For a year now the government owned Ally Financial has kept mum on the idea of throwing ResCap into bankruptcy protection but the self imposed gag order came off late Friday night, squirreled away in the folds of a new 148-page SEC filing. Of course, anyone familiar with the Ally/ResCap saga knows that Ally CEO Michael Carpenter has never liked the mortgage business and for good reason: the housing crisis has turned ResCap into a money pit. Then again, it’s very possible that ResCap/GMAC has turned the corner. The mortgage firm’s problem isn’t its loan production of the past three years – it’s the legacy business and mortgage buybacks. It can be argued that a “clean bank” version of ResCap might be a great company, but will we ever know? The answer could come in about two weeks. If ResCap doesn’t make good on that missed bond payment it’s BK time. But I have a feeling that it will. I mean, why not? It has the cash flow. As for Tom Marano…
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The new Financial Stability Oversight Council report also recommends an expanded Ginnie Mae PTAP facility and an industry-funded liquidity resource.
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The publicly traded title holding companies all had stronger earnings as the mortgage market improved from one year prior.
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One in every 37 residential properties nationwide had a loan-to-value ratio of 125% or greater to begin the year, according to a new report.
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There's temporary leeway on formal compliance with replacement-cost value requirements in order to sort out insurer concerns with a recent re-emphasis on them.
4h ago -
Max Levchin, CEO of the buy now/pay later lender, said recent tests show young adults prefer interacting with intelligent chatbots over phone-based agents, but the company doesn't foresee major cost savings from generative AI for a few more years.
6h ago -
Test your knowledge of the biggest mortgage headlines of the week. No. 2 pencil not required!
May 10