All GLG News Analyses Filed Under: Mortgages, Consumer & Specialty Finance

The Federal Reserve and FTC proposed a requirement for lenders to notify borrowers with damaged credit of their reasons for offering less than favorable interest rates. Currently, consumers seeking loans and lines of credit have only a vague idea of why a lender offers them a specific rate. With this...

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...

The FICO score is a valuable component in the underwriting process.   However, if a lender uses it to the exclusion of other standard industry best practices, the result will be an under performing portfolio.  Create a sound, comprehensive underwriting process and new...

The current market turmoil was created by good old fashion greed.  However, it can not be fixed with over regulation, it can be fixed with common sense and a true willingness of both parties, the consumer and the lender to participate in the increased risk of lending that is now prevalant...

OFEO recently announced that it is lowering GSE capital requirements to enable Fannie Mae and Freddie Mac to buy more loans and provide added liquidity to the mortgage market.  The Fed has also lowered interest rates.  So why haven't consumers responded and housing prices stabilized? While...

1. While the article does a good job of pointing out that the losses will be greater under the House FHA Plan than expected and that the tax payers will carry the cost, it along with the plan by the House  misses the mark by thinking banks will take advantage of the plan. 2. The real owners of...

The credit card deal announced between Target and JP Morgan makes sense for both parties.  It allows Target to address shareholder concerns regarding its card business and mitigate potential growing credit losses. It enables JP Morgan to further develop its private label retail card strategy by...

Implications: 1. Advantageous Strategic Positioning For Target's Credit Card Portfolio by transferring the "Risk" , while maintaining "Control" of operations. 2.Potential Up-Side to JP Morgan is a controlling strategy, which allow the Investment Bank to intervene at an undeclosed breakpoint - take control...

GMAC, LLC includes real estate financing, auto insurance financing, and insurance.  Insurance is delivering much needed income and stability while the mortgage business hemorrhages and the auto loan business stagnates.  But insurance requires a very stable capital structure, and the insurance...

Implications: 1.Severe downturn in the housing market and credit-related charges require an Increase in Reserves as a cushion for possible losses. 2.A windfall in the housing boom market reverses the direction of the Institution: Profitability becomes a hugh loss burden. 3.Forecasts DO NOT meet Earnings...