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

Bankruptcy reform proposals appear to be moving in Congress, but these bills will create additional risks for mortgages and MBS.  Holders of MBS may see if further decline in value if the legislation passes.  Mortgage costs would likely go up to reflect new risks.

Holders of mortgage-backed securities and subprime mortgage lenders, such as Countrywide, holding loans in portfolio are likely to benefit from Government "solutions" to the subprime mess. 

Credit card issuers will face additional pressure as the OCC urges the Fed to allow consumers to refuse to accept interest rate changes pay of balance at old rate.  This will have a negative impact on credit card issuers that raise rates for customers that have a credit score downgrade.

Such a great fallout in the mortgage industry, is a strong indication of a need for change. The change that  will help the industry the most will be the change that helps the borrowers.  Subprime borrowers is where the concentration should be focused.  They are the largest group...

1.  Increased government regulation requiring the new calculations. 2.  Increased paperwork for the originators and the loan applicants that they don't understand. 3.  Even if we came up with the perfect disclosures, the people that need them the most will not use them.

It is redundant and not very useful research. Same data is readily available with any mortgage amortization software.

Advance America has done little to improve store operating performance over the last several years. The Oregon law change and the Pennsylvania aside, Advance America seem s to be determined to watch their stock value slip into oblivion. While every other payday loan provider is adding new products/services...

What a strange marriage, with Lone Star refusing to come to the wedding ceremony, Accredited sueing them, and the two eventually tieing the knot.  Lone Star must have some vision for what to do with Accredited, but at the moment, there is almost no market for sub-prime loans. The only logical plan...

World wide financial stress is looming. End of discounted home loans in Australia.  

Stress is yet to be seen, early indicators are bad, the future is going to be worse. The actions to date have failed the test for working out of the mortgage crisis. What is yet to come on the mortgage market can be changed if acted on, current trends are leading to disaster.