Mortgage News

“We've had a pretty good bull run that carried us up to about 1,400 on the S&P 500 and what we would expect is a little churning here”

Wall Street advanced moderately Monday as a rising dollar cooled some concerns about inflation and helped keep oil prices in check. The Dow Jones industrials at times rose more than 100 points.

The dollar's gains against other major currencies appeared to help ease some concerns about inflation. A weak dollar can exacerbate price increases, especially since hard commodities like oil become more attractive to investors seeking a hedge against inflation.

The market's unease about rising inflation and its effect on consumer spending receded somewhat as light, sweet crude wavered, falling 55 cents to $125.41 per barrel on the New York Mercantile Exchange. Oil briefly reached a new trading high of $126.40, but investors seemed shy, for the time being at least, to add to oil's huge gain of nearly $10 last week. That advance added to concerns about rising prices and their effect on businesses and consumers. Read more

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Sen. Dodd is pushing a bill he says would make lower cost loans available for those facing foreclosure. via ClipSyndicate

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Mortgage arrears at Northern Rock have increased as tougher economic conditions hit borrowers. via Shropshire Star

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MBIA Inc. swung to a $2.41 billion loss during the first quarter as the bond insurer faced ongoing deterioration in the credit markets and recorded billions in write-downs.

The loss equated to $13.03 per share during the quarter ending March 31, compared with year-ago profits of $198.6 million, or $1.46 per share.

Shares tumbled 7 percent, or 67 cents, to $8.76 in premarket trading.

MBIA was forced to reduce the value of its insured derivatives holdings by $3.58 billion, leading to $2.96 billion in total lost revenue, compared with revenue of $729.9 million a year ago. Net premiums written tumbled to $97.3 million from $171.3 million last year. Read more

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The Cleveland Plain Dealer is reporting that about half of the city's subprime mortgage loans written by top lenders in 2005 ended in foreclosure filings. via WEWS

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“The word alone causes people's blood pressure to rise. It's a hard-sounding word, phonetically in sync with its impact on people's lives”

It's a hard-sounding word, phonetically in sync with its impact on people's lives," writes Tamara Draut in the foreword to the compelling "Up to Our Eyeballs: How Shady Lenders and Failed Economic Policies Are ... via Tampa Bay Online

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“If anything, they may come under pressure to ease further, though at present this is not our base case.”

Goldman Sachs economists expect a total of $500 billion in residential mortgage credit losses, a renewed slowdown in economic activity after the near-term boost from fiscal stimulus, and no monetary policy ... via BNET

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“High rates of delinquency and foreclosure can have substantial spillover effects on the housing market, the financial markets and the broader economy”

A government-backed mortgage bailout is needed, and it must be done right away. Before shouting about all the reasons why taxpayers shouldn't rescue the profligate who took on more debt than they could handle, ... via Inland Valley Daily Bulletin

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“You tell yourself, 'I'm only going to put my things in for a short time,' ”

ELK GROVE VILLAGE, Ill.- The foreclosure crisis is hitting yet another American locale: the self-storage center. via Worcester Telegram & Gazette

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COMMENT By Kenneth R. Harney Saturday, May 10, 2008; Page F01 A legal brawl is breaking out over how homes are appraised, at what cost and by whom. via The Washington Post

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