Category Archives: allocation of loss
Federal Short Sale Programs Will Face Same Shortcoming As Workouts: Too Much Carrot, Not Enough Stick
With government-backed loan modification programs showing abysmal results, Washington has turned to short sales as the flavor of the week to ameliorate the foreclosure crisis. Pursuant to the Treasury Department’s Home Affordable Foreclosure Alternatives (HAFA) initiative, effective April 5, loan … Continue reading
BlackRock Puts Pressure On Banks To Absorb Losses
BlackRock, a major asset management firm and one of the largest investors in U.S. mortgage bonds, announced last week that banks would have to absorb the losses on their holdings in second-lien mortgages before it would resume purchasing “private-label” mortgage … Continue reading
New Evidence Shows Loan-to-Value Ratio Contributed Most Heavily to Mortgage Meltdown
An article published in the Wall St. Journal this week by Stan Liebowitz posits a purportedly new take on the causes of the mortgage meltdown. Liebowitz’s analysis of recent data on millions of individual loans published by McDash Analytics, a … Continue reading
Helping Families Save Their Homes Act (S. 896) Passes Senate, Awaits Approval From House
The Senate passed a version of the Helping Families Save Their Homes Act (S. 896) on Wednesday by a vote of 91-5. The bill will now go back before the House of Representatives, which can adopt it, amend it, send … Continue reading
