“AN UNMITIGATED DISASTER.” that’s what Jeffrey Gundlach called the subprime-mortgage sector 15 months ago — long before the credit crunch had revealed its current shape.
Gundlach, 48, has been around the mortgage block several times — he joined TCW in 1985 — so he’s not afraid to speak his mind. And proving his mettle in mortgage [...]

Connecticut Governor M. Jodi Rell today announced the state is offering a series of free forums around the state over the next three months to help homeowners with subprime adjustable rate mortgages convert them to traditional 30-year fixed rate loans.
“Holding on to the American dream is more difficult than ever in this current economic climate,” [...]

The nation’s two largest secondary mortgage corporations, Fannie Mae and Freddie Mac, say they’ll stop buying subprime mortgages in New York State. Banks lending in New York will have to change their mortgage origination systems to reflect Fannie Mae and Freddie Mac’s exit from subprime lending in the state. It is unclear yet how onerous [...]

In its latest effort to deal with the fallout from the subprime-credit crisis, Freddie Mac said it won’t purchase subprime mortgages secured by properties in New York state with note dates on or after Sept. 1.
The move is Freddie Mac’s response to recent New York legislation, effective Sept. 1, that creates a new category of [...]

West Virginia sued Countrywide Financial Corp accusing the mortgage lender, now owned by Bank of America, of making risky and costly loans to consumers who could not afford them.
Darrell McGraw, the state’s attorney general, filed the lawsuit against Countrywide and its co-founder and former chief executive, Angelo Mozilo, on Tuesday with the Putnam County Circuit [...]

Foreclosures in many military towns are increasing at rates drastically above the national average, according to RealtyTrac’s Q1 2008 U.S. Foreclosure Market Report. Military personnel may have been targeted by unscrupulous mortgages because of credit problems that can sometimes result from the frequent moves required of them. Although it is unknown how many of the [...]

Gov. David A. Paterson yesterday signed legislation that requires lenders to give subprime loan borrowers a 90-day notice before starting foreclosure proceedings.
Subprime loan homeowners will now have time to meet with lenders and receive other information on dealing with their debt. Subprime loans are generally held by borrowers with shaky credit, and carry higher interest [...]

With the year half over, it’s time to take the pulse of office and industrial real estate.
Yes, there’s a pulse, but it’s growing a bit erratic.
Downtown Chicago’s market for office space looks healthy. According to the global real estate service firm UGL Equis Corp., 12.4 percent of downtown office space was vacant in the second [...]

The number of homeowners forced to give up their homes jumped last month as foreclosure filings increased by more than 50 percent compared with June of last year.
One in every 501 U.S. households either lost the home to foreclosure, received at least one foreclosure-related notice or was warned of a pending auction. Bank seizures rose [...]

Bank of America CEO Ken Lewis on Wednesday defended the company’s recent acquisition of Countrywide Financial and expressed optimism the housing market would recover from its stubborn slump.
Lewis, speaking at a Los Angeles Town Hall meeting titled “Mending the Mortgage Market,” maintained Countrywide’s franchise and big customer base positioned BofA strongly when the housing market [...]