Comments on: The Cause of This Mortgage Crisis – and the Next One http://themoderatevoice.com/19800/the-cause-of-this-mortgage-crisis-%e2%80%93-and-the-next-one/ An Internet hub for moderates, centrists, and independents, with domestic and international news, analysis, original reporting, and popular features from the left, center, and right Sat, 20 Mar 2010 19:54:47 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: self employment retirement account http://themoderatevoice.com/19800/the-cause-of-this-mortgage-crisis-%e2%80%93-and-the-next-one/comment-page-1/#comment-112483 self employment retirement account Thu, 22 May 2008 05:19:00 +0000 http://themoderatevoice.com/places/americas-n-s/america/usa/19800/the-cause-of-this-mortgage-crisis-%e2%80%93-and-the-next-one/#comment-112483 [...] [...] [...] [...]

]]> By: mikkel http://themoderatevoice.com/19800/the-cause-of-this-mortgage-crisis-%e2%80%93-and-the-next-one/comment-page-1/#comment-130113 mikkel Wed, 21 May 2008 16:47:41 +0000 http://themoderatevoice.com/places/americas-n-s/america/usa/19800/the-cause-of-this-mortgage-crisis-%e2%80%93-and-the-next-one/#comment-130113 Robin I believe that you are missing the point. Mr. Savvy's mortgage would probably not be bought by Fannie/Freddie and the secondary market is pretty much dead. The banks are so screwed that they don't care about good long term bets, they are looking for someone to buy them now. The government is ultimately going to be buying a ton of the mortgages I believe.<br><br>That said, I definitely agree with you that this is the genesis of the next crisis. However, it won't be related to just mortgages, it'll be about credit in general (look at how HELOCs are starting to fail and how businesses are quickly tapping their revolving lines before the banks cut them off). There are so many big banks that are de facto insolvent that they are unable to lend. Credit cards are still OK because they can still sell those off, but they are starting to become more delinquent as well.<br><br>I was recently looking to buy an investment property (in Cleveland which is hardly a good market) and was referred to a small mortgage company that has always kept everything in house and avoided this whole mess. They had tons of options and are doing record business because they can take good bets and plan on keeping the mortgages on the books. Robin I believe that you are missing the point. Mr. Savvy's mortgage would probably not be bought by Fannie/Freddie and the secondary market is pretty much dead. The banks are so screwed that they don't care about good long term bets, they are looking for someone to buy them now. The government is ultimately going to be buying a ton of the mortgages I believe.

That said, I definitely agree with you that this is the genesis of the next crisis. However, it won't be related to just mortgages, it'll be about credit in general (look at how HELOCs are starting to fail and how businesses are quickly tapping their revolving lines before the banks cut them off). There are so many big banks that are de facto insolvent that they are unable to lend. Credit cards are still OK because they can still sell those off, but they are starting to become more delinquent as well.

I was recently looking to buy an investment property (in Cleveland which is hardly a good market) and was referred to a small mortgage company that has always kept everything in house and avoided this whole mess. They had tons of options and are doing record business because they can take good bets and plan on keeping the mortgages on the books.

]]> By: BadCreditForeclosure » Blog Archive » The Cause of This Mortgage Crisis â?? and the Next One http://themoderatevoice.com/19800/the-cause-of-this-mortgage-crisis-%e2%80%93-and-the-next-one/comment-page-1/#comment-112457 BadCreditForeclosure » Blog Archive » The Cause of This Mortgage Crisis â?? and the Next One Wed, 21 May 2008 16:18:55 +0000 http://themoderatevoice.com/places/americas-n-s/america/usa/19800/the-cause-of-this-mortgage-crisis-%e2%80%93-and-the-next-one/#comment-112457 [...] Read More… Posted in |May 21st, 2008 by News| Leave a Comment [...] [...] Read More… Posted in |May 21st, 2008 by News| Leave a Comment [...]

]]> By: The Cause of This Mortgage Crisis – and the Next One http://themoderatevoice.com/19800/the-cause-of-this-mortgage-crisis-%e2%80%93-and-the-next-one/comment-page-1/#comment-112454 The Cause of This Mortgage Crisis – and the Next One Wed, 21 May 2008 15:29:13 +0000 http://themoderatevoice.com/places/americas-n-s/america/usa/19800/the-cause-of-this-mortgage-crisis-%e2%80%93-and-the-next-one/#comment-112454 [...] my life wrote an interesting post today onHere’s a quick excerpt That it is silly season in the mortgage industry cannot be denied. Of course, it’s been silly season for an awfully long time, but now the weather’s changed – from greed to fear. It’s a well worn complaint that banks have led to the un-creditworthy, but now in a knee-jerk over-reaction, many of them are withdrawing perfectly reasonable mortgage products left, right and center. The thought seems to be that pulling products that allow for lax checks of a person’s ability and propensity to pa [...] [...] my life wrote an interesting post today onHere’s a quick excerpt That it is silly season in the mortgage industry cannot be denied. Of course, it’s been silly season for an awfully long time, but now the weather’s changed – from greed to fear. It’s a well worn complaint that banks have led to the un-creditworthy, but now in a knee-jerk over-reaction, many of them are withdrawing perfectly reasonable mortgage products left, right and center. The thought seems to be that pulling products that allow for lax checks of a person’s ability and propensity to pa [...]

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