Record foreclosures hit mortgage lenders
This story is from USA Today and is related to an earlier blog entry on spiraling mortgage foreclosures. The reason it caught my eye is that no-where in the article does it mention that the top two states where foreclosures occurred are Mississippi and Louisiana, the two states most recently hit – and hit hard – by hurricanes. And the reason people are failing to continue mortgage payments are that in some cases, the houses no longer exist and either they had no insurance, or the insurance company found a way NOT to pay up.
This is a big story – the record foreclosures – and evidence how in every society, when borrowing money becomes too easy, people get hurt.
It is an equally big story when the insurance companies don’t pay up. I have been told by the company insuring my Florida house that they will probably not continue insuring me. It is hard to find a company who will insure your house against hurricane damage in Florida.
By Noelle Knox, USA TODAY
The reason many mortgage lenders are in trouble became alarmingly clear Tuesday. The Mortgage Bankers Association said more than 2.1 million Americans with a home loan missed at least one payment at the end of last year — and the rate of new foreclosures hit a record.
The problem is most severe for borrowers with scuffed credit and adjustable-rate mortgages. More than 14% of them were behind on their payments. And the worst is yet to come, the MBA said. At least $300 billion in subprime ARMs will reset this year to higher interest rates. Those borrowers face higher payments and a harder time refinancing.
Blindsided by the number of loans that have already gone bad, more than two dozen lenders have gone out of business or been purchased. New Century Financial, the nation’s second-largest subprime lender, has quit making loans and is edging toward bankruptcy protection.
“There’s been a stunning erosion of mortgage quality,” said Mark Zandi, chief economist at Moody’s Economy.com. “It’s primarily in the subprime market, but the entire market is weakening … and that adds to problems in the housing market, and by extension the broader economy.” Retailers are already feeling the effect, he said, because homeowners tend to spend less when they fear their homes are worth less.
To stem their losses, lenders are ending 100% financing plans, requiring better credit scores and demanding more proof of a borrower’s income. The stricter rules are squeezing first-time buyers, as well as homeowners who want to refinance.
To read the rest of the story, and to see a state-by-state list of mortgage foreclosures, Click USA Today, here.
Who Knew? Skimmed Milk Gets Top Post
When I blog, I know what I think is important. I don’t just blog what I think is important, I also blog what I think is funny, what catches my eye, what I want people who don’t live in Kuwait to know about how life here is different from their life, and then.. . things in the news that might be obscure, but interesting.
Every day, the Who Knew? Skimmed Milk Affects Fertility post gets hits. Although I only posted it two weeks ago, it is the leader for the last thirty days, way ahead of the next most popular post.
I never know. Mostly I blog because I have things ( originally wrote “thinks” which must be truly Freudian) I want to say, but in any kind of communication, you need feedback. Feedback, for me, is a combination of what you comment, and what you read – my statistics. It just cracks me up, what you, the reader, find most interesting in my posts as opposed to what I am thinking when I post. Go figure!
Outside My Window
I live a busy life. To bring some order into the enormous potential for chaos, I have routines. Not inviolable routines; I can be flexible when I need to be, but routines that help me take care of the important things so that they don’t get lost in the pressure of other demands.
I start each day with coffee, and sit at my laptop and check all my e-mail. I read my daily readings in the Lectionary (see blogroll). Then I check the blog and respond to comments. Sometimes I write an entry, sometimes I don’t.
So this morning I have just sat down with my coffee, just opened my first e-mail, and suddenly, three men are outside my window, washing the windows. I am still in my nightgown, and had NO warning.
The Qatteri Cat was fascinated, and thought I had arranged this for his special entertainment. I was aghast, and rushed to the back rooms, away from the prying eyes.
I needn’t have worried. As you can see, just as I grabbed my camera, another traffic accident happened and they were very taken with the loud argument that ensued. My friends, the Kuwaiti police showed up about an hour later to sort things out.
Kiss the Kuwaiti Police
In the middle of the night last night, I was wide awake. The Qatteri Cat and I watched a police stop outside our window for about an hour.
I am guessing it was a combination traffic stop and training session. There was one guy who would gather the rest together when there were no cars and give additional techniques to the less-experienced traffic policemen. I am guessing, because there is no way on earth I would go out and ask!
Policeing in Kuwait is SO different. These young men are very professional. They were looking for people without driver’s licenses and / or without registrations. They had very cleverly positioned themselves so once the car was on the road, there was no way out but to go through them. Very strategic, very professional.
“So what is so different?” you might wonder, if you live in France, or Germany, or China or the US. “Isn’t that what police do?”
Yes. And no. One of the last people caught in the web was an old man traditionally dressed in thobe and gutra and egal, and he tried to get through by pretending he didn’t see the police. He didn’t have the right papers.
In my country, just trying to get through would get him into trouble.
He had to park, and get out of the car. Then, he went to each policeman and reached out with his right hand to take the policeman’s left arm, then he kissed them, on the nose or on the right cheek, and greeted them, still holding their arm or hand.
And the police treated the old man with deference, and kindness – and firmness. He still didn’t have the right papers. At one point, he pushed a policeman lightly, and the policeman didn’t go ballistic, but he gently pushed the old man back, out of his face. Finally, it was time to move the traffic stop, and they let him go, but I am guessing that, as the Kuwait Times always says “a case will be filed.” It did not look like he was getting off scot-free; the old man looked very unhappy.
I went back to bed happily, thinking how shocked our police would be, how they would react to someone holding their hand and kissing their nose, and drifted back to sleep with a big grin on my face.
The Wire
A couple years ago our son started talking to us about The Wire. He always puts us on to really interesting series. The Wire is an HBO series, like Rome
Season 1 starts with a new unit being set up to interdict the drug trade in Baltimore. Season 2 re-unites the team to combat illegal imports and illegal importation of sex slaves out of Eastern Europe and Asia. Season 3, my favorite season of all, is back to the drug trade, but with a difference.
In Season 3, one police district changes the rules. They clean up their neighborhood and send all the drug traders and sex trade workers to one area. The area doesn’t legalize crime – not exactly – but the police leave that area alone. As they explain it to the primary drug dealers, it’s a little like Amsterdam. The homies don’t understand; they call it “Hamsterdam”. I laugh everytime I hear it.
The series doesn’t focus strictly on the police – we get to go inside to watch how the drug dealers organize and divide up the city. We learn how drug lords use big business management modules to streamline their supply and demand, and to stay ahead of the police technology. And they are masters at manipulating the judicial system.
There is brutality. There is sex. There is love and there is betrayal. Sometimes, it isn’t easy to tell who the “good” guys are. There are bad guys who show decent values and there are police and politicians on the take. You get the impression it is probably pretty real stuff. In one season 3 episode, a policeman is shot in the line of duty, and they hold a wake in an Irish pub. They are all very very drunk, and vomiting out in the streets. It isn’t pretty.
And all the same, when each season ends, we can hardly wait for the next one. It is gripping drama, vintage HBO cutting edge production. It keeps you on the edge of your chair. You can read more about The Wire at it’s HBO site, where I just learned that The San Francisco Chronicle calls The Wire “the best television show of the year.”
Internet Phones Giggle
From a teeny-tiny article on page 2 of today’s Kuwait Times:
‘Phone’ Teams Honored
Kuwait: It is important to reduce charges of international calls to prevent illegal activities, Communication Minister Dr. Maasouma Al-Mubarak stressed yesterday.
In a press conference held on the occasion of honoring the team of the ministry’s telephone control department, Al-Mubarak said the department succeeded in cooperation with the Interior Ministry in locating and stopping illegal international calls dealers praising their efforts that continued despite the dangers they faced.
My comment: I’m sorry. I truly mean no disrespect. And at the same time I am having a very hard time trying to maintain a straight face. Oh, these dangerous telephone callers out there!
• Raiding brothels.
• Chasing drug dealers.
• Dealing with arrogant/immature/drunk/drugged drivers.
• Family disputes involving knives and guns.
• Protecting the borders, land and sea.
All of the above can involve serious dangers. One of the axioms in policing is that your most dangerous call is getting between a fighting husband and wife. But the bravery of raiding telephone call centers? Please. Spare me.
You can’t turn back the clock. Technology has given us a whole new way of making international calls. The MOC can spend its resources fighting a numerous enemy – people who want to make reasonably priced phone calls – or they can become a part of the solution, regulating and encouraging growths of new technologies to the greater good of all.
Amer Al-Hilal Steps Up to the Plate
He eyes the pitcher. He swings the bat! He connects! He hits the ball out of the park!
OK, OK, sometimes I carry an analogy too far. But seeing our fellow blogger Hilaliya: A Kuwait State of Mind on the front page of today’s Arab Times, taking a swat at the recent ban on internet phone services made me feel like dancing.
He encourages all of us to raise the cry against this ban, a ban which is unenforceable (think of all the IT people running around Kuwait who know just how to get around this blockage) and counter to the best interests of the state of Kuwait. As Amer says – Kuwait needs a Minister of Communications who looks toward the FUTURE, and makes policy decisions for the long term good of the state and community, not one who barely comprehends the new technologies and is unwilling to go with the times.
You can’t hold back technology. The genie is out of the bottle. So how can you use the new technologies to better serve the needs of the wealthy state and its inhabitants?
Warning to Egyptians
Please, please, somebody else read this and tell me what it means. From today’s Kuwait Times:
Informed souce at the Ministry of Communications revealed that the closure of websites of companies that offer illegal international telephone call service was successful because the number of international calls from Kuwait and coming to Kuwait from other states increased following their decision.
On the other hand, the Egyptian ambassador to Kuwait Ahmad Abdullah warned Egyptian expatriates in Kuwait against violating the Kuwaiti laws expecially following a number of complaints were filed against Egyptian citizens of cheating residents with providing illegal residence permits and driving licenses. The ambassador asked all Egyptian expats to avoid this kind of illegal actions because the expats who commit such crimes will be deported from Kuwait, reported Al-Qabas.
My comment: Excuse me? How are these two paragraphs even related? How is banning telephone calls successful due to an increase in the banned telephone calls? And for what will Egyptians be deported – using an illegal phone? Providing fake residencies? Fake driver’s licenses? All of the above?
Manshar Mall: Rotana Hotel Open
One day it was not open – and then it was! I haven’t seen any announcements for the Rotana, but it is indeed open for business. There are signs all over Fehaheel indicating the Rotana Hotel’s whereabouts, but those have been up for months.
And – the Villa Moda signs are back up, indicating they will be opening soon. Interesting. Wonder when “soon” will be?
Last but not least – Al Kout and Al Manshar appear to be related, at least architecturally. Why have they not connected the two with a walking bridge from the top floor? Crossing that road is deadly! And parking in the Al Manshar Mall parking lot is severely limited.
And why so much security? There are security guards everywhere, and they are very very firm (my big smile did not sway them) about NOT taking photos.
The very cool thing about Al Manshar Mall is that there are a lot of small shops; it has a very souk-y feel about it, and they aren’t the shops you find in all the usual (ho hum) malls.
And there is a small but very very busy Chili’s.
Raise Your Voices
My blogging friend Hilaliya raised HIS voice in an article entitled Kuwait ‘Ministry Of Communications’ Attempts To Extort Internet Users and found an elaborated article on the Ministry of Communication ban. You can read his rant, and go to the Arab Times article by clicking here.
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