Subprime delinquencies continue to increase, according to S&P.  Last month subprime delinquencies rose 7%.  Jumbo loans continued to outpace all mortgage delinquencies, which should keep a tight lid on new jumbo originations as well as the strong premium paid for those mortgages.  Signs are also growing that the subprime payment plans offered to troubled borrowers […]

Subprime mortgage problems still have some significant legs as the share price of Fannie Mae and Freddie Mac showed today.  At one point today, shares dropped as much as 50% on the NYSE.  It does seem as if the companies will be protected from failure and completely insolvency by the US government.  However, it is […]

Bloomberg is reporting that Charles Schwab (NASDAQ: SCHW) may pay $260 million or about 6 weeks profit (1/2 quarter) to settle investors’ claims surrounding one of their bond portfolios with exposure to subprime securities.  The claim involves the Charles Schwab mutual fund prospectus which labelled its the fund “marginally” riskier than cash.  Ooops sorry about […]