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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (580)	8/29/2001 9:13:56 PM
From: stomper	Read Replies (1) \| Respond to of 306849

Believe me, a good lender will. But isn't that part of the point that many have been trying to make? They are complicit to the creation of the RE bubble. Many good lenders won't and haven't planned accordingly. Even the largest "name" lenders haven't been basing their lending policies on any kind of historically practical or realistic guidelines? On an aside, I appreciate your input, you've been pretty damn game about this whole thing all day. -g- -dave

To: Tradelite who wrote (580)	8/29/2001 9:17:55 PM
From: Geof Hollingsworth	Read Replies (2) \| Respond to of 306849

Rather than nitpick the example, let's see if we are holding fundamentally different views about the next 12-18 months. Do you believe that residential housing prices in the short-medium term are going up or down? If down, do you think that lenders and servicers are adequately reserved and that the pain of doing so is already reflected in their share prices?

To: Tradelite who wrote (580)	8/29/2001 9:22:25 PM
From: jjs_ynot	Read Replies (1) \| Respond to of 306849

Lenders could care less about cash cushions or anything else. Their only concern is to satisfy the Underwriting guidelines of the organization that wholesales the mortgages and then packages these bundles for resale and securitization via Fannie Mae and Freddie Mac. Almost 100 percent of Mortgage Brokers have sold their pipeline before they ever go to closing and GE Credit Corp is the wholesale intermediary in approximately 60 percent of all mortgages. By the way there are a ton of undeveloped parcels in Fairfax County. Also, the Clifton and Fairfax Station areas had substantial (greater than 25 percent) price declines in the early 90's.