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Politics : Formerly About Advanced Micro Devices
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To: combjelly who wrote (586244)9/24/2010 6:31:08 PM
From: TimF1 Recommendation  Read Replies (1) of 1573103
 
The point is that you get more careless mortgage lending after a big increase in housing prices starts. Also even if the lending didn't get more careless the older loans wouldn't bee seen as bad to nearly the same degree because the new higher prices would mean that the borrower had equity, and that combined with the drop in interest rates would allow a refinance.

So your "Then why were most of the bad loans written after 2001?" Is a rather silly one, in response to "When they changed the regulations in 96, it was basically putting a gun to the heads of lenders while telling them if they want to survive they will lend money to unqualified candidates. " It doesn't serve to refute or respond to the point at all. Starting with the assumption that the change in regulations in 96 was important, even vital, to the inflation of the bubble, you still wouldn't see nearly as many bad loans from before 2001.
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