Fed Head Demands Action over Foreclosure Fears
- By:
- MortgageLoan.com | May 06, 2008
Federal Reserve Chairman, Ben Bernanke has urged action from the government and mortgage lenders in a bid to stave off the threat of foreclosure to millions of households around the country.
In a 10 page speech delivered at the Columbia Business School in New York, Bernanke said conditions in the mortgage markets remained strained and posed a threat to the economy.
"The costs of foreclosure may extend well beyond those borne directly by the borrower and the lender. Therefore doing what we can to avoid preventable foreclosures is not just in the interest of lenders and borrowers. It's in everybody's interest."
Bernanke also reiterated his desire to have the Federal Housing Association (FHA) provided with 'greater latitude' by the Congress to help distressed borrowers at risk of losing their homes as well as the power to set appropriate standards for owners seeking to refinance mortgages and to adjust interest rates according to the level of risk of the applicants.
"Some 1.5 million U.S homes entered into the foreclosure process last year, up 53 percent from 2006, with the rate of new foreclosures likely to be higher this year." Bernanke said.
Bernanke also said that Fannie and Freddie "could do more" to mitigate the damage of the housing market downturn. He urged the two government backed enterprises to raise more capital, "which they will need to take advantage of these new securitization and investment opportunities, to provide assistance to the housing markets in times of stress, and to do so in a safe and sound manner." he concluded.
Hope Now Gaining in Foreclosure Prevention as Loan Modifications Increase
- By:
- Bill Rice - MortgageLoan.com | December 03, 2008
The Hope Now initiative, a private mortgage lender and servicer alliance, is increasing its effectiveness in preventing foreclosures. In October, Hope Now set a new record in foreclosure prevention modifying 225,000 mortgages. That total exceeds September's loan modifications by 13,000.
Law Firms and Banks Collaborating to Streamline Loan Modifications
- By:
- Bill Rice - MortgageLoan.com | December 02, 2008
Increasingly loan modifications are becoming the preferred mechanism to help defaulting homeowners and troubled bank mortgage asset portfolios. All of the major banks, Bank of America, JP Morgan Chase, and Citigroup have announced streamlined loan modification programs.
US Retailers Hope for a Big Cyber Monday
- By:
- Bill Rice - MortgageLoan.com | December 01, 2008
Retailers got a welcome Holiday gift on Black Friday, with retail sales actually rising 2 percent over last year. Despite the doom and gloom of economic prognosticators consumers lined the sidewalks in the wee-hours of the morning for "door-buster" deals.
Retailers Caught Flat-footed by Rapid Economic Slowdown
- By:
- Bill Rice - MortgageLoan.com | November 28, 2008
It's Black Friday, will they come? Black Friday a term linked to the fact that traditionally all retailers "make their year" by blasting into profitable territory for the entire year on the strength of holiday sales. This year may be a stark contrast.
President-elect Obama Subtlety Taking the Reigns of US Economic Policy
- By:
- Bill Rice - MortgageLoan.com | November 27, 2008
In his regular press conferences behind the very Presidential-looking "Office of the President-Elect" podium Obama quietly is absorbing the Presidency. Despite being 11 weeks away from inauguration and still two weeks away from officially being declared President-elect by the convening of the Electoral College, he is undeniably taking the reigns of US economic policy.
Federal Reserve Starts Printing Money to Jumpstart Lending
- By:
- Bill Rice - MortgageLoan.com | November 26, 2008
The Federal Reserve and US Treasury have announced another bailout, this one theoretically for consumers and small businesses. This plan involves another $800 billion.
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