We personally think the economists have had more than enough opportunity to forecast about 2009 — from when the housing market will bottom out to the effective nationalization of U.S. banks to how the economy will upswing on the far side of the “Great Recession.” We may be just a few weeks in, but there’s a definite feel for where 2009 is really headed with Citigroup Inc.’s troubles, talks of more bank bailouts and economic stimulus packages. Here at HousingWire, we thought it’s about time we turn the mic over to our readers to see what industry players and participants are predicting about the direction the year will go.
Put on your sorcerer’s hats and get out those crystal globes for a moment to look into the future and predict what the “theme”... more»
Paul Krugman is going to become required reading if he keeps this up. He writes today about the idea of a federal “bad bank” that sops up illiquid assets — ahem, private-party MBS, anyone? — but says that what’s being batted around now smacks nothing of the RTC we once knew:
… the creation of the RTC did not rescue the S&Ls. The S&Ls were rescued by (1) having FSLIC seize them, cleaning out the stockholders (2) having FSLIC pay down enough debt to make them viable (3) reselling them to new investors. The RTC’s takeover of the bad assets was just a way for taxpayers to reclaim some of the cost of recapitalizing the banks.
What’s being contemplated now, if Sheila Bair’s interview is any indication, is the creation of an RTC-like entity without... more»
(Update 1 reflects Calyx’s application update as complying with RESPA, not HVCC.)
Calyx Software, a provider of loan marketing, originating and processing software, announced last week the updated Point 6.2b application, which features a compliance update in accordance with the final Real Estate Settlement Procedures Act including a Department of Housing and Urban Development-modified Regulation X and an updated Servicing Disclosure statement. The update may be downloaded on any version 6.2 or 6.2a on a user’s computer. “As the mortgage industry’s rules and regulations become more strict and require greater compliance, we are dedicated to supporting the changes and providing Point users with the tools necessary to abide by them,” said product management group manager... more»
As one of only a few broad industry publications, we’re hitting the road in February to support three key conferences that we think you should know about — if you are attending any of the three, let us know. We’d love to say hello! If you aren’t, you’ll probably want to double check your travel schedule.
Also, if you work in media and want to schedule time with our editorial staff, send an email to editor@housingwire.com.
Feb. 8-11, we’ll be at the Venetian in Las Vegas for ASF 2009; this is a literal giant of a show, even with the credit markets frozen up. Unlike last year’s show, which acknowledged trouble and tended to focus on who should bear blame for it, this year’s show likely will feature a strong look at the future of capital markets... more»
This past weekend, Michael Adams — he being the editor NaturalNews.com — released a hip-hop track on the bailout that has some of the most prescient lyrics I’ve seen:
I want my bailout money
Keep the bills coming
Sweet green cash just drippin like honey
I’m a new kind of thug with a Washington buzz ’cause
Dealing debt pays better than dealing drugs
What do you think will happen when they double the money supply?
The falling dollar makes it harder for you to survive
They take those billions and trillions and give it to their own kind
Hope you don’t mind bein robbed blind
How do you think we got runaway credit?
Ain’t nothin goin down unless the crooks in Washington let it
Now they regret it but they still don’t get it
Cause the economy is crashin... more»
For those of you not entirely familiar with Gary Varvel at the IndyStar, some great cartoons for you:
Be sure to visit garyvarvel.com for more.
For those who missed it, below is the full text of president-elect Obama’s speech on the economy and his plan when he takes office Jan. 20, courtesy of his transition office:
Throughout America’s history, there have been some years that simply rolled into the next without much notice or fanfare. Then there are the years that come along once in a generation - the kind that mark a clean break from a troubled past, and set a new course for our nation.
This is one of those years.
We start 2009 in the midst of a crisis unlike any we have seen in our lifetime - a crisis that has only deepened over the last few weeks. Nearly two million jobs have now been lost, and on Friday we are likely to learn that we lost more jobs last year than at any time since World War II. Just in the past year,... more»
One of my favorite catch-phrases from last year comes courtesy of Calculated Risk — if you aren’t reading that blog, you should be. And it look like we’ve got another case of a market participant taking a loss they didn’t see coming even a few months ago.
United Community Banks Inc. posted $76 million in loan loss provision, with $56 million in net charge-offs, during Q3. And they said at the time as follows:
… we certainly don’t see a recurrence of the third quarter charge-off level in the immediate future.
You know what’s coming next, right? Uh-huh. A Q4 loan loss provision of $85 million, with an expected $74 million in charge-offs, per a warning released by the firm yesterday evening. Whoocoodanode, indeed.
But it also underscores how enduring the... more»
If you do nothing else today, I recommend taking a look at this, via the NYT’s DealBook. It’s becoming pretty clear that GMAC got a sweet deal in taking money from the government, despite efforts from lawmakers and regulators to suggest that the taxpayer handout came under duress and with onerous terms.
Consider:
Unlike other Treasury investments under the TARP, Treasury is not receiving warrants convertible into common equity of GMAC and so will receive no upside. Instead, the best Treasury can do on this deal is be paid back its investment plus interest. In addition, the 5 percent warrant value is below the 15 percent in value that other TARP recipients had to agree to and the program requirements specify.
That’s just for starters. The GMAC deal essentially gives the freshly-flush... more»
We’ve wasted no time in ramping up our magazine coverage via HousingWire Magazine for 2009. With 11 issues planned for this year, we’re getting started with a bang — the Jan/Feb issue, our last bi-monthly issue before we begin monthly publication, is going to begin hitting subscriber’s mailboxes this week through next. If you don’t subscribe, here’s what you need to know: the magazine focuses on in-depth analysis and trends, as well as investigative reports, moreso than the leading-edge news we cover daily on our website.
And we’ve been getting RAVE reviews for our work in the first two issues from subscribers.
In the Jan/Feb issue about to hit mailboxes is an exclusive look at what lies ahead for the nation’s economic and housing markets, and... more»
