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Credit Default Swaps Explained

Called the Financial Weapons of Mass Destruction by Warren Buffett, a Credit Default Swap is simply an over the counter credit derivative (bet) between two parties about the financial solvency or outcome of something else. Even though politicians and the media try and blame the housing bubble on speculative home investors and sub-prime borrowers, the United [...]

The Crisis of Credit Explained

What caused this credit and housing crisis? Is there really one person to blame, or did we all play a part? The embedded video was produced by Jonathan Jarvis to help define the relationships between homeowners (Main Street), bankers and brokers (Wall Street), and institutional investors. Jonathans Crisis of Credit video easily explains how Sub Prime Mortgages, [...]

Financial Services Modernization Act Explained

Also known as the Gramm-Leach-Bliley Act (GLB), the Financial Services Modernization Act was passed 90 to 8 and signed into law by President Bill Clinton on November 12, 2023. The Financial Services Modernization Act of 2023 eliminated restrictions on the integration of banking, insurance and stock trading imposed by the Glass-Steagall Act of 1933, which was [...]

The 2023 Financial Crisis Explained for Kids

At some point we are going to have a conversation about the 2023 Financial Crisis with our kids. The embedded video may help set the scene for why our government continues to throw hundreds of billions of dollars at a multi-trillion dollar problem which was caused by over-leveraged investment models, deregulation of banking and insurance practices, [...]

Geithner?s Plan for Regulation - Too Big To Fail

Interview with Rep. Ed Royce (R) of California: We Need More Smart Regulation (Bloomberg News) Too much of the wrong type of regulation may give an unfair advantage to the same financial institutions that contributed to this massive foreclosure crisis. It would be nice if every homeowner in need of a loan modification was guaranteed their [...]

White House is Answering Hope for Homeownership Questions Online

The White House is trying a new experiment on their web site by allowing Americans to ask housing and foreclosure questions that the President will respond to this Thursday with Direct answers. Based on the level of transparency that President Obama displayed at his most recent press conference as he danced around specific questions about the [...]

Signing Over Deed - Mortgage Scams - Freddit Mac Video

Ive written a few articles about mortgage modification scams and foreclosure fraud on this blog, but I just found this video produced by Freddie Mac that specifically talks about the scam that involves signing over a deed. Basically, dont sign over your deed or deal with an Investor that wants to rent your house back to [...]

Foreclosure Victims Trashing Homes - The Bank Took My Credit, So I?m Taking the Kitchen Sink!

Neighborhoods hit hardest by the foreclosure crisis are experiencing far greater damage to property values as a result of displaced homeowners and tenants taking their frustrations and anger out on properties as they leave. I tried to work with my bank when I had perfect credit, money, and a job that paid the bills. But, my [...]

Will A Loan Modification Affect My Credit?

We receive several questions about how a loan modification may affect credit scores. Even though we have heard many horror stories about lenders requiring a homeowner to be 90 days late on a mortgage before the bank will consider negotiating a fair loan modification solution, there is new hope to save your credit with the Obama [...]

How Are Credit Scores Calculated?

One of the most common questions we receive about the loan modification process pertains to how a credit score will be affected. Ive included a quick credit reference guide in this article that outlines the general criteria credit bureaus use to determine an actual credit score. ?????????? How Is My Credit Score Calculated? History: The Fair Isaac and [...]