The Mortgage Lender Implode-O-Meter is now up to 50. The subprime mortgage market continues to decline. Will it spread up the chain to the Alt-A level? Yes Sir!
Las Vegas ain't hot anymore. Pick your poison: houses or at the casino? Housing Doom reporting on declining home values there.
The Baltimore Housing Blog has been hacked. Their new site is here. Great blog, keep up the excellent work. :-)
Patrick advocates against a subprime bailout. He asks "Why should everyone who was responsible and did not borrow too much for a house be asked to bail out the gamblers who did?"
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ReplyDeleteHousing Boom Tied To Sham Mortgages
Lax Lending Aided Real Estate Fraud
http://www.washingtonpost.com/wp-dyn/content/article/2007/04/09/AR2007040901463.html?hpid=topnews
-Many experts have concluded that the nation's real estate boom of recent years was fueled in part by weakened lending standards that sparked excessive demand and drove up prices. Now, some are worried that the looser standards may have permitted a boom of another kind -- a big expansion of mortgage fraud.-
-These "stated income" loans were designed for a limited purpose: giving self-employed people a crack at homeownership. But during the boom, the number of such loans exploded to the point that they became a running joke in the industry, earning the nickname "liar loans." Estimates vary widely, but research suggests that they made up a significant portion of all mortgages during the boom -- 58 percent in a study by First American LoanPerformance-
-The growth of mortgage fraud has outpaced other types of financial crimes, the Treasury Department reports. From 2002 to 2004, mortgage fraud reports nearly doubled each year. Over that period, mortgage fraud convictions by federal prosecutors fell-
-"Nobody wants to go in there and expose how big this is," said Chris Klein, a finance manager at Howard Hanna Mortgage Services, a Pittsburgh mortgage broker, echoing the comments of several brokers around the country. "In the industry as a whole, it's a running joke. If you want to get a loan done, any loan, you can get it done."-
-"It happens everywhere and anywhere," said Fulmer, who is now vice president of Interthinx, an anti-mortgage-fraud company. "If the true scope was discovered, I think it would cause a major crisis."
It's only been five days passing and the Implode-O-Meter is up to 55 now (which it actually hit yesterday).
ReplyDelete"The subprime mortgage market continues to decline. Will it spread up the chain to the Alt-A level? Yes Sir!"
ReplyDeletehttp://www.msnbc.msn.com/id/18043828/
Burn baby burn! keep going down
ReplyDeletehouse value calculator