Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-62149 Thu, 27 Apr 2017 14:53:20 GMT Canada's Biggest Mortgage Lender Crashes; Gets Rescue -- End of Line For Housing Bubble? http://implode-explode.com/viewnews/2017-04-27_CanadasBiggestMortgageLenderCrashesGetsRescueEndofLineForHousing.html Today... the stock of Home Capital Group cratered by over 60%, its biggest drop on record, after the company disclosed that it struck an emergency liquidity arrangement for a C$2 billion ($1.5 billion) credit line to counter evaporating deposits at terms that will leave the alternative mortgage lender unable to meet financial targets, and worse, may leave it insolvent in very short notice.

As part of this inevitable outcome, one which presages the company's eventual disintegration and likely liquidation, Bloomberg reports that the non-binding rescue loan with an unnamed counterparty will be secured by a portfolio of mortgage loans originated by Home Trust, the Toronto-based firm said in a statement Wednesday. Home Capital shares dropped by 61% in Toronto to the lowest since 2003, dragging down other home lenders. Equitable Group Inc. fell 17 percent, Street Capital Group Inc. fell 13 percent, while First National Financial Corp. declined 7.6 percent. In short, the Canadian mortgage bubble has finally burst.

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iehi-feed-62114 Fri, 21 Apr 2017 01:27:53 GMT Ocwen Sued, Shut Down in Multiple States http://implode-explode.com/viewnews/2017-04-20_OcwenSuedShutDowninMultipleStates.html There are bad days, and worse days, and there are days like Ocwen Financial Corporation (OFC) had on Thursday. The company was not only sued on multiple grounds by both the Consumer Financial Protection Bureau (CFPB) and the State of Florida, but saw its operations effectively shut down by the North Carolina Commissioner of Banks.

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First, the North Carolina commissioner, Ray Grace, issued a cease and desist order against the company after a determination that it "has engaged in, or is engaging in, or is about to engage in, acts of practices constituting violations of state and federal law and applicable regulations."

... On February 28, 2015, Florida, Maryland, Massachusetts, Mississippi, Montana, and Washington conducted a multi-state examination of the company covering operations from January 1, 2013 to the examination date. That examination identified several violations of state and federal law including consumer escrow accounts that could not be reconciled and willful and ongoing unlicensed activity in certain states. The examination also found that the company's financial condition was deteriorating.

The order alleges the company subsequently failed to respond to requests for information on its apparent unlicensed activity and company executives were warned the violations were unacceptable and would not be tolerated. OFC partially addressed these violations after a lapse of two years, but the Commissioner's order states that unlicensed activity is believed to continue in some jurisdictions.

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In December 2016 OFC and state regulators entered into a Memorandum of Understanding (MOU) which required OFC to retain an independent auditing firm to perform a comprehensive audit and reconciliation of all escrow accounts with a report submitted to and approved by the MMC by January 13, 2017.  On that date, the company informed the MMC that the $1.5 billion cost of that audit was beyond its financial capability and asked to sample 457 accounts out of the 2.5 million it had serviced over the initial audit period.  The company has also failed to provide a suitable going-forward business plan to address its financial condition.

The Cease and Desist Order requires OFC to immediately cease acquiring new mortgage servicing rights and acquiring or originating new residential mortgages until it provides a sufficient analysis of its financial condition and provides state regulators with a reconcilement of its escrow accounts showing that consumer funds are appropriately collected, accounted for, and distributed.  OFC has 20 days in which to request a hearing.

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iehi-feed-61994 Fri, 31 Mar 2017 19:55:42 GMT Puerto Rico Set To Get "Greece'd" - Brad Setser http://implode-explode.com/viewnews/2017-03-31_PuertoRicoSetToGetGreecedBradSetser.html 3) While creditors have complained that Puerto Rico isn't doing enough, I worry that there is still too much consolidation too fast: Puerto Rico's output is projected to fall by another 10 percentage points over the next five years, which would make Puerto Rico's ten year economic contraction as deep as that experienced by Greece.

Sadly, this is a realistic outcome if you combine five to six percentage points of consolidation, a multiplier of 1.5 (especially as much of the consolidation is offsetting a fall in federal funding) and negative trend growth. There is a real risk that the coming contraction generates further outmigration, undermining the basis for any eventual recovery. Puerto Ricans are not required to stay on on-island. A shrinking population ultimately means a shrinking tax base.

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Basically, Puerto Rico tried to avoid a draconian consolidation after its 2007 slump through running down pension assets (and for a while running up debt) and by taking advantage of Obama era policy changes--but now has run out of rope.

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iehi-feed-59923 Tue, 31 May 2016 17:26:53 GMT IMF Begins Distancing Itself From Neoliberalism http://implode-explode.com/viewnews/2016-05-31_IMFBeginsDistancingItselfFromNeoliberalism.html iehi-feed-59272 Wed, 16 Mar 2016 13:56:08 GMT W.J. Bradley Mortgage Capital permanently closes down http://implode-explode.com/viewnews/2016-03-16_WJBradleyMortgageCapitalpermanentlyclosesdown.html iehi-feed-58934 Sun, 07 Feb 2016 21:04:27 GMT Why doesn't America's "4.9%" unemployment rate feel great? http://implode-explode.com/viewnews/2016-02-07_WhydoesntAmericas49unemploymentratefeelgreat.html iehi-feed-58726 Sat, 16 Jan 2016 21:40:20 GMT Global Earnings Downgrades Haven't Been This Bad in Seven Years http://implode-explode.com/viewnews/2016-01-16_GlobalEarningsDowngradesHaventBeenThisBadinSevenYears.html iehi-feed-57966 Sun, 11 Oct 2015 14:37:37 GMT IMF: keep interest rates low or risk another crash http://implode-explode.com/viewnews/2015-10-11_IMFkeepinterestratesloworriskanothercrash.html iehi-feed-56312 Mon, 16 Mar 2015 14:00:45 GMT Greek currency crisis calls for controlled exit http://implode-explode.com/viewnews/2015-03-16_Greekcurrencycrisiscallsforcontrolledexit.html iehi-feed-55479 Wed, 19 Nov 2014 17:23:44 GMT U.S. housing starts fall 2.8% in October http://implode-explode.com/viewnews/2014-11-19_UShousingstartsfall28inOctober.html iehi-feed-55458 Tue, 18 Nov 2014 16:04:41 GMT Russia May Go For Its Own Space Station, Walk From ISS http://implode-explode.com/viewnews/2014-11-18_RussiaMayGoForItsOwnSpaceStationWalkFromISS.html iehi-feed-55190 Fri, 10 Oct 2014 02:02:37 GMT BofA Reportedly Cutting Back 1000 Jobs in Mtg Fulfillment; Adding To Loss Mit http://implode-explode.com/viewnews/2014-10-09_BofAReportedlyCuttingBack1000JobsinMtgFulfillmentAddingToLossMit.html This just in from a reader:

BOA just shut down all fulfillment jobs (over 1000) in Jacksonville FL site and announced a majority of us will be converted to loss mit. As a DE underwriter, I am patiently waiting to see if they pay my salary to be a Hamp Underwriter. This shows the economy is sucking, Hamp was ended 2 years ago, and now it is panic mode at Bank of America.

The economy is still in the toilet, you say? We are shocked... SHOCKED...

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iehi-feed-55095 Sat, 27 Sep 2014 13:56:47 GMT Doug Noland: What We Know http://implode-explode.com/viewnews/2014-09-27_DougNolandWhatWeKnow.html iehi-feed-49938 Thu, 14 Feb 2013 13:08:59 GMT Homeward Residential warns of 370 layoffs http://implode-explode.com/viewnews/2013-02-14_HomewardResidentialwarnsof370layoffs.html iehi-feed-49937 Thu, 14 Feb 2013 13:07:26 GMT Edward Jones Mortgage closing in Minn., 214 employees affected http://implode-explode.com/viewnews/2013-02-14_EdwardJonesMortgageclosinginMinn214employeesaffected.html Edward Jones Mortgage notified the Minnesota Department of Employment and Economic Development that 214 Minnesota workers could lose their jobs.

The St. Louis Park operation will close March 7, according to an employee who answered the phone Wednesday, the Minneapolis/St. Paul Business Journal reports.

Edward Jones Mortgage, which stopped offering mortgages Jan. 11, is a subsidiary of San Francisco-based Wells Fargo (NYSE: WFC), according to SEC filings, and a joint venture with St. Louis-based investment firm Edward Jones.

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iehi-feed-49843 Fri, 08 Feb 2013 13:26:33 GMT The relentless punishment of the American saver. Fed policy has encouraged spendthrift attitude and yield seeking behavior from Americans. http://implode-explode.com/viewnews/2013-02-08_TherelentlesspunishmentoftheAmericansaverFedpolicyhasencourageds.html How bad have things gotten? High yield bonds (i.e., junk bonds) were yielding something like 20+ percent in 2008. Today they are pulling in 5 percent or what a standard CD was yielding in the early 2000s. Are we really in such a stable market? We are in a period of exuberance and Greenspan can tell us how that went in the early part of the 2000s. ]]> iehi-feed-47516 Sat, 15 Sep 2012 16:56:12 GMT Wells Fargo Retracts Help For Dying Woman, Plans To Foreclose 6 Days Before X-mas http://implode-explode.com/viewnews/2012-09-15_WellsFargoRetractsHelpForDyingWomanPlansToForeclose6DaysBeforeXm.html iehi-feed-47491 Fri, 14 Sep 2012 17:16:18 GMT Is Wells Fargo Run By The Catty Ladies From TV's Dynasty? http://implode-explode.com/viewnews/2012-09-14_IsWellsFargoRunByTheCattyLadiesFromTVsDynasty.html iehi-feed-47404 Wed, 12 Sep 2012 18:13:00 GMT Dead Homeowners Are Like Dead Interns, They Haunt Politicians On Election Day http://implode-explode.com/viewnews/2012-09-12_DeadHomeownersAreLikeDeadInternsTheyHauntPoliticiansOnElectionDa.html iehi-feed-47371 Tue, 11 Sep 2012 19:12:34 GMT FDIC Sues Banks and Depositors Over MBS Fraud http://implode-explode.com/viewnews/2012-09-11_FDICSuesBanksandDepositorsOverMBSFraud.html