Obama’s stimulus plan made things worse, says Taleb
U.S. President Barack Obama and his administration weakened the country’s economy by seeking to foster growth instead of paying down the federal debt, said Nassim Nicholas Taleb, author of “The Black...
View ArticleHome prices in big cities hit lowest level in five years
Home prices in 20 U.S. cities dropped in March to the lowest level since 2003, showing housing remains mired in a slump almost two years into the economic recovery. The S&P/Case-Shiller index of...
View ArticleMortgage tax break set for the wrecking ball?
Americans think differently about housing now: Developers have cut back on speculative projects and mortgage bankers view lending standards more soberly. Another important change in attitudes emerged...
View ArticleBofA wealth management untouched by 2Q losses
Bank of America Corp. continues to invest in its wealth management division while reining in other lines of business to prepare for new Basel III capital requirements. BofA posted a record quarterly...
View ArticleReverse mortgages should be first resort for advisers
Twenty-two years after they were introduced by the Department of Housing and Urban Development, reverse mortgages still aren’t being used by most financial advisers as the viable retirement income...
View ArticleBofA wealth management untouched by record loss from mortgages
Bank of America Corp. is continuing to invest in its wealth management division while reining in other lines of business to prepare for new Basel III capital requirements. BofA posted a record...
View ArticleU.S. consumer bureau seeks input on military financial products
The U.S. Consumer Financial Protection Bureau is seeking public comment on financial products aimed especially at members of the military. The bureau, which is charged with educating consumers about...
View ArticleFederal refi program won’t mean beans to many homeowners
Advisers say homeowners who have mortgages through private lenders will still find it hard to refinance properties and take advantage of low interest rates — even as the government moves to ease...
View ArticleLending drought strands advisory clients
Although interest rates are near record lows, many financial advisory clients still face a challenging lending environment for securing small-business loans and refinancing mortgages. “Even people with...
View ArticleSecond-home tax break is in jeopardy
As Congress mulls new ways to increase revenue, the mortgage interest deduction on second homes is seen as a likely target for elimination. According to some financial advisers, such a change could go...
View ArticlePimco pumped on Freddie, Fannie debt
Pacific Investment Management Co. says investors should buy Fannie Mae and Freddie Mac mortgage-backed securities that slumped in response to planned changes to the government-supported companies’...
View ArticleBofA, JPMorgan, Wells accused of charging veterans illegal fees
Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. were among 13 banks and mortgage lenders accused in a so-called whistleblower lawsuit of charging military veterans illegal...
View ArticleGenworth stock worth more on upgrade
Genworth Financial Inc. posted the biggest gain in the Standard & Poor’s 500 Index after Citigroup Inc. upgraded the insurer for the second time this month on the prospect that the company can...
View ArticleEverybody out of the mortgage pool? That’s a mistake, says ING fund manager
Government-backed mortgages could be the next best alternative to cash, according Jeff Dutra, manager of the $830 million ING GNMA Income Fund Ticker:(LEXNX). “Investors underserve themselves by not...
View ArticleSecond home tax break could be first casualty of deficit wars
As Congress mulls over new ways to increase revenue, the mortgage interest deduction on second homes is seen as a likely target for elimination. According to some advisers, such a change could go well...
View ArticleMortgage rates surge, now at ‘extremely low levels’
U.S. rates for 30-year mortgages climbed, as optimism that Europe’s debt crisis will be contained pushed up yields for the Treasuries that guide home loans. The average rate for a 30-year fixed loan...
View ArticleThirty-year fixed still fixed below 4%
Rates for U.S. 30-year mortgages climbed from the lowest level on record after Federal Reserve officials pledged to keep their benchmark interest rate near zero through at least late 2014 to help...
View ArticleFund ready to place bets on individual mortgages
The housing market might be down, but that has not eliminated the $13 trillion mortgage marketplace, which is rich with investment opportunities. Tapping into those opportunities is the main objective...
View ArticleFrank chides unhelpful mortgage servicers
Congress should act to restructure the servicing of home mortgages, as the servicers are not doing enough on their own, House Financial Services Committee chairman Barney Frank, D-Mass., said today....
View ArticleBiggest expense for Americans over 50? Not health care
What’s the biggest expense facing people over 50? Counterintuitively, it’s not health care. Instead, it’s what they shell out for home mortgages and property taxes. While spending drops for most...
View ArticleFalse bottom? Home prices plunging again
Residential real estate prices fell more than forecast in November, showing distressed properties are hampering improvement in the U.S. housing market. The S&P/Case-Shiller index of property values...
View ArticleCitigroup-SEC trial is delayed by federal appeals court
Citigroup Inc. and the U.S. Securities and Exchange Commission won a delay in the trial of a lawsuit the agency brought against the bank while an appeals court considers a judge’s refusal to approve...
View ArticleIs the real estate downturn over?
“Well, real estate is always good, as far as I’m concerned.” — Donald Trump “If we all worked on the assumption that what is accepted as true is really true, there would be little hope of advance.” —...
View Article‘Good Morning Vietnam’ DJ accused of preying on troubled homeowners
A U.S. military veteran made famous by his portrayal in the movie “Good Morning Vietnam” is accused by a consumer group of preying on financially troubled homeowners seeking to lower their mortgage...
View ArticleThe retirement vehicle advisers love to hate
Financial advisers should love reverse mortgages. After all, older clients who may be strapped for cash — and many are — can use a reverse mortgage to tap the equity in their homes rather than raid...
View ArticleWells Fargo sued by borrowers over reverse mortgage policies
Wells Fargo & Co. is ignoring federal rules on reverse mortgages and forcing homes into foreclosure instead of giving heirs a chance to buy them, according to a lawsuit. Estates and surviving...
View ArticlePeter Schiff: Congress wants to repeat mistakes with housing market
While JP Morgan CEO Jamie Dimon has been credited for a confident and feisty performance this week in front of Congress, he was careful to not criticize their efforts thus far to regulate the financial...
View ArticleBuffett makes $3.85B bid for ResCap mortgage business
Warren E. Buffett, whose prediction last year of a housing recovery was premature, is raising his bet on a rebound with his $3.85 billion bid for a mortgage business and loan portfolio from bankrupt...
View ArticleLegg Mason’s Bill Miller seeks redemption as housing bull
Legg Mason Inc.'s Bill Miller, who beat the S&P 500 for a record 15 years before crashing on bank stocks, is seeking redemption as a housing bull. His Legg Mason Capital Management Opportunity...
View ArticleMortgage REIT CEO was industry trailblazer
Michael A.J. Farrell, who died last week at 61 after being diagnosed with cancer this year, is remembered for building Annaly Capital Management Inc. (NLY) into the world's largest mortgage real estate...
View ArticleNear-retirees need a plan for debt
Retiring a mortgage can be the biggest boost to cash flow. But like the sequestration that continues to play out in Washington, it might be time for some pre-retirees to engage in their own...
View ArticleHousing market still has cracks, Moody’s says
Above-average and rising delinquency rates among low- to moderate-income first-time homebuyers show that the U.S. housing market still has a few lingering cracks in the foundation — and that should...
View ArticleBruce Berkowitz rolling dice on bailout babies — again
Bruce Berkowitz has had some success investing in companies bailed out by U.S. taxpayers — think American International Group Inc. But his latest bet on bailed-out outfits looks like a long shot for...
View ArticleWhen undervalued stocks are expensive
What to do when even undervalued stocks are expensive. Adjusting back to fair value Bitcoin gains validity, finds an ally in the Justice Department. “Legal means of exchange” Bank of America Corp.’s...
View ArticleConsider new uses of reverse mortgages for clients
For more than 20 years, reverse mortgages have been seen as a financial lifeline of last resort for seniors who are house-rich but cash-poor. Now, bolstered by the research of some leading financial...
View ArticleBrokers face challenges in originating mortgages
More financial advisers are becoming licensed mortgage loan originators as full-service brokerage firms look to be one-stop shops for wealthy investors, but some regulatory gray areas are causing...
View ArticleAlly Financial IPO is banking on short investor memories
Ally Financial dresses up for its IPO this week and hopes investors forget that the company blew itself up during the financial crisis with liar loans. Living off a federal bailout Bracing for a weak...
View ArticleHUD budget wording may threaten reverse mortgage protections
A small wording change in a proposed HUD budget request could change reverse mortgages and increase the risk of foreclosure for some elderly homeowners. The wording change, according to a story in The...
View ArticleHUD announces new reverse mortgage rules
In a surprise move, the Department of Housing and Urban Development (HUD) announced new rules Tuesday for the government-backed reverse mortgage lending program that allows senior homeowners to tap the...
View ArticleGovernment agency announces new reverse mortgage rules
In a surprise move, the Department of Housing and Urban Development (HUD) announced new rules Tuesday for the government-backed reverse mortgage lending program that allows senior homeowners to tap...
View ArticleReverse mortgages under fire again
The Consumer Financial Protection Bureau (CFPB) issued a new report warning seniors against using a reverse mortgage as an income bridge to delay collecting Social Security benefits. While the report...
View ArticleGovernment report distorts facts and costs of reverse mortgages
The Consumer Financial Protection Bureau (CFPB) issued a new report warning seniors against using a reverse mortgage as an income bridge to delay collecting Social Security benefits. While the report...
View ArticleAll is not lost when it comes to the mortgage interest deduction
The recently enacted tax reform package changed the way we think about itemized deductions by placing caps on some items and outright repealing others. The change that’s garnered the most attention is...
View ArticleDelinquencies on home mortgages hit highest level since 2011
U.S. home-mortgage delinquencies climbed in May to the highest level since November 2011 as the pandemic’s toll on personal finances deepened. The number of borrowers who were more than 30 days late...
View ArticleHow low interest rates may affect your clients
We are living in an extraordinarily low-interest-rate environment, and with the Federal Reserve’s intentions of keeping rates near zero through at least 2023, there’s no telling when, or if,...
View ArticleFed tightening puts mortgage planning back on the table
As the Federal Reserve kicks off its first cycle of interest-rate hikes since 2018, mortgage rates are already starting to head higher, which has financial advisers scrambling to help clients navigate...
View ArticleMortgage rate spike changes house-hunting strategy
As mortgage rates climb, the desire to own a home hasn’t diminished for financial advisers’ young clients, but they are beginning to reassess the kind of home they’re pursuing. Last week, a 30-year...
View ArticleThink twice before borrowing from 401(k) for a home down payment, advisors say
The average price for U.S. houses sold during the second quarter was nearly $500,000 — that, coupled with the highest mortgage interest rates in over 20 years, could make a 401(k) loan appealing for...
View ArticleAmericans paying as much interest on other debt as on mortgages
US households are now paying roughly as much interest on other kinds of debt, from credit cards to student loans, as they are on their mortgages, according to the latest numbers from the Bureau of...
View ArticleMillennials are dipping into retirement savings for housing costs
The cost of housing in the United States today is pressuring household budgets with many weakening their long-term financial security to keep a roof over their heads. Overall, half of respondents to a...
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