Wednesday, May 7, 2008

Mortgage Bankers Association Can't Pay Mortgage

Foreclosure filings of all kinds - delinquency notices, auctions sale notices and bank repossessions - were up 112% during the first three months of 2008 compared with the same period a year ago. Community advocates and policy makers are worried that the problem will worsen as the interest rates on as many as 1.8 million mortgages reset this year. (Source: CNN Money) Is there any good news for the family facing foreclosure? Maybe this will help:

The Mortgage Bankers Association-- the folks that came up with the great idea of giving adjustable rate mortgages to people who couldn't afford them-- are having trouble paying their mortgage, The Washington Post Reports.

"A year ago, the Mortgage Bankers Association was thrilled to sign a contract to buy a fancy new headquarters building in downtown Washington. Interest rates were low, the group's revenues were steady and the prospects for quickly renting out part of the structure were strong. But since then, the association has fallen on tough times as many of the subprime mortgages dispensed by some of its members proved dicey. Borrowers discovered the loans were more costly than they had anticipated. Foreclosures soared, and cheap, inexpensive credit dried up, slowing the economy. The result: The trade group is about to find it harder than it imagined to pay its own mortgage."

There don't seem to be many tears shed for the professional organization.

"They are certainly getting what they deserve," Dean Baker, co-director of the Center for Economic and Policy Research, a liberal research group, was quoted as saying.