Subprime Mortgages

UBS AG will not sue its former bosses after risky bets on subprime mortgages and a strategy of helping US clients hide money in secret accounts brought the Swiss bank to its knees.  

UBS in Switzerland has announced it will not sue its former bosses after they took too many risks on subprime mortgages.  

Reuters - UBS AG will not sue its former bosses after risky bets on subprime mortgages and a strategy of helping U.S. clients dodge taxes by hiding money in secret accounts brought the Swiss bank to its knees.  

Home buyers should take a close look at adjustable rate mortgage products in the face of a U.S. financial crisis rocked by subprime mortgages comprising mostly ARMs.  

Securities regulators on Monday charged three former executives at now-bankrupt lender New Century with fraud, the latest government attempt to bring major players in the subprime mortgage market to justice.  

U.S. regulators on Monday accused three former top executives of collapsed mortgage lender New Century Financial Corp. of fraud, saying they misled investors and inflated profits as the company's subprime loan business was failing in 2006.  

With the subprime mortgage market collapse, and bankruptcies of the big institutions, lenders across the US have tightened their lending guidelines making it harder for homeowners to refinance their loans.  

It was given the blame for the current state of the U.S Economy and rightfully so. But now with taxpayers on the hook for generations to come with the current set of government programs, should the Subprime mortgage be given a second look?Contributor: Deandre ParkerPublished: Nov 12, 2009  

There are other advantages to use subprime mortgage brokers. Some people shy away from this because they know that the broker will charge a fee. What most don't is that many lenders will offer a lower fee to the mortgage broker, ...  

Remember the mortgage losers -- all those irresponsible Americans who took out loans they could not afford at the height of the housing boom, but then got caught with their pants down by the bust? They're an ever-popular scapegoat for those whose preference is to blame the financial crisis on the moral failings of individual American homeowners, rather than on the lenders and financial institutions who created the incentives for so much bad...  

Photo via First Strung A new report from the Friends of the Earth says that cap and trade systems are dangerous. They allow traders to package emissions permits into complex financial products and sell them in bundles--much like they did with subprime mortgages. And we all know how that went. ...Read the full story on TreeHugger  

The US SEC on Monday filed civil fraud charges against three former executives of New Century Financial, the collapsed lender, in its latest attempt to hold individuals accountable for the subprime mortgage crisis. New Century, which grew rapidly in the boom years, was one of the biggest US subprime mortgage lenders until its bankruptcy in 2007....  

The US Securities and Exchange Commission on Monday charged three former top executives of New Century Financial Corporation -- the bankrupt subprime lender --  with securities fraud. The SEC said the defendants -- former chief executive and co-founder Brad Morrice, former CFO Patti Dodge and former controller David Kenneally -- misled investors as New Century's subprime mortgage business was collapsing in 2006....  

Two former Bear Stearns hedge fund managers who made very, very bad bets on subprime mortgages, Ralph Cioffi and Matthew Tannin, were found not guilty of securities fraud in Brooklyn federal court on Tuesday. The verdict invites a look back at how the history of the financial crisis is being written in real time. William D. Cohan's riveting account of the fall of Bear Stearns, "House of Cards: A Tale of Hubris and Wretched Excess on Wall...  

Seems like the beginning of a trend to me. A Los Angeles lawyer who had represented a failed subprime mortgage lender is found dead outside his home, having been shot in the head. Three men allegedly invade the home of a former subprime lender, and are arrested after reportedly injuring three people inside. Vandals target the home of [...]  

When a prime mortgage is not approved, many people look toward a subprime mortgage. Subprime mortgages are available to people who were refused for a prime mortgage. Contributor: Karen CurleyPublished: Oct 15, 2009  

A Los Angeles lawyer who had represented a failed subprime mortgage lender is found dead outside his home, having been shot in the head. Three men allegedly invade the home of a former subprime lender, and are arrested after reportedly injuring three people inside. Vandals target the home of the former CEO of the Royal Bank of [...]  

MARK PITTMAN, 52 Reporter foretold effects of subprime mortgage crisisWashington Post... the filmmakers profile subprime borrowers who are losing their homes, mortgage brokers who made loans they knew their customers could never repay and ...and more »  

Reuters - Three former executives at now-bankrupt lender New Century Financial Corp were charged with fraud by U.S. securities regulators on Monday, the latest government effort to pursue wrongdoing in the subprime mortgage market.  

Katherine Coble is scaring me: From everything I’ve been reading and seeing of late, the Student Loan is in many ways the new subprime mortgage. The idea behind student loans is great. These loans are supposed to level the playing field a bit and make it possible for people without ready funds to be able to [...]  

A Los Angeles lawyer who had represented a failed subprime mortgage lender is found dead outside his home, having been shot in the head. Three men allegedly invade the home of a former subprime lender, and are arrested after reportedly injuring three people inside. Vandals target the home of the former CEO of the Royal Bank of Scotland, smashing windows in the banker's home and car. Those are just three notable incidents of violence aimed...  

Posted To: MND NewsWireThree former mortgage executives were charged with fraud on Monday for activities growing out of their roles at the defunct New Century Mortgage The charges were brought by the U.S. Securities and Exchange Commission (SEC) which accused the three of covering up the rapidly declining financial condition of their firm before it filed for bankruptcy in April, 2007. The three are Brad Morrice, former Chief Executive; Patti...  

Regulators accuse the three of manipulating numbers and concealing negative information from shareholders as the company collapsed into bankruptcy. Federal regulators today sued three former officers of New Century Financial Corp., accusing them of misleading investors of the Irvine subprime lender as the mortgage meltdown began in 2006.  

SAN JOSE, Calif. - When California wildfires ruined their jewelry business, Tony Becker and his wife fell months behind on their mortgage payments and experienced firsthand the perils of subprime mortgages.The couple wound up in a desperate, six-year fight to keep their modest, 1,500-square-foot San Jose home, a struggle that pushed them into bankruptcy.The lender with whom they [...]  

Subprime mortgages: Myths And Reality Kent Cherny & Yuliya Demyanyk 17 October 2009 The global crisis is said to have originated in the US subprime mortgage market. This column argues that many of the most popular explanations that have emerged for the subprime crisis are, to a large extent, myths. Subprime mortgages have received a lot of attention in the US since 2000, when the number of subprime loans being originated and refinanced shot up...  

Joe Nocera, who writes the Executive Suite column for the New York Times, has done an interesting thing today. He 1) points out banks are lying about their involvement in subprime mortgages, he 2) notes that Barney Frank is absolutely wrong to defend them and 3) offers documents that support his claim. This is something we used to call "journalism," and I'm happy to see it: “There has not been a case made that there is an enforcement problem...  

Most everyone would agree that the nation's recession was fueled largely by the collapse of the subprime mortgage industry. Many of the people who took out no-documentation, subprime loans could ill afford them. And scores of others who could eventually fell delinquent when their loans reset at a higher interest rate.  

Two Bear Stearns executives who ran hedge funds that collapsed after betting heavily on the shaky subprime-mortgage market were acquitted Tuesday of lying to investors — a defeat in the government's bid to punish fraud exposed by the financial crisis.  

Canadian vs. U.S. housing prices:Canadian vs. U.S. delinquency rates:Commentary from the source:While it is difficult to disentangle the reasons why Canada avoided the subprime boom, some factors can be identified that may have contributed to the differences in the Canadian and U.S. subprime markets.Perhaps the simplest story is that Canada was “lucky” to be a late adopter of U.S. innovations rather than an innovator in mortgage finance. While...  

At the Economic Policy Institute, Gregory D.Squires, Derek S. Hyra and Robert N.Renner write: While there has been widespread recognition that racial minorities are among the hardest hit by the subprime mortgage crisis, racial residential segregation has not been considered a factor behind the crisis in minority communities. Blame is being directed at ill-informed consumers, lax underwriting by loan originators, the failure of regulatory...  

While not part of the GODORT Handout Exchange Wiki, I wanted to highlight a new guide from the Wisconsin Legislative Reference Bureau: Tap the Power: Foreclosure Crisis The introduction to this annotated bibliography states: With the collapse of the subprime mortgage market early in 2007, foreclosures reached crisis level, and the crisis continues today. In answer, federal, state, and local governments have implemented programs to help...  

More than $200bn of outstanding pay-option adjustable-rate mortgages (ARMs) originated and securitized from ‘04-’07, according to market commentary by Moody’s Investors Service this week. This sector shows “dismal” performance, with more than 40% of borrowers 60 or more days past due on payments. And many of these loans have yet to experience a recast event, when [...]  

CALABASAS, Calif., Nov. 23 /PRNewswire/ -- Just 10 months after initiating outreach to customers through its National Homeownership Retention Program (NHRP), Bank of America has provided mortgage relief to 100,000 eligible homeowners with certain Countrywide subprime and option-ARM mortgages. According to the bank's most recent quarterly progress report, more than 31,000 eligible customers received assistance in the third quarter - the largest...  

I know, I know. Subprime is so, like, 2007. And most of the financial press has moved onto sexier mortgage words like “option ARMs,” or “FHA loss reserves.” That said, I thought it would be interesting to dive back into subprime waters, taking a granular look at individual deal performance using November remittance data from that [...]  

Two Bear Stearns executives who ran hedge funds that crashed in 2007 amid the subprime mortgage meltdown were acquitted Tuesday of lying to investors about the looming crisis on Wall Street. Jurors found Ralph Cioffi and Matthew Tannin not guilty of... Bear Stearns - Hedge fund - Wall Street - Business - Subprime lending  

The Obama administration, battling a foreclosure crisis that shows no signs of relenting, will step up pressure on mortgage companies to do more to help people remain in their homes, officials said Saturday. ... of those with subprime mortgages for the amount of the mortgage. The mortgages would be paid off early. Second, by paying off the mortgages, the subprime securitization crisis would have been stopped in its tracks, and the banks would...  

Two Bear Stearns executives who ran hedge funds that crashed in 2007 amid the subprime mortgage meltdown were acquitted Tuesday of lying to investors about the looming crisis on Wall Street. Jurors found Ralph Cioffi and Matthew Tannin not guilty of... BearStearns - Hedge fund - Wall Street - Business - Subprime lending  

An alert reader recently sent us a copy of a news story that reported: “In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.“ “Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton administration to expand...  

The acquittal of two Bear Stearns Cos. hedge-fund managers in a subprime-mortgage fraud case that relied heavily on e-mail evidence may make it more difficult for the government to win related cases based on similar facts.The loss in the face of allegedly incriminating com....  

Link: Mark Pittman, Reporter Who Foresaw Subprime Crisis, Dies at 52 - Bloomberg.com. [Woody Guthrie] From the Bloomberg.com Obituary: [...] In 2007, he was writing about the securitization of home loans when subprime borrowers, who have bad or limited credit histories, began missing payments on their mortgages at a faster pace. Pittman’s June 29, 2007, article, headlined “S, Moody’s Hide Rising Risk on $200 Billion of Mortgage Bonds,” was...  

From everything I've been reading and seeing of late, the Student Loan is in many ways the new subprime mortgage. The idea behind student loans is great. These loans are supposed to level the playing field a bit and make it possible for ...  

Andrey D. Pavlov (Simon Fraser) and Susan M. Wachter (Wharton) have posted Subprime Lending and Real Estate Prices on SSRN. Here's the abstract: This paper establishes a theoretical and empirical link between the use of aggressive mortgage lending instruments, such...  

von Kent Cherny und Yuliya Demyanyk * The global crisis is said to have originated in the US subprime mortgage market. This column argues that many of the most popular explanations that have emerged for the subprime crisis are, to a large extent, myths. Subprime mortgages have received a lot of attention in the US since 2000, when the number of subprime loans being originated and refinanced shot up rapidly. The attention intensified in...  

IRVINE, Calif. Goldman Sachs was one of the last Wall Street giants to enter the subprime lending world, but when it did, it quickly climbed into bed with profligate, highflying firms companies such as New Century Financial Corp. In at least nine deals from 2002 to 2007, Goldman sold bonds backed by more than $5 billion of New Century s mortgages, one even after the California lender s underwriting criteria all but disintegrated and a...  

Some guys at Bear Stearns ran a hedge fund. They bet that subprime mortgages would pay off big time. During the bubble, they were right. They and their investors made a lot of money. Last year everything changed. The market started tanking. How did the hedge fund managers respond? They sent each other some e-mails: "I think the subprime market...  

Performance of ‘04-vintage subprime residential mortgage-backed securities (RMBS) worsened as prepays increased in a review by Fitch Solutions, despite signs of stabilization among more recent subprime RMBS vintages. Fitch’s ‘04 vintage subprime RMBS price index dropped 16.7% in the most recent month of data, while the overall subprime RMBS price index showed only a “marginal” monthly [...]  

EDITOR'S NOTE: In the 1980s and '90s, Goldman Sachs Group ran a staid residential mortgage operation that simply bought and sold loans. But in 2001, the elite investment bank leaped aggressively into the burgeoning subprime securities market that was becoming a fountain of money for its rivals.That year, Goldman Sachs sold $8.7 billion in subprime bonds, a third [...]  

Federal Reserve officials met last night with New York City residents to learn how the subprime mortgage crisis has affected homeowners here. Of particular concern during the meeting was the Community Reinvestment Act, which residents say does not adequately protect borrowers from predatory lenders. Residents told the visiting Fed members that an overhaul of the program is necessary to protect borrowers, particularly in low-income regions...  

Paolo Pellegrini has a nose for trouble. He saw it in rising housing prices in early 2006, when he cranked through decades of home price data and concluded that the bubble was poised to burst. Mr. Pellegrini then helped engineer a massive bet against subprime mortgages that catapulted Paulson & Co. hedge funds to 2007 gains of as much as 590 percent and firmwide profits of more than $3.5 billion. Mr. Pellegrini, 52, pocketed tens of millions...  

CreditSights says accelerating shift from interest-only to higher amortising payments will spur delinquencies. Excerpts from US RMBS Update: A Payment-Shock Seesaw Delinquencies of 2005-vintage subprime and Alt-A loans will likely continue to be boosted because of mortgage-related payment shocks, CreditSights says in its latest update on the US RMBS market: “The past year has seen only 7% of [...]  

Calpers burns in subprime fire 24 Oct 2009, 0000 hrs IST, REUTERS SAN FRANCISCO: Faced with huge losses on subprime loans, Calpers is suing the rating agencies which it said misled them by giving top ratings to mortgage bond funds which later turned out to be a house of cards. Calpers also was overcharged for foreign exchange transactions, says state Attorney General Brown, who is suing bank State Street. The market rally this year also has...  

Doom Transcripts: Index & Guide … It’s now [down] 40 percent as of the reports of the Moody’s index today. A peak to so-far for commercial property. And National Mortgage News had a nice article on this which they said this induces a strategy which might be described, they said, as "extend and pretend," but can [...]  

Subprime Revisited: How Reverse Mortgage Lenders Put Older Homeowners’ Equity at Risk (PDF; 1.2 MB) Source: National Consumer Law Center From press release (PDF; 29 KB): Abuses and abusers from the subprime mortgage market have begun showing up in the reverse mortgage market, putting at risk the equity and savings of millions of seniors. That’s the main finding [...]  

From my limited knowledge about this issue, Reverse Mortgages were great for banks when values were going up - they could have really cleaned up at the end. Now they are falling so banks are getting a rotten deal too, no worries though, they are too big to fail so we will bail them out again.  

FORT LAUDERDALE, Fla., Dec. 8 /PRNewswire/ -- Many exotic Adjustable Rate Mortgages (ARMs) will recast in 2010, leading to a mortgage crisis as large as subprime in the New Year, according to the Consumer Mortgage Audit Center.  

Goldman spent years buying hundreds of thousands of subprime mortgages, many of them from some of the more unsavory lenders in the business, and packaging them into high-yield bonds. Now that the bottom has fallen out of that market, Goldman finds itself in a different role: as the big banker that takes homes away from folks such as the Beckers. More on Banks  

An ex-subprime lender employee of a sent us the scripts they used to cold-call homeowners back in 2005 to get them to ditch their 30-year fixed mortgages for risky sub-prime loans. One of them is called, "Wholesale Gangsta Script," which I think about says it all right there.  

ATLANTA - Legislation aimed at reforming the subprime mortgage industry remains a top priority for one consumer-watchdog group in next month's legislative session.read more  

Could Cap and Trade Cause the Next Subprime Mortgage Scale Financial Crisis? by Brian Merchant, Brooklyn, New York on 11. 5.09. Business & Politics. carbon trading subprime crash photo. Photo via First Strung ...  

Visit BulgariaBad Credit Home Loans – Home Mortgage Rates Low For Poor Credit Borrowers?Subprime BloggerIf you are a poor credit borrower who is seeking a low home mortgage rate it is highly unlikely that you will be able to obtain some of the low mortgage ...Bad Credit Mortgage Refinance – Lower Rates Even with Poor Credit?Subprime Bloggerall 86 news articles »  

AFPSubprime home mortgages back to pre-crisis levels: FedAFPWASHINGTON — The market share of subprime US home mortgages, which caused the collapse of the housing market at the epicenter of the financial crisis, ...Subprime Mortgages At Pre-Crisis LevelsEmii.comall 33 news articles »  

Two former Bear Stearns hedge fund managers went on trial Wednesday in one of the few criminal cases brought against Wall Street executives in connection with the housing market collapse.  

The market share of subprime US home mortgages, which caused the collapse of the housing market at the epicenter of the financial crisis, has returned to pre-crisis levels, a central bank report showed Monday.  

PR-Inside.com (Pressemitteilung)Bad Credit Home Loans – Can Bank of America Help Me?Subprime BloggerBank of America acquired Countrywide a little over a year ago which makes them one of the largest holders of the mortgages. Bank of America also offers many ...Bad Credit Unsecured Personal Bank Loans – Can citigroup Help Me?Subprime BloggerBad Credit Unsecured Personal Loans – Are Bank Accounts Necessary?Subprime Bloggerall 18 news articles »  

FreeRateUpdate.comBank of America Refinance Mortgage Rates – 30 Year Fixed at 4.8%Subprime BloggerBank of America refinance mortgage rates are going against the 10 year treasury rate yield today and falling to new lows. The conventional 30 year fixed ...Bank of America Refinance Mortgage Rates – Interest Rates Still Below 5%Subprime Bloggerall 49 news articles »  

US FINANCIAL CRISIS1U.S. Financial Crisis: Subprime Lending and Mortgage Fraud Frederick Griffin Griffin International Services US FINANCIAL CRISIS2U. S. Financial Crisis: Subprime Lending and Mortgage Fraud History has a way of ...  

SAN JOSE -- When wildfires ruined their jewelry business, Tony Becker and his wife fell months behind on their mortgage payments and experienced firsthand the perils of subprime mortgages.  

They had a great-looking quarter, but deeper problems remain.  

New York is on the verge of extending laws to protect subprime mortgage borrowers from foreclosure to prime borrowers.  

Subprime lender Start criticised for court actionsIrish IndependentSTART Mortgages has been heavily criticised as it tends to take a large number of repossession actions in the High Court. ...  

The Massachusetts Appeals Court has affirmed a preliminary injunction against Option One Mortgage Corp. and H Block Mortgage Corp., subprime lenders that originated...  

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Two former Bear Stearns fund managers acquitted on Tuesday in the first case against players in the subprime mortgage meltdown.  

There is plenty of blame to go around for the subprime crisis.  

The private student loan market is ripping a page from the subprime mortgage playbook.  

Federal regulators say former executives at failed mortgage lender New Century misled investors.  

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