The contraction in subprime lending and the overhang of a large number of unsold homes on the market could lead to a 10% decline in house prices this year unless the Federal Reserve cuts interest rates, according to a Merrill Lynch economist.David Rosenberg says he expects the slowdown in housing to force the Fed to cut interest rates by 100 basis points during the second half of this year to keep the economy out of recession. Even with the Fed cutting rates, he projects that housing prices will decline by 5% in 2007 and be flat next year. Loose subprime lending practices boosted new-home sales by 20% during the boom. But now tighter credit is making it difficult for financially strained borrowers to avoid delinquency and default. "Therefore, units they vacate are going to compound what is already a record glut of unsold homes on the market and accentuate the deflationary pressure on the price front," Mr. Rosenberg said.
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Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
April 25 -
Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
April 25 -
Senior executives making over $151,000 would still be subject to such clauses should the rule go into effect this year.
April 25 -
Christopher J. Gallo and his aide, Mehmet A. Elmas, allegedly withheld information in mortgage applications, hiding that borrowers were purchasing second home properties.
April 25 -
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
April 25 -
Independent mortgage bankers lost the most money ever on every loan originated last year due to higher rates and lower volumes, an industry trade group said.
April 25