<![CDATA[Hedgehogs.net: '' related content]]> http://www.hedgehogs.net/tag/subprime+mortgage+crisis?view=rss http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11456213/ecb-quantitative-easing-commentary-roundup Thu, 29 Jan 2015 14:50:19 +0000 http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11456213/ecb-quantitative-easing-commentary-roundup <![CDATA[ECB quantitative easing commentary round-up]]> Jan 22nd, 2015 - Automated Trader rounds up commentary from Goldman Sachs, Heartwood Investment Management, FXPro, Punter Southall, BlackRock and deVere Group on ECB monetary policy.

http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11456182/china-to-launch-new-probe-into-leveraged-stock-speculation Thu, 29 Jan 2015 14:41:10 +0000 http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11456182/china-to-launch-new-probe-into-leveraged-stock-speculation <![CDATA[China to launch new probe into leveraged stock speculation]]>

http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11456178/china-to-launch-new-probe-into-margin-trading-bank-lending-for-stock-speculation Thu, 29 Jan 2015 14:41:05 +0000 http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11456178/china-to-launch-new-probe-into-margin-trading-bank-lending-for-stock-speculation <![CDATA[China to launch new probe into margin trading, bank lending for stock speculation]]>
http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11456175/intermediate-capital-assets-under-management-rise-as-investors-seek-yield Thu, 29 Jan 2015 14:41:02 +0000 http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11456175/intermediate-capital-assets-under-management-rise-as-investors-seek-yield <![CDATA[Intermediate Capital assets under management rise as investors seek yield]]>

http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11455245/marketwatch-infomercial-can-millennials-finally-afford-a-home Thu, 29 Jan 2015 11:53:30 +0000 http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11455245/marketwatch-infomercial-can-millennials-finally-afford-a-home <![CDATA[MarketWatch Infomercial: Can Millennials Finally Afford a Home?]]> Outside the Box MarketWatch Opinion of Damian Maldonado is Millennials Can Finally Afford Homes with New Mortgage Rules.

Let's start with a look the new rules.

New Rules

  1. The administration earlier this month cut the premium that borrowers with a Federal Housing Administration loan must pay for mortgage insurance to 0.85% from 1.35%. The half a percentage point reduction will reduce the cost of the average FHA loan by about $1,000 per year.
  2. Fannie Mae and Freddie Mac last month dropped the minimum down payment to 3% from 5% on some of its mortgages. FHA requires a 3.5% down payment.
  3. Grant programs, such as CHFA in Colorado, allow home buyers to purchase a home with as low as a $1,000 down payment.

Hoop Jumping

Maldonado jumps through all sorts of hoops to justify the new rules, pretending that "new regulations, should stop the problems that led to the subprime mortgage crisis".

He concludes "Perhaps this will be the year this generation will leave their expensive rentals, or their parents’ basements, and move into their own homes and live the American Dream."

I propose that after this relentless rally in home prices, the above "new rules" are too risky. Low down payments would have made more sense actually at the bottom of the market, when standards tightened.

This is typical regulatory BS, lowering lending standards when they should be tightened, and tightening them when arguably they could be lowered.

The cure in this case is to get rid of Fannnie Mae, Freddie Mac, and the FHA, all useless organizations that have done nothing but raise the cost of housing by promoting houses as the "American Dream".

Nonetheless, I offer this musical tribute.

Link if above video does not play: Andy Williams - The Impossible Dream (The Quest)


Before you get too teary-eyed over the American dream, let's investigate two questions.

Question Number 1: Who is Damian Maldonado?

Answer Number 1: Damian Maldonado is CEO and co-founder of national mortgage lender American Financing.

Question Number 2: Why the hell is MarketWatch running infomercials for American Financing?

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com ]]>
http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11455066/flash-trading-goldman-sachs-front-running-everyone-else Thu, 29 Jan 2015 11:12:37 +0000 http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11455066/flash-trading-goldman-sachs-front-running-everyone-else <![CDATA[Flash Trading: Goldman Sachs Front Running Everyone Else]]> 11455066 http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11454852/a-push-for-a-greater-government-role-in-housing-finance Thu, 29 Jan 2015 11:00:36 +0000 http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11454852/a-push-for-a-greater-government-role-in-housing-finance <![CDATA[A Push for a Greater Government Role in Housing Finance]]> 11454852 http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11454723/aeriance-issues-eur2856m-of-loans-in-2014 Thu, 29 Jan 2015 10:58:28 +0000 http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11454723/aeriance-issues-eur2856m-of-loans-in-2014 <![CDATA[Aeriance issues EUR285.6m of loans in 2014]]> Aeriance Investments saw a high level of appetite for both commercial and residential loans in 2014, bringing its total volume of loans written since the Company’s inception in 2008 to 106, at a value of EUR1.231 billion.


http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11454455/china-to-launch-new-probe-into-margin-trading-bank-lending-for-stock-speculation Thu, 29 Jan 2015 09:32:01 +0000 http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11454455/china-to-launch-new-probe-into-margin-trading-bank-lending-for-stock-speculation <![CDATA[China to launch new probe into margin trading, bank lending for stock speculation]]>

http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11454210/earnings-coverage-pnc-financial-services Thu, 29 Jan 2015 08:29:31 +0000 http://www.hedgehogs.net/pg/newsfeeds/hhwebadmin/item/11454210/earnings-coverage-pnc-financial-services <![CDATA[Earnings Coverage - PNC Financial Services]]> 11454210