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Moody's downgrades risky mortgage debt
NEW YORK: Moody's Investors Service, citing more subprime mortgage loan losses than forecast, has downgraded the ratings on 27 different pools of securities created over the past two years by Lehman Brothers Holdings. Bonds created through Lehman's Structured Asset Investment Loan Trust from 2005 and 2006 were cut because of "higher-than-anticipated rates of delinquency," Moody's said Friday. The pools comprised $14.1 billion in loans when issued and Friday's ratings actions affect about $348 million of bonds in lower-rated classes. SAIL 2005-8 M9, a $21.3 million piece initially rated Baa3, the lowest investment grade, was cut by four levels to B1, a speculative or junk rating. Merrill Lynch valued the security at 75 cents on the dollar before the downgrade. "The servicers have started to sell the properties and therefore losses have started to come in," said Nicolas Weill, Moody's chief credit officer for its Structured Finance Group in New York.
Former mortgage executive must pay $6.7 million for fraud
A former mortgage company executive was ordered to repay $6.7 million to lenders and the elderly, minority and bad-credit clients he defrauded. Tony Daniloo, the former president and CEO of Modesto-based DreamLife Financial, was sentenced last month to seven and a half years in federal prison after pleading guilty to 122 counts of fraud and money laundering. "This is full restitution," said Assistant U.S. Attorney Michael Wang. "Essentially, every dollar of loss, (Daniloo) has to pay back." It still isn't clear how many victims are owned money, Wang said Monday. Two weeks ago, Daniloo was ordered to repay East Bay victims $1.34 million for a scheme he ran there before moving to Turlock in 2003, where he bilked friends, neighbors, an Alzheimer's patient and others out of millions of dollars, according to lawsuits.
Web Lenders Wooing Risky Borrowers
NEW YORK/CHICAGO (Reuters) - Get a "$200,000 mortgage for $667 a month!" a banner advertisement on a lending Web site proclaims. "Bad credit OK!" Even after months of nonstop news coverage about the subprime mortgage mess and the steep rise in defaults and foreclosures, pop-up Internet advertisements and banners permeate cyberspace pitching low-monthly-payment loans. Financial services, including mortgage lending, are the second-biggest category of advertising on the Internet, according to the Interactive Advertising Bureau, based in New York. Preliminary results show that 2006 online advertising revenues rose to $16.8 billion from $12.5 billion in 2005. Subprime lenders source more loans through the Internet than prime-quality lenders, market analysts say.
Looking For California Real Estate? Get Your Free Mortgage Loan ...
2007-04-25 23:30:17 - Get a free California mortgage loan pre-approval letter to make real estate search easier. You will know what you can afford. Real estate agents and sellers also treat you as a qualified buyer. If you are looking for California real estate make your search easier by getting a free mortgage loan pre-approval letter first. A free pre-approval letter lets you know the maximum loan amount obtainable. With a California home loan pre-approval letter, real estate agents are more inclined to work with you, and show properties in the specific price range .
Fixed Or Variable Rate Mortgage?
So you're planning to buy a house. You might even have a home in mind. Unless you are independently wealthy, odds are that you will have to get a mortgage. You will want to choose a mortgage that is best for you and that suits your needs. The first step in this process is finding a bank that is offering you the best rates, and a banker that you can trust. Once you have done this, you will want to consider the different types of mortgages. The two most common types of mortgages are fixed and variable rate. A fixed mortgage means that you buy into a mortgage at one rate (often the current market mortgage rate, which can be about 1% below the prime rate) and you will pay that rate until you have either paid back your mortgage, or have decided to move. Any move with a mortgage means that you will have to renegotiate and refinance.
Gus Park becomes director of intermediary sales at MEX
Gus Park, who has been with the Bradford & Bingley Group for three years, has been promoted from his previous role as head of buy-to-let and lifetime mortgages, where he established a reputation as a commentator on the specialist lending market. He replaces Adrian Scott, who leaves Mortgage Express to join Heritable Bank as managing director of residential mortgages. Park says: Mortgage Express is dedicated to leading the UKs specialist lending market and I am hugely excited by the opportunity to build upon our strong legacy of intermediary service and innovation. Working with brokers to meet the needs of customers lies at the heart of our philosophy and I look forward to developing our relationships over the coming months to ensure Mortgage Express continued success. Andy Wiggans, director of mortgage products at Mortgage Express, will oversee buy-to-let and lifetime mortgages until a replacement for Park is appointed.
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