August 28, 2010 – The newly released Delinquencies and Foreclosure report by the Mortgage Bankers Association (MBA) largely mirrors the Federal Reserve Bank of New York’s quarterly report on household debt and credit. The mortgage delinquency rate for one to four unit residential properties decreased slightly to 9.85% and the percentage of loans in foreclosure […]
Can The Banking Industry Survive Another Five Years Of Declining Housing Values?
August 27, 2010 By Leave a Comment
The banking industry came close to collapse in 2008 as loan defaults surged and property values collapsed. Government intervention and successful efforts to raise additional capital by major banks have since stabilized the banking industry, despite a record high level of delinquencies (see Consumers Delinquent on $1.3 Trillion Of Debt). Where we go from here […]
Consumers Delinquent On $1.3 Trillion Of Debt
August 23, 2010 By Leave a Comment
August 23, 2010 – Banks nationwide have seen a staggering increase in delinquencies and nonperforming loans as the result of a severe economic recession and housing collapse. Although delinquency rates and defaults are still at horrendous levels, the Federal Reserve Bank of New York’s quarterly report on household debt and credit offers hope that defaults […]
Los Padres Bank Of California Collapses – Total Of 8 Failures For The Week
August 21, 2010 By Leave a Comment
August 20, 2010 – Los Padres Bank, Solvang, California, was closed today and the FDIC appointed as receiver. To protect depositors, the FDIC sold failed Los Padres Bank to Pacific Western Bank, San Diego, California, which will assume all deposits and purchase essentially all assets of Los Padres. All 14 branches of Los Padres will […]
Calls For More Lending To Small Businesses Misguided
August 20, 2010 By Leave a Comment
August 19, 2010 – After another bad jobs report, President Obama called for an increase in lending to small businesses. According to the President, “Small businesses and community banks that loan to small businesses have been lagging behind. If we want this economy to create more jobs more quickly, we need to help them.” The […]
Bank Loan Demand Remains Weak As Consumers Repair Tattered Balance Sheets
August 18, 2010 By 1 Comment
August 19, 2010 – The latest Federal Reserve survey of bank lending practices showed a net modest easing in credit standards and terms in the second quarter. The slight loosening of credit standards, however, was not widespread. The Fed’s report noted that “While the survey results suggest that lending conditions are beginning to ease, the […]
Dodd-Frank Financial Regs Could Cripple Lending
August 13, 2010 By Leave a Comment
August 13, 2010 – As the scope of the recently passed Dodd-Frank Act is assessed, many are convinced that the massive new regulatory burdens imposed by the new bill could cripple bank lending and restrain economic growth. Despite the good intentions of Congress, the unintended consequences of a massively complex and ambiguous financial reform bill […]
Mortgage Jobs Disappear As Rates Hit All Time Lows
August 6, 2010 By 2 Comments
In what can only be described as cruel irony, the number of jobs in the mortgage industry continue to disappear as rates hit all time lows. Traditionally, all time lows in mortgage rates have resulted in a refinance boom, increased hiring by mortgage companies and hefty paychecks for mortgage loan originators. This time, things are […]
Ravenswood Bank of Chicago Closed By State Of Illinois
August 6, 2010 By 4 Comments
August 6, 2010 – Ravenswood Bank, Chicago, Illinois, was closed today by the Illinois Department of Financial and Professional Regulation – Division of Banking. The FDIC was appointed as receiver and entered into an agreement with Northbrook Bank and Trust Company, Northbrook, Illinois, to take over the failed bank. All deposits of failed Ravenswood Bank […]