The notion of widespread principal reduction for underwater borrowers has gained new currency since the beginning of the year. In addition to articles in the popular financial press, the Federal Reserve's recent white paper on housing devoted a section to discussing the concept of "Loan Modifications with Principal Reduction." Nonetheless, the concept of aiding middle-class homeowners through principal reduction is politically tempting, and political pressure to "do something" (evidenced by another mass refinancing plan proposed in President Obama's State of the Union address) is intensifying. However, the experience of HAMP and other initiatives suggests that a broad program to reduce the loan balances of underwater borrowers held or guaranteed by the GSEs would be extremely expensive, ultimately ineffective and potentially counterproductive.
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GreatAmerica Leasing Corp. is in the market with a transaction called GreatAmerica Leasing Receivables Funding, L.L.C. Series 2012-1 (GALC 2012-1).
March 19 -
The U.S. Treasury Department has completed the orderly wind-down of its agency-guaranteed MBS portfolio. The Treasury’s MBS portfolio had a positive return of $25 billion.
March 19 -
Harley Davidson Credit Corp. has filed an S-3 with the Securities and Exchange Commission (SEC) for possible issuance under its Harley Davidson Motorcyle Trust. The trust is collateralized by new and used motorcycle contracts.
March 19 -
Freddie Mac is marketing its first K-Certificates offering backed exclusively by five-year multifamily mortgages.
March 19 -
The SLABS market mostly ignored the recent negative headlines that included a legislative proposal allowing private student loans to be discharged in bankruptcy, Bank of America Merrill Lynch analysts stated in a report released late Friday.
March 19
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A federal judge Friday dismissed claims by senior WesCorp Federal Credit Union officials that National Credit Union Administration 's (NCUA) may have contributed to the failure of the one-time $34-billion corporate by approving the risky investments that sunk the corporate giant.
March 19 -
An appellate court decision earlier this month would provide a new avenue for borrowers to file suit against mortgage servicers that deny permanent modifications under the Home Affordable Modification Program (HAMP).
March 19 -
Moody's Investors Service has pointed out in a report released late yesterday that the overall level of credit risk in the structured market is inching up. The rating agency predicted that the easing of credit that happened in 2011 will continue into 2012 and beyond.
March 16 -
Mortgage bankers funded roughly $41 billion of Jumbo loans in 4Q11, a 28% increase from the same period a year earlier, according to exclusive survey figures compiled by ASR sister publication National Mortgage News and the Quarterly Data Report.
March 16 -
The week revolved primarily around Tuesday's one-day Federal Open Market Committee meeting. For one that was expected to be relatively uneventful, it turned out to have anything but in terms of the markets' response.
March 16 -
The $25 billion national mortgage settlement essentially allows the five largest servicers to police themselves — which has made many consumer advocates surprisingly happy.
March 16 -
A federal judge indicated yesterday he plans to reject Goldman Sachs' motion to dismiss National Credit Union Administration 's (NCUA) suit and continue the case challenging the Wall Street bank over $1.1 billion of faulty RMBS it sold to U.S. Central Federal Credit Union and WesCorp Federal Credit Union, the two biggest credit union failures ever.
March 16