Second Lien Writedowns, II - R.A. (Ryan Avent!) writes in response to my previous entry: [Mike’s thesis] places the government in a bind. If it forces banks to write down worthless second mortgages to clear the way for new modifications, then the banks suddenly look shaky again. If it doesn’t, then lots of homeowners are stuck in loans they can’t modify and may not be able to afford. … – Rortybomb Blog
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Barney Eats Seconds – Or Blows Smoke – Or Both – Bruce Krasting – Yesterday Barney Frank came out with a letter addressed to some of the big banks putting some muscle on them. He wants them to write off their second lien mortgages. He thinks the seconds are junk. … also has thoughts on performance of GSE subordinated debt – Bruce Krasting Blog
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thoughts on shadow inventories – HOUSING SUPPLY AND DEMAND – Jeff Miller – A Dash of Insight
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Moody’s: No Florida Real Estate Recovery Until the 2030s – Adam Sharp - Bloomberg BusinessWeek is out with a piece on Florida’s misadventures in real estate. Apparently Eaton Vance is dumping Florida municipal bonds tied to real estate deals at $.26 on the dollar. Still no need to mark down any of those bank assets, of course. The underlying assets will bounce back, we keep hearing. Well, Moody’s says the Florida RE market might not recover until the 2030s. – Seeking Apha
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Former Rock pitchman launches mortgage company of his own – BY KATHERINE YUNG – Best known for years as the pitchman of Rock Financial before a falling-out with his boss, Dan Gilbert, David Hall has launched a mortgage company in Birmingham called Hall Financial. During his 12 years at Rock Financial, Quicken’s mortgage lending arm in Michigan, Hall, 39, appeared in numerous TV and radio commercials for the company. The superstar salesman rose to become Rock’s senior vice president and chief marketing officer. - DETROIT FREE PRESS