Tag Archive for 'Mortgage'

T2 Partners Announces Release of More Mortgage Meltdown: 6 Ways to Profit in These Bad Times

Published on February 18, 2012 in Warren Buffett Articles. 0 Comments Tags: Announces, meltdown, More, Mortgage, Partners, profit, Release, These, Times, Ways.

New York (PRWEB) May 20, 2009

T2 Partners LLC today announced the release of More Mortgage Meltdown: 6 Ways to Profit in These Bad Times (Wiley; May 2009; $ 27.95; Hardcover), a new book by leading investors and market analysts Whitney Tilson and Glenn Tongue, managing partners of the T2 Partners hedge funds and Tilson Mutual Funds. The collapse of the U.S. housing market is the defining economic event of the last 75 years, yet for many it is still a mystery. What happened, and why? Where are we today, and what does the future hold? This invaluable guide not only offers clear answers to these questions but also teaches investors how to look for value in today’s – and tomorrow’s – financial environment.

Since the market peaked in late 2007, Tilson and Tongue have written and spoken widely about the looming financial crisis, including a keynote presentation in May 2008 at the Value Investing Congress, a leading investing conference co-founded by Tilson. Their prescient analysis quickly gained the attention of investors, analysts and the news media. More Mortgage Meltdown is a product of their foresight and prepares investors for the next stages of the housing crisis.

“The collapse of the U.S. housing market triggered the worldwide credit crunch, which has profoundly affected all of us,” said Whitney Tilson. “While the U.S. is taking important steps to work through the problems, losses exceeding $ 1 trillion are yet to come. In spite of this economic headwind that will be with us for many years, however, we believe that there are terrific investing opportunities for those who know where to look.”

Added Glenn Tongue, “By applying the proven, timeless principles of value investing – the strategy pioneered by Ben Graham and Warren Buffett – savvy investors can avoid traps and profit from this downturn. Our book is intended to be a go-to resource for every investor, from the casual novice to the surefooted professional.”

Tilson and Tongue begin More Mortgage Meltdown by analyzing the U.S. housing market, the causes of the great mortgage bubble, where we are today, and what lies ahead. Through clear, detailed examples, the authors show how the reckless actions of many banks, mortgage companies, and Wall Street firms brought about the current crisis. The second half of More Mortgage Meltdown offers detailed strategies for investors to beat the downturn. With six in-depth investment case studies, including Berkshire Hathaway, American Express and Wells Fargo, Tilson and Tongue illuminate the opportunities and explain how to identify undervalued stocks with competitive advantages in today’s market.

“You couldn’t ask for better guides than Whitney and Glenn to take you through the tough times,” said Joel Greenblatt, managing partner of Gotham Capital and author of the bestselling The Little Book That Beats the Market. “They saw the mortgage meltdown coming and their new book can help you get through it with timely, useful and sage advice.”

To learn more or to order copies of the book, visit http://www.moremortgagemeltdown.com.

About the Authors

Whitney Tilson and Glenn Tongue are the Managing Partners of T2 Partners LLC and Tilson Mutual Funds. The former firm manages three value-oriented hedge funds while the latter is comprised of two mutual funds, Tilson Focus Fund and Tilson Dividend Fund.

Mr. Tilson is the co-founder and Chairman of the Value Investing Congress, a biannual investment conference in New York City and Los Angeles. He also co-founded the investment newsletters Value Investor Insight and SuperInvestor Insight. He writes a regular column on value investing for Kiplinger’s Personal Finance, has written for the Financial Times, Forbes and TheStreet.com, and was one of the authors of Poor Charlie’s Almanac, the definitive book on Berkshire Hathaway Vice Chairman Charlie Munger. He was featured on 60 Minutes in December 2008, appears regularly on CNBC and Bloomberg TV, was one of five investors included in SmartMoney’s 2006 Power 30, and was named by Institutional Investor in 2007 as one of its twenty Rising Stars. Tilson received an MBA with high distinction from the Harvard Business School, where he was elected a Baker Scholar, and graduated magna cum laude from Harvard College with a bachelor’s degree in government.

Mr. Tongue spent seventeen years on Wall Street prior to joining T2 Partners, most recently as an investment banker at UBS, where he was a managing director specializing in acquisitions and leveraged finance. Before UBS, Mr. Tongue worked at Donaldson, Lufkin & Jenrette for thirteen years, the last three of which he served as the president of NYSE-listed DLJdirect, the consistently top-rated online brokerage firm. Prior to joining DLJdirect, Mr. Tongue was a managing director in the investment bank at DLJ, where he worked on over 100 transactions, aggregating more than $ 40 billion. He received an MBA with distinction from the Wharton School of Business and received a Bachelor of Science in electrical engineering and computer science from Princeton University.

More Mortgage Meltdown:

6 Ways to Profit in These Bad Times

By Whitney Tilson and Glenn Tongue

Wiley; May 2009; $ 27.95; Hardcover

ISBN: 9780470503409

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New ‘Mortgage Liberator Guidebook’ Gives Homeowners Plan for Protecting Against Foreclosure and the Rising Cost of Debt

Published on July 29, 2011 in Warren Buffett in the News. 0 Comments Tags: Against, Cost, Debt, Foreclosure, Gives, Guidebook', Homeowners, Liberator, Mortgage, Plan, Protecting, rising.

New ‘Mortgage Liberator Guidebook’ Gives Homeowners Plan for Protecting Against Foreclosure and the Rising Cost of Debt

Los Angeles, CA (PRWEB) June 25, 2008

Homeowners facing foreclosure or the financial pain inflicted by adjustable-rate mortgages need to fight back. A Mortgage Liberator Guidebook: How to pay your bills as interest rates change can teach them how.

Published by After The Noise, the newly released guidebook was researched and developed by Douglas Glenn Clark before the subprime loan crisis became the cause of a record number of foreclosures. The purpose was to develop a simple method that allowed homeowners to actually benefit from interest rate changes. By creating a new income stream, homeowners can pay down debt – without taking a second job.

“A few years ago, financial experts like Warren Buffett and Jim Sinclair predicted that something bad was coming as a result of over-the-counter derivative investments. Then a family member got involved in a complicated adjustable-rate mortgage. I feared rising interest rates would cause real harm,” he said, adding, his research took several years to complete.

Clark says homeowners must take a page from the corporate play book and learn to hedge against changing economic conditions. For example, corporations that make breakfast food cannot withstand inflated prices in corn, wheat and sugar. Therefore, in all economic climates, they take action to protect their bottom line by hedging those costs.

Also, corporations hedge in markets that directly affect their business. Homeowners can do the same by mastering one interest-rate market, such as the U.S. Treasury bonds. This is a good time to do so because the credit crunch is far from over. Money supply increases ignite inflation which eventually cause higher interest rates – all of which impact Treasury bonds.

When individuals and couples prepare to buy a new home, they begin to watch interest rates. They know they’ll save enormous amounts of money if they can lock in a low rate on a 20- or 30-year loan. But once they’ve purchased their home, often they stop watching interest rates. This is a big mistake, says Clark.

“Even homeowners with fixed-rate mortgages must realize that changes in the economy will, in some way, affect their monthly costs. Master one market to create a separate income source for a specific purpose – housing costs.”

Nearly every day the average homeowner listens to a news broadcast that mentions interest rates. Higher rates slow borrowing, whereas lower rates generally ease the availability of loans. Common people with a little knowledge can learn how to make money by exploiting these changes. But only if they learn some basics about U.S. Treasury bond options. To make that process easy, Clark posts free market analysis and updates at http://www.afterthenoise.com .

The next step is to begin a study program. Using real option data (not theories) with plenty of visual learning tools, A Mortgage Liberator Guidebook: How to pay your bills as interest rates change teaches the basics of U.S. Treasury bond options and fully reveals how to take part in this global market.

The methods taught in A Mortgage Liberator Guidebook may not be appropriate for everyone. There is risk of loss when trading any financial market.

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Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

The Mortgage Crisis

Published on March 19, 2011 in Warren Buffett in the News. 0 Comments Tags: Crisis, Mortgage.

by Aaron Friedman

Some questions about the mortgage crisis:

>Can the government stop the decline in home prices?

>Can they avoid more loan defaults?

>Can they engineer a soft landing for the mortgage loan industry?

>Is the crisis already over?

>Where are we in the process?

>Can the government actually manage the situation?

Ben Bernanke, Chairman of the Federal Reserve, recently “endorsed the need for government intervention, saying that letting markets take their own course could destabilize communities, reduce the property values of nearby homes and lower municipal tax revenues.” He is asking lenders to consider “cutting the principal of some customers’ loans to prevent foreclosure, noting, “When the source of the problem is a decline of the value of the home well below the mortgage’s principal balance, the best solution may be a write-down, perhaps combined with a government-orchestrated refinancing.” (“Bernanke pushes government help to curb foreclosures,” Los Angeles Times, May 6, 2008).

Bernanke also recommended legislation permitting the FHA to “increase its scale,” along with Rep. Barney Frank (D-MA) and Sen. Chris Dodd (D-CN), who are calling “for up to 0 billion in loan guarantees from the Federal Housing Administration to refinance loans that homeowners can’t afford as long as the original lender reduces the principal on the loan to 85% of the home’s current market value.” (“Many problems with mortgage bailouts,” CNNMoney.com, April 22, 2008).

This plan to induce lenders to write-off a portion of loans that “homeowners can’t afford,” is a very bad idea. In exchange for taking an immediate 15% write-down, the federal government will provide replacement financing, thus effectively transferring the remaining risk of loss to the taxpayers. It would favor borrowers who foolishly took larger loans than they could afford or on terms they could not handle and lenders who knowingly made high risk loans to unqualified applicants. If property values continue to drop, it would simply result in another round of defaults and losses. To his credit, President Bush has threatened to veto this legislation if Congress should pass it.

Who would we really be bailing out, anyway, lenders or borrowers? And, where would the 0 billion come from? Certainly not government reserves, because there are none, which leaves more borrowing as the source of funding.

Warren Buffett, of Berkshire Hathaway fame, currently ranked by Forbes magazine as the richest man in the world, recently told Bloomberg.com, “The worst of the crisis in Wall Street is over.” However, “in terms of people with individual mortgages, there’s a lot of pain left to come.” Mr. Buffett’s conclusion was echoed by Alan Greenspan, former Federal Reserve Chairman, who is reported to have also said that the worst of the credit crisis is over.

According to Cyril Moulle-Berteaux, writing in the Wall Street Journal (May 6, 2008), it is very likely that the housing crisis is already over, pointing out that the current “bust is nearly three years old.” He further notes, “New home sales are down a staggering 63% from peak levels of 1.4 million. Housing starts have fallen more than 50% and, adjusted for population growth, are back to the trough levels of 1982.”

We should not be influenced by media sob stories about people losing their homes and avoid any attempts to have the government further interfere in the market. Real estate cycles have occurred many times before, and we should simply let this one finish playing out, especially since it looks as though it may have already bottomed.

NOTE: Read more of Harris Sherline’s commentaries on his blog at “opinionfest.com.

Harris Sherline is a retired Certified Public Accountant and executive. His diverse business background includes experience as a partner in a public accounting firm, as a principal in a number of business ventures and as CEO of a hospital. His conservative commentaries appear weekly in two Santa Barbara newspapers. In addition, his op-ed articles currently appear regularly on three widely read web sites and his own weblog,

Opinionfest.com.

Article from articlesbase.com

Warren Buffett Thinks Mortgage Rates Will Increase In 2011

Published on January 27, 2011 in Warren Buffet Library. 0 Comments Tags: 2011, Buffett, Increase, Mortgage, rates, Thinks, Warren.

by k-ideas

Does Warren Buffett, perhaps the world’s top financial guru, think mortgage rates will rise this year? His recent bond trades indicate that he does.

Berkshire Hathaway Inc. borrowed .5 billion by issuing fixed-rate bonds to pay off floating-rate debt. By locking into fixed-rate loans at current rates and paying off floating-rate loans that could increase in the future, Buffett is evidently betting that interest rates, including mortgage rates, will increase. Check current mortgage rates.

Other investors closely watch every move “the Oracle of Omaha” makes, and his recent decisions strengthen the view that mortgage rates will increase this year. In a sense, he is locking in his mortgage, although he’s using corporate debt as opposed to a home loan. Lock in your home loan.

Bloomberg reports that the fixed-rate debt Buffett issued includes 0 million of 10-year notes paying 4.25 percent and 5 million of three-year notes at 1.5 percent. Buffett’s company also issued 5 million of floating-rate bonds priced at 0.33 over the London inter-bank offered rate, a common financial index.

Buffett purchased a railroad company, Burlington Northern Santa Fe, for billion in November 2009, betting that an improving economy will boost the railroad company’s value. At the time, he called the acquisition an “all-in wager” on the economy, according to Bloomberg.

That view may have been ahead of the curve. Recent economic news is pointing to an improving economic picture this year. U.S manufacturing grew faster in December than in the previous seven months. The index for manufacturing activity, as from the Institute for Supply Management, increased to 57 in December, up from 56.6 in November. Anything over 50 means growth. Unemployment claims last month fell to their lowest level since 2008 and have been trending downward. As investors become more optimistic, they’re pumping money into a rising stock market and dumping safe Treasury bonds. That makes Treasury prices fall and their yields rise, prompting mortgage rates to increase.

Michael Kling is the web editor and contributing web content writer for Total Mortgage Services, LLC, as well as all related sister sites. Total Mortgage Services, LLC is an industry leading mortgage broker and lender headquartered in Milford, Connecticut.

Article from articlesbase.com

Lower Interest Rates a Boon to High-Yielding Mortgage REITs

Published on June 26, 2010 in Warren Buffett in the News. 0 Comments Tags: Boon, HighYielding, Interest, Lower, Mortgage, rates, REITs.

Lower Interest Rates a Boon to High-Yielding Mortgage REITs
With the Fed signaling low inflation and low rates ahead, now may be as good of a time as ever for income oriented investors to take a look at mortgage REITs.

Uk Mortgage Search Volume Off Sharply

Published on June 8, 2010 in Warren Buffett Articles. 0 Comments Tags: Mortgage, Search, Sharply, Volume.

UK Mortgage Search Volume Off Sharply

Hitwise’s Robin Goad posted about how mortgage calculator terms have began capturing a larger portion of the UK mortage search market recently.Visit Here Now http://mortgage-loan-broker.blogspot.com

The US based growth in demand for mortgage calculator searches was largely on the demand created by the sharp lowering of the Federal Reserve funds rate from 5.25% to 2.00% during the September 18, 2007 to April 30, 2008 time period.

As a website that publishes in the space we had a pulse on the search volume changes and reasoning behind them

the lowered Fed funds rate lifted search volume
eroding conumer confidence, a glut of housing inventory, and falling real estate prices have made people far more comfortable sitting out buying a new home until the pricing trend reverses

The Bank of England has lowered rates much slower than the United States, lowering from 5.75% to 5% over the course of 5 months from December 6, 2007 through April 10, 2008. In spite of their rate cuts, UK mortgage rates have reached 8 year highs amid higher inflation.

For fifty years we simply believed that home prices would always increase, and then one day it was no longer true. Many people are looking, but few people are buying right now.

We simply attempt to be fearful when others are greedy, and to be greedy only when others are fearful. – Warren Buffett

Surely amongst the chaos and fear in the markets there is lots of opportunity. Are you a contrarian investor? Or is it best to wait until you see market stability before investing?

Visit Here Now http://mortgage-loan-broker.blogspot.com

6/17/09 12pm – 22 banks Downgraded – Mortgage Applications plunge – Stock Market Update

Published on June 2, 2010 in Warren Buffett Videos. 13 Comments Tags: 12pm, 6/17/09, Applications, banks, Downgraded, Market, Mortgage, plunge, Stock, UPDATE.

Subscribe to my videos – 6/17/09 12pm – 22 banks Downgraded – Mortgage Applications plunge – Stock Market Update -lousala Peter Schiff Ron Paul glenn beck obama CNN FOX CNBC Bloomberg aljazeera gerald celente warren buffett marc faber jim rogers gold silver money dollar max keiser lou dobbs bob chapman alex jones david icke economy collapse downturn fall stock marcket wall street trader Madoff Schould be Secretary of The Treasury in this Ponzi Scheme Economy

Mortgage

Published on June 2, 2010 in M Glossary. 0 Comments Tags: M Glossary, Mortgage.

Mortgage

A loan secured by the collateral of some specified real estate property which obliges the borrower to make a predetermined series of payments.

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The Mortgage Crisis

Published on May 11, 2010 in Warren Buffett Articles. 0 Comments Tags: Crisis, Mortgage.

Some questions about the mortgage crisis:

>Can the government stop the decline in home prices?

>Can they avoid more loan defaults?

>Can they engineer a soft landing for the mortgage loan industry?

>Is the crisis already over?

>Where are we in the process?

>Can the government actually manage the situation?

Bernanke also recommended legislation permitting the FHA to “increase its scale,” along with Rep. Barney Frank (D-MA) and Sen. Chris Dodd (D-CN), who are calling “for up to $300 billion in loan guarantees from the Federal Housing Administration to refinance loans that homeowners can’t afford as long as the original lender reduces the principal on the loan to 85% of the home’s current market value.” (“Many problems with mortgage bailouts,” CNNMoney.com, April 22, 2008).

Who would we really be bailing out, anyway, lenders or borrowers? And, where would the $300 billion come from? Certainly not government reserves, because there are none, which leaves more borrowing as the source of funding.

NOTE: Read more of Harris Sherline’s commentaries on his blog at “opinionfest.com.