BankThink

What government with a population of 37 million, a GDP of $1.8 trillion and a widely derided political class has great trouble paying its debts?

The social activism website Change.org has taken up the plight of the parents of an active-duty service member, who are facing foreclosure.

As housing prices continue to slide, the loan-to-value ratios of always-performing loans have in many cases crept higher than those on defaulted loans, according to a new report from Moody's Investors Service.

The nonexistent spring home-selling season has put yet another crimp in the long-expected rebound of private mortgage insurers.

Loan modifications were flat in May compared with the previous month, while foreclosure sales dipped, according to the latest numbers from Hope Now, an industry alliance of mortgage servicers, investors and counselors.

What would members think . . .

Re: "Conspiracy Theories on Low Failure Rate Don't Hold Water"

The majority of Americans still place value in owning a home, despite a recession and recent housing crisis.

Receiving Wide Coverage ...AG Questions B of A Settlement: New York attorney general Eric Schneiderman asked for information about Bank of America's $8.5 billion settlement agreement in the mortgage-backed securities case. The AG's move indicates he may challenge the deal, according to the Times. Letters sent by the AG's office indicate the settlement may have been made without the full participation of all investors who would be affected. The Journal says Schneiderman wants to know if public agencies or state-affiliated pension funds were included in the settlement. "Some mortgage-bond investors have already objected to the deal, citing conflicts of interest that raise questions about the fairness of the accord," the Journal says. The paper also reported Rep Brad Miller, D-N.C., in a letter questioned if the deal was fair to taxpayers or if the settlement amount is "too low." Wall Street Journal, New York Times

In recent weeks we have been treated to several regulatory observations and preliminary decisions about the appropriate level of bank capital. A few comments have come from U. S. bank regulators. A major recent pronouncement came from the Bank for International Settlements, more commonly known by the name of the Swiss city where the bank is located — Basel.