| Federal Reserve finds banks tightening standards on subprime mortgage
A majority of the nation's banks have tightened lending standards on subprime mortgages, the Federal Reserve said Monday in a survey that provided further evidence of the spreading problems in mortgage lending. The Fed said it found that 56.3 percent of banks responding to a survey reported that they had tightened their lending standards for subprime mortgages, loans offered to borrowers with weak credit histories. The survey found that 40.5 percent of banks responding said they had tightened loan standards for so-called nontraditional mortgages. The Fed defines this category as adjustable-rate loans with multiple payment options, interest-only mortgages and products referred to as "Alt-A" loans that offer such features as limited verification of incomes. The Fed survey found that even on prime loans, which offer traditional payment options such as 30-year mortgages to borrowers with strong credit histories, 14.3 percent of the banks responding said they had tightened their lending standards "somewhat." The Fed's latest quarterly survey of bank loan officers found them responding to growing troubles in subprime mortgage lending.
Home loan standards tightened
Washington — A majority of the nation's banks have tightened lending standards on subprime mortgages, the Federal Reserve said Monday in a survey that provided further evidence of the spreading problems in mortgage lending. The Fed said it found that 56.3 percent of banks responding to a survey reported they had tightened their lending standards for subprime mortgages, loans offered to borrowers with weak credit histories. The survey found 40.5 percent of banks responding said they had tightened loan standards for so-called nontraditional mortgages. The Fed defines this category as adjustable-rate loans with multiple payment options, interest-only mortgages and products referred to as Alt-A loans that offer such features as limited verification of incomes. The Fed survey found that even on prime loans, which offer traditional payment options such as 30-year mortgages to borrowers with strong credit histories, 14.3 percent of the banks responding said they had tightened their lending standards "somewhat." The Fed's latest quarterly survey of bank loan officers found them responding to growing troubles in subprime mortgage lending.
Federal Reserve finds banks tightening standards on subprime mortgages
WASHINGTON (AP) - A majority of the nation's banks have tightened lending standards on subprime mortgages, the Federal Reserve said Monday in a survey that provided further evidence of the spreading problems in mortgage lending. The Fed said it found that 56.3 percent of banks responding to a survey reported that they had tightened their lending standards for subprime mortgages, loans offered to borrowers with weak credit histories. The survey found that 40.5 percent of banks responding said they had tightened loan standards for so-called nontraditional mortgages. The Fed defines this category as adjustable-rate loans with multiple payment options, interest-only mortgages and products referred to as "Alt-A" loans that offer such features as limited verification of incomes.
Federal Reserve holds key interest rate steady: Policymakers cling to hope economy will overcome risks
Federal Reserve holds key interest rate steady: Policymakers cling to hope economy will overcome risks By JEANNINE AVERSA Associated Press NEW YORK --Federal Reserve holds key interest rate steady: Policymakers cling to hope economy will overcome risks Wall Street turbulence, Main Street credit problems and a nationwide housing slump pose increasing risks to the economy, the Federal Reserve said Tuesday, even as it left interest rates unchanged. Although Federal Reserve Chairman Ben Bernanke and his central bank colleagues acknowledged challenges that have intensified since their last meeting in late June, they nonetheless expressed hope that the economy will safely make its way. The policymakers also clung to their belief that the biggest potential danger to the economy is that inflation won't recede as they anticipate.
U.S. crisis hits local mortgages
THE US mortgage crisis has hit Australian home buyers for the first time after one lender yesterday hiked its rates by up to double last week's official interest rate rise. Bluestone, with about $3billion worth of loans on its books, yesterday blamed higher funding costs as a result of the global credit squeeze for its decision to lift its lending rates by between 17 and 55 basis points. The rise comes on top of the 25-basis-point hike prompted by last week's rise in official rates, which may not be the last this year after the Reserve Bank warned yesterday that inflation was running at the top of its comfort zone. Many economists believe the warning suggests official rates, which hit 6.5 per cent last week, will rise by a further 25 basis points before the end of the year, and possibly before the federal election.
Interest rate rise No.2 tipped
THE prospect of interest rates jumping to 6.75 per cent in early 2008 increased significantly yesterday following the release of the Reserve Bank of Australia's statement on monetary policy. Even after factoring in last week's interest rate rise, the bank said inflationary pressures in the economy were at the top of its target band. The RBA yesterday lifted its core inflation forecast for December and throughout 2008 from 2.5 per cent to 3 per cent growth -- signalling another rate rise was on the agenda. Economists said it was a clear statement from RBA governor Glenn Stevens that rates may rise but was unlikely this year because of the looming federal election. The RBA statement said: "With the economy growing at a higher-than-average pace, capacity pressures are likely to persist in the near term".
Federal Reserve leaves interest rates unaltered
WASHINGTON Wall Street turbulence, Main Street credit problems and a nationwide housing slump pose increasing risks to the economy, the Federal Reserve said Tuesday, even as it left interest rates unchanged.
Although Federal Reserve Chairman Ben Bernanke and his central bank colleagues acknowledged challenges that have intensified since their last meeting in late June, they expressed hope that the economy will safely make its way.
The policy makers maintained that the biggest danger to the economy is that inflation won't recede.
.
Banking on More Political Hazards
As commodity prices boom and expropriation and nationalization re-emerge, banks and other financial institutions thirst for credit and political risk cover.
By Graham Buck For the pessimists, there's enough evidence to suggest the world's progress to hell in a handcart is relentless. Periods of hope, such as that following the dismantling of the Berlin Wall in 1989, tend to be brief. Recent years have been marked by the Iraq war, mounting concern over the nuclear ambitions of Iran and North Korea, renewed conflict in Lebanon and a more belligerent tone from Russia, whose newly confident mood is supported by wealth from its energy resources. For businesses that operate internationally, add to this volatile mix such headaches as the mood of nationalism being whipped up in parts of Latin America and the danger that selective duties imposed on Chinese goods could prove a first shot in what could escalate into a retaliatory trade war.
|
