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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Refis Actually Did More Damage During The Housing Crisis -UI

Refis Actually Did More Damage During The Housing Crisis -UI

Conventional wisdom, the lending version, holds that refinance loans are inherently less risky than purchase loans, but a recent analysis from the Urban Institute (UI) refutes this contention.  In fact, Linda Goodman, Co-director of UI's Housing Finance Policy Center says rampant refinancing probably played a major role in the housing crisis.

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THE SIMILARITIES AND DIFFERENCES BETWEEN THE US HOUSING MARKET IN 2007 AND 2017

THE SIMILARITIES AND DIFFERENCES BETWEEN THE US HOUSING MARKET IN 2007 AND 2017

The economy of the United States, the world’s largest in terms of nominal gross domestic product (GDP), has been the subject of much speculation; any effect on the US economy has a butterfly effect on the global market. This impact was witnessed following the financial crisis of 2007, and not much has changed since then.

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Here's why Goldman Sachs is snatching up delinquent mortgages

Here's why Goldman Sachs is snatching up delinquent mortgages

Bank dominates Fannie Mae non-performing loan sales

Goldman Sachs’ purchase of a portfolio of non-performing loans from Fannie Mae earlier this week marked only the latest in a long string of purchases of severely delinquent home loans from the government-sponsored enterprise, according to an article in The Wall Street Journal by Liz Hoffman and Serena Ng.

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