(Reuters) – As mortgage delinquencies climb near historic highs, Wall Street is finding new ways to make hay with the assets.
So-called “vulture” firms have been snapping up troubled home loans at a faster pace, and are expected to ramp up securitizations of the assets in coming months. That should give a modicum of life to [...]
Palm Beach Post: Nearly one in five delinquent mortgages through the first half of 2009 was owned by someone who could afford to pay, but decided defaulting was a smarter financial play.
The decision to walk away, called “strategic default,” was studied by crediting agency Experian and international consulting group Oliver Wyman.
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CHICAGO (MarketWatch) — “Strategic defaults” are on the rise as more borrowers who are underwater on their home loans decide it’s not worth it to stay current on their payments each month. That trend could have repercussions for the housing market, and for borrowers, in the future. Strategic defaults are when borrowers who owe more [...]
Reuters – Fannie Mae reported a net loss $13.1 billion on Monday and forecast weakness in the housing and mortgage markets to continue throughout 2010. Fannie Mae expects the level of multifamily defaults and serious delinquencies to increase further during 2010. The company also said there is uncertainty regarding future of business after conservatorship terminated [...]
In 2006, Benjamin Koellmann bought a condominium in Miami Beach. By his calculation, it will be about the year 2025 before he can sell his modest home for what he paid. Or maybe 2040. “People like me are beginning to feel like suckers,” Mr. Koellmann said. “Why not let it go in default and rent [...]
The lead story in commercial real estate today is the dynamic duo of Tishman Speyer and BlackRock walking away from Stuyvesant Town and Peter Cooper Village in Manhattan. The two have been trying to refi $4.4 billion in debt on the 11,200-apartment property, to no avail. So now they’re handing over the keys to the lenders.
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America’s most credit-worthy borrowers are defaulting on their loans faster than those with poor financial records, according to a report in the Wall Street Journal.
The rate of mortgage delinquency among prime borrowers is accelerating and could mean that banks will soon be suffering more losses from the usually safe customers than from their less-reliable ones, [...]
