June 2008 - Blown Mortgage

June 2008

Wachovia announced today that they are no longer offering the pick-a-pay, negative amortization mortgage loan. Additionally, they've announced that the bank will assist current pick-a-pay loan holders by waiving all pre-payment penalty fees for those looking to refinance out of the loan. Here's the details: Effectively immediately, Wachovia is waiving all prepayment fees associated with [...]

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The bail out plan that Congress is hard at work trying to pass may not do much in terms of actually helping anyone.  Government estimates show that only 400,000 people could benefit from the new FHA-driven refinance/loan modifications while more than 3,000,000 folks are actually 60 days down (or late) on their mortgage. This refrain [...]

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An important lesson for everyone to remember during all of this bailout mania is that higher risk still costs more money - no matter who is managing it - the government or private companies. From our friend Chris at Loan Officer Survival Guide (whose book you should have in your library) comes a stunning email [...]

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Ignore the spin folks.  Existing home sales are down 31% from their peak in 2005 and nearly 16% from last year.  The 2% increase in May doesn't really tell you much, except for the fact that maybe foreclosure sales are becoming more appealing to folks. As Calculated Risk so astutely points out May marks the [...]

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AMEX: credit conditions continue to worsen

American Express announced intra-quarter guidance today saying that the company would be impacted by worse-than-expected credit conditions.  They expect their business to be impacted as economic activity slows and consumer late-pays and credit defaults on AMEX cards continue to mount. From the Market Watch story: "Business conditions continue to weaken in the U.S. and so [...]

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