The mortgage market risk no one’s talking about, plus a proposal to redesign the system

The mortgage market risk no one’s talking about, plus a proposal to redesign the system

Nearly ten years ago, the collapse of the sub-prime mortgage market sent the U.S. economy into a tailspin. As housing prices dropped and unemployment climbed, vulnerable households found themselves unable to refinance the mortgages they borrowed under better economic circumstances. Struggling to meet ever-increasing monthly payments, more and more homeowners defaulted on their mortgages.

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Building a mortgage meltdown for the rental market

Building a mortgage meltdown for the rental market

The American home-buying world doesn’t even resemble a free market. Americans owe $10.3 trillion on mortgages. Fannie Mae and Freddie Mac, the government-guaranteed mortgage giants, hold $5 trillion of that debt. The Federal Reserve holds another $1.8 trillion. Smaller government entities like the Federal Housing Administration and Federal Home Loan Banks round out the government sector.

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A big deal in nonprime mortgages proves leery investors are finally hungry again

A big deal in nonprime mortgages proves leery investors are finally hungry again

Subprime Securities aren't coming. They are calling them Nonprime loans now. And they are bundling them back into securities again. Combine that with the credit agencies no longer looking at Tax Judgements and Fannie Mae loosing up Debt to Income Ratios, more nonprime people will qualify for loans. That's good news for me because we'll have more non-performing notes out there. For the rest of you folks, the good news is that we are starting small, so it might be a while before there is a large impact.

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Why are small banks disappearing?

Why are small banks disappearing?

In 1994, nearly 500 banks were headquartered in California. Today, there are fewer than 180. By the end of the year, if current trends hold, Californians will have only one-third the number of banks to choose from for their mortgage, small business and personal savings needs than they did just a couple of decades ago.

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How Dodd-Frank helped the wealthy and left the middle class behind

How Dodd-Frank helped the wealthy and left the middle class behind

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was approved in the aftermath of salient abuses against consumers, and in times of pressure from public opinion and the media. This pressure might have reduced the ability of Congress to foresee all the possible consequences of the new legislation.

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