An article in Financial Times led me to a good research paper by Luci Ellis, an economist at Bank for International Settlements (BIS). BIS is the “bank for central banks” based in Basel, Switzerland.
The paper confirmed what I suspected when I wrote Mortgage Loans Around the World. Basically the home loan borrowers in the U.S. [...]
I heard this on the radio on my way home last week. A lady called a talk show program about her foreclosure story. I’m paraphrasing here:
The bank foreclosed my home recently. It was my family home of 35 years. I raised my kids in it. I love it. The bank was WaMu. I begged them [...]
In so many articles about the housing and mortgage crisis in the United States, adjustable rate mortgages (ARMs) are invariably mentioned as one of the culprits. People can’t pay when the interest rate on their loan resets. The words ARM and dangerous are often used in the same sentence. Should ARMs bear the blame though? [...]
I asked on Monday who robbed FDIC $6 billion from the IndyMac Bank failure. Too bad more of you didn’t chime in. Come on, don’t be shy. It’s not fun if it’s just me yapping all the time. Anyway, here are my thoughts.
1. Defaulted Borrowers. IndyMac took in deposits and lent out the money as [...]
