subprime mortgages

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Tightening Credit Markets Squeeze Banks

$140B in commercial paper is coming due, and forecast is fuzzy

(Newser) - Almost $140 billion in commercial paper has matured and is up for renewal by next week, and banks need to attract buyers to pay it off. The yield on the short-term loans, which are entangled in the subprime mortgage crisis, is skyrocketing. "This could be a pivotal seven to...

Countrywide Will Slash up to 12,000 Jobs

(Newser) - Troubled mortgage lender Countrywide announced today that it would cut up to 12,000 jobs–or some 20% of its total workforce–over the next three months. The Wall Street Journal reports that, as the subprime debacle rocks the housing market and the lending industry, Countrywide expects to issue 25%...

Foreclosures Trigger Asian Drop
Foreclosures Trigger Asian Drop
Sep 7, 2007 4:07 AM CDT

Foreclosures Trigger Asian Drop

Fear of brake on US consumer spending

(Newser) - Asian stocks are falling again, reflecting worry the growing credit crisis in the US will puncture the economy and slash consumer spending. Mizuho Financial Group, Japan's second largest lender, dropped to a two-week low after an increase in home foreclosures in the US —and many other Asian financial stocks...

Foreclosure Rate Hits the Roof
Foreclosure Rate Hits the Roof
Sep 6, 2007 6:23 PM CDT

Foreclosure Rate Hits the Roof

Subprime mortgage crisis also sparks rise in US delinquencies

(Newser) - The number of US home loans entering foreclosure reached an all-time high in the second quarter, a new survey shows, and delinquencies are up to more than 5% of all mortgages. Trouble with adjustable-rate mortgages—an outgrowth of the subprime crisis—is driving delinquencies, CNNMoney reports, with seven Midwest and...

ECB Pumps Cash Into European Markets

Key interest rates left unchanged in effort to reduce turmoil

(Newser) - The European Central Bank pumped $57.7 billion of emergency cash into the markets today and left their key interest rates unchanged, in an effort to ease the cost of borrowing and calm markets made volatile by the US subprime collapse, Bloomberg reports. The ECB action followed a day in...

Recession Risk Seen in Mortgage Misery

Top economist urges immediate rate cuts to avoid catstrophe

(Newser) - Mortgage woes could spark a serious recession, a prominent economist said yesterday. National Bureau of Economic Research President Martin Feldstein said that interest rates must be slashed heavily and quickly, or declining prices and weakening home equity withdrawal could hobble the economy, Reuters reports.

Wall Street Up, Up, and Away for Holiday Weekend

Investors thank Bush, Bernanke for gains

(Newser) - On the eve of the holiday weekend, the major markets jumped today, riding encouraging comments by President Bush and Ben Bernanke to broad advances that pushed their monthly gains above 1%. The Dow, which saw 28 of 30 stocks rise, finished up 119.01 points, closing at 13,357.74....

Bush Promises Mortgage Relief
Bush Promises Mortgage Relief
Aug 31, 2007 2:52 PM CDT

Bush Promises Mortgage Relief

Fed agencies to offer aid to help Americans during credit squeeze

(Newser) - The government will roll up its sleeves and aid homeowners battered by the subprime mortgage crunch, but it will forsake “speculators” trying to exploit the crisis, President Bush said today. The FHA will step in and help delinquent borrowers avoid foreclosure by refinancing at lower rates, but experts predict...

Bernanke Vows to Combat Mortgage Mess

Fed ready to step in; Wall Street holds out hope for rate cuts

(Newser) - In his first comments on the subprime mortgage meltdown, Ben Bernanke today vowed the Federal Reserve “will act as needed” to contain the turmoil, preventing it from weakening the broader economy. The Fed chief pledged the central bank would “take additional actions” if necessary. “It is clear...

World Markets Rise Before Bush Speech

Prez expected to announce plan to bail out subprime borrowers

(Newser) - European and Asian markets rose today, in anticipation of a plan President Bush is expected to announce to bail out subprime lenders. Bush is expected to allow the FHA to guarantee loans for delinquent borrowers, allowing them to avoid foreclosure. "The news on Bush is going to be positive....

Bush to Unveil Bailout Plan in Mortgage Crisis

Reforms will help families keep their homes

(Newser) - President Bush will announce a rescue package for homeowners with subprime mortgages faced with foreclosure. The package will include a call for Congress to give the Federal Housing Administration more power to help borrowers keep their homes—and stricter enforcement of laws against predatory lending, Reuters reports.

Freddie Mac Posts 45% Net Drop
Freddie Mac Posts 45%
Net Drop
Aug 30, 2007 9:51 AM CDT

Freddie Mac Posts 45% Net Drop

Mortgage giant sees $320 million loss on new mortgages in Q2

(Newser) - Freddie Mac posted a 45% drop in net income for the second quarter, and said the outlook wasn't rosy for the third. The home-mortgage financier was hit with a $320 million loss on new mortgages. Freddie Mac doesn't buy subprimes directly, but is still affected by the general mortgage turmoil.

Mortgage Mess Was 100% Avoidable
Mortgage Mess Was 100% Avoidable
Aug 29, 2007 7:39 PM CDT

Mortgage Mess Was 100% Avoidable

Lax oversight has huge cost, American Prospect editor writes

(Newser) - Blame for the current economic disaster should be placed squarely on the shoulders of the US government, for deregulation that allowed speculators to cash in, writes the American Prospect’s Robert Kuttner. Helping boost "ordinary people" into the "propertied class" has fallen out of favor in Washington, with...

Credit Crisis Spurs Calls for New Oversight

EU, Asia want cooperation in US market regulation

(Newser) - Financial regulators and politicians across Europe and Asia are banding together to demand an international role in the oversight of American markets. The subprime meltdown has demonstrated that fluctuations in American markets can wreak havoc the world over, the Times reports, and now international players are wondering why they must...

Plastic May Pose Next Big Threat to Economy

Experts expect credit card trouble to track mortgage woes

(Newser) - The subprime mortgage crisis may spark another financial disaster: bad credit card debt. When rates hit 50-year lows, many owners borrowed against their homes to pay off high-interest credit cards. Now, with rates increasing, many may not be able to pay down both their mortgages and their credit cards, the...

Credit Crunch Continues, and So Do Ads

Lenders are still advertising cheap mortgages, but the loans aren't there

(Newser) - As the credit crunch transforms the financial landscape, one thing hasn't changed: lenders continue to offer loans that are too good to be true. The Washington Post writes that mortgage companies are still offering risky products to risky customers—even Countrywide, which barely avoided bankruptcy, is flogging cheap money with...

Financial Woes Crucial Issue in '08 Election

AARP voters concerned about their wallets, new poll shows

(Newser) - A new poll of AARP members shows that financial security will be a big factor in how 90% will vote in early 2008 presidential primaries, the Politico reports. Though many of the 5,000 potential voters aren't familiar with candidates' positions on financial and health issues, one pollster says, more...

Credit Jitters May Put KKR Offering on Ice

Private equity firm denies reports its IPO will be delayed

(Newser) - The Times of London claims that buyout firm KKR has postponed plans for a $1.25B float and a public listing because of the fallout from turbulent credit markets. The company had planned its IPO this September but has reportedly pulled back due to waning investor confidence following the subprime...

Bank of America Bails Out Countrywide

Lender avoids disaster as bank buys $2 billion in cut-rate shares

(Newser) - Countrywide came back from the brink yesterday as Bank of America bought $2 billion in preferred stock in the mortgage company, writes the Los Angeles Times. Countrywide's share price soared in after-hours trading, only a week after the credit crunch brought it to the point of bankruptcy.

Monthly Foreclosures Climb Again
Monthly Foreclosures Climb Again
Aug 22, 2007 2:34 AM CDT

Monthly Foreclosures Climb Again

Figures jump 93% over 2006; 1 in every 693 households in default

(Newser) - Foreclosure numbers were up big again in July, rising 9% from June’s figures and a whopping 93% from a year ago, an unwelcome sign for already reeling credit markets. Foreclosures rose in 43 states, but California, Florida, Michigan, Ohio and Georgia accounted for over half of the the activity,...

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