Mind Over Market

Deutsche Bank estimates that 14 million, or 26 percent of homeowners with mortgages, owed more than their house is worth in the first quarter of 2009. An estimated further 14 percent decline in home prices will drive up the number of homeowners with negative equity to 25 million or 48 percent of mortgagors by the first quarter of 2011, the bank forecasts. By Robert Stowe England August 20, 2009 Hopes that the housing market is now beginning to stabilize have been dampened by the release of a Deutsche Bank forecast on the level of negative equity among U.S. homeowners with mortgages. The study, "Drowning in Debt -- A Look at 'Underwater' Homeowners," was authored by Karen Weaver and Ying Shen at Deutsche Bank's U.S. research unit and can be found at this link: http://www.scribd.com/doc/18206788/Deutsche-Bank-Securitization-Reports-Drowning-in-Debt-A-Look-at-Underwater-Homeowners Based on analysis of data on 6.7 million non-agency loans compiled by First American Co...

Mortgage finance experts, regulators, lawmakers and industry groups are wrestling with the challenge of remaking the secondary mortgage market into a sustainable model for the long term. By Robert Stowe England Mortgage Banking, April 2009 For printable copy, click this link: http://robertstoweengland.com/documents/RevivingTheSecondary.pdf Trust -- once it's lost, how do you get it back? For the world of mortgage finance, that is the paramount question. It is essential to the success of any efforts at reviving the secondary mortgage market on a sustainable basis with and without a federal government role. Restored trust is essential in the near and mid-term to restarting the private-label mortgage-backed securities (MBS) market, which collapsed in August 2007. That is the part of the secondary market reserved for jumbo prime, alternative-A and subprime loans -- the loan products that made up the once formidable private-label MBS market. And restored trust is essential in the longer...