January 18, 2016 |
The Big Short is a highly rated movie about a few sharp operators who saw the recent financial crisis coming and decided to profit from their insight by shorting the private mortgage-backed securities market. Shorting means to sell at the current inflated price but not deliver until later, when the price of buying the security will be lower. Most reviews of the movie I have read have been favorable, based on the usual criteria used by movie critics: its plausibility; whether the story line held their interest; whether it engaged their emotions in a favorable way; the quality of the acting; and so on. I am not a movie critic, however, and felt free to assess this one entirely on the basis of how well it depicted the circumstances that led to the financial crisis of 2008.
November 5, 2015 |
An investment fund operated by New York's Square Mile Capital Management has originated a $26.8 million mortgage loan for the Penrose Plaza shopping center in Southwest Philadelphia, the company said in a release on Tuesday. Square Mile Capital Partners is funding the center's recent acquisition and planned capital expenditures by a joint venture of Onyx Properties, Abrams Realty & Development, and Siguler Guff. The 261,000-square-foot property at 2900-3000 Island Ave. is anchored by a ShopRite supermarket.
May 17, 2015 |
Question: Lenders made bad loans during the years prior to the financial crisis because the loans could be sold as securities to unwary investors. Would most mortgage borrowers be better off if there were no secondary market in which to sell mortgages? Answer: Some might, but most would not. Largely because of secondary markets, a knowledgeable and creditworthy home buyer in the United States pays a rate only modestly higher than that charged to the U.S. government. The rate spread between home mortgages and government bonds is lower in the U.S. than anywhere else in the world, with the possible exception of the U.K. and Denmark, which also have secondary mortgage markets.
September 4, 2014 |
A Bergen County man admitted Tuesday in U.S. District Court in Camden that he used false documents in a $15 million mortgage scam to buy condominiums in North Wildwood. Larry Fullenwider, 63, of Belleville, appeared before Judge Jerome Simandle and pleaded guilty to wire fraud, admitting that he purchased four condos by presenting fake documents to qualify for mortgage loans in a scheme to collect illegal profits. Authorities allege Fullenwider was among a ring of several people from five states, including at least three South Jersey residents, who participated in the elaborate scam.
December 9, 2013 |
One of the most mind-boggling aspects of the mortgage meltdown half a dozen years ago, and of the economic collapse it spawned, is evidence that it was largely a self-inflicted wound. Before Lehman Bros. collapsed in 2008 and the credit markets froze, before the stock market plunged and joblessness soared, there was this: Billions of dollars in mortgage loans were made to people who couldn't reasonably expect to repay them. And though some involved outright fraud by borrowers or lenders, others were well within the loose rules of our overly deregulated financial markets.
September 16, 2013 |
Learning how to earn, spend, and save money wisely ought to start in childhood. But if you missed the early lessons, websites such as these offer many ways to catch up on financial literacy. Among articles on Visa's Practicalmoneyskills.com site is one on the company's annual "Tooth Fairy survey," which Visa says "shows that American children are receiving an average of $3.70 per lost tooth this year - a dramatic increase of 23 percent over the $3.00 per tooth left in 2012. " Visa doesn't say if that's a good thing, though.
August 14, 2013
IF THE FEDERAL government is going to overhaul the way mortgages are sold, I hope as much emphasis is put on what's a manageable amount of debt for borrowers. It haunts me when I think of some of the mortgage loans I've seen and still see. Too many people, who certainly should have known better, agreed to buy homes when their monthly mortgage payments were 50 percent to upward of 70 percent of their net pay. That's just too much. President Obama has laid out plans to rebuild the housing market.
July 31, 2013 |
WSFS Financial Corp. has agreed to buy Array Financial Group Inc., a mortgage company, and the affiliated Arrow Land Transfer Co., an abstract and title company, for an undisclosed amount, the Wilmington bank said. Array and Arrow are based in Haverford. Array, founded in 2005, made $150 million in mortgage loans last year, WSFS said. The purchase, expected to be completed Wednesday, would boost its fee income and immediately add to earnings, WSFS said, adding that all 17 Array and Arrow employees will join WSFS.
April 28, 2013
In the Region Foreclosures down in region The foreclosure rate among outstanding mortgage loans in the Philadelphia area was 2.71 percent for the month of February, a decrease of 0.10 of a percentage point compared with February 2012, according to data from property information provider CoreLogic . Foreclosure activity in Philadelphia was lower than the national foreclosure rate, which was 2.85 percent. Also in Philadelphia, CoreLogic said, the mortgage delinquency rate increased.
January 28, 2013
Where will the jobs come from? For most of us, this is the bottom-line question for any discussion of the U.S. economy. It's especially so for the nearly 30 million U.S. workers who are unemployed, underemployed, or so discouraged they aren't even looking for work. It is also a pressing worry for millions of twentysomethings who dutifully earned college degrees but still can't find jobs. And it is for countless others toiling at work they don't like, but afraid to leave to look for something more suitable.