| Sub-prime mortgage lenders prey on aspirations of working families
As the U.S. housing market continues to deteriorate, many ruling class politicians and pundits are euphemistically referring to the growing crisis as a "market correction." They insist that the economic hardship is only temporary. While it may be possible for a millionaire Wall Street analyst to describe the current trouble in the U.S. housing market as a mere market correction, in reality it is a major crisis, particularly for working families across the country. Foreclosure rates and personal bankruptcy filings are soaring. The number of U.S. households involved in foreclosure proceedings grew a record 37 percent in 2006. Working families are being turned out onto the streets in waves. At the root of the recent spike in foreclosures among working-class households is the predatory practice of sub-prime mortgage lending.
Misplaced Fears for Regional Banks?
The good news is the regional banks followed by Standard & Poor's are well-insulated from the subprime lending market crisis. The question is: How exposed is this group to "Alt-A" mortgages, which cover the large middle ground between subprime and prime loans? Investors are worried about regional bank exposure to Alt-A mortgages, given M&T Bank's (MTB; ranked 3 STARS, hold) profit warning on Mar. 30. The bank indicated the market for the Alt-A loans that it packages and securitizes has cooled off, leading to lower prices and lower mark-to-market prices for the loans that aren't sold. M&T Bank says it's contractually liable to buy back nonperforming Alt-A mortgages. The bank also warned that deposit costs would be higher than expected, leading to further net interest margin compression.
Fitch Rates New Jersey Health Care Facilities Financing ...
NEW YORK--(BUSINESS WIRE)--Fitch assigns an 'A+' rating to the New Jersey Health Care Facilities Financing Authority approximately $44.4 million state contract bonds (hospital asset transformation program-St. Mary's hospital, Passaic, NJ) series 2007-1 and 2007-2 bonds. The bonds are expected to sell March 21, 2007 through negotiation with a syndicate led by Merrill Lynch & Co. The bonds include $26,970,000 tax-exempt series 2007-1 due March 1, 2018-2027 and $17,420,000 taxable series 2007-2 bonds due March 1, 2009 - March 1, 2018. Other details will be determined upon final negotiation. The rating outlook is stable. The 'A+' rating reflects the State of New Jersey's ability to service state-appropriation debt. The bonds are the first to be issued under the Hospital Asset Transformation Act of 2000 to provide financial assistance to nonprofit hospitals in the state.
|
