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Big Banks in Trouble: Huge Mortgage Write-Downs Seem Inevitable

Most people don't even know what the "current" value of their house is. ]

Maybe not... while they're current. But they take a KEEN interest in how much they owe once they do fall behind on payments. Don't think for a minute that people aren't doing the math to see if the LTV is within their tolerance level.

Many borrowers were stupid enough to take the loan they were given. But they're not stupid enough to keep it.

The Hole in the New Property Appraisal Rules

[If the whole idea is to get the appraisal system out of the banking/lending system]

The whole idea is to CREATE THE APPEARANCE of getting the appraisal system out of the banking/lending system.

Furthering the Discussion on Bank Nationalization

[How can we get through to Washington? They don't seem to be considering the nationalization option for insolvent banks.]

The unspoken assumption here is that "Washington" gives a rat's patoot about what's good for the country.

That assumption is false.

Mortgage Cramdowns: A Disaster in the Making

[I’ll hang out with the minority and predict it’s going to be a disaster.]

I'm with you.

Once again, as with all proposed foreclosure legislation, big numbers are thrown around, promising that "hundreds of thousands" of homeowners will avoid foreclosure.

I haven't seen ONE person mention the exorbitant failure rate of Chapter 13 filings.

The proponents (Schumer, etc.) talk about this plan as if it's a "no-brainer," and it is... but not for the reason that they think.

Is the U.S. Banking System Safe?

[Home prices have historically tracked inflation and are likely to revert to the mean. ]

I agree with NY above that inflation is going to accelerate, but with all of the reasons that housing prices have to continue to decline, I'm wondering if house prices may decouple from that measure.

Banking Sector: Band-Aids Just Won't Do It

[Investors in junior securities, be they common shares, preferred stocks or subordinated debt, enjoy premium returns in the good times and bear disproportionate risks in the bad. They should not have a seat at the table in a bail-out scenario. ]

Should not, but do anyway. They managed to squeeze out a ride-along amendment to the housing bill, so they get to share in future appreciation. Do you suppose they'll now leave their seat at the table?

Yikes, But Duh: Housing Bottom Could Be Two Years Off

[They view this as a 'confidence' problem so they are 'restoring our confidence']

Everything's a con game with these guys.

How much longer are we, as citizens, going to put up with this?

[Right now, the problem of ARMs adjusting higher has been muted by the drastic rate cuts]

Actually, it's the CAPS that are keeping things in check right now... most of the homeowners I see will have a few adjustments before they reach their max.

New Lender Guidelines To Help Struggling Homeowners

[and would in most cases receive a final decision on whether they will receive help with their loan within 45 days.]

They're already far, far, very, very far short of this standard.

This new plan appears to be a combination of "nothing new" and promises that can't be kept.

They say that they'll "consider" things... such as principal reduction... when the recent Boston Fed paper clearly states that such a consideration makes no sense.

I love how these announcements really say nothing at all.