Awesome Game  - you must play this - The Economy Killers - Want to blame someone for killing the economy? Vote on who is at fault. - thanks Ralph Parsons for finding this - Conde Nast Portfolio
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Wachovia Ditches Pick-A-Pay, Will Waive Prepayment Fees on Option ARMs - PAUL JACKSON - .. The move is a stark change of direction for the Charlotte, North Carolina-based bank, and a tacit admission that option ARMs are a big problem for the bank, which paid $25 billion to purchase Golden West Financial in 2006. … - housingwire

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ALERT! Wachovia Cries ‘UNCLE’ to the Pay Option ARM - THIS IS HUGE, not only for Wachovia but for every bank or investor who owns Pay Option ARMs or securities derived from them. It was just reported that Wachovia will stop doing Pay Option ARMs immediately and waive all prepayment penalties associated with these loans. - lots more - MR MORTGAGE

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Cuomo’s Appraisal Rules Irk Lenders - Mauma Desmond - … controversial appraisal code … on government-sponsored mortgage lenders Fannie Mae and Freddie Mac in March. … The code prohibits the two from buying loans that didn’t begin with an “independant” appraisal. … - Forbes

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quotes a number of economists - Expect U.S. economic woes to linger into 2009 - David R. Francis - … Henry Kaufman, a veteran Wall Street economist dubbed “Dr. Doom” in the 1960s, figures the mess in securitized assets, such as those loaded with sub-prime mortgages, is “60 to 65 percent over.” But because banks and other financial institutions will extend less credit, the economy will “scoot along at close to recession levels” for the next couple of years, he says. … - CS Monitor

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Interest-only loans often sold on false promises - Costs and risks higher than comparable fixed-rate loans -  Jack Guttentag - Inman News 

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It’s All About Oil - If any one tries to tell you differently, all you need to do is show them the chart below. -  Bespoke Investment Group 

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What’s Bugging America? - Richard DeKaser - National City Inisghts

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You have to admire this guy’s guts:  An Ex-Banker’s Unusual Job Pitch - … He is standing on Park Avenue handing out resumes to passersby wearing a sandwich board that says, “Experienced MIT Grad For Hire” with his name and contact information. … - thanks Carolyn Coppedge - NY Times

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Robert Lenzner - Betting on a collapse in financials paid off well last year. Sadly, the same trade is still making money. - Forbes 

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Subprime, Alt-A Bonds to Extend Drop as Banks Retreat  - Jody Shenn  - … Prices for typical fixed-rate Alt-A bonds rated AAA have tumbled to near an all-time low of less than $84 per $100 of principal from about $87 in April, JPMorgan said.  … “In a world of insufficient capital, value no longer really matters,” Flanagan wrote  — - Bloomberg

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REQUIRED READING: New Rules Toughen Servicers’ Foreclosure Procedures  - Christopher G. Brown - A Connecticut court recently joined what is becoming a national trend of road-blocking foreclosure of mortgages that have been traded in the secondary market, and the implications for mortgage servicers could be significant. - MortgageOrb 

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Countrywide’s Mozilo exits stage a fallen hero - The mortgage loan empire he created flies a new flag Tuesday as the lender is absorbed by Bank of America. - E. Scott Reckard -  Los Angeles Times

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Sun West Releases Apply Online Feature For Reverse Mortgage Partners -  Reverse Mortrgage Daily 

     posted by Bill Coppedge