Interesting Personal Debt News Links (February 8, 2009)

February 8, 2009

* Regulators planning to ban “sham” trusts in short sales (Margaret Jackson)

The Colorado Division of Real Estate has formed a task force to examine short-sale real estate transactions involving investor trusts.

* Crying out for communicators (The Financial Times)

Risk management quants, or quantitative analysts, were considered until last year as a lesser-known species of the banking underworld. Armed with PhDs in theoretical physics and mathematics, they would typically keep themselves to themselves, creating models to assess the precise risk of holding financial instruments such as mortgage-backed securities.

* Mortgage rates rise on economic reports (San Francisco Chronicle)

Rates have gone up since hitting a record low of 4.96 percent three weeks ago, a decline attributed to the Federal Reserve’s move to buy $500 billion in mortgage-backed securities to spur lending by banks.

* Real Estate News: Wells Fargo offers to cut balances on some Wachovia loans (Seattle Post-Intelligencer)

Wells Fargo & Co. has offered to cut balances on some Wachovia Corp. mortgages by 20 percent, according to a Bloomberg story .

* U.S. mortgage time bomb needs defusing (Asbury Park Press)

When talking about the U.S. home market, mentioning “the other shoe to drop” was quaint about a year ago. Now we are referring only to bombs.

* S&P dividends to take steepest drop since ’42

NEW YORK: Dividend payments from America’s largest companies are expected to fall 13.3 percent this year, the steepest drop since 1942, Standard & Poor’s predicted.

* Another tool to escape foreclosures (Kenneth Harney, Washington Post Writers Group)

Critics say it could be disastrous – pushing up interest rates on all future mortgages, even for people with excellent credit, and creating huge losses for ailing banks.

* Reverse Mortgages Could be the Next to Collapse (KLKS)

The reverse mortgage business could be the next sector of the real estate market to collapse, says State Representative Jim Davnie of Minneapolis. He and Attorney General Lori Swanson are worried about predatory reverse mortgages aimed at senior citizens.

* A mom’s encounter with foreclosure (Daily Southtown)

The initial appearance was the worst. Legs shaking, uncertain of her surroundings, Gwen Riley walked into an auxiliary courthouse in downtown Joliet.

* Third man named a fugitive in Roseville-based mortgage fraud (Denny Walsh, Sacramento Bee)

Federal agents have added another name to the list of fugitives with ties to a mammoth mortgage and investment fraud based in Roseville.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: