mortgage loan

Yra Harris, a veteran trader at Praxis Trading, told CNBC that changes introduced to the US bankruptcy code in 2005 are coming back to haunt banks. He says that banks lobbied hard for changes to the bankruptcy code, but the legislation is now having the effect of encouraging consumers to do all they can to pay down their credit cards, while leaving their mortgage payments on the second place.

 Citi announced that its active measures taken in Florida have successfully helped distressed homeowners avoid potential foreclosure at nearly three times the rate of a year ago. The company third quarter data shows that Citi’s loss mitigation successes in the state outnumbered foreclosures completed by a ratio of almost 16 to one compared to almost six to one in the third quarter of 2008.

 U.S. District Judge John Walter in Los Angeles declined a request submitted by Angelo Mozilo, the former chief executive of mortgage lender Countrywide Financial Corp, as well as David Sambol and Eric Sieracki, respectively Countrywide's former chief operating officer and former chief financial officer, to dismiss a U.S. Securities and Exchange Commission lawsuit. The SEC charged Mozilo with securities fraud and insider trading.

According to the latest report of Bank of England the country shows signs of heading towards 1930s-style depression. In its Quarterly Bulletin issued today the main bank of England  the country is showing the early symptoms of being trapped in a so-called “debt deflation trap” where families find themselves pushed further and further into the red every month. It is the first time when British bank has compared the current situation in the UK with the period of the Great Depression in the US.