With lots of news about loan modifications and lenders not modifying loans at the rate some people think the lenders should, I started thinking once again about what makes a loan affordable. There is a percentage of borrower gross income that lenders generally consider sufficient for making a loan affordable, the percentage range is [...]

From WaPo
“Policymakers often say it’s a good deal for lenders to cut borrowers a break on mortgage payments to keep them in their homes. But, according to researchers and industry experts, foreclosing can be more profitable.
The problem is that modifying mortgages is profitable to banks for only one set of distressed borrowers, while lenders are [...]

“Seven out of 10 troubled mortgage borrowers remain without a plan to work out their loans despite increased industry efforts to help them, according to a new report from a coalition of state attorneys general and banking regulators.” from a Washington Post article
If we look at actual industry efforts to help troubled borrowers, it doesn’t [...]

After reading yet another politician’s proposed solution to foreclosure problems and shaking my head at the stupidity of it all, I decided yield spread premiums need some explanation. YSPs are often trumpeted in the news as this huge secretive lending method of raking thousands of dollars from unsuspecting borrowers. YSPs can be used [...]