Fed's Kroszner - Mortgage Market Recovery Will Take Time
- By:
- MortgageLoan.com | May 23, 2008
Fed Governor Randall Kroszner, addressing a conference of state bank supervisors, said that mortgage markets will recover slowly with more emphasis on improved risk management techniques needed to help recovery.
Speaking in Florida, Kroszner said, "Investors with more and better information from the originators and sponsors of credit products will be able to more easily conduct proper due diligence and verify evaluations of credit risk. "Recovery in the mortgage market will take time and will require more market and regulatory discipline."
Kroszner laid some blame for the current crisis on investors who were attracted to structured securities without a thorough understanding of the underlying risk profiles and believes more information about loans and their programs that are sold to investors will reduce some of the risks of lending in the future.
The Federal Reserve has cut benchmark interest rates by 3.25 percentage points since September to 2 percent in a bid to buffer the cooling economy. In addition, the Fed has pumped hundreds of billions of dollars into financial markets to restore normal functioning in credit markets frozen by the crisis.
Krosner said he expects the "originate-to-distribute model" of lending in which a loan is made, then packaged into a security and sold to investors to continue to be an important part of the financial landscape.
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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