Articles by Diana Golobay

Obama OKs $600m in Foreclosure Prevention for Five Hardest Hit States

The Obama Administration approved the plans of five states to use $600m of foreclosure-prevention aid provided through the Hardest Hit Fund. The funds will support local initiatives to aid distressed borrowers in North Carolina, Ohio, Oregon, Rhode Island and South Carolina, which have high population percentages living in areas of economic distress due to unemployment. State Housing Finance Agencies (HFAs) may begin using the funds today.
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Invesco Gains $22m in Q210 on 64% Larger MBS Portfolio

Real estate investment trust (REIT) Invesco Mortgage Capital [stock IVR][/stock] posted a $22m net Q210 income, up from $13.2m in the previous quarter. Net income soared 67% over the last quarter, primarily due to an increase in average earning assets and portfolio yield as the REIT deployed capital raised in a common stock offering in May. Average earning assets rose to more than $2bn, up from $1.2bn in the previous quarter.
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Even with More Disposable Income, Households Choose to Save

Saving by consumers was up in June, despite an increase in disposable income. Personal income remained unchanged in June, and real disposable income income rose 0.2%, according to data today from the US Department of Commerce. Real personal consumption expenditures rose 0.1% in June -- and at a 1.6% annual rate in the second quarter. But the personal savings rate rose to 6.4% of disposable personal income in June from 6.3% in May.
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Former Fannie CEO says poor credit judgments sank GSEs

The facts about the financial collapse of Fannie and Freddie are pretty clear and a matter of public record. The company managers, their regulator and the Treasury have all said that the losses which crippled the companies were caused by the purchase of loans with lower credit standards between 2005 and 2007. The companies explicitly changed their credit standards in order to regain market share after Wall Street began to define market credit standards in 2004. As proved to be the case for most other investors in Alternative-A and sub-prime mortgages, this was a very bad idea.
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Banks 'throw in towel' to add most mortgage bonds in 18 months

The biggest banks are adding government-backed mortgage bonds at the fastest pace in 18 months, breaking with an unusual pattern in which they shunned the debt as their loan portfolios shrank during the economic slump. Large US commercial banks added $51.4bn of so-called agency mortgage-backed securities in the two weeks ended July 21.
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General Growth to sell $1.3bn of bonds in plan

General Growth Properties, the second-largest US mall operator, intends to sell $1.3bn of bonds instead of seeking a term loan under a revised $8.5bn reorganization plan to exit bankruptcy. General Growth, based in Chicago, filed the revised plan yesterday in US Bankruptcy Court in New York. The company still expects to leave bankruptcy in October, as proposed in the earlier plan. Under the changes, $350m of shares will be available for clawback in the 180 days following the company's exit from bankruptcy.
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Florida Senate candidate downplays ties to John Paulson

Jeff Greene -- who made a killing betting against the housing market -- has a double-digit lead over Rep. Kendrick Meek in the Florida Senate Democratic primary race, according to the latest polling. ... Greene, who's running as a "Democratic outsider" and "proven jobs creator," has been able to distance himself from his old friend, hedge fund manager John Paulson, the man who helped Goldman Sachs pick lousy mortgage bonds to bundle into securities so he could bet against them.
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