Items Tagged with 'Negative amortization'

ARTICLES

  • Fed Proposes Fee Restrictions for Brokers

    The Federal Reserve Board, in response to consumer testing results, proposed significant changes to Regulation Z -- Truth in Lending Act (TILA) -- in an effort to improve disclosures and prevent "unfair practices" in mortgage broker compensation. The Fed's proposal would prohibit payments to a mortgage broker or loan officer that are based on the interest rate or other terms, and would prohibit a mortgage broker or loan officer from "steering" consumers into transactions that are "not in their interest" in order to increase the compensation paid to brokers and officers.
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  • Option ARM Delinquencies Double Since 2008

    [update 1: clarification on Option ARM delinquency time frame] Monthly delinquency and foreclosure rates for pick-a-payment loans continued their ascent in the latest monthly data from First American CoreLogic, more than doubling from rates seen a year earlier. In April, 36.9% of the Option ARMs First American CoreLogic tracks were delinquent by 60 days or more. Of these Option ARMs, a product that allows borrowers to choose only a minimum monthly payment, First American saw 19% of the loans in foreclosure in April.
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  • Loan Loss Provisions Drive FirstFed's $244.8 Million Q4 Loss

    FirstFed Financial Corp. [stock FED][/stock], the Los Angeles-based parent company of First Federal Bank of California, on Monday reported a fourth-quarter net loss of $244.8 million -- or $17.91 per share -- compared with the $51.6 million net loss reported for the third quarter. FirstFed attributed the loss to a $220 million loan loss provision and a $112.3 million valuation allowance recorded against the company’s deferred tax assets. Total allowances for loan losses as a percentage of gross loans were 4.97 percent at the end of the quarter.
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  • 3Q Reserves Drive FirstFed's $51.6 Million Loss

    Ongoing charge-offs and modifications of single-family loans drove much of FirstFed Financial Corp.'s [stock FED][/stock] net loss of $51.6 million, or $3.77 per share, in the third quarter, up from a $35.5 million loss reported in the second quarter. The Los Angeles-based bank on Friday released preliminary third-quarter results, in which it disclosed $110.3 million in loan loss provision, up from the $90.2 million set aside in the previous quarter.
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