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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (29028)	3/21/2005 9:33:31 AM
From: orkrious	Read Replies (1) \| Respond to of 110194

do you think that's accurate?

To: ild who wrote (29028)	3/21/2005 11:55:48 AM
From: mishedlo	Read Replies (2) \| Respond to of 110194

The Mortgage Bankers Association (MBA) just released its National Delinquency Survey, covering data as of the end of 2004. Among the important findings in the survey were: The share of total loans past due fell by 18 basis points to 4.23 percent in the fourth quarter, the lowest level since the second quarter of 2000. Even with this improvement, however, serious delinquency rates rose by 25 basis points. The worst delinquency performance continued to be with FHA-insured loans, with virtually no change in the total delinquency rate -- keeping it at a near-record 12.21 percent. As with the other categories, serious delinquency rates rose in the fourth quarter -- up by 39 basis points. Message 21153826 ============================================================== There's Bush's tax dollar giveaway for you. Guranateed Federal loans at 0% interest with borrowed or donated down payments and 100% financing. Most of these people can barely make rent payments and have no experience with the extra costs of owning a home: insurance property taxes upkeep etc Not to matter. Bush's ownership society says that everyone get a home. Oddly enough this drives up the cost of homes too. It is the very policies of "a free lunch" that is contributing to madly escalating home prices. Note too that bragging about lower delinquency rates is a lagging indicator in the midst of rising intererst rates and rising property values. Rest assured there will be a lot more delinquencies when home prices start falling. When there is no equity left in a person's house, he is going to not care so much about making sure payments are made on time. Also note that FHA loan deliquencies are still hovering near all time highs. That's what happens when you have gov't guaranteed loans and zero risk to the lender. The administration is not only helping to push up house inflation but is padding bank profits at taxpayer expense when there are defaults. It's a lose/lose/lose policy all around (except for the banks). Mish