Predatory lenders run from New York, Fannie and Freddie included

There was a time when predatory lending laws at the state level were dismissed at the federal level by federally regulated banks. No any more! Even troubled Fannie Mae and Freddie Mac are leaving New York in a lurch. They are exiting the subprime market in New York, citing a new state law that could …

CDO Decision, Sell at a Loss or Milk for What It’s Worth

Ambac paid $850 million to CitiBank for impairment to a CDO (collateralized debt obligation) reportedly worth One Trillion 400 million dollars ($1.4 Trillion) and let Cibibank keep the assets. I found it interesting because the compensation was in regard to the difference in value from to mark to model as opposed to mark to market. …

Fixed Payment Option ARM is a Demented Product

A Barclays Financial report devoted to the impact of Option Arm estimates 48% of the loans will default when the mortgage payments reset or are recast. Mortgage payments are estimated to increase between 60 and 80%. I am not privy to their information, figures, and calculations but under today¬ís circumstances I feel Barclays report is …