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SO, how many crappy loans did you write?
FWIW, I am a part owner of a residential real estate appraisal business.
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Well, you know, it's interesting that when people discuss crappy loans these days, they mostly only talk about loans to people who can't afford to pay. Obviously, giving loans to people who can't afford to pay is pretty stupid. (as in, duh!) However, if you lend someone who can't afford to pay $150k for a 2 bdr condo worth $150k, and they can't afford to pay, you take back the place and sell it to someone else for $150k. Not fun, but not so much of a problem. On the other hand, if you lend someone who can't afford to pay $450k for a 2 bdr condo worth $150k, seems like you might have a bit larger problem.
How long have you been in the residential real estate appraisal business there bmillermn? Any light you can shed on why so many mortgages are not only non-performing but also "under water"? Seems like maybe there must have been some mis-pricing of properties going on there for a while. Was that part of the crappy deal with these mortgages, do you think?
regards,
Jack |
