Some say the timing displayed a lack of risk analysis, while others said an urge to jump on the subprime gravy train meant Merrill Lynch was out of touch with reality. No matter how you look at it, today was the end for Merrill Lynch’s subprime lending. They are reportedly shuttering its troubled subprime mortgage lender, First Franklin, according to CNBC. To add some sting to their mortgage blues, Merrill paid $1.3 billion to acquire First Franklin from National City in late 2006, just months before the subprime mortgage market imploded.
Archive for » February, 2008 «
Category: Archives, Editorial, Job Losses
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We received a report today that gives some insight into how bad the United States economy is getting. This is a factual report sent to our consumer advocacy organization:
Category: Editorial
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In the UK a homeowner was given clear title to the home he lived in, even though he has not paid on the mortgage since 1993. The lender was NatWest. Although the courts say this case is very rare the man claimed squatters rights and the court agreed. In 1993 the lender told the homeowner to pay £40, or about $80 at today’s rate, as part of negotiations. He did so and never heard from NatWest again – until recently. Observers say the man entered into negotiations with the lender, paid the small amount, and waited.
Category: Foreclosure
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Six major lenders, worried about the deepening mortgage crisis, said Tuesday they would grant a 30-day freeze on many foreclosures in order to consider delinquent borrowers’ pleas for lower monthly payments. Who is missing from the list? HSBC, of course. HSBC is a major lender with heavy losses from subprime. HSBC is also one of the largest banks in the world. Which banks did unite to help Americans? They are Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Washington Mutual and Countrywide Financial.
Category: Archives, Foreclosure
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An article written in Bangalore India and published by Reuters said Countrywide and housing advocacy group ACORN claim they reached an agreement to formalize workout programs to help borrowers with all types of subprime loans avoid foreclosure. Although Countrywide certainly can use all the help they can get others say it is Countrywide’s responsibility. While commending Acorn’s assistance we wonder how introducing a third party relates to Bush’s subprime bailout. Here is the Reuters article.
Category: Lenders
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