Merrill Lynch & Co. -- which took $7.9 billion of writedowns on subprime and collateralized debt obligation assets in the third quarter -- may take an additional $10 billion in charges in the fourth quarter, according to a new research report issued by Sandler O'Neill.Sandler's estimate comes two days after Merrill sold a "passive" stake in itself to Temasek Holdings, a Singapore company, and Davis Selected Advisors, New York, for $6.2 billion. On Christmas Eve, Merrill sold most of its commercial finance operation to GE Capital for an undisclosed price. The sale, however, will free up about $1.3 billion in capital. The commercial unit is not involved in commercial mortgage lending. In its research report, Sandler called Merrill's equity sale a "necessary evil," noting that "we updated our expected CDO and subprime marks to $10 billion from $3.5 billion and estimated that [Merrill's] tangible equity ratio could fall to an uncomfortably low 2.2%."
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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