And Merrill Lynch was not by any means the only institution to announce its earnings would take a significant hit due to the declining mortgage market. Washington Mutual Inc. said its third-quarter earnings would tumble 75 percent on loan write downs and substantially higher provisions for loan losses.
Citigroup said its quarterly earnings would fall 60 percent, as it planned to write down more than $3 billion in securities backed by underperforming mortgages and loans tied to corporate bonds.
JPMorgan Chase and Bank of America are expected to disclose losses of about $3 billion in mortgage securities and leveraged loans when they report earnings this month, the Financial Times reported, citing an analyst.
Meanwhile, data from the U.S. Department of Housing and Urban Development suggests there about 750,000 homeless across the
The cause: A convergence of low wages, high housing costs, an increase in housing foreclosures and cuts in federal and state housing assistance programs. One official explains: "I think what we are seeing here is a perfect storm.”