Santelli on Push in Washington for Mortgages for People with Subprime Credit: "Insanity! Insanity"
CNBC, April 3, 2013, 10:50 a.m. Another classic rant from Rick Santelli!
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Kovacevich: "If We Did Not Have Fannie and Freddie, This Crisis Would Never Have Occured"
Wells Fargo's ceo Dick Kovacevich talks about the causes of the financial crisis on CNBC's Squawk Box, September 12, 2012 The following transcript has not been checked for accuracy. right now, though, more from our guest host today, dick kovacevich who is the former chairman and ceo of wells fargo. when we were talking a little bit ago, you were talking about how the financial crisis was caused, in your view, this was eight banks, 12 s & loans, citi, you could go back to those and go to the heads of those at that time. you think there were real problems happening. yeah, 11 and 12 s & ls, and one commercial bank, the rest were commercial banks. i think it was greed. they had to know that this stuff was not good. we went from -- there's always been subprime mortgages. we went from about 10% of the mortgage market to at the peak to 50% of the mortgage market being subprime lending. and this is no doc, low doc stated income, an open invitation for frau...
Moody's: Loan Performance Improves for Subprime Mortgages in Private Mortgage-Backed Securities
By Robert Stowe England June 14, 2010 Subprime loan performance of mortgages held in private label residential mortgage-backed securities (RMBS) has finally improved for the first time after rising steadily for nearly four years. Delinquencies in RMBS vintages from 2005 to 2008, which peaked at 54.4 percent in January 2010, began to decline over the last three months and fell to 51.5 percent as of April 2010, according to Moody's Investors Service. "Subprime mortgage loan performance appears to have turned a corner over the past several months," writes Peter McNally, vice president and senior analyst at Moody's in the credit rating agency's Weekly Credit Outlook for June 14. McNally notes that other classes of RMBS, jumbo prime and Alt-A and home equity, have also shown improvement, "though somewhat less pronounced." McNally is crediting the Home Affordable Modification Program (HAMP) as "one contributor" to the improved loan performance for s...
Q&A with FHA Commissioner David Stevens
The Federal Housing Administration is making tough choices to help shore up the government program from weaker loans made in years past. A mortgage industry veteran is at the helm shaping the policy changes. By Robert Stowe England Mortgage Banking January 2010 David H. Stevens was sworn in as assistant secretary for housing at the Department of Housing and Urban Development (HUD) and commissioner of the Federal Housing Administration (FHA) on July 15, 2009, and is responsible for overseeing the $600 billion FHA mortgage insurance portfolio and HUD’s multifamily subsidized housing program. The commissioner also oversees HUD’s regulatory responsibilities under the Real Estate Settlement Procedures Act (RESPA). Prior to his appointment, Stevens was president and chief executive officer of the Long & Foster Companies, Inc., in Chantilly, Virginia. Further, he has an extensive background in mortgage finance. He served as executive vice president and national wholesale manager at Wells ...
Fannie and Freddie Loaded Up on $3.17 Trillion in Subprime and Alt-A Loans & Securities 2002-2007
From 2002 to 2007, Fannie Mae and Freddie Mac loaded up on $1.73 trillion of subprime and $1.44 trillion of Alt-A loans and securities, taking the lion's share of these markets, according to mortgage market guru Edward Pinto. The agencies' share of these riskier loans and securities, then, was higher than the total for all private label mortgage-backed securities held outside the agencies' purchases -- contrary to widely-held views in the mortgage industry. The two agencies hid the level of risky lending and investment in securities by failing to classify most of the loans initially as subprime or Alt-A. By Robert Stowe England MindOverMarket.blogspot.com October 10, 2009 On Thursday, October 8, at a hearing before the Senate Finance Committee, Senator Robert Menendez (D-N.J.) asked Edward DeMarco, acting director of the Federal Housing Finance Agency, how much subprime was loaded onto the balance sheets of Fannie Mae and Freddie Mac. DeMarco indicated that the Government-S...
'Ratings Arbitrage' Led to Lower Credit Subprime
The deal dynamics in the 'securitization process' expanded the overall level of subprime lending and boosted the degree of risk in subprime residential mortgage-backed securities (RMBS) deals, according to a Fed working paper analysis of 1,267 securitization deals between 1997 to 2007. A new SEC rule in 2004 that, on paper, increased capital in five large broker-dealer banks -- Bear Stearns, Goldman Sachs, Lehman Brothers, Merrill Lynch and Morgan Stanley -- led to greater demand for lower credit quality subprime mortgage purchases. The evidence in deals from these investment banks in 2005 suggest they engaged in ‘ratings arbitrage’ to bring to the secondary market the lowest cost subprime loans that could earn an AAA investment rating, according to the Fed authors. By Robert Stowe England MindOverMarket.blogspot.com July 30, 2009 The securitization process – how loans are put together and assigned credit ratings – drove up the flow of credit in subprime residential mortgage-ba...