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

To: Tradelite who wrote (37086)	8/6/2005 8:06:29 AM
From: Tradelite	Respond to of 306849

As of Monday, Standard & Poor's is putting the squeeze on lenders trying to unload 1-percent option ARM loans on investors. Kenneth Harney reports in today's Wash Post real estate section that these alternative-type loans no longer meet S&P's risk criteria, thus requiring lenders to pay extra charges and penalties (known as credit enhancements) before these loans can get into the bond pool. This makes the loans much less profitable for lenders. Harney also reports that a federal regulatory agency task force is developing new underwriting and credit-risk guidelines for option ARMS, interest-only mortgages and reduced documentation loans. New guidelines could be out by early fall. Regulators have "noticed that these products have taken off in the past six months". The guidelines won't be designed to eliminate any particular loan type but rather "to make sure banks are offering them in a safe and sound manner and in a way that allows consumers to understand the risk".

To: Tradelite who wrote (37086)	8/6/2005 11:12:58 AM
From: shades	Read Replies (2) \| Respond to of 306849

I know a few college educated people that do yards in south ga, one of the highest IQ people in the world is a bouncer in new york I believe. Our society has equaled superior education with happiness which is equalled to power and money - that may not be the case. I know a few college educated that keep working flipping burgers so they can meet naive young girls for sexual fun, they couldn't do that in the higher halls thier degrees give them acess too. Remember the movie american beauty - kevin spacey goes back to work flipping the burgers. I knew a couple folks that left IBM and swore never to go back to that kind of job and moved from the big city because they tired of the backstabbing and power plays. I guess the immigrants who sneak across the border hope this will happen to their kids someday. But the inflow can't continue at its present rate forever, because we just don't have room. This country is closed in by oceans on two sides--where we gonna go from here? Well the liberals will have me and you turn on stargate atlantis and say SEE - we have all this space in the oceans yet to develop - hehe.