Headlines...

NEW -> Contingent Buyer Assistance Program
<a href="http://www.portfolio.com/news-markets/top-5/2008/07/30/Regrettable-Comments-by-Bank-CEOs?page=1">"I Said What?!"</a>



<em>A look back at nine unforgettable statements by bank chief executives who would strike them from the record if they could.



It's not easy being a bank C.E.O. these days. Just ask John Thain. Nearly every promise he's made to investors since he took the helm at Merrill Lynch has been broken. With the uncertainty in these turbulent credit markets, banking C.E.O.'s would be thankful if they never had to say another word to investors and reporters. But fortunately for us, that's not the case. Let's take a trip down memory lane of the most outrageously regrettable comments by some of the best paid executives in the country.</em>
 
[quote author="Informed_Decisions" date=1217477434]

(1) An estimated 400,000 homeowners facing foreclosure, many of whom reside in California, can refinance their current mortgages with a Federal Housing Administration (FHA)-backed loan. To qualify, homeowners would have to be paying more than 31 percent of their incomes toward their mortgages and show they could afford to make the payments on a new, smaller loan.



(Comment: many Californian will be able to refinance their mortgage to more affordbale ones, and first time buyers can enter the market more easily.)



</blockquote>


The estimated 400,000 homeowners facing foreclosure can refinance their current mortgages with an FHA loan <strong>ONLY</strong>if the present mortgage holder opts for the workout, and so far, lenders have not shown a whole lot of desire to do so.
 
<strong><span style="font-size: 15px;">Cracking down on mortgage scammers</span></strong>



<em>The Justice Department is going after real estate fraud. The 400-plus people charged nationwide racked up $1 billion in losses. Here's what they are finding.</em>



<a href="http://money.cnn.com/2008/07/30/news/economy/mortgage_fraud/index.htm?postversion=2008073005">FBI Real Estate Fraud Task Force</a>



<em>Mortgage pros involved in most fraud

</em>

<em>Mortgage schemes come in many flavors, but the most common by far are conducted by industry insiders. Some 80% of all fraud losses involve collaboration or collusion by professionals, which is known as "fraud for profit," according to the FBI.</em>



Anyone getting nervous.....?
 
Not housing related, but certainly cause for pause: In some areas of the arctic, <a href="http://www.loe.org/shows/segments.htm?programID=08-P13-00030&segmentID=1">there is a great sex imbalance in the babies being born.</a>
 
Oh Criminee! Bloomberg headline : <i>"Greenspan Says Falling Housing Prices in U.S. Are `Nowhere Near' Bottom "</i>






Considering that Greenspan is wrong about 97% of the time ...
 
Here you go.



<a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aJWD9NK1zHTI&refer=home">http://www.bloomberg.com/apps/news?pid=20601087&sid=aJWD9NK1zHTI&refer=home</a>
 
SAN FRANCISCO (MarketWatch) - First Priority Bank was shut down by regulators on Friday, making the small Florida lender the eighth bank failure in the U.S. so far this year.



SunTrust Banks agreed to take on the deposits of First Priority, the Federal Deposit Insurance Corporation said in a statement late Friday. The six branches of First Priority will reopen on Monday as branches of SunTrust, it added.

At the end of June, First Priority had $259 million in assets and total deposits of $227 million. There were roughly $13 million in uninsured deposits held in about 840 accounts that potentially exceeded insurance limits, the FDIC estimated. However, this amount will probably change after the FDIC gets more information from customers.



SunTrust also bought about $42 million of the failed bank's assets. The FDIC sold another $14 million of First Priority's assets to LNV Corporation, a unit of Beal Bank Nevada. The FDIC said it will keep the remaining assets and sell them later.



This bank failure will cost the FDIC's insurance fund $72 million, the regulator estimated.
 
[quote author="ipoplaya" date=1217657132]SAN FRANCISCO (MarketWatch) - First Priority Bank was shut down by regulators on Friday, making the small Florida lender the eighth bank failure in the U.S. so far this year.



SunTrust Banks agreed to take on the deposits of First Priority, the Federal Deposit Insurance Corporation said in a statement late Friday. The six branches of First Priority will reopen on Monday as branches of SunTrust, it added.

At the end of June, First Priority had $259 million in assets and total deposits of $227 million. There were roughly $13 million in uninsured deposits held in about 840 accounts that potentially exceeded insurance limits, the FDIC estimated. However, this amount will probably change after the FDIC gets more information from customers.



SunTrust also bought about $42 million of the failed bank's assets. The FDIC sold another $14 million of First Priority's assets to LNV Corporation, a unit of Beal Bank Nevada. The FDIC said it will keep the remaining assets and sell them later.



This bank failure will cost the FDIC's insurance fund $72 million, the regulator estimated.</blockquote>


Sun Trust? I thought Sun Trust was one of the next to go. I guess Sun Trust is not on the FDIC's list of troubled banks if the FDIC agreed to let Sun Trust take on the deposits.
 
Chase Bank is changing rules on interest only mortages:



""INTEREST ONLY" PAYMENT OPTION:



1. For PURCHASE TRANSACTIONS: The Interest Only payment option will no longer be allowed for U.S. Bank Consumer Finance 1st liens when the LTV/CLTV exceeds 80%



2. For REFINANCE TRANSACTIONS: When the LTV/CLTV is greater than 80% on any U.S. Bank Wholesale ARM the following requirements will apply for the file to be eligible for Interest Only:



A) An escrow account for taxes, homeowners insurance (and flood insurance if applicable), and HOA fees if any will be required



<strong>B) A minimum of $250,000 of assets/reserves seasoned for a minimum of 60 days will be required.</strong>



WHOLESALE SECOND POSITION LOANS/LINES:



1. The maximum CLTV for any 2nd loan/line is now capped at 80% in the following states:



Maryland, Missouri, Connecticut, Ohio, New Hampshire, Minnesota, Virginia, Delaware, and Colorado.

"
 
<a href="http://www.creditslips.org/creditslips/2008/07/revisiting-incr.html">Looks like we have a BK problem here in the west</a>...



Take a look at the purdy colorful picture of the US. Hey LawyerLiz, at least you still have a section of pink, we don't even have that. Heh, we are nearly surrounded in red too. Just a few more BKs in Oregon next quarter and Cali will be engulfed by a sea of BK red.



http://www.creditslips.org/photos/uncategorized/2008/07/25/bankruptcy_filing_rate_mapmay_june_.jpg
 
Freddie Posts Loss, Cuts Dividend as Slump Deepens (Update2)

http://www.bloomberg.com/apps/news?pid=20601087&sid=a6lcyASKbxXM&refer=home



Delinquencies

Almost one out of every 10 mortgages in the U.S. was in trouble during the first quarter, the highest in records dating to 1979, according to the Mortgage Bankers Association in Washington. Delinquencies, or home loans with payments 30 days or more overdue, rose to 6.35 percent of outstanding mortgages and the share of homes in foreclosure rose to 2.47 percent. Freddie's properties in foreclosure are triple that of 2002.
 
I just finished fighting with a Merril Lynch "analyst.



He was actually recommending that I buy a CD from WaMu. Or,

in the alternative, B of A. I was insulting.



He's from New Jersey, and says the property market in New Jersey and

New York are just peachy and I should trust the US gov-mint and the FDIC!!



He got insulted when I laughed at him.
 
[quote author="lawyerliz" date=1218239123]Horses and barn doors.



South Ossettia (sp?) has been invaded by Georgia? Russia? Somebody.



Big oil pipeline somewhere nearby.</blockquote>


Yeah, I am reading bits and pieces with conflicting stories. My guess is we will not get any accurate info for a few days.
 
There's a picture of where the pipeline goes on The Oil Drum.



Some speculation is that the Russians don't like this alternative pipeline,

because the price of oil would be higher without it. or, they would

be making more money without it.



Seems to me that I read some time ago 5? 10? 15? years ago that

the South O's were unhappy with their lot, but I don't remember why.

The name wasn't wholely unfamiliar tho.



Wonder what the price of oil will be on Monday. Will Monday be Black

Monday?
 
[quote author="lawyerliz" date=1218427299]There's a picture of where the pipeline goes on The Oil Drum.



Some speculation is that the Russians don't like this alternative pipeline,

because the price of oil would be higher without it. or, they would

be making more money without it.



Seems to me that I read some time ago 5? 10? 15? years ago that

the South O's were unhappy with their lot, but I don't remember why.

The name wasn't wholely unfamiliar tho.



Wonder what the price of oil will be on Monday. Will Monday be Black

Monday?</blockquote>
Another step down in oil...looks like there no bad news will keep oil in the green. See article below (I still think we got an outside shot of oil hitting $100 before Labor Day weekend)...



http://www.bloomberg.com/apps/news?pid=20602013&sid=a52Dwf8k4a30&refer=commodity_futures
 
ROFLMAO on this one...



<a href="http://www.businessweek.com/investor/content/aug2008/pi2008088_709748.htm">Subprime City Confidential: Aug. 11, 2009</a>

<em>Yes, that date is correct. We've got the bona fide (fictional) scoop on what things will be like on the credit crunch's second anniversary



Amid the blizzard of media commentary, analysis, and general navel-gazing accompanying the first anniversary of the credit crunch (BusinessWeek.com, 7/31/08), we here at Subprime City Confidential were dutifully prepared to present our own version of what it all means, what we have learned, etc., when a much more exciting opportunity dropped in our lap.



Let us explain. We don't get many visitors to our lonely little office at the corner of First Lien Lane and Alt-A Vista Drive. Every once in a while, we'll entertain a confused reader or two; proselytizers for Subprime City's preeminent house of worship, the First National Church & Trust ("default and be saved!"); and the occasional process server. But we were completely unprepared for the shadowy figure that appeared on our doorstep one recent rain-soaked evening. The slender apparition shook the last drops of the downpour from his faded raincoat as he entered. It was hard to get a good look at his face, as he had pulled his fedora down over his brow. The sounds of his labored breathing nearly drowned out the dull roar of the deluge outside.</em>
 
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