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NEW -> Contingent Buyer Assistance Program
effenheimer_IHB

effenheimer_IHB

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I don't think the sharp appreciation of the yen got nearly enough attention today. If the carry trade continues to un-wind then today was only the beginning.

It's too bad they don't issue paper t-bills any more. I'd be sniffing them right now.
 
IMO, the weakening of the US dollar is part of the equation moving forward. The only way we can get wage inflation to prop up real estate values would be to devalue the dollar. If the value of the dollar remains high, any pressure to increase wages will result in more overseas outsourcing: wage arbitrage. The only way we can raise wages and not lose the jobs overseas is to devalue our currency so the overseas move is not less expensive. Since an increase in wages is about the only way to keep real estate prices high, a devaluation of the dollar is likely. imports will be more expensive, and overseas travel will be more expensive, but if you stay home and buy American, everything will be OK.
 
IrvineRenter - do you know where you can find statistics that show what are the major industries that make up the employment make-up in Orange County? I have been searching google but am coming up empty.
 
IrvineRenter...good stuff thanks for the links. However, I wonder why such the uptick in Real Estate, wish we had their diff. I can't wait to compare Q1 '06 to Q1 '07.
 
New Century faces criminal probe, dropping another 25% in after-hours trading.

http://www.marketwatch.com/news/story/new-century-says-faces-criminal/story.aspx?guid=%7BC13DE0D3%2D528C%2D4CD1%2DBAE0%2D73BD1FC7D8F5%7D&siteid=yhoo&dist=yhoo
 
Thanks irvinerenter that is much easier to use and read than having to go through the BLS site. I will have to put that one in my favorites.
 
So ... um... Fremont.

According to Housing Wire, regarding the cease and desist / consent decree: "The order also would charge Fremont with marketing adjustable-rate loans in an 'unsafe and unsound' manner, and that the lender had operated in violation of recent inter-agency guidance on subprime lending programs."

Looking at that, I'm thinking that the recent "guidance" that was put out by the OCC, et al, is considered less as guidance and more of an enforceable rule - and that it will be enforced. Bring on the carnage. :)
 
You betcha.

Hubby and I were speculating last night that the FDIC got involved because Fremont has deposits that are insured by the FDIC, and that they would rather crack the whip than have to pay depositors if the bank became distressed.
 
I was under the impression the guidance was a toothless tiger. If there is actually going to be enforcement, wow! The loans outlawed by that guidance are the only things propping up the market out here. Buyers are going to be pretty scarce come summer.
 
No end to housing slump in sight

When will the slump end?

"Observers of the housing market are extremely cautious about predicting when it might hit bottom. They cite several reasons for their caution, including falling prices in many -- but not all -- markets, an oversupply of new homes and condos, the rising cost of money and the shrinking of easy credit due to the imploding subprime lending market.

Leo Kamp, the head of investment strategy at TIAA-CREF, doesn't expect home prices or sales to start picking up until next year. Other analysts expect a turnaround to take even longer. Kamp urges consumers to examine the federal government's latest housing figures for their own local and regional markets because the numbers vary widely.

In some markets -- Florida, parts of California, Las Vegas, parts of New England and the Boston-New York-Washington corridor -- prices became so inflated in recent years that homes grew unattainable, causing a severe slowdown in sales and a backlog of available houses."
 
IR,

Hubby works for a bank and its regulating entity (not FDIC but one of the other signatories to the mortgage guidance) has put out various "guidance" over the years. Woe unto them if they don't follow such guidance.

Additional note from the husband: Some guidance is more important than others, and failure to comply may result in 1) more controls to put in place, 2) increased capital reserve requirements, 3) cease and desist and finally 4) closed down.
 
I don't get it. 100% products are still on page 2 of CWC's CA rate sheet, effective March 06. Maybe we'll get a new sheet over the weekend?
 
irvinerenter - The link isn't working for me or is there a link? What's funny is Bear hasn't tightened up their lending standards all that much. They still do 100% stated but with higher FICO scores. I've been thinking about how much this could be a problem. It isn't just the subprime loans that may have problems it could be the easy underwriting standards that disappear that could be in trouble. The lenders have automated underwriting and you would just upload the application and you could get an approval that would not require income documentation. What happens to the borrowers who were expecting the same thing when it comes to refi? I believe that this is going to be a much bigger problem than what is being talked about. Add the fact that the appraisal comes in lower than expected and we could see a huge crunch. I just had dinner with someone who is an operations manager for a mortgage broker who told me that the lenders have been hacking appraisals. One was appraised at $540k but the lender hacked it down to $380k. Of course I question the appraiser but still they are looking a lot closer at the values. This is going to get very interesting in the next few months.
 
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