Posted on June 2nd, 2008 in Mr Mortgage - News Picks of the Day!
This is something new I will be doing daily. All day long, I am reading press releases, getting emails regarding events happening etc. I forward stuff off to buddies and they forward to me and it becomes tough to keep track of it all. I can’t comment on all of them but think many have a direct impact on the mortgage, credit and housing implosions. Therefore, in addition to my personal research, beginning this evening I am just going to aggregate what I consider to be the best stories daily for all of you with comments as necessary. This should free up a lot of my day and enable me to pass on great stuff, which you may not get or have time to check out on your own, to all of you. -Best, Mr Mortgage
Wachovia CEO is Out! – Bloomberg. This is payback from the Board of Directors for not understanding how Pay Option ARMs are so toxic they will take any bank down, no matter how strong, eventually.
Spike in Foreclosures Goes Beyond Subprime– Barry Ritholtz. I have written about this too many times to mention. Look through the blog.
In Foreclosure Capital, 3 of 4 Home For Sale is a Foreclosure – MSNBC/Blown Mortgage . Actually I thought this would be worse. We already know that 38% of all home sales last month were out of the foreclosure stock and that number keeps rising every month. America’s residential real estate is being marked to market overnight by lenders dumping homes at massive discounts. See my April Foreclosure Report for more on this topic.
Wall Street Says -2 + -2 = 4 as Liabilities Get New Bond Math– Bloomberg. One word…’crooks’.
S&P Lower the Rating of the Major Brokers…Stocks Tumble – Bloomberg. This one just really confused Dennis Kneale on CNBC. He just said ‘I thought the credit crisis was getting better’. The guest said ‘so what, these companies will never earn what they used to and they are all in trouble’. This one wasn’t to tough to figure out. Heck, even I said last year that with securitizations, IPO’s, and revenue from every acronym under the sun suddenly gone, where are they going to get their revenue from??? Day Trading?
Another Stated Income Loan is Discharged in Bankruptcy – Conglomerate. This one is from CA. The lenders thought that they could push off fraud to the borrowers and judges across the nation are not seeing it that way. “She questioned whether industry guidelines on stated income loans were objectively reasonable. The minimal verification for stated income loans suggests that they’re essential asset-based loans–loans made in reliance only on the value of the collateral!”