[TommyJefferson]

The link to the original story seems to have changed to:

New Link Here


$this->bbcode_second_pass_quote('fireplaceguy', 'S')oon we'll be seeing the effects of bankruptcy "reform" on all the families who were suckered into those ARM's, balloon notes, interest only and sub-prime high rate loans...

[mmasters]

New Century, other US subprime lenders shares drop:

http://today.reuters.com/news/articleinvesting.aspx?type=hotStocksNews&storyID=2007-02-08T223157Z_01_N08246451_RTRUKOC_0_US-NEWCENTURY-SHARES.xml

[PenultimateManStanding]

I did a google search on this today and our own thread here came up on top.

[PrairieMule]

In my dept I help fix inaccuracies on credit reports. About every 3rd call is a broker or refi rep trying to increase the FICO score. What's different is the ones they are calling in about are people with spectacular credit ratings like 720, but that's not enough. With a 720 FICO score a person could walk in a Lexus dealership and drive off with just a signature. These reps are shreiking at me on how to get it to 740, 760. Sheeeeet, you might as well ask on how to get your kid accepted to Harvard-on a scholarship.

The I got to thinking, what kind of loan requires a 760 FICO?

A 125%LTV 3YR ARM

As in borrowing 100% of todays value PLUS 25% putting the homeowner UPSIDE DOWN. You know like a car when they roll the negative equity into the new loan. I wonder if any one could find some data or reports to see if 125%LTV are on the rise?

I feel dirty...

[americandream]

2007 looks nasty

http://www.bloomberg.com/apps/news?pid= ... refer=home

[DantesPeak]

$this->bbcode_second_pass_quote('', 'D')efault Jitters Batter Shares Of Home Lenders

"The thing none of us know, including the [Federal Reserve], is who is holding this stuff," Richard Kovacevich, chief executive of Wells Fargo & Co., one of the nation's biggest mortgage lenders, said in a recent interview. "The assumption is that it is well-diversified. If it's concentrated, it's going to be a disaster."

For now, most people in the $10 trillion U.S. mortgage market argue that the current slump in housing and surge in loan defaults won't lead to a disaster. "The mortgage market is vast, and the vast majority of the mortgage market is fine," says Lewis Ranieri, a pioneer in mortgage-backed securities in the 1980s, when he was a star trader at investment bank Salomon Brothers.

But some investors are getting singed, and jitters are growing about how widespread the damage will be and where it will show up next.

The number and variety of investors in U.S. mortgage securities has mushroomed in recent years even as lenders made riskier loans to help stretched consumers afford pricier homes. "There's been a sea change in the market," says Mr. Ranieri.

[seahorse]

Moderators, can this topic and the one under open discussion called "subprime lending collapse" be combined?

{Done, Bas}

[seahorse]

More from HBSC -

$this->bbcode_second_pass_quote('', '"')The buck stops with me," Mr Geoghegan said today, after the bank issued an unprecedented overnight warning about the state of its US business.

[dogf]

$this->bbcode_second_pass_quote('FoxV', '
')
You guys are actually lucky because you have 30yr fixed mortgages down there. We canucks typically only have 5 year fixed, my term comes up Dec 2008 (7 and 10 year terms came out just after I locked in )

[threadbear]

$this->bbcode_second_pass_quote('dogf', '')$this->bbcode_second_pass_quote('FoxV', '
')
You guys are actually lucky because you have 30yr fixed mortgages down there. We canucks typically only have 5 year fixed, my term comes up Dec 2008 (7 and 10 year terms came out just after I locked in )

[dogf]

"Can you recommend a broker for those who may need one, in their area? "
You have a PM

[firestarter]

$this->bbcode_second_pass_quote('threadbear', 'M')y question is...presuming there is the means, somehow and somewhere, where is the next bubble going to be?

[threadbear]

$this->bbcode_second_pass_quote('firestarter', '')$this->bbcode_second_pass_quote('threadbear', 'M')y question is...presuming there is the means, somehow and somewhere, where is the next bubble going to be?

[seahorse2]

More talk/analysis about the growing subprime lending defaults:

$this->bbcode_second_pass_quote('', 'O')ver the last several months I have been writing on Street Insight and talking on CNBC's "Kudlow & Co." about the ramifications of the developing implosion in the subprime mortgage market.

[firestarter]

$this->bbcode_second_pass_quote('threadbear', '
')Here is an alternative--and this could be rather serendipitous, as part of the run-up in govt debt, is the direct result of running up the deficit, while cutting corporate tax and taxes on the upper 2 % income earners.

It seems with all the talk about global warming, with all the G-7 countries, hopping on the crisis wagon, something is being stirred up. What if the wealthy, after acquiring all of their land and gold, want to divest even further, away from guns and defence contractors? If militarization of the economy to fight foreign wars is eventually off the table, could this huge pool of funds flow out of Lockheed Martin, Boeing and into r&d into alternatives? Is that going to be the equivalent of the dot.coms in the late nineties, with many companies cratering, but some surviving, and saving the planet, at the same time? I'm hopeful.

[threadbear]

$this->bbcode_second_pass_quote('firestarter', '')$this->bbcode_second_pass_quote('threadbear', '
')Here is an alternative--and this could be rather serendipitous, as part of the run-up in govt debt, is the direct result of running up the deficit, while cutting corporate tax and taxes on the upper 2 % income earners.

It seems with all the talk about global warming, with all the G-7 countries, hopping on the crisis wagon, something is being stirred up. What if the wealthy, after acquiring all of their land and gold, want to divest even further, away from guns and defence contractors? If militarization of the economy to fight foreign wars is eventually off the table, could this huge pool of funds flow out of Lockheed Martin, Boeing and into r&d into alternatives? Is that going to be the equivalent of the dot.coms in the late nineties, with many companies cratering, but some surviving, and saving the planet, at the same time? I'm hopeful.

[evilgenius]

The last step in the chain is not the subprime collapse. The last step is the whoring of the investment land in the US out to the rest of the world phase that will come right on the heels of the collapse. That will take a real exercise in volume pricing indeed.

Yes, high interest rates are coming. The only way that the US gov can stop deflation is to once and til the end thoroughly emplace the petrodollar. Oh, yeah, that war in Iraq that isn't going so well. If they can add the Iraqi output to the Saudi output and make sure that the enforced overproduction is only purchasable in dollars it will cause the petrodollar to be king through to the end. If the petrodollar is king others will need to buy US bonds, even at cheap prices and at the cost of seeing their investment fall in value. That way the US can keep passing on its debt to the rest of the world as a kind of imperial tax.

They could except they are going to fail in Iraq. It is simply too easy for the Russians to sell weapons to those opposed via their Iranian proxy. Remember the Russians in Afghanistan? They are now about to do the same thing, with a little pantomime from GW and the bunch about reinvading yet to come and fail as well, to the US in Iraq.

[seahorse]

Another article on the growing problems with the US subprime lending/home crisis.

LATOC

[pedalling_faster]

$this->bbcode_second_pass_quote('TommyJefferson', 'I')nstead, we have a system of national socialism wherein we subsidize the irresponsible behavior of both parties.

[seahorse2]

We digress,

Hopefully everyone will scour the net for articles about the subprime collapse issue