Posted on March 1, 2006 by Steve
Reuters, February 24th, 2006
A major transition is underway in the U.S. mortgage lending
industry, with consolidations and lay-offs at the forefront as
companies try to deal with waning demand for home loans.
This
shift is expected to pick up steam in 2006 if the housing market, as
widely expected, cools off from its record-breaking five-year run.
“There are some very important signals emerging in that we have seen
some pretty good companies go on the block for sale or have been sold
recently, which is a clear sign that consolidation is seriously
underway,” said Douglas Duncan, chief economist at the Mortgage Bankers
Association, an industry trade group.
Duncan said developments at two mid-sized “good performing” companies may hint to a wider trend.
Read more…
Posted on March 1, 2006 by Steve
The New York Times, February 24th, 2006
Two years ago, George and Mollie Weiner were scraping by on $1,800 a
month in Social Security payments and just $100 in monthly payouts from
their individual retirement accounts.
But last year, the couple, both 80, realized they could generate
more income from their two-bedroom condo near Tampa, Fla., which had
more than doubled in value since they bought it in 1997. They took out
a “reverse mortgage,” a loan that does not require monthly repayments,
giving them access to more than $100,000.
“We are very relaxed now because we have extra spending money,” Mr. Weiner said. “And the house is taking care of it.”
An increasing number of retirees may be starting to follow the Weiners’ example. New data
released yesterday from the Federal Reserve shows that for the elderly,
like Americans in general, housing wealth has soared even as other
forms of savings have declined.
Read more…
