Marc's Mortgage Matter's

I noticed in the newspaper that this week marks the 54th anniversary of the invention of the credit card. I told my kids that before that, people practiced something called "living within their means" - a foolish, outmoded way of life. We’ve come a long way since then!


The problem with an investment bank balance sheet is that on the left side nothing's right and on the right side nothing's left.

Brooklyn, NY – Councilman Simcha Felder (D - Brooklyn) urges New York’s anxious homeowners to be on the lookout for home foreclosure rescue scams. Scammers posing as mortgage and foreclosure “consultants” are offering to pay mortgages and rent homes back to the owner without contacting the lender. Often the homeowner is asked to sign over the deed to their property to the scammer. Payments intended for lenders are quickly pocketed, causing the lender to begin the foreclosure process. Unsuspecting homeowners become vulnerable to lost equity, eviction, rent increases, and the sale of their home.

“These scammers will stop at nothing to make a buck,” says Felder. “Even if that means ruining peoples lives.”

New York State law prohibits individuals from charging up-front fees for these types of services. Red flags include a promise to save the home and a request that the mortgage payment be sent to the rescue company, not the lender. Homeowners are encouraged to be wary of allowing others to make mortgage payments on their behalf. Those having trouble with mortgage payments should contact the lender directly. More often than not the lender would prefer to work out a payment plan than begin the foreclosure process. Homeowners facing foreclosure may contact a certified housing counselor at New York State Banking Department’s Consumer Helpline at 1-877-BANK_NYS. Additional assistance is available through the Homeownership Preservation Foundation at (888) 995-HOPE.

Let it happen or make it happen, it's up to you! Or, with mortgage rates, it is up to the Fed. The Fed’s buying mortgage-backed securities has kept mortgage rates low, right? And one way to attract private investors to buy mortgage securities is to make the yield attractive, right? Well, Credit Suisse is of the opinion that the Federal Reserve will probably slow its rate of mortgage-backed securities purchases this year to make room for private investors who have balking at buying low-yielding assets. Sure, low rates have helped during the recession, but according to CSFB the U.S. central bank may begin weaning the market from its support, at least in part, in a bid to raise yields and entice other investors. More insight to those higher rates lately - highest since mid-March.

The Economy Is So Bad...

CEO's are now playing miniature golf.

Women are marrying for love.

Even people who have nothing to do with the Obama administration aren't paying their taxes.

HotWheels and Matchbox stocks are trading higher than GM.

Obama met with small businesses to discuss the Stimulus Package: GE, Pfizer and Citigroup.

McDonald's is selling the 1/4 ouncer.

Parents in Beverly Hills fired their nannies and learned their children's names.

A truckload of Americans got caught sneaking into Mexico.

The most highly-paid job is now jury duty.

People in Africa are donating money to Americans.

Motel Six won't leave the light on.

The Mafia is laying off judges.

And finally ...
Congress says they are looking into this Bernard Madoff scandal. Hey, great idea ... the guy who made $50 billion disappear is being investigated by the people who made $750 billion disappear.