Mortgage Securities Show U.S. Foreclosure Crisis Overblown: Credit Markets - Bloomberg
source: http://www.bloomberg.com/news/2010-10-18/mortgage-securities-show-u-s-foreclosure-crisis-ove...
The mortgage-bond market shows investors shrugging off speculation that the U.S. is in the throes of a foreclosure-document crisis.
Typical prices for bonds tied to home loans on which borrowers often failed to document their incomes or didn’t plan to live in their properties ended last week up 1 cent from a month earlier at 64 cents on the dollar, according to Barclays Capital. The most-senior securities backed by so-called Alt-A mortgages with a few years of fixed rates, which were unchanged last week, have climbed 31 cents from a record low last March.
Federal officials including Treasury Secretary Timothy Geithner say delays in foreclosures, as attorneys general in 50 states investigate allegations of falsified documents, won’t lead to a moratorium on property seizures. Lenders eventually will be able to take back houses in almost all cases because homeowners have missed payments and the records aren’t that seriously flawed, according to TCW Group Inc.’s Bryan Whalen.
Typical prices for bonds tied to home loans on which borrowers often failed to document their incomes or didn’t plan to live in their properties ended last week up 1 cent from a month earlier at 64 cents on the dollar, according to Barclays Capital. The most-senior securities backed by so-called Alt-A mortgages with a few years of fixed rates, which were unchanged last week, have climbed 31 cents from a record low last March.
Federal officials including Treasury Secretary Timothy Geithner say delays in foreclosures, as attorneys general in 50 states investigate allegations of falsified documents, won’t lead to a moratorium on property seizures. Lenders eventually will be able to take back houses in almost all cases because homeowners have missed payments and the records aren’t that seriously flawed, according to TCW Group Inc.’s Bryan Whalen.
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- groups:
- Community, Greatest Depression
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- tags:
- Wall Street
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mik661
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They arent worried because they now the Feds will continue to prop them up and the American tax payer will make up the difference.
- 1 year ago
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mik661
