Fannie Mae’s recently released Monthly Summary reports that serious loan delinquencies decreased slightly in January. A single family home mortgage loan classified as “seriously delinquent” is three or more months past due or in the process of foreclosure. A multifamily mortgage loan is considered seriously delinquent when payments are 60 days or more past due. […]
Freddie Mac Stock Jumps On Earnings – What’s Next For Shareholders?
March 2, 2013 By Leave a Comment
Freddie Mac (FMCC), the government sponsored agency that backs mortgage loans for millions of American home buyers reported all time record annual profit of $11 billion for 2012. Freddie Mac has been in the black now for five consecutive quarters as the housing market improves and loan delinquencies decrease. Freddie Mac has been operating under […]
Number of Banks on FDIC Problem Bank List Remains Historically High
March 1, 2013 By 1 Comment
The number of banks on the FDIC Problem Bank List declined for the seventh consecutive quarter. According to the latest FDIC Quarterly Banking Profile, the number of problem banks as of December 31, 2012, declined to 651 from 694 in the previous quarter. Despite significant recovery in the banking industry, the number of problem banks […]
Bernanke Tells Retirees and Savers “To Take One For The Team” – Interest Rates To Remain At Zero
February 26, 2013 By 4 Comments
Federal Reserve Chairman Ben Bernanke presented to Congress today the semiannual Monetary Policy Report which discusses current economic conditions, monetary policy and thoughts on fiscal policy. Mr. Bernanke vigorously defended the Federal Reserve’s zero interest rate policy stating that the benefits of an easy money policy outweigh the “potential costs of the increased risk-taking in […]
Covenant Bank, Chicago, IL, Closed By Regulators
February 16, 2013 By Leave a Comment
Covenant Bank, Chicago, IL, was closed today by the Illinois Department of Financial and Professional Regulation and the FDIC was named as receiver. The FDIC sold the failed bank to Liberty Bank and Trust Company, New Orleans, Louisiana, which will assume all deposits of Covenant Bank. Established in 1977 as the Community Bank of Lawndale, […]
The Average Family Can Now Afford To Own Two Houses
January 30, 2013 By Leave a Comment
The combination of all time lows in mortgage rates along with the collapse in real estate values has resulted in all time record housing affordability. During the inflation racked 1980’s, interest rate increases by the Federal Reserve resulted in double digit mortgage rates. High mortgage payments froze most home buyers out of the housing market […]
Bank “Stress Tests” Results Due In March – Don’t Expect Anyone To Fail
January 30, 2013 By 2 Comments
Under the Dodd-Frank Act, the Federal Reserve is required to conduct stress tests which are forward-looking exercises to determine whether large institutions have sufficient capital to absorb large losses and support operations under severely adverse economic conditions. The supervisory stress tests include examining capital ratios, revenue and the size of potential losses. The Federal Reserve […]
FDIC Issues 71 Enforcement Actions Against Banks and Individuals In December
January 25, 2013 By 1 Comment
The FDIC today issued the list of 71 enforcement actions taken against banks and individuals in December 2012. In the previous month, there were a total of 72 enforcement actions taken. The December enforcement actions include the following: 11 consent orders 1 prompt corrective action 13 civil money penalties 12 section 19 orders 14 orders […]
Negative Real Interest Rates – The Invisible $290 Billion Tax On Savers
January 24, 2013 By Leave a Comment
Whatever happened to the concept of earning interest on savings? Since the start of the financial crisis in 2008, the Federal Reserve has aggressively suppressed interest rates to near zero. The Fed’s rationale for lowering interest rates was to get the economy back on track by lowering borrowing costs for both consumers and businesses. Lower […]
The Rally In Big Bank Stocks May Be Over
January 23, 2013 By Leave a Comment
For over the past year, the stocks of big banks have rallied significantly. Lower loan losses, a stabilization of the real estate market and a settlement with the government over shortcomings in foreclosure proceedings have all contributed to a growing conviction by investors that the worst is over for the banking industry. Here’s a look […]