Wachovia announced today that they are no longer offering the pick-a-pay, negative amortization mortgage loan. Additionally, they’ve announced that the bank will assist current pick-a-pay loan holders by waiving all pre-payment penalty fees for those looking to refinance out of the loan.
Here’s the details:
Effectively immediately, Wachovia is waiving all prepayment fees associated with its Pick-A-Pay [...]
The bail out plan that Congress is hard at work trying to pass may not do much in terms of actually helping anyone. Government estimates show that only 400,000 people could benefit from the new FHA-driven refinance/loan modifications while more than 3,000,000 folks are actually 60 days down (or late) on their mortgage.
This refrain is [...]
An important lesson for everyone to remember during all of this bailout mania is that higher risk still costs more money – no matter who is managing it – the government or private companies. From our friend Chris at Loan Officer Survival Guide (whose book you should have in your library) comes a stunning [...]
Ignore the spin folks. Existing home sales are down 31% from their peak in 2005 and nearly 16% from last year. The 2% increase in May doesn’t really tell you much, except for the fact that maybe foreclosure sales are becoming more appealing to folks.
As Calculated Risk so astutely points out May marks the end [...]
American Express announced intra-quarter guidance today saying that the company would be impacted by worse-than-expected credit conditions. They expect their business to be impacted as economic activity slows and consumer late-pays and credit defaults on AMEX cards continue to mount.
From the Market Watch story:
“Business conditions continue to weaken in the U.S. and so far this [...]
California Attorney General Jerry Brown echoed the sentiments of his Illinois counter-part, citing lending practices that encouraged risky borrowing behavior as the key reason for filing a civil suit against Countrywide today in California court. The lawsuit also names Angelo Mozilo and President Dave Sambol in the suit.
I imagine that this will go down very [...]
Small banks may be exposed to nearly $300 billion in bad construction loans granted to local builders and developers according to a new report by the Wall Street Journal. The report estimates that more than 150 local banks could fail under the weight of the defaults.
Construction loans are dicey propositions in the crashing housing market [...]
Maybe the politicians think that with everyone getting ready for 4th or July that the news of a sleight-of-hand bailout bill won’t raise too many eyebrows. Maybe they’re wrong (again). With the holiday fast approaching legislators in both the House and Senate are getting ready to put through the mother of all mortgage bail out [...]
Illinois Attorney General Lisa Madigan plans to file suit against Countrywide and their orange-tinted CEO Angelo Mozilo tomorrow for risky and deceptive mortgage lending practices in the state. Ms. Madigan claims that the state has ample evidence to charge Countrywide for lending practices that have put borrowers in loans that can’t be repaid, and using [...]
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