<Business Recipes for Success>

When I started my Now What, Cat? website, I blogged about almost everything under the sun until I noticed that readers would like me to stick to my original theme, that is humor and about life. The other side of me as a Certified Public Accountant and business consultant desire to write about business and accountancy So I came up with this blog, Business Recipes for Success.

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2.18.2008

Wall Street role in mortgage meltdown probed

At the height of the real estate boom, I know that somehow is going to burst. Many people I know who do not have the financial capability to pay a mortgage was able to buy a house. In less than a year, they were able to refinance. From the proceeds of the loan and debt restructuring, they paid some of their credit card bills. After the money dried up, they were faced with the problem where to get the money for the amortization which had already gone up.

Is this the reason why probe is conducted by the regulators? Read the excerpt and read the entire news here.

BOSTON - Regulators are trying to punish Wall Street for mortgage finance practices that expanded home ownership and spread risk among a host of new players — but also may have duped borrowers and investors who supplied cash to fuel a housing boom that's turned bust.

A handful of state securities regulators and a couple foreclosure-blighted cities have fired the opening shots with lawsuits trying to prove that investment banks and big lenders are guilty of more than just bad business decisions and failing to foresee looming mortgage troubles. Some regulators say greed and fraud underlie much of the subprime mortgage mess that has spread across the broader housing market, triggering a spike in foreclosures.

Aside from the civil cases, the FBI is looking at possible criminal action, focusing on what Wall Street firms knew about the risks of mortgage securities backed by subprime loans, and whether they hid risks from investors.

Labels: Real Estate

12.06.2007

Freeze Mortgages Agreement

Despite the criticism on the plan Geroge Bush won the agreement to freeze mortgages.

President Bush will announce this afternoon an agreement with major mortgage firms to freeze interest rates for five years for financially troubled homeowners -- a plan advocates say will help forestall a major foreclosure crisis but some conservatives say amounts to a bailout of people who made bad financial decisions.

The plan would apply to homeowners who got adjustable-rate subprime mortgages between Jan. 1, 2005, and July 31 of this year and are facing a sharp jump in their rates before July 31, 2010. It would also offer to put them on a fast track to refinance their mortgages through lenders or through state and local housing authorities, according to several people briefed on the matter who spoke on condition of anonymity because the deal has not been officially announced.

Some criticisms on the plan are the following:

1. "The government is now meddling in the market and looking to prop up lenders and borrowers alike, and those of us who wisely bided our time get screwed."--Mc Kinney

2. "It pressures an industry to essentially alter the terms of millions of contracts, and it's going to make investors think twice about investing in America again."--John Berlau.

business,financial statements ,balance sheet ,statement,assets,shareholders+equity,liaibilities mortgages,real estate

Labels: Real Estate

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2.18.2008

Wall Street role in mortgage meltdown probed

12.06.2007

Freeze Mortgages Agreement