New Wave of US Mortgage Trouble.....

[MMC]

Insight: A new wave of U.S. mortgage trouble threatens.....

U.S. borrowers are increasingly missing payments on home equity lines of credit they took out during the housing bubble, a trend that could deal another blow to the country's biggest banks.

The loans are a problem now because an increasing number are hitting their 10-year anniversary, at which point borrowers usually must start paying down the principal on the loans as well as the interest they had been paying all along.

More than $221 billion of these loans at the largest banks will hit this mark over the next four years, about 40 percent of the home equity lines of credit now outstanding.

For a typical consumer, that shift can translate to their monthly payment more than tripling, a particular burden for the subprime borrowers that often took out these loans. And payments will rise further when the Federal Reserve starts to hike rates, because the loans usually carry floating interest rates.

But some regulators, rating agencies, and analysts are alarmed. The U.S. Office of the Comptroller of the Currency, a regulator overseeing national banks, has been warning banks about the risk of home equity lines since the spring of 2012. It is pressing banks to quantify their risks and minimize them where possible.

How bad home equity lines of credit end up being for banks will hinge on the percentage of loans that default. Analysts struggle to forecast that number.....snip~

Insight: A new wave of U.S. mortgage trouble threatens
Reuters – 5 hrs ago


So, we all have been hearing the news as to how things are always getting better under Obama.....well Right here is another marker showing things just are not peachy king as the MS media and Team Obama would have all believe. The Banks are still dealing with Billions. 10 and over with these Equity loans. What do you think about the Fed telling the Banks to scale back on these type of loans.

Also how many of these are classified as 2nd home loans wherein people have taken out a second mortgage? Does any think there is any way to get around this. Even Builders and Suppliers are still saying sales are down in all aspects of the field.

Shouldn't we let these Big Banks fail? What do you think about the Democrat Warren going after the Big Banks and those that say they are to big to fail?

 

[TheNextEra]

What do you think about the Fed telling the Banks to scale back on these type of loans.

They already have, the article shows that these loans were from 10 years ago. That would be around 2003 when the bubble started happening. Banks are not doing these types of loans hardly anymore that I'm aware of unless you have about 75% equity in your home to do so with.

Also how many of these are classified as 2nd home loans wherein people have taken out a second mortgage? Does any think there is any way to get around this. Even Builders and Suppliers are still saying sales are down in all aspects of the field.

Shouldn't we let these Big Banks fail? What do you think about the Democrat Warren going after the Big Banks and those that say they are to big to fail?

That cat is already out of the bag and there's no going back on helping banks from loans that were 10 years ago. I would be worried if they are doing this at the same rate NOW as they were THEN, but that isn't the case.

 

[MMC]

They already have, the article shows that these loans were from 10 years ago. That would be around 2003 when the bubble started happening. Banks are not doing these types of loans hardly anymore that I'm aware of unless you have about 75% equity in your home to do so with.



That cat is already out of the bag and there's no going back on helping banks from loans that were 10 years ago. I would be worried if they are doing this at the same rate NOW as they were THEN, but that isn't the case.

Well the Fed is going to eventually raise hikes.....and yeah it does. Which is why it being reported as they are all coming due. Now people are missing payments. Others have walked completely away form properties too. So the banks are eating those. Most around us the areas and values have gone down.

Which that's why they are saying its going to hit again.....after 7 years and within Obama's time in Office.

 

[GottaGo]

They already have, the article shows that these loans were from 10 years ago. That would be around 2003 when the bubble started happening. Banks are not doing these types of loans hardly anymore that I'm aware of unless you have about 75% equity in your home to do so with.



That cat is already out of the bag and there's no going back on helping banks from loans that were 10 years ago. I would be worried if they are doing this at the same rate NOW as they were THEN, but that isn't the case.

LOC's usually will roll into permanent fixed loans (if secured with the home) when they mature. Depending on how the LOC was written, the note could be called... and then the bank is staring at another round of bad debts that should have been called when the equity of the house dropped below the value of the LOC.

And the banks do the financial two step when caught......

 

[TheNextEra]

Well the Fed is going to eventually raise hikes.....and yeah it does. Which is why it being reported as they are all coming due. Now people are missing payments. Others have walked completely away form properties too. So the banks are eating those. Most around us the areas and values have gone down.

Which that's why they are saying its going to hit again.....after 7 years and within Obama's time in Office.

Yes, but your inference was that the banks are doing this practice NOW, they are not. This precidence was set by Bush and continued with Obama to bailout the banks for mistakes 10 years ago.

I'm not saying I agree with it nor am I saying they aren't problems, but the precidnece to bail out these banks has been long set ago.

 

[MMC]

Yes, but your inference was that the banks are doing this practice NOW, they are not. This precidence was set by Bush and continued with Obama to bailout the banks for mistakes 10 years ago.

I'm not saying I agree with it nor am I saying they aren't problems, but the precidnece to bail out these banks has been long set ago.

Well, in my response I see no inference that these banks are still doing the practice. I was inferring more about this.



The loans are a problem now because an increasing number are hitting their 10-year anniversary, at which point borrowers usually must start paying down the principal on the loans as well as the interest they had been paying all along.

More than $221 billion of these loans at the largest banks will hit this mark over the next four years, about 40 percent of the home equity lines of credit now outstanding.

The number of borrowers missing payments around the 10-year point can double in their eleventh year, data from consumer credit agency Equifax shows. When the loans go bad, banks can lose an eye-popping 90 cents on the dollar, because a home equity line of credit is usually the second mortgage a borrower has. If the bank forecloses, most of the proceeds of the sale pay off the main mortgage, leaving little for the home equity lender.

There are scenarios where everything works out fine. For example, if economic growth picks up, and home prices rise, borrowers may be able to refinance their main mortgage and their home equity lines of credit into a single new fixed-rate loan. Some borrowers would also be able to repay their loans by selling their homes into a strengthening market.....snip~

Moreover.....the analysts can't say how bad it will be. But they do know those banks each are into those type of loans for over 10 Billion. Once again there is that word.....if. If the economy gets better. Its' not.

40 % outstanding now as is.

 

[thinkforyoursel]

So what should Obama do with this mess he inherited from Bush?

Obama can't help the borrowers because you people hate when your neighbors get any help from the government.

The job market could help but we all now know that you people want to see more (not less ) unemployment ...and your buddies in Washington is working hard at that.

No...wait ...don't tell me.....you want Obama to load up the dump truck again with tax-payers money ....and once again ...bathe the bankers with this money.

 

[MMC]

So what should Obama do with this mess he inherited from Bush?

Obama can't help the borrowers because you people hate when your neighbors get any help from the government.

The job market could help but we all now know that you people want to see more (not less ) unemployment ...and your buddies in Washington is working hard at that.

No...wait ...don't tell me.....you want Obama to load up the dump truck again with tax-payers money ....and once again ...bathe the bankers with this money.

Who is talking about bailing out the banks? So far none here.

I got a better one.....why don't Obama throw in the towel and walk away from what he doesn't understand. Can only help. Just saying.

 

[GottaGo]

So what should Obama do with this mess he inherited from Bush?

Obama can't help the borrowers because you people hate when your neighbors get any help from the government.

The job market could help but we all now know that you people want to see more (not less ) unemployment ...and your buddies in Washington is working hard at that.

No...wait ...don't tell me.....you want Obama to load up the dump truck again with tax-payers money ....and once again ...bathe the bankers with this money.

What the current administration didn't do was correct the reasons it happened in the first place, and by not addressing the problem to the banks who granted these loans once the equity no longer existed, was permitting the problem to escalate.

Lack of action IS an action in this particular case. Sweep it under the rug, and hope no one notices.

Oh, and BTW, it wasn't Bush's mess, it was CLINTONs.

 

[thinkforyoursel]

What the current administration didn't do was correct the reasons it happened in the first place, and by not addressing the problem to the banks who granted these loans once the equity no longer existed, was permitting the problem to escalate.

Lack of action IS an action in this particular case. Sweep it under the rug, and hope no one notices.

Oh, and BTW, it wasn't Bush's mess, it was CLINTONs.

I'm with you on this ....the banks messed up the housing markets by granting loans to anybody..then selling those loans to suckers as investment.

But why can't Obama fix it....could it be because the right wing have blocked and blocked ...andblocked....through the fillybuster system .....all his appointees to oversee the financial industry?

Everybody understand the right wing game ....and this is why Obama is untouchable ..because the right have made it very difficult for Obama to do even simple things. This is why Obama is a two term president.

 

[Fenton]

Insight: A new wave of U.S. mortgage trouble threatens.....

U.S. borrowers are increasingly missing payments on home equity lines of credit they took out during the housing bubble, a trend that could deal another blow to the country's biggest banks.

The loans are a problem now because an increasing number are hitting their 10-year anniversary, at which point borrowers usually must start paying down the principal on the loans as well as the interest they had been paying all along.

More than $221 billion of these loans at the largest banks will hit this mark over the next four years, about 40 percent of the home equity lines of credit now outstanding.

For a typical consumer, that shift can translate to their monthly payment more than tripling, a particular burden for the subprime borrowers that often took out these loans. And payments will rise further when the Federal Reserve starts to hike rates, because the loans usually carry floating interest rates.

But some regulators, rating agencies, and analysts are alarmed. The U.S. Office of the Comptroller of the Currency, a regulator overseeing national banks, has been warning banks about the risk of home equity lines since the spring of 2012. It is pressing banks to quantify their risks and minimize them where possible.

How bad home equity lines of credit end up being for banks will hinge on the percentage of loans that default. Analysts struggle to forecast that number.....snip~

Insight: A new wave of U.S. mortgage trouble threatens
Reuters – 5 hrs ago


So, we all have been hearing the news as to how things are always getting better under Obama.....well Right here is another marker showing things just are not peachy king as the MS media and Team Obama would have all believe. The Banks are still dealing with Billions. 10 and over with these Equity loans. What do you think about the Fed telling the Banks to scale back on these type of loans.

Also how many of these are classified as 2nd home loans wherein people have taken out a second mortgage? Does any think there is any way to get around this. Even Builders and Suppliers are still saying sales are down in all aspects of the field.

Shouldn't we let these Big Banks fail? What do you think about the Democrat Warren going after the Big Banks and those that say they are to big to fail?

B

Big Banks ? WTF are you talking about ?

How about going after the low life politicians who in the 90's pushed banks to lower their lending standards based on a false narrative called "redlining" ?

How about going after the politicians that lied about the health of Fannie and Freddie who were buying up hundreds of billions in securities backed by sub-prime Loans ? FFS, Obama is currently using the FHA is offer no down loans to people with questionable credit NOW.

Big Banks ? :lamo

Friken Nonsense.

 

[poweRob]

B

Big Banks ? WTF are you talking about ?

How about going after the low life politicians who in the 90's pushed banks to lower their lending standards based on a false narrative called "redlining" ?

You seem to not realize what redlining is. Redlining didn't force loan standards down at all. Redlining was refusing to give loans to people based on where the lived even if they met the loan standards that everyone else they gave loans to had. That is what redlining was. Not a lowering of standards. The drew red lines on a map and said no loans on that side of the red line... regardless of qualifications.

How about going after the politicians that lied about the health of Fannie and Freddie who were buying up hundreds of billions in securities backed by sub-prime Loans ? FFS, Obama is currently using the FHA is offer no down loans to people with questionable credit NOW.

Big Banks ? :lamo

Friken Nonsense.

It is sad to see people hero worship banks after this whole mess they made. Sure some politicians helped, but dismissing the banks' actions... damn sad.

 

[Fenton]

I'm with you on this ....the banks messed up the housing markets by granting loans to anybody..then selling those loans to suckers as investment.

But why can't Obama fix it....could it be because the right wing have blocked and blocked ...andblocked....through the fillybuster system .....all his appointees to oversee the financial industry?

Everybody understand the right wing game ....and this is why Obama is untouchable ..because the right have made it very difficult for Obama to do even simple things. This is why Obama is a two term president.

You have no idea of what the hell it is your'e talking about.

 

[Fenton]

You seem to not realize what redlining is. Redlining didn't force loan standards down at all. Redlining was refusing to give loans to people based on where the lived even if they met the loan standards that everyone else they gave loans to had. That is what redlining was. Not a lowering of standards. The drew red lines on a map and said no loans on that side of the red line... regardless of qualifications.



It is sad to see people hero worship banks after this whole mess they made. Sure some politicians helped, but dismissing the banks' actions... damn sad.

I sad to see people here worshiping ignorance, which you appear to be doing in this thread.

If I "worship" anything it's education and truth. I'm not taken in by Democrat lies.

2004 SEC investigation into Fannie and Freddie
http://www.nytimes.com/2004/09/23/business/23fannie.html

WASHINGTON, Sept. 22 - A federal report accusing Fannie Mae, the giant mortgage company, of improper accounting has led to an informal investigation by the Securities and Exchange Commission, the company's board announced Wednesday. Shares of the company fell $4.96, to $70.69, on the New York Stock Exchange.

The Office of Federal Housing Enterprise Oversight, which regulates Fannie Mae and Freddie Mac, released a report on the Internet Wednesday night saying that an ongoing, eight-month investigation had found improper "cookie jar" accounting - that is, setting aside artificially large cash reserves to reduce revenues in some years so they can be drawn on in other years when the company needs higher revenue and earnings, thus smoothing out earnings. The S.E.C. says the practice gives investors an inaccurate picture of a company's financial performance."

2011 SEC investigation into Fannie and Freddie

SEC Charges Former Fannie Mae and Freddie Mac Executives with Securities Fraud; Release No. 2011-267; December 16, 2011

Here, a little free education, if you have the integrity and honesty to accept it.

 

[poweRob]

I sad to see people here worshiping ignorance, which you appear to be doing in this thread.

If I "worship" anything it's education and truth. I'm not taken in by Democrat lies.

2004 SEC investigation into Fannie and Freddie
http://www.nytimes.com/2004/09/23/business/23fannie.html

WASHINGTON, Sept. 22 - A federal report accusing Fannie Mae, the giant mortgage company, of improper accounting has led to an informal investigation by the Securities and Exchange Commission, the company's board announced Wednesday. Shares of the company fell $4.96, to $70.69, on the New York Stock Exchange.

The Office of Federal Housing Enterprise Oversight, which regulates Fannie Mae and Freddie Mac, released a report on the Internet Wednesday night saying that an ongoing, eight-month investigation had found improper "cookie jar" accounting - that is, setting aside artificially large cash reserves to reduce revenues in some years so they can be drawn on in other years when the company needs higher revenue and earnings, thus smoothing out earnings. The S.E.C. says the practice gives investors an inaccurate picture of a company's financial performance."

2011 SEC investigation into Fannie and Freddie

SEC Charges Former Fannie Mae and Freddie Mac Executives with Securities Fraud; Release No. 2011-267; December 16, 2011

Here, a little free education, if you have the integrity and honesty to accept it.

Yeah... no:

"Between 2004 and 2006, when subprime lending was exploding, Fannie and Freddie went from holding a high of 48 percent of the subprime loans that were sold into the secondary market to holding about 24 percent, according to data from Inside Mortgage Finance, a specialty publication. Even so, by 2007 only 17 percent of their total portfolio was either either subprime or Alt-A loans. Due to regulations, their percentage of these loans are actually better than many banks."
linkpoo...​

"During those same explosive three years, private investment banks -- not Fannie and Freddie -- dominated the mortgage loans that were packaged and sold into the secondary mortgage market. In 2005 and 2006, the private sector securitized almost two thirds of all U.S. mortgages, supplanting Fannie and Freddie, according to a number of specialty publications that track this data."
linkypoo...​

"If the conservative view was correct, one would expect to see mortgages originated for Fannie and Freddie securitization, as well as those originated for purposes of CRA, to default at higher rates, since these were the loans directly subject to affordable housing policies. In fact, we see quite the opposite, as these loans have performed exponentially better than those originated for private securitization, which the FCIC Republicans ignore."
linkypoo...​

Another conservative myth is busted.

 

[thinkforyoursel]

You have no idea of what the hell it is your'e talking about.

No...I'm wrong? Should I stick with the right wing version that poor people ...with no money, no power and no influence ....tear down the housing market? And then I should believe (like you do) that the Banks....the banks are the victims?

So let me get your story straight ...poor people tear down the housing market...the banks are the victims ...and deserved the bail-outs...while most hard working American who paid their mortgage and play by the rule must wait another decade or two for their home values to appreciate above water? :roll:

 

[Grand Mal]

How's that 'deregulation' thing working out so far?

 

[MMC]

B

Big Banks ? WTF are you talking about ?

How about going after the low life politicians who in the 90's pushed banks to lower their lending standards based on a false narrative called "redlining" ?

How about going after the politicians that lied about the health of Fannie and Freddie who were buying up hundreds of billions in securities backed by sub-prime Loans ? FFS, Obama is currently using the FHA is offer no down loans to people with questionable credit NOW.

Big Banks ? :lamo

Friken Nonsense.

Mornin' Fenton :2wave: .....Yeah when I mean going after Big Banks. I mean not allowing them to monopolize to be come so big they can't fail. Or bailing them out. Truthfully I hate seeing only a few of these Big Banks all over the place. I prefer to see smaller Banks for ones own Area and Region. Banks of the People.....you might say. Around me that's exactly what it is called. Peoples Bank.

Most definitely I would want to go after the Politicians first. I didn't expound all on it with that aspect. But I am in total agreement with you there.

Yeah.....he has eased back with peoples credit ratings and even if they missed a couple of payments. His Mortgage Program to help people out was a bust the first time. Course anyone on that list. Wont have foreclosure dumped on them.

 

[GottaGo]

I'm with you on this ....the banks messed up the housing markets by granting loans to anybody..then selling those loans to suckers as investment.

But why can't Obama fix it....could it be because the right wing have blocked and blocked ...andblocked....through the fillybuster system .....all his appointees to oversee the financial industry?

Everybody understand the right wing game ....and this is why Obama is untouchable ..because the right have made it very difficult for Obama to do even simple things. This is why Obama is a two term president.

And many people understand the political game... it doesn't fit well for the current administration to fix it because they would be stepping on the lower income groups, and we just can't have that. /sarcasm.

It's not a right or left thing... the politicians believe they own the American people... it's all about their careers and money, not yours or mine. The 'right wing' has blocked what they deemed wrong moves.... be they right or wrong on the subject, many of the bills they blocked are because of what has been attached to them.....

 

[thinkforyoursel]

And many people understand the political game... it doesn't fit well for the current administration to fix it because they would be stepping on the lower income groups, and we just can't have that. /sarcasm.

It's not a right or left thing... the politicians believe they own the American people... it's all about their careers and money, not yours or mine. The 'right wing' has blocked what they deemed wrong moves.... be they right or wrong on the subject, many of the bills they blocked are because of what has been attached to them.....

If the politicians feel like they own the American people ....it's because they actually do. And they got ownership....thanks to the American people.
But the most disheartening fact is ...nothing will change ....the old stale game of using the in-bred pettiness of the right wing will always work.

And the people on the left ...pettiness and hate is not what motivates them....this is why talk-radio doesn't work on the left.....they are motivated by pocket-book issues.

 

[GottaGo]

If the politicians feel like they own the American people ....it's because they actually do. And they got ownership....thanks to the American people.
But the most disheartening fact is ...nothing will change ....the old stale game of using the in-bred pettiness of the right wing will always work.

And the people on the left ...pettiness and hate is not what motivates them....this is why talk-radio doesn't work on the left.....they are motivated by pocket-book issues.

Bleeding hearts and spending other people's money is what motivates the left. Loss of personal freedoms and expression. The motivation to support one's self. All left leaning inclinations.

Simple question no one has been able to answer rationally as of yet: at what point does helping others become a detriment to yourself?

 

[thinkforyoursel]

Bleeding hearts and spending other people's money is what motivates the left. Loss of personal freedoms and expression. The motivation to support one's self. All left leaning inclinations.

Simple question no one has been able to answer rationally as of yet: at what point does helping others become a detriment to yourself?

...and this is the pettiness I'm speaking of.

The right wing politicians ...will always use this in-bred pettiness you're afflicted with ....and make you act against your very own self interest!!

The other issue is you people have nothing to lose ....you're fantasy that you're actually losing money to poor people is just that ...a fantasy.

STFU and stop complaining about politicians owning the American people ...because they got this ownership from people like you.

 

[GottaGo]

...and this is the pettiness I'm speaking of.

The right wing politicians ...will always use this in-bred pettiness you're afflicted with ....and make you act against your very own self interest!!

The other issue is you people have nothing to lose ....you're fantasy that you're actually losing money to poor people is just that ...a fantasy.

STFU and stop complaining about politicians owning the American people ...because they got this ownership from people like you.

When you can figure out what 'independent' means, as in NOT right wing, NOR left wing, you might understand there are a whole lot of people that don't identify with either side.

I'll take your response as "I don't have an answer, just keep giving it up, it doesn't matter if you can support yourself".

 

[thinkforyoursel]

When you can figure out what 'independent' means, as in NOT right wing, NOR left wing, you might understand there are a whole lot of people that don't identify with either side.

I'll take your response as "I don't have an answer, just keep giving it up, it doesn't matter if you can support yourself".

...aaawww shutup! If people like you were never born America would be better.

Rarely do you hear any real contributor to the country complaining ....it's always parasites like you who's only complaining because you want more of the government bounty for yourself.

 

[GottaGo]

...aaawww shutup! If people like you were never born America would be better.

Rarely do you hear any real contributor to the country complaining ....it's always parasites like you who's only complaining because you want more of the government bounty for yourself.

I have no clue what your problem is. Perhaps you need to take a moment before you spew like this.

Your histrionics are entertaining, at least.