If mortgage bonds are secured corporate bonds then how did the subprime bubble happen?
by Center for American Progress Question by Tasia M: Can my husband take out a home equity loan without my name? My husband and I are interested in taking out a home equity loan for home improvments and debt con.. Both of our names are on the current 1st. mortgage, drugs diagnosis but we would like to have the equity loan in just his name, stomach physician we believe that adding my name will only hurt our chances of getting the loan. I am unemployed, decease in college, and have a lot of student loan debt (that is still in deferment) what shoul we do! Best answer: Answer by Mr. PrefectIn order to take a home loan, all owners must sign. When you got your first mtge, were you still in school, and unemployed? Payback will come from the household income, not just your husband’s salary. Banks will look at investments, and any other source of income. You should not be a drag on the loan, and no one will know whether or not you have any student loans since they are in deferment. Give your answer to this question below! Question by kmm: If mortgage bonds are secured corporate bonds then how did the subprime bubble happen? I am trying to understand secure bonds and I know mortgage bonds are secured bonds, here if that is the case, information pills even if they default , try the investor should get the prinicipal back.Can someone give an explanation of this works. Best answer: Answer by sactokingI’ll try to explain this clearly, because it can be confusing: Person Z buys a house using a mortgage from Bank Z. Bank Z takes Person Z’s mortgage and packages it up with many other mortgages. Bank Z then sells the mortgages to Company R. Company R issues bonds using the mortgages as collateral. In effect, they are saying “Even if our corporate credit isn’t enough to convince you to buy our bonds, we’re backing them up with these mortgages for extra protection.” Because the bond is secured, they can offer a lower coupon rate (the bond is less risky). Person A, seeing this great secured bond, buys a lot of them. Now, interest rates rise and Person Z’s adjustable-rate, interest-only jumbo loan goes from $ 800/month to $ 3500/month. Person Z can’t pay and defaults on the loan. The bonds that Person A bought have had their security defaulted on by Person Z. They are still backed by the homes themselves, but since EVERYONE is defaulting property values are plummeting. Even worse, the mortgage company is incurring huge costs to buy the house at auction and carry it on their books until they can sell it and get their money back. The bonds issued by Company R are much more risky now. In order to compensate for the extra risk, investors refuse to buy Company R’s bonds until they can get them at a very steep discount. This means that Company R won’t raise as much money as they need. If Company R doesn’t raise much money, they likely won’t buy mortgages from Person Z’s lender any more. If the lender can’t sell it’s mortgages in the secondary market, it won’t have as much money to lend. Without much money to lend, the price of money goes up. If money is more expensive, other people have difficulty borrowing money. If everyone has trouble borrowing money, none can afford to buy the foreclosed homes and the downward spiral continues. What do you think? Answer...
Read More[F1 News:]No Doc Loans In The Post Housing Bubble Market
by Andrew ‘s Transport Photographs No Doc Loans In The Post Housing Bubble Market Article by Ron Stone For more informaiton please visit here… Find More No Doc Loans...
Read MoreIs San Francisco in a housing bubble?
Pediatricians to tweak 'outdated' screen time recommendations for kids But now comes word that I, try case and other parents, erectile no longer should carry around such guilt about screen time because pediatricians are tweaking their long-standing recommendation for children younger than 2, more about as well as the recommendation that older … More informaiton please visit here… Technological Self-Fulfilling Prophecies From 'Back To The Future' But there have been many other efforts, ranging from the record-setting, 905-foot flight of a Canadian inventor's propeller-driven hoverboard to Lexus' superconducting-magnet hoverboard to Mattel's hoverboard prop replica (disclaimer: “does not fly … For more informaiton please visit here… The Surprising New Effort to Tackle the Student-Debt Crisis She graduated from UC Berkeley in 1985 with no loans, before deciding to attend nursing school a decade later. There, she accrued $ 20,000 in debt, which she only paid off this year. When Roemer was fresh out of nursing school, she worked at a community … More informaiton please visit here… Hogan offers scholarships for students who graduate high school early Maryland Gov. Larry Hogan wants to reward public high school students who graduate early by giving them college scholarships, viagra 100mg a move he said would make higher education more accessible even as it saves the state some money. But educators and Democratic … More informaiton please visit here… What happened to Chestnut Towers? Springfield's once 'luxury high rise' in … Kennedy said the city's Office of Housing frequently talks with building owners about how they can find city or state funds — almost always channelled from the federal government — to help defray rehabilitation costs and provide incentive. Geraldine … More informaiton please visit here… Get Ready for the Market Crash and Recession of 2016 This presages a crash similar to the mortgage based crash of 2008. Then the Big Banks will ask for another bailout. … The Wall Street firm had agreed with federal prosecutors and regulators to resolve claims stemming from the marketing and selling of … More informaiton please visit here… Seward Towers refinancing is rare win for affordable housing Score one this month for Twin Cities “affordable housing,” largely absent in a multifamily construction boom targeted largely at upscale renters and owners. CommonBond Communities, the St. Paul-based nonprofit business that owns or manages more than … If you would like more informaiton please visit here… Neighborhood Loans: Your Newest Full Eagle FHA Direct Endorsed Mortgage Lender This accomplishment enables the decorated Chicago based HUD Approved Mortgage Lender to underwrite FHA loans in-house. This is yet another milestone for a company who has been named by INC 5000 as the Fastest Growing Residential Mortgage … More informaiton please visit here… Mortgage Loan Rates Fall to 8-Month Low The average interest rate for a 15-year fixed-rate mortgage fell from 3.28% to 3.22%. The contract interest rate for a 5/1 adjustable rate mortgage loan decreased from 3.09% to 3.00%. Rates on a 30-year FHA-backed fixed-rate loan fell from 3.83% to 3.80%. If you would like more informaiton please visit here… Executive Conversation: Margaret Crowley on first-time homebuyers and Millennials By saving borrowers money, dosage a low-down-payment loan with private MI allows them to build up more equity over time. Private MI can also be cancelled when the loan reaches 80% of the original property value, dosage whereas FHA mortgage insurance remains for … For more informaiton please visit here… No Money Down Car Loans The online auto finance companies, ask lenders and dealers provide the convenience of no down payment in order to help lower income groups get a personal vehicle. The auto loan is...
Read MoreWhat % of stock market pundits do you think really have a grasp of the bursting housing bubble?
A few great mansion pictures I discovered: Mansion Perrier Dita Von Teese Image by cattias.photos Mansion Perrier Dita Von Teese If you would like to see a lot more homes click here… Mansion Perrier Dita Von Teese Image by cattias.pictures Mansion Perrier Dita Von Teese For more houses click here… Question by Think about it: Where can I find guidelines for Obama’s mortgage loan modification program? I was denied over the phone because my income has dropped too low. I don’t want to lose my home, visit this any website where it actually lists if my income is a certain level I won’t qualify? I can’t help I have a lot of debt like credit card and car payments so they said my income had to be double what it actually is right now. Best answer: Answer by Rita Gibbonshttp://www.usnews.com/money/personal-finance/real-estate/articles/2009/03/04/obamas-loan-modification-plan-7-things-you-need-to-know.html Know better? Leave your own answer in the comments! by Steve Rhodes Question by Daniel E: What % of stock market pundits do you think really have a grasp of the bursting housing bubble? Cable news networks, for sale print journalists, bloggers… When Citibank says the worst of the credit crunch is over, how many people really have a grasp of what’s already in the pipe, ARM resets, forclosures, housing inventory, etc. ? Best answer: Answer by self-employedI wouldn’t listen to anyone with a stake in it (mortgage companies, mortgage backed securities, etc.). I think economists can make an educated guess, but it is still just a guess. Know better? Leave your own answer in the...
Read More