The House Financial Services Committee passed a bill Wednesday that lawmakers say will prevent banks and other financial firms from growing so large that their collapse could disrupt the overall economy. The controversial catch-phrase "too big to fail" is a hard pill to swallow for lawmakers and taxpayers alike, seeing as how this very label is what induced the government to dole out billions in bailout dollars. House members say the committee's newest reform measure will ward off a repeat of last year's emergency rescue actions.
The nationwide loan deterioration ratio is higher than three to one, according to the latest mortgage market report from Lender Processing Services, Inc. (LPS). What this LPS indicator means is that for every one loan improved, three more loans are deteriorating. LPS said high rates of deterioration are particularly evident in the Northeast and Northwest regions of the country, although 31 states now have non-current loan rates above 10 percent, with Florida leading the pack at 22.7 percent.
After more than 20 years of service in the residential mortgage marketplace, Ideal Mortgage Brokers, doing business as Lend America and Lending Key, has ceased its loan origination and operations. The company has also laid off nearly all of its 600 employees. On Monday, Ideal lost Federal Home Administration (FHA) approval and was defaulted by Ginnie Mae for poor underwriting and false certifications.
Consumer demand for home loans and mortgage refinancing edged upward during the shortened holiday week, the Mortgage Bankers Association (MBA) said Wednesday. The increase breaks a three-week slump in loan activity, as long-term interest rates last week hit their lowest mark in six months.
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