Daniel Mudd, chief executive officer of Fannie Mae, told the conference that the payment shock accompanying many monthly mortgage bills would have a profound impact on the housing industry next year. He said that out of $9 trillion in mortgage debt outstanding, roughly $1 trillion will reset in 2007."Those resets are going to have some interesting and difficult-to-predict impacts on consumers," Mudd said.'Interesting'? Consumers are not guinea pigs for toxic mortgages. The Review Journal from Las Vegas reports that:
“In Nevada, 6,523 homes entered some phase of foreclosure in the third quarter, an increase of about 80 percent from 3,499 homes in the second quarter and roughly double the rate of foreclosure activity in the third quarter of 2005, said Tom Adams.”The lending companies have been grossly irresponsible in peddling these suicide loans to ill informed borrowers. There has already been an explosion in foreclosures, and the worse is yet to come. The pain of the toxic mortgages will become much more evident as we approach the summer of 2007.