GLG News by Secondary Mortgage Marketing Experts

During the residential real estate bubble, underwriting standards were relaxed so far that unprecedented numbers of unqualified borrowers became new homeowners and many existing homeowners serially refinanced into loans that that they could not afford. Once the air began leaking from the bubble,...

Thsi WSJ article simply and clearly lays out the three key factors behind the current "housing crisis:"  financial engineering by Wall Street that increased risk, unconscionable enabling by rating agencies, and asleep-at-the-switch regulators.

Many banks will no longer be able to deny huge losses on their portfolios of loans to residential and other developers.  Recognition and realization of these losses will seriously damage the financial strength of many banks, particularly smaller ones.  Expect increasing bank failures.

Until the housing mortgage markets are no longer under severe stress, the federal government will do whatever it takes to ensure the solvency of Fannie Mae and Freddie Mac.  Therefore, rating agency downgrades of these government-sponsored entities are irrelevant for the foreseeable future....

Loan loss reserves at banks are at historic lows. At the same time, the credit cycle has turned viciously negative, particularly for mortgages. Banking regulators are likely to ratchet the pressure up on banks to raise their loss reserves. The most vulnerable are banks with outsized exposure to the...

Countywide's announcement late last Friday and Angelo Mozilo's letter to employees provide a unique window into CFC's strategy for addressing the impact of the credit crisis on its business. The letter provides details on the steps that CFC is taking to shelter itself from the fallout. Unfortunately,...

Retained interests from securitizations made up more than 75% of the shareholder's equity at NFI. Also, the company has elected to finance these securities. Demand, never very strong to begin with, has deteriorated severely in the last month. The company could be forced to recognize a sizeable...

With the residential lending capital markets virtually shut down, there is little good information that is known.  But there is a lot of sentiment, including fear.  I look to a firm such as the New York Times to allay fear and communicate good information during these times.  Rather,...

Several banks will be closing their third quarter soon. The credit crisis intensified in the third quarter - what impact should we expect to see from the bankruptcies, plummeting market values, the virtual demise of the collateralized debt obligations market etc. - Some banks will write down goodwill...

       The debacle in subprime bonds was side stepped by some investors. They were able to spot warning signs while others ignored or missed them. A lot of this information was in plain sight. Others could have found the same red flags, if only they knew what to look for