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Minorities Hurt by Market Labels  WASHINGTON Could widespread designations of entire ZIP codes, metropolitan areas - even entire states - as "declining markets," hinder a real estate recovery and hurt minority groups and moderate-income buyers


Market driving risky mortgages  WASHINGTON , Phil Dondes followed the experts' advice when he went looking for a mortgage: He consulted five lenders to compare loan rates.via


Building a house worth Rs. 10 lakh? Then pay 1% ta  The State Government has come out with a proposal to tax the construction sector wherein, the new constructions, be it residential, Government, semi-Government or even private institutional ones, will have


Pockets of Affordability Among Rising Home Prices  Housing prices continue to soar but there are some reasonably priced markets, says a survey by the National Association of Homebuilders. Here are homes for about $500,000 in three of


Real Estate Book  Real Estate Buying Resources Buying your first home? Here's what you need to know You've made the decision to make one of the largest investments you'll ever make in your


Small rebound in mortgage lending (BBC News)  Mortgage lending in April was up slightly from March, but was still down sharply on last year, lenders say.read more...

May 9th, 2008

A New System to Prepare for the Next Crisis

Last week, I discussed what I see as a serious weakness in the way the mortgage system deals with default risk. Essentially, interest rate risk premiums collected from borrowers that are not needed to meet current losses are paid as income to investors and not reserved to meet future losses.



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