Implode-Explode Heavy Industries news feed Tracking the many faces of the global credit implosion. en-us iehi-feed-64047 Fri, 22 Jun 2018 16:24:33 GMT Blue Cross Blue Shield Swindled By Michigan Psychologist iehi-feed-64045 Thu, 21 Jun 2018 02:03:37 GMT Wannabe Wiseguy James Sabatino's Prison Guard Buddy Gets 5 Years iehi-feed-64042 Tue, 19 Jun 2018 19:58:52 GMT Warren Threatens Hold on CFPB Director Nomination iehi-feed-64041 Tue, 19 Jun 2018 14:37:38 GMT Queens Rabbi Busted In 7 Million Dollar Extortion Plot iehi-feed-64038 Mon, 18 Jun 2018 19:00:38 GMT Debt Clock Ticking | Mauldin Moody's has issued a statement that CMBS loans are now almost as risky as in 2007 because 75% of them are interest only, and the interest only period is now 6 years, up from 2.2 years just a few years ago. In addition, they are becoming much more covenant light, and are at higher leverage. All of this is a red flag since these things create much more risk of serious problems when the recession hits. There is also a bigger concentration of single tenant properties, which, as we have seen in retail, can be deadly in a recession. Asset and sponsor quality is also deteriorating. There is now so much competition to put out loans by so many non-bank sources, that borrowers can get lenders to compete, which always means lower quality underwriting. Far too much capital chasing too few good deals.

Underwriting is not nearly as bad as in 2006--2007 yet, but it appears the trend is what it always has been, when the economy is strong and there is too much capital, underwriting standards fall down, and then the stage is set for a bad outcome when the economy goes bad. It is typically 10--12 years between collapse of the last crash and then credit quality deterioration and the next credit collapse. We are at 10 years. Dodd Frank had rules to try to avoid a replay of 2008 in CMBS, but a lot of loans now are made by private equity funds that are not subject to these regulations.

One thing that is immutable is that as each generation comes into Wall Street, they think they know better how to do it, and they eventually do the same dumb loans in pursuit of profits and bonuses. It has never been different. We are not about to have a major crash again, but CMBS loan quality is deteriorating now, and one day in the next 2--3 years, it will be a bad problem. When they start doing a lot of CDOs and virtual CMBS pools with derivatives, then that is a sure sign the end is near.

iehi-feed-64037 Mon, 18 Jun 2018 17:23:07 GMT Over 800 Clueless New York Lawyers Become Victims In Toner Cartridge Scam iehi-feed-64036 Mon, 18 Jun 2018 14:13:20 GMT Mulvaney Minion Kathy Kraninger Nominated As New Head Of CFPB iehi-feed-64033 Sun, 17 Jun 2018 13:18:56 GMT Catty Wells Fargo Retaliation Against Critics Has A Long History iehi-feed-64032 Sat, 16 Jun 2018 15:22:11 GMT Wells Fargo Was The Willy Wonka Of Booze, Drugs & Sex iehi-feed-64024 Fri, 15 Jun 2018 15:33:42 GMT New Home Prices to Increase 20 Percent Due To Trump's Lumber Tariff iehi-feed-64019 Thu, 14 Jun 2018 15:58:04 GMT The George Costanza Of The Trump Administration Out At CFPB iehi-feed-64018 Wed, 13 Jun 2018 16:33:53 GMT Where FHA Loan Denials For Minorities are The Highest iehi-feed-64017 Tue, 12 Jun 2018 16:39:51 GMT Auto lenders getting aggressive with repossessions, even after bankruptcy iehi-feed-64016 Tue, 12 Jun 2018 16:37:46 GMT Real Estate Groups Nationwide Riled Up As GOP Lets Net Neutrality Die iehi-feed-64009 Mon, 11 Jun 2018 20:05:42 GMT NY Based Westchester Residential Opportunities Busted For Illegal Solicitations iehi-feed-64014 Mon, 11 Jun 2018 16:10:40 GMT Bronx Home Where Former NYC Mayor La Guardia Died Selling for $3.5 Million iehi-feed-64013 Sun, 10 Jun 2018 17:38:56 GMT Kanye West to be "one of the biggest real estate developers of all time" The rapper turned designer, entrepreneur and now developer revealed his newly-formed architecture studio's first project, a prefabricated affordable housing scheme, via one of his collaborator's Instagram account this week, according to the Architect's Newspaper.

The public release of the renderings come weeks after West filmed an interview where he spoke about his plans to build a real estate empire. In a lengthy taped conversation between him and radio and television personality Charlamagne Tha God, West said, "I'm going to be one of the biggest real estate developers of all time. Like what Howard Hughes was to aircrafts and what Henry Ford was to cars."


But it was only last month, via Twitter, that he announced his new venture to bring architectural design in-house: "We're starting a Yeezy architecture arm called Yeezy home," he tweeted. "We're looking for architects and industrial designers who want to make the world better.

iehi-feed-64010 Sun, 10 Jun 2018 15:11:19 GMT Foreclosure Rates Are The Highest In These 10 States iehi-feed-64008 Sat, 09 Jun 2018 14:29:29 GMT The priciest rentals are also the loneliest The vacancy rate for the country's most expensive apartments is more than double the rate for lower-priced pads, as builders have flooded the high-end of the market while supply remains tight for more modest product.

The most expensive 10% of U.S. rentals had a vacancy rate of more than 13 percent during the first quarter of the year, according to a CoStar Group study cited by Bloomberg News.

For the rest, the rate was around 6 percent. CoStar's study excluded subsidized rentals and focused on the 54 largest metropolitan areas in the country.


There are now 537,000 apartments und construction -- the most going back at least to 2000, according to the study. But those units are disproportionately located in expensive submarkets.

"Capital around the world is enamored with U.S. multifamily, and a lot of that is manifesting itself in high-amenity, high-asking-rent" apartments, said CoStar's Michael Cohen. "The market is missing some other opportunities."

iehi-feed-64001 Fri, 08 Jun 2018 14:13:41 GMT Housing Bubble Is About To Burst In These 12 Markets