Posted on June 4th, 2008 in Mr Mortgage - News Picks of the Day!
FASB Says ‘Bring Those Special Purpose Vehicles Back on the Books!’ – American Banker . This could get interesting. We have forgotten all about the SIV’s, VIE’s and host of other off-balance sheet acronyms banks have used for years to hide the slim-shady. Perhaps, now HR Block will pay for their Option One nightmare, which to date they have skated on. Here is a free-bee for ya. Option One is #7 on the REO list of all lenders in the nation for CA properties coming back to them in 2008 year to date.
Mortgage Applications Fall 15.3% Last Week – Bloomberg. So what. This is just how it has been for years leading up to the big bubble pop. During the ‘good times’ from 2004-2007 whenever the economy would show signs of weakening, bond yields would take a run and rates would fall with the 30-year fixed going into the mid 5%’s, and refi’s would pick up dramatically for a couple of months. Then as people got their loans, many would cash out, the economy would mysteriously show signs of improvement, bond yields would rise, rates would follow and shoot over 6% and all refi business would dry up. In the mortgage business in latter years of ‘the big boom,’ mortgage players would make most of their money in 4 months of the year. Now, what has happened in the past few weeks? Rates popped back above 6% and refi’s have gone away. Same pattern different year. But it still goes to show how people have no use for rates above 6%.
Wachovia Bank CEO’s Story – Yahoo News. I will sum it up for you. How stupid do you have to be to pay $26 billion to enter the Pay Option ARM market at the height of the housing bubble and inherit $120 Billion in Pay Option along with it! Enough said.
Einhorn Vs. Lehman’s Callan – NY Times. This is a goodie.