Housing: Barron’s Calls A Bottom. “Amongst Barron’s data: Home price indexes are skewed by steep drops in the value of subprime properties - which account for only 10% of the all
Federal Reserve Bans Penalties On Mortgages That Make It Harder For People To Refinance. “The Fed prohibition on prepayment penalties, part of a broader response to the collapse of the subprime mortgage market, targets high-cost loans with interest rates that reset in the first four years. The new rules and regulations also would limit charges when borrowers seek to pay off mortgages in the first two years on other types of high-priced loans... Some experts [say] this still falls short of what consumer groups have advocated which is an outright ban on prepayment penalties for all subprime and non- traditional mortgages.” (
States Aren't Waiting for Feds to Clean Up Reckless Lending. “Earlier this week the North Carolina General Assembly became the first in the nation to ban "yield-spread premiums" -- kickbacks that encourage brokers to overcharge -- on subprime mortgages. These kickbacks, which brokers received for delivering subprime loans with higher interest rates than the lender had set, are one of the main reasons that subprime borrowers have typically paid thousands of dollars in unnecessary costs on brokered loans… If enacted [as expected,]
FDIC's Covered Bond Effort Wins Support From Bernanke. “Federal Reserve Chairman Ben Bernanke said he supports proposals to boost mortgage financing through the use of covered bonds, with the caveat that the
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