While the supply of subprime credit has fallen, it has not "evaporated," says Federal Reserve Board Chairman Ben Bernanke, thanks to increased purchases by investment banks and hedge funds.Wall Street firms and other private pools of capital are "beginning to fill the void" left by the failure of many subprime lenders, the Fed chairman said in a major address about problems in the subprime market. He said there are some signs of a "self-correction" in the subprime market due to delinquency and foreclosure rates, which are expected to remain at high levels into 2008. But curbs on subprime lending will "restrain" home purchases and residential investment in coming quarters. "All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime market will likely be limited," Mr. Bernanke said.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
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The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
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Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
April 24 -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
April 24 -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
April 24 -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24