|
|
|
|
|
|
|
Piling On
The bad news for the mortgage industry just keeps on coming. The following news items have surfaced over the past few days:
- Bear Stearns, purveyor of the two troubled hedge funds that invested in subprime-backed CDOs, announced an estimate of both funds' post-meltdown valuations. The more "conservative" of the two funds is deemed to be worth 9 cents on the dollar; the second fund is now entirely worthless. That investors were apparently hoping to recover 50 cents on the dollar should demonstrate how difficult it is to estimate the value of these complex credit derivatives even if one is trying hard to do so (which not everyone does). A more detailed yet very concise overview is available at the excellent blog HousingWire.
- The Federal Reserve announced that it will team up with assorted federal and state regulators to perform compliance reviews of subprime-oriented lenders. It sounds like they may be looking to start enforcing the lending guidelines they have released in the past year.
- Per my constant harping that this isn't just a subprime problem, ratings agency Moody's is looking to downgrade mortgage-backed securities backed by Alt-A loans (which are generally risky loans made to non-subprime borrowers).
Of course, all this takes place mere days after the credit ratings agencies caused a scare by announcing new methodologies for rating mortgage-backed credit products. As you may recall, that announcement was referred to as a "death warrant for the subprime industry" by Dow Jones Marketwatch's apparently excitable Washington bureau chief. I don't know if the more recent items qualify for "death warrant" status, but they certainly aren't good news for those industries that grew too dependent on the last few years' collapse in lending standards.
-- RICH TOSCANO
|
Draft recycling ordinance coming in one month.
Wednesday, July 18 -- 4:33 pm
Sanders will hold forums next week to discuss the rate changes.
Wednesday, July 18 -- 2:38 pm
Francis asks the local Republican Party to return $25,000 after its quick -- and quiet -- endorsement of Sanders.
Wednesday, July 18 -- 1:10 pm
SURVIVAL IN SAN DIEGO
Survival goes to a blog carnival.
Wednesday, July 18 -- 1:02 pm
LETTERS TO THE EDITOR
The long-proposed (over 20+ years of studies) new main library would not only serve the recent residents to downtown and the adjacent neighborhoods, but also serve the region.
Tuesday, July 17 -- 3:49 pm
CAFÉ SAN DIEGO
Park space is of course limited, so the struggle is to balance every tenant’s wants against the obligation to maintain Balboa Park as a cohesive property that honors its traditions but still has a future.
Wednesday, July 18 -- 2:25 pm
COMMENTARY: SLOP
You'll note only four branches are open longer than 45 hours a week.
Wednesday, July 18 -- 9:18 am
COMMENTARY: RICH TOSCANO
The bad news for the mortgage industry just keeps on coming.
Wednesday, July 18 -- 2:58 pm
|
|
|
Sign Up for Daily and Breaking News Alerts
 Don't want to miss a story? Want to be the first to know about breaking news? Sign up now.
This Just In
Draft recycling ordinance coming in one month. » Jul. 18 -- 4:33 pm
Sanders will hold forums next week to discuss the rate changes.
Jul. 18 -- 2:38 pm
Francis asks the local Republican Party to return $25,000 after its quick -- and quiet -- endorsement of Sanders.
Jul. 18 -- 1:10 pm
SURVIVAL IN SAN DIEGO
Survival goes to a blog carnival.
Jul. 18 -- 1:02 pm
LETTERS TO THE EDITOR
The long-proposed (over 20+ years of studies) new main library would not only serve the recent residents to downtown and the adjacent neighborhoods, but also serve the region.
Jul. 17 -- 3:49 pm
CAFÉ SAN DIEGO
Park space is of course limited, so the struggle is to balance every tenant’s wants against the obligation to maintain Balboa Park as a cohesive property that honors its traditions but still has a future.
Jul. 18 -- 2:25 pm
COMMENTARY: SLOP
You'll note only four branches are open longer than 45 hours a week.
Jul. 18 -- 9:18 am
COMMENTARY: RICH TOSCANO
The bad news for the mortgage industry just keeps on coming.
Jul. 18 -- 2:58 pm
|
 |
|
|
|
Copyright © 2008 voiceofsandiego.org. All Rights Reserved.
|
PRINT 
E-MAIL STORY
SHARE
FACEBOOK
REDDIT
NEWSVINE
DIGG
DEL.ICIO.US
BLINKLIST