Heroic Investing
What Makes a Bubble Grow and Burst?
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Take a look at most any financial news today, and you’ll see the word “bubble” bouncing around. There’s the possibility of a student loan bubble, an interest rate bubble driven by the Fed’s bond buyup, and so on. And of course where there’s a bubble, there’s also a bust, so when financial...
Millennials –The Labor Market’s Lost Generation
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New labor statistics are out for May 2013, with 175,000 new jobs added. That’s good news for an employment picture that’s remained stagnant for some time. But some economists fear that this upturn is far from the numbers needed to jumpstart the economy, particularly since one group – the “millennials”...
Sallie Mae Enters Private Lending: More Debt to Come?
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HI5-27-13 For some time we’ve been reporting in this space about the emerging crisis in student loan debt and its impact on various sectors of the economy – including housing. And because the student loan situation in some ways parallels the events of the 2008 housing collapse, what helps or harms...
Reverse Mortgages: Sounding Good on Paper
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It sounds like a great idea. Take out a “reverse mortgage” that taps into home equity to release cash for daily living and other expenditures. For many, particularly those in retirement and beyond, the plan offers financial relief while leaving the original investment secure for the owner’s lifetime....
They’re Back: Subprime Mortgages Rise Again
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Combine federal manipulation of interest rates, tighter standards for mortgage lending and a surge in subprime loans, and what do you get? A blend of mixed messages and conflicting goals that leaves financial experts and homebuyers alike scratching their heads. And, some fear, the collision of all those...
The Qualified Mortgage Rule Tightens Lending Standards
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As the housing market continues its rebound, the mortgage lending industry is still a work in proeress after the string of lawsuits, settlements and new legislation put in place to protect consumers after the well-publicized abuses of the past. More regulation is coming, too, with the implementation...
Mortgage Lending Slows and Banks Blame Regulation
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By many indications, this should be a good time to borrow. Interest rates are still low, banks are even offering previous defaulters a second chance, and new regulations after the housing collapse are in place to protect consumers from lenders’ past fraudulent practices. So why are loan applications...
Fannie Mae and Freddie Mac: Zombie Stocks on a Rollercoaster
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The rollercoaster ride of quasi-federal mortgage lending superagencies Fannie Mae and Freddie Mac hit the down slope after an unprecedented climb that saw stock prices for both these institutions gaining up to 150 percent in previous weeks. Now, as stocks fell by as much as 40% in the final week of May...
Cleaning Up Credit After Foreclosure
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In many ways, the health of the housing recovery hinges on credit – a major factor in the well-known housing collapse of a few years ago As banks and other mortgage lender tighten standards and clean up their lending practices in the aftermath of the crash, they’re taking a harder look at the creditworthiness...
Major Lenders Still Put the Customer Last
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As if a multibillion-dollar settlement on fraud charges and bad press about the handling of payouts from that settlement weren’t enough, major US lenders caught in bad behavior after the housing collapse are now facing new accusations of the same bad behavior. Now, New York’s attorney general has...
