Countrywide's Pressures Mount. “Three states [have] filed separate legal actions against Countrywide Financial Corp. (CFC). The actions, by the attorneys general of
May Subprime Data Likely to Show Continued Improvement. “We’ve argued for months that the leading indicators of changes in subprime mortgage credit quality are showing signs of improvement… If said improvement continues, many estimates of cumulative subprime losses… will prove to be much too high… Loan servicer reports for April and May both showed improvement… a sign that something more than just seasonality is going on… A credit surveillance company that regularly monitors a huge portion—like, 40%—of outstanding subprime mortgage loans that have been securitized: Clayton Holdings Inc data shows that the early-year improvement has continued well past the point it can be chalked up just to seasonality.” (Tom Brown in Seeking Alpha, June 25th)
Buffett Sees Opportunities In Subprime Business. “Warren Buffett, CEO of Berkshire Hathaway (BRK.A), sees some opportunities for investing in the subprime mortgage business. Buffett said Berkshire Hathaway had already made some subprime investments through its
Home Buying Heats Up South Of The Border. “Lehman Brothers Resort Home Lending (LEH) [is] offering
Who Is On The Market Police’s Radar? “The FBI’s probe of the subprime mortgage industry could uncover fraud involving Wall Street investment banks, private equity firms or hedge funds, the head of the bureau said… So far… only one company [was] caught in the dragnet, Doral Financial Corp. (DRL) Its former treasurer was recently indicted for investment fraud… A senior law enforcement official told me that hedge funds now sit at the top of the hit list of federal investigations into the subprime crisis, including at the Department of Justice and the Federal Bureau of Investigation. Expect more announcements of hedge fund indictments in coming days, sources say.” (EMAC Blogs in Fox Business, June 24th)
8 Reasons You Should Not Expect an Inheritance. “National Reverse Mortgage Lenders Association: Borrowers have taken out roughly 450,000 [reverse mortgages] since 1990. But the pace is picking up. Lenders, including mainstream operations like Bank of America and Wells Fargo, wrote more than 100,000 of them for the first time in the year ended Sept. 30, 2007. Meanwhile, the association says, retirees are increasingly using mortgages as a financial tool — and not simply as a last resort to pay for health care emergencies and the like… Growth [in reverse mortgages] certainly raises the likelihood that large portions of family homesteads in
Worst May Be Over After Webster Cuts 240 Jobs. “Webster Financial Corp. (WBS) said Tuesday that it will cut 240 positions over the next year… The bank has been dogged for months by losses from home loans made outside of
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