Barclays and HSBC manage to lose $6 billion

Barclays and HSBC are on different ends of the mortgage crisis but between them they lost $6 billion from their exposure to the U.S. housing crisis and related credit crunch. HSBC lost money because of U.S. mortgages going bad, and Barclays lost money because of collateralized debt obligations (CDO’s) based on U.S. mortgages. The process …

Paying off credit cards as ARM’s go up can be risky

A review of investors with interest only loans shows they are still paying the bare minimum each month. For the average home owner with an adjustable rate mortgage the options are not as good. Many families are considering how to tighten up the budget, and paying off the credit cards might sound good. More aggressive …

Option ARMs Worry Borrowers, Lenders, Credit Card Companies

Not too long ago the staff at Mortgage Blues warned about option arms. Now these home loans are beginning to worry borrowers and lenders. One real possibility is that borrowers are behind on their mortgage as they keep up with their credit card payments. Of course the opposite might be true. But as soon as …

Credit Report Clean Up and The Statute of Limitations

If you are concerned about your adjustable rate mortgage or just cleaning up your credit report an issue that you should be aware of is the statute of limitations on old debt. Many people believe they must pay everybody regardless. At the same time some creditors try to get people to renew their debt, primarily …

Banks, Predatory Lenders, and Ambassadors

Boston Federal Reserve Bank president Eric S. Rosengren urged banks to take a second look at subprime borrowers, saying many have improved their credit scores since buying a home. If that is the case banks could step in and help those homeowners. Meanwhile arguments and debates continue as issues are labeled as “bailouts” or “rescues.” …