Tag Archives: mortgages

Scarcity of jobs puts more at risk of foreclosure

August 26, 2010 // by Alan Zibel and Christopher S. Rugaber // Leave a comment

The jobs crisis is putting more Americans at risk of losing their homes.

One in 10 households has missed at least one mortgage payment, and more than 2 million homes have been repossessed . . . read more “> . . . read more Read More

Federal Reserve cracks down on mortgage fees

August 20, 2010 // by Associated Press // Leave a comment

The Federal Reserve is banning mortgage brokers and lenders from reaping bigger fees by steering consumers into more expensive home loans.

The central bank said Monday, August 16, the new rules, which go into effect next April . . . read more Read More

US officials discuss new consumer agency

August 9, 2010 // by Marcy Gordon // Leave a comment

High-level government officials met Thursday, July 29, to discuss the new consumer protection agency established by the financial overhaul law, and employees at seven federal agencies are being told they may . . . read more Read More

Americans managing debt better as economy recovers

July 27, 2010 // by Candice Choi // 1 Comment

Americans are slowly regaining control of their household budgets.

The default rate on credit card payments, mortgages and auto loans eased last month, suggesting that borrowing habits are sobering up. . . . read more Read More

How financial overhaul affects your everyday life

July 7, 2010 // by Rachel Beck // Leave a comment

The financial overhaul is about more than exotic derivatives and complex risk assessments. It will change how you interact with the financial system every day, from swiping your debit card at the store to applying for a mortgage. . . . read more Read More

Financial Overhaul 101: Credit rating agencies

July 6, 2010 // by Daniel Wagner // Leave a comment

Before the financial crisis, surging home prices led investors to pour trillions into investments backed by mortgages. Investors felt confident because credit rating agencies had judged these investments to be safe.

They weren’t. The safe ratings had gone to investments backed by some of the riskiest mortgages. When the agencies downgraded them by the billions, it helped trigger the financial crisis.

The financial overhaul bill before Congress aims to hold the agencies accountable for sloppy analysis that produces inaccurate ratings.

Yet it barely addresses the agencies’ central conflict of interest: They’re paid by institutions whose products they rate. Critics say the agencies yielded to pressure . . . read more Read More

Americans rebuilding wealth, slowly and unevenly

June 30, 2010 // by Dave Carpenter // Leave a comment

The rebuilding of Americans’ wealth is proceeding in steps rather than strides.

Households’ net worth rose last quarter — the fourth straight quarterly gain. Yet tumbling stock prices have reduced their wealth since then. Some economists say Americans’ net worth may now be down slightly for the year. That helps explain why many say it will 2012 or 2013, at best, before Americans’ wealth will return to its pre-recession levels . . . read more Read More

Mortgage rates sink to lowest this year

May 27, 2010 // by Alan Zibel // Leave a comment

Mortgage rates have fallen to the lowest level of the year as investors poured money into the safe haven of U.S. government securities.

The average rate on a 30-year fixed rate mortgage dipped to 4.78 percent this week from 4.84 percent a week earlier, mortgage company Freddie Mac said Thursday, May 27. It was the lowest level since early December, when rates fell to a record low of 4.71 percent.

The average rate on a 15-year fixed-rate mortgage fell this week to 4.21 percent . . . read more Read More

Homebuyers scramble as mortgage rates jump

April 9, 2010 // by Associated Press // Leave a comment

The era of record-low mortgage rates is over.

The average rate on a 30-year loan has jumped from about 5 percent to more than 5.3 percent in just the past week. As mortgages get more expensive, more would-be homeowners are priced out of the market — a threat to the fragile recovery in the housing market. . . . read more Read More

Interest rates surge after weaker Treasury auction

April 9, 2010 // by Tim Paradis // Leave a comment

Interest rates surged in the bond market Wednesday, March 24, after a government debt auction drew only tepid demand for second day.

The disappointing turnout for the Treasury Department’s $42 billion auction of five-year notes raised the prospect that investors’ appetite could be waning for Washington’s IOUs. If demand for debt drops, the government would be forced to pay higher interest rates to attract investors. . . . read more Read More

KNN on Credit Crisis

November 28, 2008 // by Russell Fisher // Leave a comment

With Wall Street occupying the front page of our newspapers, it may be tempting to conclude that the financial crisis just hit the municipal bond markets as well. Actually, in the municipal bond markets, we are passing the first anniversary of what has now become a worldwide fiscal crisis.

In the fall of 2007, the rating agencies began questioning the credit ratings of bond insurers, citing their exposure to securitized sub-prime mortgages. By expressing doubt and eventually downgrading certain bond insurers, a chain of events was unleashed that alone would have been sufficient to rock the world of municipal finance. But as the same credit analysis was applied to more and more financial institutions, the sub-prime mortgage crisis contributed to a global market collapse and the onset of recession, pushing public finance into truly uncharted territory. Read More