Losses on mortgage securities in the current financial crisis may total roughly $400 billion, resulting in "much larger" decreases in lending and balance sheet shrinkage topping $1 trillion, according to a recent report by Wall Street and business school experts. The report indicates that the losses, combined with the effects of leverage of mark-to-market accounting, could lead to "just under a $2 trillion contraction in intermediary balance sheets" and reduce growth in gross domestic product over four quarters by "roughly 1 to 1.5 percentage points." Authors of the report have affiliations with Morgan Stanley, Goldman Sachs, the University of Chicago, the National Bureau of Economic Research, the Federal Reserve Bank of Chicago, and Princeton University.
-
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.
2m 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.
1h ago -
Test your knowledge of the biggest mortgage headlines of the week. No. 2 pencil not required!
7h ago -
The San Diego company was back in the black with a net income of $28.5 million in the first quarter of 2024, up from a net loss of $93 million the previous quarter.
May 9 -
The agreements at the heart of the hearing did not cover the one reached with the National Association of Realtors or those people that only bought homes.
May 9 -
Feds say Chicago businessman Mark Steven Diamond defrauded at least 80 victims and caused at least $6 million in losses.
May 9