US seeks stronger mortgage regulation

Meanwhile in America… Federal Reserve Chairman Ben Bernanke is looking for stronger regulation of Mortgage markets in the US for Fannie Mae and Freddie Mac going so far as to suggest today that their holdings should be linked to a “measurable public purpose, such as the promotion of affordable housing.”

His remarks come as worries about risky mortgages are making investors jittery. Those fears contributed to last week’s worldwide stock meltdown, where the Dow Jones industrials suffered a gut-wrenching 416-point plunge.

Lenders to subprime borrowers — people with blemished credit histories — have been battered. Rising interest rates and weak home prices have made it increasingly difficult for these borrowers — especially those with adjustable-rate mortgages — to keep up with their mortgage payments. Delinquencies and foreclosures in the subprime mortgage market are spiking.

Meanwhile his predecessor Alan Greenspan says today that there’s only a 1/3rd chance of the US falling into recession this year:

“We are in the sixth year of a recovery; imbalances can emerge as a result,” Bloomberg quoted Greenspan as saying. “Ten-year recoveries have been part of a much broader global phenomenon”

..and Treasury Secretary Henry Paulson says not to worry, the housing credit worries are ‘largely contained‘ and shouldn’t pose a huge risk to the rest of the US economy:

“The global economy is more than sound,” Paulson said. ”It’s as strong in the last couple of years as I’ve seen in a lifetime.” there you go, problem solved.

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After every top of any market when things start to go down, people look for a scapegoat. The real estate market, stock market…it’s all the same.Everybody likes “easy money” but don’t realize that there is no such thing as easy money. The business cycle, from peak to trough generally takes 3 to 4 years. I am totally not surprised that someone would call for someone’s head. Who caused all this “suffering”? The prosecution of the burst of the US funny money bubble in 2000 was Spitzer . . . now it’s Bernanke.At the end of the day, if you can’t stomach the lost . . . stay out of the market! Ahkenaten


Looks like everything is pretty darn rosy.Are we looking backwards or forwards?


Cecil,Did you catch Ozzie on GlobalTV, yesterday's noon news?He was talking with Randene Neil in one of his fairly regularly scheduled interviews.Looks like everything is pretty darn rosy. Charts were shown for every region in GVA. YOY results look very impressive.He was also stumping a recent book by The Donald and he (Ozzie) was given a whole chapter in the book.Well, the broadcast was just too darn giddy after that and my eyes kinda glazed over.Did anyone else catch it?

the pope

Thanks Cecil, great link – I've posted it on the main page.The lead story on MSNBC right now is about the housing market slump starting to drag down the jobs market, while the CEO of the US largest home builder says 2007 will suck.


OT – I found this video of a conversation between Ozzie Jurock and David Ingram. both provide almost-bearish perspectives on the Vancouver market. Many stats are thrown around and Ozzie basically says he wouldn't touch the downtown condo market with a ten foot pole. David Ingram says in his heart he thinks the market is due for a crash. They go on about how great the long-term perspective is but are very cautious about short-term prospects.

the pope

Ah-Ha! That makes a lot of sense that VHB has moved away & no longer has the day to day focus on this city.. I don't intend to carry on with this blog after I move away.Rentah & Drachen: Anywhere in Canada will seem like a huge deal in comparison to Vancouver – As will most places in the US.Here's some interesting commentary about how 'superstar' US cities (NY, SF, etc.) are turning into 'trustafarian' resort towns, and young professionals are tending now to move to US cities with more opportunity (Houston, Phoenix).


I might be moving to London Ont. soon so I did some comparative shopping.MLS #sV629968 In Vancouver$225k for 1 bed 1 bath 661 sq ft392963 In London for an equivelant price you get a full sized detached house393037 In London; equivelant suite$49k


If I moved to Ontario, I'd probably buy: I saw some stunning homes there last year for a fraction of Vancouver prices. They seem like great value to us, yet sensible locals see them as overvalued.On the other hand, someone who is RE savvy at the moment would likely rent whereever they were living UNLESS the cost of buying was relatively insignificant in their grand scheme of things (even at inflated prices).


I agree: good catch, rentah. I wonder where VHB went to? ((&, if it is in BC, did he buy?))


rentah, nice catch.


Newsflash: VHB: extra data point:> VHB HAS MOVED AWAY FROM VANCOUVER


I have read between 600 billion and 1 trillion dollars worth of loans reset this year….


Life is full of mysteries and surprises, who would have thought that if you grant loans to people with poor credit histories, it may end badly.I wonder how many loans the sub prime lender officers would have granted if it were there own money.As for the investors who knowingly invested in the loan shark enterprises, I can’t say I have any sympathy for them.


this site is a personal fav. week when I found it, it was at 27 now 33. It moves most days.