment Act, the anti-redlining law beefed up by President Clinton, had nothing to do with the subprime mortgage crisis and recession. But a new study by the respected National Bureau of Economic Research finds, "Yes, it did. We find that adherence to that act led to riskier lending by banks." Added NBER: "There is a clear pattern of increased defaults for loans made by these banks in quarters around the (CRA) exam. Moreover, the effects are larger for loans made within CRA tracts," or predominantly low-income and minority areas. To satisfy CRA examiners,...
  • Are Student Loans the new Sub-Prime Bubble?

    04/17/2015 7:46:44 AM PDT · by SeekAndFind · 6 replies
    American Thinker ^ | 04/17/2015 | Chriss Street
    On April 15 Tax Day, Americans paid about the same amount of income tax as total student loans outstanding. The St. Louis Federal Reserve on the same day published a report titled ‘Student Loan Delinquency: A Big Problem Getting Worse?' The Fed has determined that of the $1.3 trillion in non-bankruptcy-dischargeable student loans, the delinquency rate for students in repayment is over 27 percent. With tuition at the University of California and other top schools growing faster than inflation, student loan defaults are skyrocketing. Prior published student loan reports have stated that the “30+ days delinquency rate for all student...
  • Justice Department Investigating Moody’s Investors Service

    02/03/2015 5:12:45 AM PST · by HLPhat · 14 replies
    Wall Street Journal ^ | Feb. 1, 2015 8:37 p.m. ET | Timothy W. Martin
    With its case against Standard & Poor’s Ratings Services nearing the finish, the Justice Department has turned its attention to another credit-rating firm under fire for issuing rosy grades on mortgage deals in the buildup to the financial crisis. Justice Department officials in recent months have quietly met with multiple former executives of Moody’s Investors Service to discuss ratings of complex securities before the crisis, according to people familiar with the situation. The Justice Department lawyers probing Moody’s are still in the early stages of their investigation, according to people familiar with the matter. It isn’t yet clear whether it...
  • Fannie, Freddie 3%-down mortgages can be safe, FHFA director says

    01/27/2015 10:15:40 AM PST · by Oldeconomybuyer · 15 replies
    Market Watch ^ | January 27, 2015 | By Steve Goldstein
    WASHINGTON — Mortgages with low down payments can be just as safe if other underwriting conditions are met, a federal housing regulator said Tuesday. Mel Watt, the director of the Federal Housing Finance Agency, was testifying in front of the House Financial Services Committee, after Fannie Mae FNMA, +0.47% and Freddie Mac FMCC, +0.47% both started making mortgages available to those who make down payments of just 3%. That has raised the ire of Republicans, who say the move risks a repeat of the housing bubble. “All things being equal, is a 3% down loan riskier to the taxpayer than...
  • Elizabeth Warren tells donors minorities were ‘targeted’ with subprime mortgages

    12/08/2014 2:10:54 PM PST · by SeekAndFind · 79 replies
    Hotair ^ | 12/08/2014 | Noah Rothman
    Progressive icon Sen. Elizabeth Warren (D-MA) recently dropped a bombshell in a private meeting with Boston-area donors, according to a report in Politico. The dispatch focuses primarily on WarrenÂ’s candid criticisms of President Barack Obama and his pick to serve as undersecretary for domestic finance at the Treasury Department, Antonio Weiss. This bit of fractious infighting within the Democratic Party will provide pundits with an opportunity to examine the divisions within the Democratic coalition, but Warren also made a more interesting contention in this meeting that merits further review. According to sources who attended that meeting, Warren heavily criticized...
  • The Obama regime is setting the country up for another subprime loan catastrophe

    11/18/2014 10:42:55 AM PST · by SleeperCatcher · 30 replies
    Absolute Rights ^ | 11/18/2014 | Jon Dougherty
    The government’s subprime lending debacle that came to a head in the form of the Great Recession in 2007 is about to be repeated, thanks to a repeat of conditions by the federal government. Recent newspaper headlines have announced that the Obama regime plans to provide more electricity to the still-lackadaisical housing industry by torquing home lending rules that will once again make it easer for banks to make loans to marginal buyers.
  • Inside the Head of a Bank CEO (Down The Rabbit Hole-Must Read)

    02/15/2009 5:01:46 PM PST · by khnyny · 33 replies · 2,600+ views
    Fox Business ^ | February 13, 2009 | Elizabeth MacDonald
    In covering the hearing of the nine bank chief executives on Capitol Hill, it didn’t take long for me to see that Wells Fargo CEO John Stumpf was having a hard time of it, valiant effort though he did make to defend his bank’s lending practices. Because to look inside Wells Fargo, you will find the worst of the mortgage lenders housed in this bank, Wachovia, which Wells Fargo bought last fall for $15.4 bn, and housed within Wachovia is Golden West Financial, which Wachovia bought for a stupefying $25 bn, Golden West, the purveyor of some of the worst...
  • The $9 Billion Witness: Meet JPMorgan Chase's Worst Nightmare (Fake Story)

    11/08/2014 9:50:08 AM PST · by Bigun · 14 replies
    Rolling Stone ^ | November 6, 2014 | Matt Taibbi
    Meet the woman JPMorgan Chase paid one of the largest fines in American history to keep from talking By Matt Taibbi | November 6, 2014 "It was like watching an old lady get mugged on the street," she says. "I thought, 'I can't sit by any longer.'" Fleischmann is the central witness in one of the biggest cases of white-collar crime in American history, possessing secrets that JPMorgan Chase CEO Jamie Dimon late last year paid $9 billion (not $13 billion as regularly reported – more on that later) to keep the public from hearing. Back in 2006, as a...