• J.P._Morgan_cph.3a02120


    JP Morgan’s Getting Pretty Good At Negotiating These Multi-Billion Dollar Settlement Things

    The bank will pay $4 billion over mortgages but not a penny more! The ghost of John Pierpont Morgan hath put his foot down!

    / Oct 18, 2013 at 5:02 PM
  • From up here, Richmond, CA, seems to be a peaceful town much like any other. But look closer and you will find etc. etc.


    Mortgage Investors Don’t Want Richmond To Take Away Their Mortgages

    The city of Richmond, CA, is trying to use eminent domain to seize and refinance underwater mortgages, and yesterday the trustees of some mortgage bonds holding those mortgages sued to stop them. On its surface the lawsuit is about constitutional law but really it’s about option valuation. To stylize it a bit, the plan is […]

    / Aug 8, 2013 at 1:03 PM
  • upper-west-side-apartments


    Manhattan Housing Crisis Claims People With Millions In Cash, No Need For Mortgage As Victims

    In recent times, when one spoke of housing crises and victims, it was generally in reference to those who’d found themselves homeless due to foreclosure proceedings; those who’d seen the value of their homes cut in half; and those who were not in default but nevertheless had a lock put on their front door, all […]

    / Aug 7, 2013 at 6:25 PM
  • brian moynihan


    Everybody Will Always Be Suing BofA Over Mortgages

    These lawsuits against Bank of America are pretty lame, aren’t they? The SEC and Department of Justice each sued BofA yesterday for fraud in a 2008 prime jumbo mortgage securitization but it doesn’t really feel like fraud. The guns are smoke-free. The DoJ gets itself all excited because someone proposed including some bad mortgages in […]

    / Aug 7, 2013 at 9:40 AM
  • Now how can this man help my career?


    Mortgage Banker Finds Creative Way To Reduce Competition

    Bloomberg has an absolutely amazing story this morning about political economy and going the extra mile to build a successful business. Specifically it’s about a guy who worked as a mortgage banker, left to be a senior banking consumer-protection regulator, wrote regulations prohibiting big banks from providing certain kinds of mortgages because they were too […]

    / Jul 18, 2013 at 9:50 AM
  • Bob Corker. I have some difficulty believing this is a real picture of him.


    You’ve Got Five More Years To Trade Fannie And Freddie Preferred Stock

    Over on the imaginary stock markets where Fannie Mae and Freddie Mac trade they’ve had a rough day, with FNMA and FMCC common stock each down almost 13% and the preferred … um … down surprisingly small amounts but, y’know, on light volume. The impetus is presumably this: A bipartisan group of senators on Tuesday […]

    / Jun 25, 2013 at 5:47 PM
  • News

    Banks Not Especially Eager To Start Handing Out Mortgages To People With Credit Scores In The Low 400s Yet

    It’s becoming easier to get a mortgage if you’re the sort of person who should be getting a mortgage. But it seems it will take banks longer than five years to forget an economic crisis caused/fueled/exacerbated by universal mortgage eligibility.

    / May 7, 2013 at 12:51 PM
  • This is the judge, btw, Denise Cote.


    Banks Want A Chance To Prove Fannie And Freddie Knew They Were Being Lied To

    Ninety percent of what happens in the typical lawsuit is (1) a lawyer for one side sends a letter to the other side asking for some information to prepare for a trial that will never happen, (2) the lawyer for the other side sends back a passive-aggressive letter refusing to provide that information, and (3) […]

    / Mar 27, 2013 at 6:05 PM
  • Oh hey cow.


    Fitch And Kroll Are Happy To Make Mortgage Securitization Fun Again

    Bloomberg has a delightful story today about a new JPMorgan RMBS transaction, its first non-agency deal since the crisis. Specifically about this: The bonds are made riskier by the New York-based bank and other originators of the mortgages offering weaker promises to repurchase misrepresented loans than those on similar deals, Fitch Ratings said today in […]

    / Mar 20, 2013 at 7:24 PM
  • News

    Deutsche Bank May Have Underestimated How Litigious People Are About The Whole Mortgage Catastrophe Thing

    Remember Deutsche Bank’s rather poor earnings report a couple of months ago? Well, it turns out that things have gotten worse, because people and regulators continue to sue Frankfurt’s most downtrodden bank.

    / Mar 20, 2013 at 7:03 PM
  • Goldman Sachs

    Goldman May Have To Buy Its Way Out Of Another Mortgage Mess

    Lloyd Blankfein is getting no help from on high with regard to a mortgage-backed securities class-action lawsuit.

    / Mar 18, 2013 at 3:43 PM
  • Poor guy, why is he the face of Libor here? Why is anyone anything? Etc.


    Mortgage Borrowers Suing Libor Banks For Making Their Rates Too Low Because Hey, Why Not?

    You may not share my tastes in this sort of thing but I’m going to go ahead and give American Banker a gold star for the headline “Libor-Rigging Set Interest Rates Too Low, Too High and So Low They Were Too High.” The reference is to this Journal article about the mishegas of Libor lawsuits. […]

    / Feb 26, 2013 at 5:55 PM
  • This is gonna be a go-to cow for a while


    Moody’s Not On Board With Making Mortgage Securitization Fun Again

    A primary goal of financial engineering is to confuse the bejeezus out of Them while remaining crystal clear to Us. There’s no point to it if it doesn’t in some way confound the expectations of some Other, whether that Other is the tax authorities, bank capital regulators, rating agencies, customers, or markets generally.1 But the […]

    / Feb 25, 2013 at 6:41 PM
  • I see what you did there


    AIG Pretended It Might Sue The Government To Distract Attention From Its Actually Suing The Government

    There’s a lot to choose from but I’m going to say that the very best thing about AIG’s pretending it might sue the government last week, and then not doing it, is that then it actually sued the government: American International Group Inc. filed a lawsuit against a Federal Reserve vehicle created during AIG’s bailout […]

    / Jan 14, 2013 at 10:25 AM
  • yaaay


    Fannie Mae And Bank Of America Are Friends Again

    Who won the Bank of America / Fannie feud? I want the answer to be “all of us,” but I guess it isn’t. Unlike Bank of America’s multi-front battle of deviousness with MBIA, which has spawned some genuine entertainment, BofA’s battle with Fannie has been conducted almost entirely in the boring trenches of actually flinging […]

    / Jan 7, 2013 at 11:09 AM
  • Bloomberg GP is great because it looks like these are actual prices but I'm not sure there are underlying trades, especially after that spike. Is this bond trading at 71? Mehhh.


    Bank of America And MBIA Pretty Much Just Fighting Each Other For Fun Now

    There are some financial jobs that come with a perhaps undeserved swashbuckling cachet. “Oh, you know, I do hostile takeovers,” you say, and a certain crowd will treat you like you just got back from plundering a Spanish ship-of-the-line, even though you mostly sit in a cubicle updating spreadsheets and changing the wording in press […]

    / Dec 14, 2012 at 10:11 AM
  • Also, just, is this good or bad? Like on the one hand 5% up-front(ish) for something where you have no(ish) more risk is pretty good. On the other hand 5% edge on a 30-year product where you do a lot of underwriting work and retain some risk for, like, ever, isn't *that* amazing is it?


    Banks Making Up For Bad Old Mortgages By Charging More For Good New Ones

    There are lots of things to worry about in the world and somewhere on the list is the fact that, while yields on agency mortgage-backed securities are really really really low, the rate you’ll pay for a new mortgage is only really low, so a couple of reallys have fallen off a truck somewhere. This […]

    / Dec 3, 2012 at 11:50 AM
  • Eh, I can live with this.


    JPMorgan And Credit Suisse Put Mortgage Problems Behind Them For All Time

    The SEC settled cases today with JPMorgan and Credit Suisse over “misleading investors in offerings of residential mortgage-backed securities” for a total of about $400 million, which the SEC plans to hand out to those misled investors. There’s been a lot of this sort of thing recently, so here’s a quick cheat sheet on who […]

    / Nov 16, 2012 at 5:18 PM
  • He does!


    Banks Do Some Of Their Best Work When They’re Spending Other People’s Money

    I’m full of warm feelings today so let’s say nice things about the government and government-ish people who are trying to help the housing market. First, the national mortgage settlement people, who are a diffuse group of 49 state attorneys-general1 plus some federal regulatory people. A while back they got mad at some banks that […]

    / Nov 15, 2012 at 2:25 PM
  • So that's nice then.


    JPMorgan May Soon Be Rid Of One Of Many Bear Stearns Mortgage Investigations

    Mortgage-backed securities are sort of conceptually simple – put mortgages in a pot, stir, sell layers of resulting goop – but complex in execution; they have not only economic but also legal and accounting and bankruptcy purposes and so their offering documents are long and boring and filled with dotted and dashed lines and arrows […]

    / Nov 7, 2012 at 5:46 PM
  • geithner


    Bloomberg Worried About Tim Geithner’s Ability To Put Food On The Table

    As you may have heard, because you’ve read the reports reports or picked up on the Morse code message he’s blinked out during every appearance on CNBC or he threw himself on the hood of your car and screamed “Get me outta here” the last time you drove up to the Treasury building, Tim Geithner is ready to leave Washington. Has been for some time, in fact, but previous requests to go home were all denied. Now that his bosses are supposedly going to allow him to leave in the event Obama is reelected, many are wondering what will be next for TG. Despite having spent the majority of his career in public service and giving the impression that he has no desire to work for Wall Street, Bloomberg is thinking that with the albatross that his his unsellable Larchmont house around his neck, a family, and college tuition to pay, Geithner may not have a choice.

    The years in public service — particularly engaging in diplomacy with domestic and foreign partners — left a deep impression on Geithner, infusing him with a sense of purpose that he might find lacking on Wall Street…Yet the years in civil servitude have also left Geithner in need of a better salary. Geithner is one of the least wealthy men to head the Treasury Department in recent years. He took more than a 50 percent pay cut to assume the job. His $199,700 salary is higher than the $174,000 earned by most members of Congress. His pay has been increased by $8,400 in three years, yet his net worth pales next to such predecessors as Hank Paulson and Bob Rubin. With two mortgages and two college-age children, the lure of private-sector money could be hard to resist. BlackRock’s Fink, for instance, received $23.8 million in salary and stock in 2011, making him No. 1 in the Finance 50, Bloomberg Markets’ annual ranking of the best-paid CEOs at the largest U.S. financial companies.

    Other ideas Bloomberg has for ways Geithner can make ends meet that he’s already said no to include writing a memoir. He “publicly ruled out” doing so in September, but they’re pretty sure he’ll reconsider after the guy he hired to patch up his roof tells him the whole thing needs to be replaced.

    What’s Next For Tim Geithner [Bloomberg]
    Related: Tim Geithner To Finally Be Set Free?
    Also Related: Robert Shiller, Westchester-Area Realtor Rub Tim Geithner’s Nose In It

    / Nov 6, 2012 at 1:02 PM
  • This is, um, a rock that says Freddie Mac on it, for your visual delectation


    Freddie Mac Preferred Punishing Banks To Helping Homeowners

    ProPublica has a new story about Freddie Mac and it’s good, go read it if you like getting angry about mortgages. The gist is that Freddie were big jerks about not letting people refinance their mortgages, which everyone kind of knew already; what this reveals is that: They were jerks mostly to increase their own […]

    / Oct 25, 2012 at 6:31 PM
  • Guys: Windows Paint. Do not want.

    Banks, News

    Bank Of America’s Countrywide Acquisition Gets 2.5% Worse

    Bank of America bought Countrywide Financial in 2008 and it’s fair to say that went poorly; the Wall Street Journal totted up total Countrywide losses at about $40 billion but that was in July so they’re probably, like, $80 billion by now. If you were trying to figure out the maximum past and future losses […]

    / Oct 24, 2012 at 2:28 PM
  • satisfied customer


    Dogs Getting More Attractive Financing Than Houses

    I guess if you read the jobs numbers today you’d say “huh, the economy is getting a little better,” though there are other avenues you could go down. But if you read that Petco Animal Supplies, where the pets go for their animal supplies,1 sold $550 million of Caa1/CCC+ holding-company covenant-lite PIK-toggle notes at an […]

    / Oct 5, 2012 at 1:59 PM
  • Eric T. Schneiderman. In unrelated news, a Google image search for "shit breather" is not the unmitigated disaster that you might expect.


    To Be Fair, Bear Stearns Never Told Investors That Its RMBS Deals Weren’t “Shit Breathers”

    So, subprime mortgage-backed securities. Here’s a schematic: Banks packaged subprime mortgages into bonds and sold them to people. Something. The bonds were bad and the people lost money. What’s the something? There are two main theories. Theory 1 says that everyone knew at some lizard-brain level that it was a bad idea to give lots […]

    / Oct 2, 2012 at 1:17 PM
  • News

    Doing Well By Doing Financial Reform

    There’s a thing called socially responsible investing where (1) you invest other people’s money, (2) poorly, (3) but it’s okay because you’re doing it not to make them money but to save the whales, er, penguins, and they like penguins, so they keep paying your fees. This is a good racket as rackets go but […]

    / Jun 19, 2012 at 6:09 PM
  • Banks, News

    Who Wouldn’t Want To Sue Bank of America?

    August was kind of rough for Bank of America on the legal front, to the point that we once said in Write-Offs “Everybody who hadn’t yet sued BofA did today, or will soon.” But that turned out to be wrong! Or at least, it underestimated the continuing appeal of suing Bank of America, because now not only is everyone who is not Bank of America suing Bank of America, but so is Bank of America:

    [I]n Florida’s Palm Beach County alone, Bank of America has sued itself for foreclosure 11 times since late March, according to foreclosure fraud activist Lynn Szymoniak, who forwarded one such foreclosure filing, dated March 29, 2012, to The Huffington Post. … In the March 29 filing, Bank of America is seeking to foreclose on a condominium and names the condo owner and Bank of America as defendants in the suit. The company is literally seeking damages from itself in order to foreclose on the condo owner.

    Ha ha ha but why is Bank of America a delinquent condo owner? Because of course it’s not; it’s the second lien holder:

    / Apr 11, 2012 at 3:58 PM
  • Banks, News

    The Mortgage Settlement Is Fine

    When people who hate banks and love homeowners are full of wild rage about this here mortgage settlement, and when people who love banks and hate homeowners are full of equal and opposite rage, that is pretty good evidence that the mortgage settlement is sort of meh and compromise-y and not that interesting, so let’s […]

    / Feb 9, 2012 at 5:13 PM

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