Collateralized debt obligations ruined financial market

Complicated portfolios made up of subprime mortgages, known as collateralized debt obligations, or CDOs, received the stamp of approval from rating agencies, but turned out to be a contagion that wreaked havoc on the global economy. Lawmakers are now asserting that credit rating agencies (CRAs) like Moody’s Investors Service and Standard and Poor’s Ratings Services …

Rate Your Mortgage – a Side by Side Comparison

On December 30, I paid mortgages on line to try and get a little break by paying “more interest” in 2009. While doing this I made “side by side” comparisons of the mortgage companies or their servicer. The mortgage companies used in this comparison were Wells Fargo, First Horizon, Saxon, and Everhome. I used statements, …

Mortgage 101 – what happens when you don’t undertand math

Part of the reason for singing the mortgage blues today is our track record of the years 2000 through 2006. As consumers refinanced mortgage coompanies started searching for those who would refinance again and again. Non-bank financial institutions and shady lenders looked for new customers, and subprime liar loans were born. In 2006 consumers took …

How predatory lending became acceptable to everyone

In the United States, years before the so-called “subprime crisis”, various financial businesses existed to serve the needs of the middle class. Among those were Household International, Citifinancial, and Avco. Household International represented the Household Finance (HFC) and Beneficial Finance brands. As these companies were purchased or absorbed into parent companies, some were also charged …

Not enough money for the average American family

The percentage of prime borrowers seriously delinquent on their mortgage rose 20.3 percent during the first quarter compared with the previous quarter. It was up 163.7 percent compared with the same quarter a year ago. In comparison, the percentage of subprime borrowers seriously delinquent rose only 1.5 percent during the first quarter. It was up …