Whereas Fannie Mae is required by statute to have private mortgage insurance on loans with low down-payments, national banks originate billions of dollars in higher-risk mortgage loans utilising the Federal Housing Administration's government-guaranteed mortgage insurance.
Baby-boomers getting their first foot on the housing ladder enjoyed both mortgage-tax relief and the debt-gobbling effects of inflation.
The U.S. is still reeling from the manipulative build-up of the housing bubble, the sub-prime mortgage mess, the resulting real estate crash, and the financial crisis of 2008 that required a multi-trillion dollar bailout of banks and brokerage firms.
Her natural targets other big banks with units that underwrote large amounts of subprime, Alt-A, or option ARM mortgage-backed securities during the housing boom include JPMorgan Chase, Royal Bank of Scotland, Wells Fargo, Deutsche Bank, Credit Suisse, Morgan Stanley, Citigroup, Goldman Sachs and Ally Financial.
Her natural targets other big banks with units that underwrote large amounts of subprime, Alt-A, or option ARM mortgage-backed securities during the housing boom include JPMorgan Chase , Royal Bank of Scotland , Wells Fargo , Deutsche Bank, Credit Suisse, Morgan Stanley , Citigroup , Goldman Sachs and Ally Financial.
MBIA, and its peers like Ambac Financial Group, traditionally operated in the somewhat routine business of insuring municipal bonds but expanded into the mortgage market as the housing boom swelled and began writing insurance on mortgage-related instruments that turned sour en masse when the bubble burst.
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Even if it never does, owning a home may still be a wealth building proposition for two reasons: you are locking in your housing costs with a fixed-rate mortgage while rents continue to rise, and your mortgage will be paid off at some point in the future.
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Among those measures, it said it would purchase agency debt and mortgage-backed securities to provide support to the mortgage and housing markets, and that early next year it would take measures to facilitate the extension of credit to households and small businesses.
He took long lunches and spent afternoons walking a local creek with his son while the rest of the banking sector was funding the housing boom, buying and selling mortgage-backed securities.
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Lenders thought they could make money on a loan even if the consumer could not pay back that loan, either by banking on rising housing prices or by off-loading the mortgage into the secondary market.
Mrez, a Harvard Law School graduate who studied the Latin American housing market for three years as a Kellogg Foundation fellow, is convinced that U.S.-style mortgage financing can help relieve the region's housing shortage.
Greene became a billionaire by buying credit default swaps on subprime mortgage-backed bonds as housing crashed.
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He later became a billionaire by buying credit default swaps on subprime mortgage-backed bonds as housing crashed.
Before the 2008 housing debacle, investors were pitched subprime mortgage-backed securities that appeared to offer guaranteed high returns.
Oscar Castro, a professor of urban planning at the ITESO Jesuit University of Guadalajara, says Mexico's housing strategy encouraged "throw-away" homes because the government was more interested in touting mortgage approvals and driving economic growth via construction activity than in providing long-term housing solutions.
It also believes that modernization of the Federal Housing Authority will encourage more flexible, risk-based mortgage lending.
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That housing will continue its downward spiral, smashing mortgage-backed securities with it.
Until now, the Federal Housing Finance Agency has maintained that the current housing-rescue programs offered by the taxpayer-supported mortgage companies are less-expensive options.
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The Fed itself has targeted the housing sector through monetary policy, buying residential mortgage-backed securities in order to push interest rates down and provide further relief to mortgage-holders.
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If we want to increase home-ownership a tricky goal, as the bursting of the housing bubble taught us an open-ended mortgage interest deduction is not the best way to do so.
Some employees of the New York company told each other how unfair it seems to them that Goldman is being singled out for betting against the housing market in 2007 as it was pitching mortgage-backed bonds to certain clients.
So if we ignore that underwater stock buyers were forced to make good on investments made on the margin--just as mortgage holders should--we can't ignore the truism that once applied to housing.
But buying inexpensive housing, with a low-cost, fixed-rate mortgage, offers a different balance of risks.
Politicians have applied a fiscal stimulus and, to keep housing finance flowing, relaxed prudential controls on government-sponsored mortgage lenders.
That would be awfully convenient for the largest banks, which also happen to own the largest servicers, since during the housing bubble they tended to sell first liens into mortgage-backed securities pools and keep the higher-yielding seconds for themselves.
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And sometimes it is not, but engineering homeownership for non-homeownership candidates has already given us a catastrophic housing and mortgage market collapse.
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It raised the minimum down payment for people buying second homes and capped mortgage payments for people buying government-built housing at 30% of monthly income.
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Last week Schneiderman filed a civil lawsuit alleging extensive fraud by Bear Stearns during the sale of residential mortgage-backed securities leading up to the housing crisis.
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The credit crisis has been caused by a collapse of the housing market, which has made trillions of dollars of mortgage-backed securities held by major financial institutions worthless.
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