Mortgage, loan and property. What is a mortgage?

A mortgage is putting a property as a guarantee to a lender as a security for a mortgage loan.

While a mortgage in itself is not a liability or a dept, it is evidence of a debt. It is a transfer of an interest in property, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the property when the terms of the mortgage have been satisfied or concluded.

In other words, the mortgage is a guarantee for the loan that the lender makes to the borrower. In all but a very few states, a mortgage creates a lien on the title to the mortgaged property.

Friday, December 12, 2008

Retail sales slow down for the fifth consecutive month in the U.S.

Retail sales in the United States in November fell 1.8% for the fifth consecutive month. Producer prices in the United States have also showed in November a steep decline of 2.2%, due to declining market for energy materials.

Retail sales in the United States in November fell 1.8% for the fifth consecutive month, according to seasonally adjusted data published by the Department of Commerce in Washington. Analysts relied on a downturn more important than 2%.

In October, the decline in retail sales was 2.9% (revised), the largest decline since the publication of statistics in 1992.

In addition, producer prices in November showed a steep decline of 2.2%, announced Friday the U.S. Department of Labor. Analysts predicted a decline of just 2%. This is the fourth consecutive month the indicator fell. It reached (ok, dropped) in October a record decline of 2.8%. But over the year, producer prices are still rising slightly, by 0.4%.

This new setback in November is attributable to the markets of energy raw materials, where prices fell by 11.2%. Producer prices of food (oils, meat, dairy products, vegetables) remained stable, although they had slightly fell the previous month. Producer prices of crude oil fell by 12.5%.

Inflationary pressures are significantly reduced, since excluding food and energy, producer prices rose by 0.1% over the month, against 0.4% in October. Over a year, the increase is 4.2%. The rise in producer prices, which had been 7.2% over the first seven months of the year, was stopped by the reversal in the oil market. The price of a barrel of crude, in the short span of five months, has lost about $ 100.

Thursday, December 11, 2008

According to Wells Fargo the U.S. real estate market is stabilizing

The U.S. housing market shows signs of stabilization, said Wednesday John Stumpf, CEO of Wells Fargo (WFC), one of the largest mortgage lenders in the United States.

Real estate prices, whose collapse has triggered the current crisis, may have reached the bottom, said Stumpf at a conference to analysts. He added that the difficulties now focused mainly on employment.

Wells Fargo is the second largest mortgage lender in the United States, behind Bank of America (BAC), who just swallowed the former leader, Countrywide Financial.

In October, Wells Fargo has managed to take bank Wachovia, then threatened with bankruptcy. Their merger creates the country's largest bank by deposits and extending the influence of Wells Fargo on the east coast of the United States, including New York and Florida.

"We love this transaction simply," said John Stumpf, considering that it was "the best possible operation," even if economic conditions have worsened since its announcement.

Mr. Stumpf assured that the present conditions were pushing customers to "the quest for quality." "Wells Fargo has it," he ruled.

Requiring new funding to swallow the biggest rival it, Wells Fargo has managed to raise a total of U.S. $ 12.6 billion, an amount never before reached outside an IPO, recalled Mr. Stumpf .

At the New York Stock Exchange, the Wells Fargo lost 3.25% to U.S. $ 29.51 in the morning.