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The city of Stockton in California is at the center of the mortgage crisis now sweeping America. Because, with house prices tumbling, more people in Stockton face the repossession of their homes than anywhere else in the US. Stockton is also a place where you can really get a feel for the amounts of easy money banks loaned during the boom.
The city of Stockton in California is at the center of the mortgage crisis now sweeping America. Because, with house prices tumbling, more people in Stockton face the repossession of their homes than anywhere else in the US. Stockton is also a place where you can really get a feel for the amounts of easy money banks loaned during the boom.
The nation’s housing and mortgage-lending slump keeps growing with industry write-downs topping $46 billion. Today, Wachovia Corp doubled its estimate of loan loss provisions to about $1 billion for the fourth quarter while the chief executive of rival Bank of America Corp. said he expects current credit market turbulence to extend into 2008.
Jack, a mortgage company can typically beat banks (including bank of America) by 1/2 percent on any given day. Banks do their own in house financing, where a mortgage broker is set up with 20-30 different lenders. Lets just see. A 200K loan over 30 years at 1/2 % is 30 thousand dollars. So Jack you're spending 27K to save 3K. Thanks a lot Jack!
As a glut of global capital gave way this year to a financing drought, Bank of America Chairman Kenneth Lewis was on the watch for deals. Bank of America, with one-tenth of all U.S. bank deposits, had plenty of money. Lewis saw that there might be a chance to buy into smaller financial companies that had been hit by rising mortgage loan defaults...
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