Comments on: Fed President Rosengren calls for banks to support subprime lending http://blownmortgage.com/2007/10/10/fed-president-rosengren-calls-for-banks-to-support-subprime-lending/ #1 Free Home Loan Modification & Debt Relief Help For US Home Owners - Truths, Facts & News About the Mortgage Industry Mon, 09 Nov 2009 22:42:54 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: Fremont Downgraded Faces Liquidity Problems http://blownmortgage.com/2007/10/10/fed-president-rosengren-calls-for-banks-to-support-subprime-lending/comment-page-1/#comment-9627 Fremont Downgraded Faces Liquidity Problems Tue, 05 Feb 2008 23:21:27 +0000 http://blownmortgage.com/2007/10/10/fed-president-rosengren-calls-for-banks-to-support-subprime-lending/#comment-9627 [...] Fremont Investment and Loan was known as one of the most “subprime” of all the subprime ... with underwriting guidelines that were nearly non-existent.  Their lending practices got them in to hot water with Feds back at the beginning of the crisis when they were served with an order that prohibits the bank from making mortgage loans and paying dividends to parent company choking off cash flow needed to service the existing debt of the company. [...] [...] Fremont Investment and Loan was known as one of the most “subprime” of all the subprime … with underwriting guidelines that were nearly non-existent.  Their lending practices got them in to hot water with Feds back at the beginning of the crisis when they were served with an order that prohibits the bank from making mortgage loans and paying dividends to parent company choking off cash flow needed to service the existing debt of the company. [...]

]]> By: Morgan Brown http://blownmortgage.com/2007/10/10/fed-president-rosengren-calls-for-banks-to-support-subprime-lending/comment-page-1/#comment-5209 Morgan Brown Thu, 11 Oct 2007 04:45:13 +0000 http://blownmortgage.com/2007/10/10/fed-president-rosengren-calls-for-banks-to-support-subprime-lending/#comment-5209 Tom - I agree. The zero down, stated income with 55% back end ratio (of stated income for pete's sake!) doesn't work and never will. I agree that subprime has got us here, but I am very worried for the prime wave coming through in about 12 months or so that is full of adjusting pay-option ARMs. That could be just as ugly or worse. Moe - I imagine we'll see some degree of that coming either in the form of loan work outs, incentives for lenders to freeze arms, or something along those lines in this patch work bail out that the government is working on. Tom – I agree. The zero down, stated income with 55% back end ratio (of stated income for pete’s sake!) doesn’t work and never will. I agree that subprime has got us here, but I am very worried for the prime wave coming through in about 12 months or so that is full of adjusting pay-option ARMs. That could be just as ugly or worse.

Moe – I imagine we’ll see some degree of that coming either in the form of loan work outs, incentives for lenders to freeze arms, or something along those lines in this patch work bail out that the government is working on.

]]> By: Moe Bedard http://blownmortgage.com/2007/10/10/fed-president-rosengren-calls-for-banks-to-support-subprime-lending/comment-page-1/#comment-5202 Moe Bedard Thu, 11 Oct 2007 01:25:59 +0000 http://blownmortgage.com/2007/10/10/fed-president-rosengren-calls-for-banks-to-support-subprime-lending/#comment-5202 Bush just needs to come in and bring a BIG OLE FREEZE GUN and feeze all the damned mortgages. Or he could build a big freezer and just FORCE the lenders to put the toxic hot ARM's in the freezer. ;) Or just fund Fannie Mae or FHA with billions to buy these pools of mortgages so they can rework them for the people who deserve it, without any investor whining. Bush just needs to come in and bring a BIG OLE FREEZE GUN and feeze all the damned mortgages. Or he could build a big freezer and just FORCE the lenders to put the toxic hot ARM’s in the freezer. ;)

Or just fund Fannie Mae or FHA with billions to buy these pools of mortgages so they can rework them for the people who deserve it, without any investor whining.

]]> By: Tom Vanderwell http://blownmortgage.com/2007/10/10/fed-president-rosengren-calls-for-banks-to-support-subprime-lending/comment-page-1/#comment-5193 Tom Vanderwell Wed, 10 Oct 2007 23:04:13 +0000 http://blownmortgage.com/2007/10/10/fed-president-rosengren-calls-for-banks-to-support-subprime-lending/#comment-5193 I believe it has been proven that stated income low down (zero?) sub prime loans don't work well enough to be justifiable. If those type of loans come back, the problem will be worse the next time. Now, I believe that a case can be made for 20% down, verified income, verified asset sub prime loans (where the only "issue" is credit). I don't like any of them and we wouldn't' be here if it wasn't for them. I believe it has been proven that stated income low down (zero?) sub prime loans don’t work well enough to be justifiable. If those type of loans come back, the problem will be worse the next time. Now, I believe that a case can be made for 20% down, verified income, verified asset sub prime loans (where the only “issue” is credit). I don’t like any of them and we wouldn’t’ be here if it wasn’t for them.

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