PDA

View Full Version : Loan Industry Fighting Rules on Mortgages



Silverbird
04-28-2008, 01:09 PM
The mortgage industry, facing the prospect of tougher regulations for its central role in the housing crisis, has begun an intensive campaign to fight back.

As the Federal Reserve completes work on rules to root out abuses by lenders, its plan has run into a buzz saw of criticism from bankers, mortgage brokers and other parts of the housing industry. One common industry criticism is that at a time of tight credit, tighter rules could make many mortgages more expensive by creating more paperwork and potentially exposing lenders to more lawsuits.

To the chagrin of consumer groups that have complained that the proposed rules are not strong enough, the industry’s criticism has already prompted the Fed to consider narrowing the scope of the plan so it applies to fewer loans....
http://www.cnbc.com/id/24351614
:laugh: You say you may have to limit lending? What a concept!

Fivetears
06-12-2008, 11:35 AM
Thornburg Mortgage Posts $3.31B Loss
Thornburg Mortgage Inc , a specialist in jumbo home loans that nearly went bankrupt in March, on Thursday posted a $3.31 billion first-quarter loss as the value of mortgages and other securities it owns plummeted. The company said its net loss before preferred stock dividends totaled $20.64 per share, and compared with a year-earlier profit of $75 million, or 62 cents per share. Thornburg had warned in May that it expected to report a substantial quarterly loss. Analysts on average expected a loss of $3.32 per share, according to Reuters Estimates. Results were delayed while Thornburg completed its accounting. Based in Santa Fe, New Mexico, Thornburg specializes in large mortgages that typically go to buyers of more expensive homes who have good credit. It proved vulnerable to tighter credit markets as investors stopped buying those home loans. Thornburg also suffered from demands for more collateral from its own lenders.
http://www.foxbusiness.com/story/update--thornburg-mortgage-posts--billion-loss/