Tag: mortgages

Impact Lab > mortgages
Analysis, Big Problems, Business, Economy, government, Latest Trend

Bailout for Federal Housing Authority inevitable

fha bailout

FHA bailout looming.

With the government’s explicit guarantee of mortgages a bailout appears to be inevitable for the Federal Housing Authority. This should not be surprising news to anyone who follows the mortgage market closely, but a new study by Wharton finance professor Joseph Gyourko makes this conclusion clearer. As a bailout for the FHA looms, Congress will likely become enraged again — on behalf of the taxpayers they represent. What impact would an FHA bailout have on the housing finance policy debate?

 

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Analysis, Big Problems, Corporate Manipulation, Economy, Money Talk

The aristocracy on Wall Street got $1.2 trillion in secret loans

wall street

Citigroup and Bank of America were the reigning champs of finance in 2006.

The reigning champions of finance in 2006 were Citigroup Inc. (C) and Bank of America Corp. (BAC).   As home prices peaked, they were leading the 10 biggest U.S. banks and brokerage firms to their best year ever with $104 billion of profits.

 

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Analysis, Big Problems, Economy, Latest Trend

Debt problems plague older Americans

postponing retirement

Many Americans have to postpone retirement.

Many Americans are reaching their 60s with so much debt they can’t afford to retire.  Before retiring most people would pay off their debts. But as wages have barely kept up with rising prices over the past 35 years Americans have pushed debt higher, living beyond their means. Now, people are postponing retirement, cutting living standards or both.

 

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Analysis, Big Problems, Economy, Latest Trend

The Homeownership Rate Continues to Decline

foreclosure-home-sale-sign

Foreclosures may send homeownership to it’s lowest level in 50 years.

Millions of houses on the verge of foreclosure threaten to send homeownership to its lowest level in 50 years, according to new industry estimates.Fresh projections say the rate could plummet to about 62% as early as 2012 and almost certainly by the end of the decade. Homeownership rates haven’t been that low since they hit 61.9% in 1960.

 

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Big Problems, Business, Economy, Latest Trend, Money Talk

Fewer American’s Moving for New Jobs Could Harm an Already Struggling Recovery

new jobs

Unemployed, James Tiffany, would take a financial hit if he sold his home to move elsewhere for work.

The recession is claiming yet another victim: Americans’ near-constitutional right to pick up and move to a better job.  Labor mobility has nearly ground to a halt in the past two years, and policymakers are increasingly worried that the slowdown is not just a symptom of the nation’s economic struggles but also a barrier to overcoming them.

 

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Big Problems, Business, Economy, Latest Trend

‘Free Rent’ Approach on the Rise as Some Homeowners Stop Paying Mortgages

foreclosure

Some homeowners stop paying their mortgages.

For Alex Pemberton and Susan Reboyras, foreclosure is becoming a way of life — something they did not want but are in no hurry to get out of.  Foreclosure has allowed them to stabilize the family business. Go to Outback occasionally for a steak. Take their gas-guzzling airboat out for the weekend. Visit the Hard Rock Casino.

 

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Analysis, Architecture, Business, Economy, Latest Trend, Science & Technology News

Say Goodbye to the McMansion – Homes in 2020 Will Be Built for People, Planet and Profit

mcmansion-010030

Goodbye, McMansions. In 2020 we’ll build for the triple bottom line: people, planet as well as profit.

Free-flowing jumbo loans enabled the overconsumption of jumbo homes, creating jumbo expectations of jumbo lives. Then the bubble burst and the jumbo house of cards came tumbling down.

 

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Analysis, Big Problems, Business, Economy, Latest Trend, Money Talk

Nearly 1 Million Homes Are In The Process Of Foreclosure

foreclosure-sign-house

Nearly 1 million homes nationwide are in the process of foreclosure, according to a report Wednesday from the U.S. Department of the Treasury covering banks and loan servicers that make up 64 percent of all outstanding mortgages.  As of June 30, there were 992,554 homes in the process of foreclosure, up 15.3 percent from March 31 and up 79.4 percent from the same period a year ago, the Office of the Comptroller of the Currency reported.

 

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