Home Loan News – Mortgage Company in search of funding
The news about the housing market has “not good” for some time. We seem to place daily headlines and fresh by Caty Couric, Charles Gibson on the latest suffering are bombarded homeowners at risk. The abundance of news on the subject is always so depressing that I might even be adding to the overall mental state of the nation, almost ready for a recession. The facts are undeniable. Foreclosures are up 7 6 7%. 3% of loans in arrears or in foreclosure. The largest increase in these figures refer to the so-called subprime mortgages. These are the mortgages that are sold to families with lower incomes, who are the original price payments at a reduced price. As interest rates rise, the consumer for this type of mortgage has been captured. Instead of relying on a payment that had been cited as a mortgage was sold to them, the payments were much higher in line with higher interest rates, which at one time. Now it’s easy to say that this is his fault and he would be more prudent in entering into the loan and borrowers due diligence on the risks and potential disadvantages of requiring that might cause a rise in interest rates. What is worrying is that many of these loans were for people who are beginners in their own home and therefore complicated financial instruments sold. They came from low income households and “blind” by a dream that most of us take for granted. I’m not the only one who thinks so. Illinois Attorney General has been investigating Countrywide Financial Corp. for its potentially illegal attacks on minorities, to purchase high-cost loans. This is just one of many state and federal investigations in progress. The country has also had a close look at the CEO Angelo R Mozilo is under investigation for possible illegal securities transactions, which has about $ 120 million U.S. dollars shortly before his company announced it had paid the nonperforming loans of $ 422 million in the fourth quarter of 2007. Countrywide, which is currently assumed by the Bank of America will be named by the FBI today (9 March 2008), is investigated as one of the fourteen lenders lending practices. As with most stories of investment, when people are losing money, is usually someone they do. It has been demonstrated in recent days that Warren Buffet to be in step, to take a stake in Countrywide. Mr. Buffett, who recently was head of the world list of world’s richest men, Bill Gates, after thirteen years, the sale of sitting on a pile of cash of approximately $ 50 billion U.S. $ for some time. His investment firm, Berkshire Hathaway reported that boils up a stake in Bank of America recently and rumors to be performed once in the financing and mortgage-backed securities markets. As usual, Mr. Buffett is his impeccable rhythm! Even “The Donald” was recently seen on national television presentation of the virtues of real estate investment. I agree with Mr. Trump for those who have the capacity to invest in real estate in a depressed market, possibly those who benefit most. For the average man on the street, but I think the message is clear. If the host will receive a loan or a refinancing package to house some professional advice. Check the fine print and know the downside risks before signing the agreement.