Yes, mortgage lenders have been reporting losses lately. We’ve been regaled with stories of billions in losses, and their effect on the economy. In the main, these losses have a lot to do with the subprime lending crash. But even with all of the losses that have been reported, there are some subprime losses that mortgage lenders are hushing up. Indeed, Bloomberg reports that there are still unreported losses that have yet to make it through the financial system:

“The smart people are the ones who’ve identified the problems, put them out there in full transparency, and addressed them by raising more capital,” said Michael Holland, who oversees more than $4 billion as chairman of Holland & Co. in New York. “There is still billions of dollars of crap out there that hasn’t worked itself through the system. Banks need more capital to work that all out.”

The lack of transparency that partially contributed to our current mess continues.

Credit crisis may not really be coming to an end

Additionally, the fact that these losses have not worked themselves through the financial system are likely to contribute to another problem: The credit crisis may last through 2009.

When talking about the economy, and trying to boost the US dollar on the currency market, or trying to inject confidence into the stock market, many officials have talked about the end being near for the credit crisis, and about how the US will likely avoid a recession.

But will it? If there are still untold millions — or even billions — in losses that still need to be addressed, how can an end be near? After all, mortgage lenders and others are citing a lack of capital. And if there isn’t capital available for lending, how will the credit crisis end any time soon?

Tags: credit crisis, subprime losses, home mortgage loan, mortgage loan blog,
mortgage lenders, stock market, US recession

Tags: credit crisis, home mortgage loan, mortgage lenders, mortgage loan blog, stock market, subprime losses, US recession