Diamond News Archives

Magdalene Altidor lost her home to foreclosure during the subprime mortgage crisis, but this week she was first in line at a four-day event in Miami where borrowers with poor credit were offered no-down payment, low interest rate loans.

"I left home, it was about 4am," she laughed. "I'm ready to purchase a home."

The event is one of several being held in cities across America this year, run by the non-profit, Boston-based brokerage, Neighborhood Assistance Corporation of America, or NACA.

"It's a national disgrace about the low amount of homeownership, mortgages for low and moderate income people and for minority home buyers," said Bruce Marks, CEO of NACA. "In the loans that we've originated in the past 6 years, zero foreclosures."

Marks and NACA were front and center during the subprime mortgage crisis, holding mass mortgage modification events across the country with banks and servicers. Bank of America was there then and Bank of America^[1] is with NACA now, backing the program with 10 billion dollars in mortgage commitments.

"It's total upside," said AJ Barkley, senior vice president of consumer lending with Bank of America. "We have seen significant wins in this partnership. Just to be clear, when we get those loans with all the heavy lifting here, we're over a 90 percent approval, meaning 90 percent of the people who go through this program that we actually underwrite the loans."

Borrowers can have low credit scores, but have to go through an education session about the program, submit all necessary documents, from income statements to phone bills. Then they go through counseling to understand their monthly budget and ensure they can afford the mortgage payment. The loans are 15 or 30 year fixed with interest...

HTTP/1.1 200 OK Date: Fri, 12 Oct 2018 16:00:04 GMT Content-Type: text/html; charset=UTF-8 Transfer-Encoding: chunked Connection: keep-alive Set-Cookie: __cfduid=d3ecbfc47a951467e4a95b641945af5231539360004; expires=Sat, 12-Oct-19 16:00:04 GMT; path=/; domain=.theautomaticearth.com; HttpOnly X-Pingback: https://www.theautomaticearth.com/xmlrpc.php Link: ; rel="https://api.w.org/" Link: ; rel=shortlink Expires: Fri, 12 Oct 2018 16:44:09 GMT WPE-Backend: apache Vary: Accept-Encoding,Cookie X-Cacheable: YES:3600.000 Cache-Control: max-age=3600, must-revalidate X-Cache: HIT: 33 X-Pass-Why: X-Cache-Group: normal X-Type: default Expect-CT: max-age=604800, report-uri="https://report-uri.cloudflare.com/cdn-cgi/beacon/expect-ct" Server: cloudflare CF-RAY: 468ac6fb3a493fa7-YUL Of Course The Fed Is Crazy - The Automatic Earth ...

Jeffrey Gundlach^[1] believes the U.S. stock market can't diverge from global equity markets forever.

The bond investor noted the S&P 500 was strangely outperforming the rest of the world's equity markets since the summer into this month.

"I said [before] ... if the global stock [market] is going to take out the low and put in a new low, something bad must be happening. I don't think the U.S. can hold in there," he said Thursday on CNBC's "Fast Money Halftime Report^[2]." "Well what happened as rates broke to the upside ... the global stock market ex-U.S. did take a new leg down and did go to a 12-month low. And it's interesting the S&P 500 did what I said. ... That is join the global stock market on the way down."

Relative performance of S&P 500 (blue) versus Rest of World ex-U.S. (green) YTD

Source: FactSet

On Wednesday, the Dow Jones Industrial Average^[3] declined by more than 800 points and the S&P 500 fell by 3.3 percent as investors worried about the negative effects from the rising interest rate environment .

The sell-off came a day after the 10-year note yield^[4] traded above 3.25 percent hitting its highest level since 2011. This occurred about a week after Federal Reserve Chairman Jerome Powell said in an interview with PBS that the central bank is a "long way" from getting rates^[5] to neutral, which pointed to a possibly more aggressive path for rate hikes.

The iShares MSCI ACWI ex U.S. ETF^[6], which tracks the performance of a rest of the world ex-U.S. equity index, is down 10 percent this year through Wednesday...

HTTP/1.1 200 OK Date: Thu, 11 Oct 2018 16:00:10 GMT Content-Type: text/html; charset=UTF-8 Transfer-Encoding: chunked Connection: keep-alive Set-Cookie: AWSALB=QqflaNR1Jgw7m87LZDAiTd7UgUklrRhT0qeznb6A/fz0+PDv4Xe479L43p1xsHsoIrFOHf9jAaE0cpHAaPNm+ugRblZrsnhI1ZQjdQDuxBlL7JxpahrXHPuGfk+y; Expires=Thu, 18 Oct 2018 16:00:10 GMT; Path=/ Server: Apache/2.4.34 (Amazon) OpenSSL/1.0.2k-fips PHP/5.6.37 X-Powered-By: PHP/5.6.37 Set-Cookie: ss=64nm56om7q44jdc3ptbtouqdr0; path=/ Expires: Thu, 19 Nov 1981 08:52:00 GMT Cache-Control: no-store, no-cache, must-revalidate, post-check=0, pre-check=0 Pragma: no-cache Cache-Control: no-cache Set-Cookie: XSRF-TOKEN=eyJpdiI6InlHcDh2U0VDZUI0M0xBSGZSNHRDZHc9PSIsInZhbHVlIjoiSzhTZWdFM0E1RHlCQVdGVENNbEprZEp2VnJ1Wks4OHpsQ25TNnBxTTBRaUhNK2NQR1NGbDNFS1JhZk9HSm1nZmhPdW9OQ3B0NGdIQ1hCOWNoNkYydmc9PSIsIm1hYyI6ImMyZDliMGE1MzY4YmQzMWZiY2I5MWQyZWMwMzcyMzVhYjgxYmMzYjA0OTgwZTJhMTZlYTFkOWNiMzkzYTViZDUifQ%3D%3D; expires=Thu, 11-Oct-2018 18:00:10 GMT; Max-Age=7200; path=/ Set-Cookie: laravel_session=eyJpdiI6Im1MbXc4UkpQckI0WUtrdStIN1J5bGc9PSIsInZhbHVlIjoiMXk0UXRpSXFoVkR5dDdCRWFIZ0VQeU1hRU5cL0IwUmhJSXFrMUdzMXJjbnowOE5FemNSNmZXU3ErYXJGaWFUOWRiVmpzWFZ4cUJpMzViSW82ZTZSZnJBPT0iLCJtYWMiOiJmZWI1MGMzY2ZiMGE5NjQxMmYyNTdjNmQ1ZGVhNWNmZmQ4NjI3MjMwMDRjZTlmZWZjODk3NzgzMzMyYTVmMGFkIn0%3D; expires=Thu, 11-Oct-2018 18:00:10 GMT; Max-Age=7200; path=/; httponly Vary: Accept-Encoding

Free U.S. Shipping on Orders of $499 or More

References

1. ^{^} MENU (goldsilver.com)