HSBC Holdings PLC, Bear Stearns Cos., Bank of America Corp., E*Trade and mortgage repurchaser Fannie Mae are among the latest companies to reveal billions in lending-related losses.
HSBC said in a press release.
"Deterioration in U.S. housing markets is affecting consumer finance credit quality more broadly than hitherto and loan impairment charges are expected to remain high in these conditions," the company said. "There is the probability of further deterioration if the current housing market distress continues and further impacts the broader economy."
In an advisory to investors, HSBC warned there is evidence of "changed customer behavior" as foreclosures increase, repossessed properties remain unsold and rental alternatives become more attractive -- all factors contributing to increased loan delinquencies.
Source: Inman News - Click here.
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