Home » Mortgage News » 2008 » September
House Rejects Bailout and Stock Market Reacts, Dow Down 777.68
Considered a bi-partisan done deal, the enormous market bailout bill was voted down in dramatic fashion. With 95 Democrats and 133 Republicans casting "Nay" as their vote the Emergency Economic Stabilization Act of 2008 did not even make it out of the House of Representatives. Read More» |
$700 Billion Bailout Bill Set to Fail in the House, Dow Craters 500 Points
House of Representatives votes down the $700 billion market bailout bill. Bringing surprise and shock into the financial markets, which headed down as much as 500 points (Dow) during the losing vote. Read More» |
Wachovia Goes to Citigroup with FDIC Assistance
Wachovia becomes the latest giant to fall into an apparent three bank consolidation. Wachovia was acquired this morning by Citigroup. The FDIC assisted agreeing to absorb losses above $42 billion and would get $12 billion in preferred stock and warrants from Citigroup. Read More» |
$700 Billion Bailout Bill on its Way to House Vote
After an intense weekend of negotiations the formally named Emergency Economic Stabilization Act of 2008 is headed to the House of Representatives for its first vote. Senator and Republican Presidential nominee, in a statement on ABC's "This Week," probably captured the sentiment of Congress and... Read More» |
Lawmakers Reach Bailout Breakthrough Early Sunday Morning
Working through Saturday evening and into the wee-hours of Sunday morning Congress hammered out a tentative breakthrough. Negotiations, and volatile debate spanned the entire weekend. Discussions were reported to have been peppered with elevated voices and plain language. Read More» |
JP Morgan Assists FDIC as WaMu Becomes Largest Bank Failure in History
While the Nation focused on the contentious negotiations over the $700 billion bailout of the financial market a giant oak fell quietly in the forest. The FDIC seized Washington Mutual on Thursday afternoon, and immediately sold their assets to JP Morgan for $1.9 billion. Read More» |
Mortgages Availability Tightening, Existing Home Sales Continue to Fall
Mortgage rates are down, but homes are not selling. Why? The disconnect is directly linked to the objectives of the current $700 billion bailout being proposed by the Bush administration and US Treasury--our system of credit has ground to a halt. Read More» |
Warren Buffett Invests $5 Billion in Goldman
At the closing bell, after another punishing day on Wall Street, a $5 Billion vote of market confidence came from the heartland. The iconic value investor Warren Buffett struck a deal with Goldman Sachs that may overshadow the $700 billion Treasury bailout. Read More» |
Paulson's $700 Billion Plan is Bitter, but Necessary Medicine
The American taxpayer is angry at picking up the tab for greed and excess. Congress wrestles with a crisis that can little afford time for deliberation. However, a theme is emerging--it is the bitter medicine that will heal us. Read More» |
Financial and Mortgage Market Bailout-Dissecting the Paulson Plan
Congress was handed a monumental weekend task--review and prudently approve a $700 billion dollar bailout. The proposal is eerily short and simple (full text of legislation). Many are urging Congress to ask more questions prior to singing this broad proposal. Read More» |
Paulson Going to Congress with Significant Taxpayer Bailout Plan
Like it or not the US taxpayer is coming to the rescue of the financial markets. Following weeks of firefighting rapidly, unpredictable, and calamitous individual financial services crisis Treasury Secretary Paulson comes with a comprehensive plan to stop the madness. Read More» |
Loan Modifications, Government's Preferred Foreclosure Remedy
Cleaning up a uniquely collapsing mortgage market it going to challenge the creativity of the US government. One of the most innovative solutions that is under 'beta testing' is the broad use of loan modifications. Read More» |
Mortgage Rates Drop, Refinance Boom Ahead?
Last week mortgage rates plummeted to a five month low and took the steepest weekly dive in 28 years. Does this forecast a mini refinance boom? Not likely. Lower rates does not mean easier mortgages, this time around. Read More» |
Fed Likely to Leave Rates Unchanged
An economic roller coaster ride preludes today's Fed meeting. A continual battle between mortgage market recovery, a softening economy, and the dull roar of inflation in the background. However, despite the economic drama of the last month the Federal Reserve is most probably going to do nothing--... Read More» |
Home Buyers and Mortgage Refinance Get Discount on Fannie, Freddie
Life has sprung back into mortgage lenders and banks. Borrowers are calling for the new, low rates and loan officers are calling past clients to tell them the good news. Mortgage rates have dropped at a 28 year historical rate--over 0.50 percent in one week. With rates as low as they have been... Read More» |
Mortgage Rates at 5 Month Low, Biggest Weekly Drop in 28 Years
If you were waiting for another chance to lock in that low 30-year mortgage rate it is here, and the government is hoping you will take it. This week 30-year mortgage rates tumbled under 6 percent to the lowest rates since April. This 0.5-0.6 percent, one week drop, is the single largest since the... Read More» |
Government is Making it Simple to Find a New Mortgage
There are millions of homeowners and home buyers that desperately need to find the right mortgage. Some need more reasonable payments, while others are taking the opportunity to get a great deal on distress housing prices. Fortunately for all of these eager borrowers the US government wants to make... Read More» |
Lehman Open Market Shopping is Unsettling to Investors
Lehman is expected to end its long and public quest for a suitor today. Plans are to outline its plans today to strengthen its balance sheet and calm investor nerves. The latest turn away by the Korea Development Bank, who confirmed that talks have ended, sent Lehman shares plummeting 45 percent to... Read More» |
Recession Talk Resurgent on Latest Unemployment Reports
August's unemployment numbers surged 84,000 to 6.1 percent, a five-year high. Rallying back the recessionary and doomsday economist. Coming out of the Fed's annual economic summit with dialogue that seemed certain to point to Fed rate increases at the September FOMC--the other shoe has dropped. Read More» |
Fannie, Freddie Bailout Helps Market Not Troubled Homeowners
The government hopes its takeover of Fannie Mae and Freddie Mac on Sunday will bring stability to the free falling mortgage market. Unfortunately, the move is unlikely to help the growing number of homeowners struggling to make their mortgage payment. Read More» |
WaMu on the Ropes, Tosses Killinger, Files Recovery Plan with OTS
Washington Mutual (WaMu) a constant whisper on the bank failure watch list, has aggressively moved to save itself. Today WaMu announced the ousting of chief executive Kerry K. Killinger and agreed to file a recovery plan with its chief regulator, the Office of Thrift Supervision (OTS). Read More» |
Government Take Over of Fannie, Freddie Imminent
Fannie, Freddie expected to be taken over by the government as early as this weekend to prevent pending failure of the two huge mortgage institutions. Read More» |
Mortgage Application Woes, What to Do When Your Lender Says No
The mortgage market is in a monumental shakeup and that is leaving many borrowers with rejected stamped on their mortgage application. However, there are lots of options to improve your chances of getting approved from credit repair to government mortgage assistance programs. Learn a few simple... Read More» |
GMAC Lays off 5000, Shutters 200 Retail Branches
GMAC became the latest in a long line of mortgage business downsizing and closings. GMAC announced on Wednesday that it will be laying off 5000 employees and closing over 200 of its retail mortgage branches throughout the US. Read More» |
Fannie, Freddie May Dodge Bailout
On the heels of a reasonably priced Freddie Mac auction of $1 billion in 5-year notes Fannie Mae and Freddie Mac's stock continues to climb out. This re-issuance priced at a spread of 95.6 basis points more than the 5-year US Treasury notes--signaling a reasonable risk premium and capability to... Read More» |
Fed Hawks Softening Inflationary Rhetoric
As the next Federal Open Market Committee (FOMC) quickly approaches the anti-inflationary hawks are softening their rhetoric for a rate hike. Increasingly the call on September 16 looks to be one of staying the course as economic indicators continue to report in confusingly balanced, good and bad... Read More» |
Mortgage Market Giving Economists Fits, Should Mortgage Borrowers Care?
It seems we are in the perfect economic storm for mortgages. Many homeowners and potential home buyers are stuck in a confusing mix of market signals. A blend of good and bad that leave us with a balanced scorecard. This is leaving most experts offering little practical advise and instead focusing... Read More» |