Here are some food for thought for this week:
My Very Own Risk-Based Repricing Experience (Credit Slips) – A law professor wrote about his experience with disputing a billing error on his credit card.
And It All Comes Down to This … (Wall Street Journal) – After writing more than 1,000 columns, Jonathan Clements is leaving WSJ. He distilled his advice down to eight simple suggestions. No surprises.
Lenders Swamped By Foreclosures Let Homeowners Stay (Bloomberg) – Borrowers who don’t pay their mortgage get to live rent-free for six months. That’s a sweet deal.
The real reason borrowers default (Business Week) – And why do those borrowers not pay their mortgage? A recent study from Boston Fed says it’s because they are upside down. They stop paying even if they can keep making payments if they really have to. It would be a different story if home prices are going up, not down. "Heads I win, tails you lose …"
Better never than late (Enough Wealth) – See how homeowners in the U.S. are spoiled. Mortgage rates in Australia are 9%. And it looks like you can fix your rate for maximum 5 years. Perhaps they don’t have Fannie Mae there.
And tell me why the U.S. government is contemplating giving billions of dollars to delinquent mortgage borrowers? What a strange world.