Subprime mortgage ??

[dead_reggin_storage_fashi]

I write alot of non-conf loans (hence cali, az, NV) and getting a non conforming priced out recently you are going to gag on the rates/guidelines

reduced doc non conforming

today
750 fico
60 LTV
10/1 non conf IO 5-2-5
par rate 8.625%
with 5 yr soft ppp and 2 points 6.75%



I seem to write all non conf (esp alot of Fixed rate seconds too)

ugh

 

[gjohnson5]

well I dunno.
The tech wreck of 2000 was more an over valuation of companies , many of which who were running w venture capital and not posting revenues.
Atleast in that case, the creativity and enginuity of people were driving the supply side to create jobs

This is just BS

The bubble burst...

Happened in the tech boom back in 2001.... not really a shocker... peeps been calling for this for along time...

 

[billfred]

well I dunno.
The tech wreck of 2000 was more an over valuation of companies , many of which who were running w venture capital and not posting revenues.
Atleast in that case, the creativity and enginuity of people were driving the supply side to create jobs

This is just BS

In addition the tech wreck was really just a paper loss for many involved. Easy come easy go - paper was worth $1 when I got it, went to $200 - shit I didn't sell, now it is worth a $1 again.

This will hit deeper as it invovles impact two very key elements in our economy 1) Housing, 2) financial institutions/credit.

Not to mention the social issues of all the people getting put out on the street.

I think if there is any silver lining it could be that it is a good time to pick up a few rent houses.

 

[patsfan1379]

Jnev wins again.

 

[ceo]

on a side note, it's cyclical.

it'll past within a couple of years but the market needs a major correction.

all the banks going out of business now are paving the way for new investors (hedge funds, etc other sources of private money) to get into the lending business.

All the banks that are going out of bsuiness now, made their money writing crappy notes (fraudulent, overstated income,etc.) They made a killing back in the day, but this is the result of shady guidelines and giving ridiculously risky loans to everyone and their mother.

things will tighten up, rates will go up for a bit...but people still need houses, people still need to refinance, it'll just take a while before it levels out

bro, hedge funds have been some big buyers/holders of subprime notes. Problem is they're private so not a lot of info is disclosed.

 

[ceo]

Most of those subprime lenders were scumbag companies. Sorry if you are one and that offends you but they are. I felt dirty representing those scumbags. My conscience felt way cleaner representing accused felons than those scumbag lenders.

LOL! Scumbags? No, you didn't say "lenders" at all, did you? If you had said "brokers" I might agree. Brokers are 99% of the time the ones committing the fraud. Borrowers are not savvy enough to do it (unless they've worked in the industry), and lenders are the ones responsible for the notes (even when a lender sells a note they can be responsible for buying back a First Pay Default or Early Pay Default - for up to a year after it is sold).

So because a lender decides to take a riskier position in lending to an individual considered a higher credit risk, that company is the scumbag? CountryWide lends to Prime (A), Alt-A, and Non-Prime borrowers, as do many other companies. Is CWide a scumbag company? I could name dozens of other big, reputable, warm fuzzy companies.

Subprime accounts for maybe 15% of all borrowers in the market. Many of those borrowers do pay their mortgages, and are good risks, they just might not fall into the box that A paper lenders need them to fit into. Maybe they had a BK 2 yrs. ago, but have re-established credit and make good money, etc.

Maybe you meant to say brokers but mistakenly said lenders. And, for as many brokers out there who committ fraud, there's many good ones who don't. Kinda like lawyers, huh? Those scumbag pieces of shit.

 

[ceo]

All in all, this will affect many people in this sector (of course) and many people in the Alt-A and A paper lending sectors (this is already happening - CWide is getting a $2billion bailout from BofA). WAMU, CWide, World Savings, and National City all have huge amounts of non performing loans eating at their capital.

On a national economic perspective though, this won't even be as big as the S&L crisis was. It amounts to such a small percentage of the GDP, it will be barely a blip in history.