Mortgage brokers tend to charge more to place a loan than you would have to pay if you went directly to the lender, according to a recent HUD Study. This is not a surprise to consumer advocates but it tends to contradict the story told by mortgage brokers and their lobbyists. There’s a [...]

It sounds exactly like the standard consumer mortgage nightmare: Buying a place that’s really bigger than you need. For more than you really can afford to pay. Then your income gets cut. And the financing gets more expensive too. Stop me if you think you’ve heard this story before.
No, you [...]

Adjustable rate mortgages are at the heart of the current mortgage crisis in America. And almost everyone who has a recent one wants it converted to a fixed rate loan as soon as possible. With good reason. But are ARMs naturally toxic to consumers?
Not necessarily. ARMs are like firearms, they’re tools [...]

Last week, the Senate leadership introduced the Foreclosure Prevention Act of 2008. It is S. 2636 in congressional jargon. The legislation would be a leap forward in the government’s efforts to mitigate the foreclosure and credit crisis sweeping the country.
The bill incorporates pending proposals that would allow bankruptcy courts to modify mortgages [...]

In 1993 accountants changed the rules for lenders to try to protect us all from another savings & loan disaster. But bankers were not concerned. Now they would like us all to forget the rules so they can use “better” numbers in their books.
It turns out that the banks never really thought they [...]

In the peak year of 2005, more than half of subprime mortgages were made to borrowers with prime credit scores. And last year “prime-subprime” borrowing hit 61% of all subprime loans originated, according to a study reported by the Wall Street Journal.
The Journal’s report reflects what many practitioners already know: A lot of [...]

The government is hoping Fannie Mae and Freddie Mac will come to the rescue of subprime lenders and borrowers by buying up more of those loans and working with consumers to save their homes. But both companies are showing rapid declines in their assets — neither look like they are in a position to [...]