" /> Coruscation: June 2007 Archives

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June 30, 2007

Subprime Mortgages Meet Stricter Federal Rules

“Stated income and reduced documentation loans to subprime
borrowers should be accepted only if there are mitigating
factors that clearly minimize the need for direct verification
of repayment capacity,”

“However,” the regulators added, “a higher interest rate is
not considered an acceptable mitigating factor.”

Federal Financial Regulatory Agencies Issue Final Statement on Subprime Mortgage Lending. [PDF]

Posted in mortgage.

[ Via Floyd Norris]

June 24, 2007

Payments Watch

Paymentswatch, an early adopter consumer guide to electronic payments.

June 23, 2007

Digital Transactions

digitaltransactions archives on electronic payments.

June 22, 2007

Wall Street Oasis (was IBanking Oasis)

Update 2009 July: Now known as Wall Street Oasis.

ibankingoasis hobnobs with the junior monkeys of investment banking.
Example: their life in NY.

June 20, 2007

Long Island City NYC / Eric Benaim

LongIslandCityNYC local boosterism by Eric Benaim.

June 19, 2007

Aneace Haddad, payment transaction enthusiast

Aneace Haddad on interpayments systems, settlements, transactions and
merchant banking.

June 18, 2007

Gary Weiss

Gary Weiss' Investment muckracking.
Example: Ticks in naked shorts.

June 17, 2007

Bed Stuy, txt or die

Virgin mobile's copywriters phone it in.

“I don’t think I’ve ever heard ‘Murray Hill’ and ‘Rule’ used in the
same sentence before,” he said. “The copywriters certainly
deserve some credit for this. It’s not that easy to go from
bashing Sutton Place to selling prepaid phone service in
less than 50 words.”

-- John Reardon.

BedStuy Blog

June 16, 2007

Bank Tech News

banktechnews about payment, transactions and settlements.
Blocking ACH Fraud and debit filters

ACH Fraud: Clearing House Aims To Clean House
Chronic sources of bad ACH originations-including fraud-may be nearing the end of their privileges on the network

By Glen Fest
2007 July

June 15, 2007

Bankers Online

bankersonline resource for banking regulation and practices.
Example: HMDA tour (eg Borrower Isn't
Homeowner, HMDA Reportable ? )

# HMDA Filing Help
# Assisted Living Facility - HMDA & CRA Reportable?
# HMDA Reporting on Commercial Loans
# HMDA Reporting - Dollar Amount
# Borrower Isn't Homeowner, HMDA Reportable?
# HMDA - Transaction Secured by Other Dwelling
# Is a HI Loan Secured by Auto HMDA Reportable?
# Early Disclosures and HMDA - Refinance
# HMDA Classification - Log Home
# Are Subprime Loans HMDA Reportable?
# HMDA, HELOCs and Monitoring Information
# Mixed Use Property - HMDA Reportable?
# We Don't Report HELOC's Under HMDA, However...
# Borrower Isn't Homeowner, HMDA Reportable?
# HMDA - Classify Loan as 1-4 or Mobile home?
# Motel as Collateral on Business Loan, Reportable?
# HMDA Reporting Issues on Temporary Financings
# With or Without Monitoring Information
# Secured by a Different Dwelling, HMDA Reportable?
# HMDA Reportable?
# Initial Application Date for HMDA Purposes
# HMDA - Definition of a Refinance.
# Incomplete HMDA Applicant Info - Contacting Broker
# HMDA - Which Date Do I Report?
# Is This Refinanced Business Loan HMDA Reportable
# Mobile Homes and HMDA
# HMDA Reporting & the "Short Term" Loan
# Is this application withdrawn, incomplete, or ???
# Whens & Whats of Written Preapproval Program
# Does HMDA Apply to THIS Business Loan?
# HMDA on a Commercial Loan
# Grossing Up HMDA Income
# Will HMDA Lead to Litigation?
# Definition of Temporary Financing
# Loan Denial Notice
# Do we HMDA a Loan for New Appliances?
# We've filed our HMDA LAR - what next?
# HMDA -- Recording a Withdrawn Application
# Are Home Equity Loans HMDA-Reportable?
# HMDA, Home Purchase Loans and the "Date of Action"
# Frequency of a Rate Spread "Hit"
# Temporary Financing Under Reg. C
# Government Monitoring Information
# Guru Compilation: HMDA (PDF)
# FRB rep clears up Reg C's gray areas
# HMDA Refi Test
# Posting the HMDA Notice for a New Reporter
# Commercial Loan Now HMDA Reportable
# HMDA Home Improv. Reportable
# Prequals Under HMDA
# HMDA Revision of Definitions/Rules
# Calculating the Rate Spread
# Business Purpose Loan, Residential Refinance, and HMDA
# First Time HMDA Reporter Has Questions
# Do Commitment Letters qualify as a Preapproval?
# When to Audit HMDA 2004 Information
# New HMDA Sign
# HMDA Info on Brokered Loans
# Reporting Small Dollar Withdrawn App
# Lien Status Reporting Under HMDA
# HMDA: Final HMDA Rules for 2004
# Is new information required on every application?
# Lien Status Reporting Under HMDA
# What Are The Upcoming Changes In Reg C/HMDA
# HMDA Changes Finalized
# 2004 HMDA Reporting Checklist?
# 2004 HMDA Preapproval Rule Procedure
# Under the Revised HMDA Regs
# Privacy, Compliance, and Disclosures
# What Do the Revisions to Regulation C Mean?
# Oh, Look! More C: FRB Expands HMDA Coverage

June 14, 2007

Payments News

paymentsnews, example of mobile-phone based transactions.
Excellent design.

June 13, 2007

link dump on payments

linkdumponpayments, very Dutch: unknowingly satisfied.

June 12, 2007

Tehran the Beautiful

Jadi points to Tehran.

June 11, 2007

Cash back at closing -- Mortgage fraud ?

First he built a dictionary of 150 keywords in real estate
ads — “creative financing,” for instance — that might
signal a seller’s willingness to play loose. He then looked
for instances in which a house had languished on the
market and yet wound up selling at or even above the
final asking price. In such cases, he found that buyers
typically paid a very small down payment; the smaller
the down payment, in fact, the higher the price they
paid for the house. What could this mean?

Either the most highly leveraged buyers were terrible
bargainers — or, as Ben-David concluded, such anomalies
indicated the artificial inflation that marked a cash-back deal.

Having isolated the suspicious transactions in the data,
Ben-David could now examine the noteworthy traits they
shared. He found that a small group of real estate agents
were repeatedly involved, in particular when the seller was
himself an agent or when there was no second agent in the
deal. Ben-David also found that the suspect transactions
were more likely to occur when the lending bank, rather
than keeping the mortgage, bundled it up with thousands
of others and sold them off as mortgage-backed securities.

This suggests that the issuing banks treat suspect mortgages
with roughly the same care as you might treat a rental car,
knowing that you aren’t responsible for its long-term outcome
once it is out of your possession.

-- Freakonomic pf the week.

June 10, 2007

Loop Net, Commercial Real Estate Listings

LoopNet, offers commercial real estate listings:
investor and customer perspectives.

June 8, 2007

Aspiring arbitror of Washington

Matt Y plays prodigy and future arbitror of Washington.

June 7, 2007

Interest rate risk (IRR)

Interest Rate Risk - Models Similarities and differences

By comparing three different approaches to interest rate modelling, namely
* spot,
* forward and
* market models,
Han Lee of Commerzbank Securities finds that each has a different method
of constructing the effective volatility function, which determines its use.
Han H Lee is head of fixed-income derivatives research at Commerzbank
Securities in London.

See also Basel on Interest Rae risk, OCC / Treasury on interest rate risk,
and the FDIC on interest rate risk management.

June 6, 2007

BuzzFeed's what's hot

BuzzFeed shows what is infatuatingly hot.

Via BuzzFeed

June 5, 2007

House flipper fraud: Flip This House, Sam Leccima in Atlanta

'Flip This House' Star Accused of Fraud

On an episode of A&E's popular reality series "Flip This House," Atlanta
businessman Sam Leccima sits in front of a run-down house and calls
buying and selling real estate his passion.

Now authorities and legal filings claim that Leccima's true passion was
a series of scams that included faking the home renovations shown on
the cable TV show and claiming to have sold houses he never owned.

"This is, indeed, a con artist," said Sonya McGee, an Atlanta pharmaceutical
representative who says Leccima took $4,000 from her in an investment

By DOUG GROSS, Associated Press Writer
Friday, June 1, 2007
(06-01) 15:25 PDT ATLANTA, (AP) --

June 4, 2007

ARM Handbook

Adjustable Rate Mortgage Handbook by the Federal Reserve.

June 3, 2007

FTSE property index

*Its full title is the FTSE EPRA/NAREIT index, which is a mouthful for anyone.
FTSE stands for Financial Times/Stock Exchange, EPRA for the European Public
Real Estate Association and NAREIT for the National Association of Real
Estate Investment Trusts.

The FTSE EPRA/NAREIT Global Real Estate Index Series is designed to
represent general trends in eligible real estate equities worldwide.
Relevant real estate activities are defined as the ownership, disposure
and development of income-producing real estate.

The index series includes a range of regional and country indices,
Dividend+ indices, and a REITs and Non-REITs series. In response
to market demand, FTSE Group has also expanded the series to
include two new innovative benchmarks, The FTSE EPRA/NAREIT
Property Sector Index Series and the FTSE EPRA/NAREIT Investment
Focus Index Series.

[Via Market.view: The weighting game,
Economist.com, May 27th 2007.
Property’s strong run is not represented in portfolios.]

June 2, 2007

Autoblog relaunch

Autolog has cleaned up its design, and keeps posting
about twice an hour.

Notable: Relaunch and companion Autoblog Green lusts after
the new MINI Cooper D.

Previously: Autoblog enjoyed the MINI back in 2004, too.

More like this:

Autos, MINI, Subaru Impreza WRX STi

June 1, 2007

Epicurean Dealmaker

epicureandealmaker on fat tails.
Derivatives: Transfering risk or reducing risk ?