General Motors may need to contribute up to $945 million to cover delinquent mortgages made by the lending affiliates of General Motors Acceptance Corp., according to a new report by Lehman Brothers.Late last year, GM sold a controlling stake (51%) in GMAC to Cerberus Capital Management for $14.4 billion. A new Lehman report penned by analyst Brian Johnson says GM may need to make a cash contribution of $900 million to $945 million to cover loan losses at GMAC. Originally, Lehman had forecast that GM would take an additional $400 million hit on GMAC. GM and GMAC have yet to release fourth-quarter results. According to estimates made by the Quarterly Data Report, GMAC-RFC -- a correspondent buyer of mortgages -- acquired $21.7 billion in subprime loans in 2006, while its wholesale arm, Homecomings, table-funded $1.9 billion. GMAC-RFC is also the nation's second-largest warehouse provider, with lines of credit extended to several subprime funders.
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Mortgage payments rose 10% year-over-year to an all-time high for March, Redfin said.
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In an interview, Candor Technology's Sara Knochel recounts how she applies her childhood interest in languages and numbers to crucial home lending issues.
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Harmonizing standards for liquidity coverage ratios and discount window pledges could prevent the type of strains that led to last year's bank failures, according to a new paper whose authors include former Federal Reserve Govs. Dan Tarullo and Jeremy Stein.
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The report seeks to help banks "disrupt rapidly evolving AI-driven fraud," according to Treasury's Nellie Liang. The report found banks have difficulties accounting for AI risks.
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The lender accused its former leader of compromising its Fannie Mae seller/servicer number to prevent it from delivering loans.
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Equity is entitled to a little over $70,000 worth of damages.
March 27