US Plans Recapitalization Plan For Financial Firms
As the financial crisis threatens to spiral out of control, U.S. Treasury Secretary Henry Paulson is taking extraordinary steps through the extensive authority granted to him under emergency rescue legislation.
US Plans Recapitalization Plan For Financial Firms
As the financial crisis threatens to spiral out of control, U.S. Treasury Secretary Henry Paulson is taking extraordinary steps through the extensive authority granted to him under emergency rescue legislation.
CNBC.com
Henry Paulson
With the legislation’s main mechanism—an auction system to purchase bad mortgage-based securities—still weeks away from implementation, Paulson now plans to make big capital injections into large financial institutions and get equity in return.
Orlando-area community banking startup rakes in capital, officials say
Right out of the gate, a new bank being formed in Orlando has landed millions of dollars in startup capital despite the turbulent financial markets, organizers said this week.
Founders of New Traditions National Bank have raised more than $3.5 million, or about 23 percent of their baseline capital goal, according to David Dotherow, a veteran local banker who is leading the effort.
“Actually, I think it’s the perfect time to start a bank,” he said. “The beauty is that we get to see which loans out there in the community were good ones and which ones weren’t. We get to start fresh and bring on the types of loans that have performed well in this down market.”
Personal bankruptcy jumps 96% in Orlando The mortgage crisis is affecting borrowers at all income levels.
Nearly 7,060 debtors declared insolvency in Orlando’s federal bankruptcy court in 2007, up 96 percent from 2006, the U.S. Bankruptcy Court for the Middle District of Florida reported.
Fueled by the mortgage crisis, personal bankruptcy is reaching all levels of the income spectrum — from affluent professionals to lower-income subprime borrowers, bankruptcy lawyers said.
“I have doctors, Realtors, mortgage brokers and all kinds of people who had rental properties who are in trouble now,” said Andrew Baron, a consumer-bankruptcy lawyer in Orlando. “These are people who never dreamed they’d be facing this kind of situation. And they’ll resist until the bitter end before they file bankruptcy.”
Creates Largest U.S. Mortgage Lender and Servicer
CHARLOTTE, N.C., Jan. 11 /PRNewswire/ — Bank of America Corporation
today announced a definitive agreement to purchase Countrywide Financial
Corp. in an all-stock transaction worth approximately $4 billion.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050720/CLW086LOGO-b)
The purchase will make Bank of America the nation’s largest mortgage
lender and loan servicer. This is an important advancement in the company’s
desire to help customers and clients meet all of their financial needs. A
mortgage is one of the key foundations of many customer relationships.
Countrywide will benefit from the stability of being part of the
largest and one of the most financially strong financial institutions in
the United States.
Bank of America will benefit from Countrywide’s broader mortgage
capabilities, including its extensive retail, wholesale and correspondent
distribution networks.
Interesting table below - if you remove Nevada* from the top foreclosure list and slide everyone else up a position you would have a direct correlation between the top 3 foreclosure states and the top 3 mortgage fraud states. 7 of the 10 top mortgage fraud states are on the top 10 list of foreclosure states. Maybe we are literally “bailing” out the criminals rather than the poor souls depicted on 60 minutes and the nightly news that lost everything due to a slimy, fast talking mortgage brokers.
*Nevada and South Florida can be attributed to investors/speculators that have walked away from condos and other investment properties they purchased hoping to flip for a quick buck
U.S. House Prices Decline for First Time Since 1994 (Update1)
By Sharon L. Crenson
Nov. 29 (Bloomberg) — U.S. home prices declined for the
first time since 1994 in the third quarter as foreclosures
increased and lenders tightened mortgage requirements, according
to a government report.
Prices for previously owned single-family homes fell 0.4
percent in the period, compared with the second quarter, the
Office of Federal Housing Enterprise Oversight said today in
Washington. Prices rose 1.8 percent from a year earlier.
Home delinquencies have risen to a five-year high and 40
percent of U.S. lenders have raised their standards on mortgages
for prime borrowers, their most creditworthy customers,
according to Federal Reserve data. Foreclosure filings almost
doubled in October to 224,451, according to Irvine, California-
based Realtytrac Inc., a seller of delinquency data.
LOS ANGELES (AP) — Countrywide Financial Corp. lost $1.2 billion in the third quarter, but its shares soared Friday after the nation’s largest mortgage lender said it expects to be profitable this quarter and next year.
It was Countrywide’s first quarterly loss in 25 years.
But the Calabasas, Calif.-based company said it will be profitable in the fourth quarter and in 2008, as it restructures its business to take advantage of the current market.
Shares jumped $2.13, or 16.3 percent, to $15.21 in morning trading after initially rising as high as $16.30. The stock has ranged $12.07 and $45.26 the past 52 weeks.
The loss for the third-quarter came as mortgage market woes forced Countrywide to set aside millions in loan-loss provisions and writedowns, and the lender originated fewer loans.
Countrywide’s loss amounted to $2.85 per share, for the July-September period compared with a profit of $647.6 million, or $1.03 per share, a year ago.
The Atlanta Journal Constitution is reporting that Michael Vick, the former Atlanta Quarterback and nortorious dog fighter, is selling his Duluth, Georgia home for 4.5 million dollars.
The home located at 2927 Darlington Run Duluth, GA has 7 bedrooms and 8.5 baths. The home is located in the Sugerloaf Country Club, an exclusive community that is popular with entertainers and professional athletes.
The home was built in 2004 and bought by Vick in 2005 for 3.7 million.
Under current law, subprime homeowners have two choices: they can get a loan modification, or they can lose their home through foreclosure.? Bankruptcy – the traditional option of last resort– is virtually useless, because current law prevents bankruptcy courts from assisting with the very debt that is causing the problem today – the mortgage on the family home.?
Approximately four million families are facing monthly mortgage payment increases of 40% or more on exploding subprime ARMs.?? Subprime lenders routinely promised these homeowners that they would be able to refinance, but that option is rapidly disappearing due to declines in property values, prepayment penalties, and the disappearance of subprime lenders.?? Trapped borrowers can try to sell their house, but these days it often does not sell for enough to pay off the mortgage.?
CALABASAS, Calif. (AP) - The nation’s largest mortgage lender will begin offering refinancing or modifications on $16 billion in loans whose interest rate is set to adjust by the end of 2008.
Countrywide’s president and CEO David Sambol says “unprecedented times call for unprecedented remedies.” He says Countrywide is determined to help people who “need a little help” to remain in their homes.
The lender will refinance about $10 billion in loans and modify another four billion for people who are current on their payments.
It also plans to contact borrowers of some more than two billion dollars who are late on their loans and having trouble paying because of a recent rate reset.
The 
