Option ARM

10yr Treasury Auction Goes Well, Foreclosure Stats & Analysis

Why do people constantly return to the refrigerator with hopes that something new to eat will have materialized? Is that like economists and analysts continuing to go back to the news about the economy hoping something is better? Yesterday’s Beige Book, which summaries the economic activity in the 12 Fed regions here in the US,

Option ARM Adjustments Threaten Housing Recovery

Bloomberg reports that Option ARMs are a threat to the housing recovery as many will adjust in 2010 and 2011. Option ARMs are loans that allow the borrower, if they choose, to make a payment based on a 2-4% rate which means they’re paying less than the total interest due and the deferred interest gets

Wachovia Option ARMs Go Bad (After 27 Years)

Lots of people forwarded me this week’s NY Times story tracing the careers of Herbert and Marion Sandler, a husband and wife banking team that founded World Savings in 1963, introduced Option ARMs in 1981 then sold their firm to Wachovia in 2006 and made about $2.6 billion. Option ARMs are mortgages with many payment

US Bank Posting $1.2b Writedown, No Mention of Downey

US Bank is posting $1.2b in writedowns for the fourth quarter according to WSJ. This is due largely to loan losses. It’s unclear whether this includes the losses from recently acquired Downey Savings following the FDIC’s seizure of Downey. Downey was one of the top originators of Option ARM loans, which led to their demise

Gordon Gekko Returns

It seems the Wall Street banner atop The Basis Point (and accompanying link) has done its job helping resurrect the love/hate relationship we all have with Gordon Gekko. Now, in a rush to capitalize on the global financial crisis, there’s a sequel to Wall Street floating around Hollywood: Film and television studios are rushing to