GLG News by Title Insurance Experts: Mortgage Professionals

Joseph SmithPresident and CEODefault Mitigation Management

QE II Leads the way to currency issues!

November 16, 2010

Analysis of:Intermission on the Stage of World Finance | seekingalpha.com

The dollar was already under fire, with QE II there is a big target on the dollar, certainly not worth the minimal impact to deflation.

Joseph SmithPresident and CEODefault Mitigation Management

Will only owrk if they do something with the mortgages!

December 12, 2008

Analysis of:RBS Promises Borrowers Six-Month Respite Before Foreclosing on Mortgages | www.bloomberg.com

1. Only works if the loans are re-performed. 2. Can be a rat in the snake waiting to pass. 3. Can make the situation worse with failure to reperform 4. There are good and bad modifications

Joseph SmithPresident and CEODefault Mitigation Management

Blame the models and Risk Based Pricing

September 30, 2008

Analysis of:Why Risk Models Failed to Spot the Credit Crisis by Adam Davidson | www.npr.org

Models only cover certain variables and the crisis involved much more than mortgage pricing and a few macroeconomic issues. Risked based pricing as used in the mortgage industry had an underlying flaw that caused the models to fail. Greed played the other part.

Joseph SmithPresident and CEODefault Mitigation Management

What to expect from the bailout.

September 12, 2008

Analysis of:U.S. bails out Fannie Mae, Freddie Mac, ousts CEOs | www.bizjournals.com

1. Shows how truly bad the mortgage industry has gotten and how scared the feds are of where we are going. 2. If the major source of liquidity can not survive, who will? 3. What should be the outcome.

Joseph SmithPresident and CEODefault Mitigation Management

UBS Pain far from Over

May 28, 2008

Analysis of:UBS Falls After Saying More Mortgage Losses Possible | www.bloomberg.com

The news is not good for UBS. The amount of mortgage holdings in US and Non-US declining markets will lead to further losses. 1. $45 B of additional US Mortgage Holdings. 2. An undisclosed amount of non-US mortgage holdings. 3. A UK and Eurpoean mortgage market that is going down as well. 4. The slump in home prices is not over and is impacting performing mortgages. 

Joseph SmithPresident and CEODefault Mitigation Management

The Real Write Downs - Whats in a number

May 27, 2008

Analysis of:Banks Keep $35 Billion Markdown Off Income Statements | www.bloomberg.com

The article is right on target in pointing out the various issues around bank reporting their losses todate. 1. Allowable accounting standards. 2. Permanent versus Temporary Losses 3. Capital Requirments The article goes on to highlight the various issues around soveriegn wealth funds, capital levels and loan leverage. The article ends with a list of "hidden losses" by various financial institutions. The interesting part of the article is the acknowledgement of an additional $35 B to be taken by the banks. The bigger issue is the losses to be taken by the investors.

Joseph SmithPresident and CEODefault Mitigation Management

Whose loss is it, Banks or Investors?

May 12, 2008

Analysis of:The Biggest Housing Losers | online.wsj.com

1. While the article does a good job of pointing out that the losses will be greater under the House FHA Plan than expected and that the tax payers will carry the cost, it along with the plan by the House  misses the mark by thinking banks will take advantage of the plan. 2. The real owners of these loans are the investors, not the banks. 3. The investors are already not doing short sales, why would they take 40 and 50% losses under this plan.

Joseph SmithPresident and CEODefault Mitigation Management

Fannie, Freddie and FHLB's are providing funding for now.

April 10, 2008

Analysis of:Fannie and Freddie drive home loans | www.ft.com

Through mid 2008 these will continue to be the drivers of home loan financing. Coming up quickly will be HUD/FHA. The unkown related player will be community banks, credit unions and small regionals. There is a problem that is already surfacing, add on fees by the banks using these groups for funding.

Joseph SmithPresident and CEODefault Mitigation Management

Be Careful What you ask for you might get it.

April 4, 2008

Analysis of:Overdue Consumer Debts Highest Since 1992, ABA Says | www.bloomberg.com

It looks like the legislative solution is not getting off the ground again as far as working out loans. The proposals that have come out are mainly directed at going forward purchasers, builders and cities. So much for the defualted borrower. The ideas that were being floated carried their own risk.

Joseph SmithPresident and CEODefault Mitigation Management

Expect to see more suits and bigger failures

March 24, 2008

Analysis of:Merrill Sues XL Capital to Maintain CDO Insurance | www.bloomberg.com

The article raises valid concerns on security of these insured transactions. Expect: 1. More suits as the insurers try legal tactics to invalidate coverage. 2. That the contracts and premiums have been paid and the courts will likely take a dim view of legal ploys to invalidate coverage based on semantics. 3. That the additional capital that has been raised by the monolines is still not sufficient to cover all of their risk.

Page : 1234Next1 to 10 of 32