Fannie Mae has the luxury of marking its accounts more accurately because they have no fear of being nationalized or going bust since they already have hit the wall.  So, when we read the latest quarterly results from Fannie Mae, we are not just seeing a glimpse of Fannie’s reckless financing, but of the American [...]

If you haven’t seen any of Jim the Realtor’s videos over at Calculated Risk, you are not getting a feel for what’s happening in residential real estate in America.  The guy really gives the whole housing problem in California a look you wouldn’t have unless you were a real estate agent living it. His videos [...]

I supported a proposal to help foreclosed homeowners by Dean Baker and Andrew Samwick back in June (see “Why not protect the homeowner?”).  Apparently, the Obama Administration likes this proposal and is floating a trial balloon via Treasury Assistant Secretary Herb Allison (hat tip Marshall Auerback).
A top Treasury Department official told a Senate panel [...]

I got a tip from a friend Andrew about a sale of assets by Wells Fargo (WFC) which raises a number of interesting questions.  He sent me the following 14 July article from the Milwaukee Business Journal.
Wells Fargo sold $600 million in mostly non-performing subprime loans to Irvine, Calif.-based Arch Bay Capital, National Mortgage News [...]

This comes via the Nationwide website:
As a responsible lender which aims to support its borrowers Nationwide has responded to market conditions and made an option available which enables some existing customers in negative equity to move home. This is not available to new customers. The maximum LTV for existing customers taking a new deal at [...]

The Nationwide, the world’s largest building society, is now bringing back the dreaded 125% mortgage.  While the lender claims these mortgages are a “niche product” designed for customers of Nationwide in negative equity, the Financial Services Authority (FSA) is looking to ban this type of lending.
From the BBC:
It will only be available to existing customers [...]

Let’s say you’re an American named Maria living in Southern California.  The year is 2006.  You make $45,000 and your husband David makes another $40,000.  You have two children aged six and four and your two-bedroom apartment is getting too small.  So you decide to consider buying a house.  Eventually, you and your husband find [...]

Apparently the answer to this question is yes.  CNBC is reporting that home ‘owners’ who refinance their mortgages through loans backed by Fannie and Freddie will be able to borrow up to 125% of their homes’ value (hat tip Marshall Auerback).  That’s not a typo: we’re talking no-money down and 25% cash back.  Sign me [...]

This morning I was reading Simon Johnson’s excellent post “President Obama’s Regulatory Reforms Announcement: A Viewer’s Guide” about what Barack Obama should say when he makes his regulatory reform pitch today at 12:30 PM.  I agree with what he has to say about the need to re-assure us his ‘administration ‘gets it.’  And I suggest [...]

It’s about time.  The SEC has finally charged a high level executive in the banking industry in connection with activities that led to the largest bubble in U.S. history.  The accused, as expected, is Angelo Mozilo, otherwise known as “The Man with the Tan.”  You will recall that I have been expecting this for some [...]