levin70

Richmond Fed: GSEs Encourage Mortgage Defaults

Given this, why would anyone be willing to lend in California?

The real issue isn't with availability of mortgage funds for california vs another recourse state, say the state where I live, Illinois. The issue is why is a california borrower able to get as low a rate, given all other details being the same, with the rate that I can get in Illinois?

The intervention in the market place that causes the mis-pricing of these risks is what a large portion of the problem is.

Regards

Will Banks Lead the Way to 1929 Crash Part II?

Andy

Not all banks are heavily exposed to the four horseman of the housing apocalypse (IE, LV, AZ & FL). And even some large banks are not that heavily exposed. Thus even with significantly increased credit loss exposure for mortgages, cc, commercial and other loans their net interest margin more than offsets those provisions. They won't make big money, but they will eek out small profits so long as they lend at 5+% and their cost of funds are 0.25%.

Regards

New Horses for the Foreclosure Merry-Go-Round Won't Make It Spin Faster

The rental option (from far smarter people than those that work at FNM/FRE) in which the bank forecloses and immediately signs up the homeowner into a lease he/she can afford is able to sell the rental agreement to a reit aggregator is so far the best idea ive read thats been floated.

Paulson and Bernanke: A Conspiracy of Dunces

Michael. If you really think you can do better, please put your hat into the ring when the next administration comes looking for its next fed chairman. Lets see how well you do on the hotseat