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All News Analyses by this Author

Specialty Mortgage Options

May 15, 2008

Analysis of:Say Goodbye to the Specialized Mortgage Options | www.latimes.com

Long gone are the days of double digit appreciation in home values as money tightens among fears of rising foreclosures. Foreclosures that could have been stopped if the secondary market had not stopped funding loan pools that included sub-prime loans. Now people with 2 and 3 year sub-prime loans do not have an avenue to refinance out of their "specialty" loan and are stuck with a rising interest rate due to the reset terms of their original loans, which by the way increases their monthly payments and in turn causes the borrower to reosrt to defaulting on their loan. So when it comes to losing these so-called "specialty" loans that were created by President Clinton's White House, we are in a sense forcing more people into foreclosure and destroying our economy.

Housing crisis bottom?

May 15, 2008

Analysis of:The Housing Crisis is Over | online.wsj.com

It is still too soon to tell if the housing crisis has bottomed out. Foreclosures in April rose another 65%, per RealtyTrac.com and over 1.2 million people are in some stage of foreclosure. We will not be able to tell when the housing crisis hit bottom until years after it hit. Ask any economist and they will tell you that to correctly analyze a trend you have to wait until after it has passed and look at the historical data.          

Global Market Fallout from US Banks

May 1, 2008

Analysis of:Some Banks Rethink Investments as Money Tightens | www.nytimes.com

This article is important because if it were not for the fright of our banks over sub-prime loans we would not be in this mess in the US and now they are threatening the foreign markets. Banks play an integral role in our secondary markets and because of that and their bearish beliefs on a sector of the financial markets, ie, sub-prime residential mortgages, has collapsed and caused unprecedented foreclosures and bankruptcies. When banks get skittish over a sector of the economy, whether locally or globally, as in 2006, and that caused the closure and bankruptcy of over 200 mortgage lenders thus far as well as millions of homeowners without a loan product to refinance their short term loans. Once again the bankers have the ability to shut down an economy of nations by pulling out too soon. What the end result will be is yet to be seen but I believe that at a time when they should be investing in alternatives they are ready to pull out and detroy more of our financial future.

FHA Secure, Who does this Really Help?

September 7, 2007

Analysis of:Bush, Bernanke Pledge To Stabilize Mortgage Meltdown | www.consumeraffairs.com

To Qualify for FHASecure Home Loan: eligible homeowners must meet the following five criteria: 1. A history of on-time mortgage payments before the borrower's teaser rates expired and loans reset; 2. Interest rates must have or will reset between June 2005 and December 2009; 3. Three percent cash or equity in the home; 4. A sustained history of employment; and 5. Sufficient income to make the mortgage payment.

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