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

To: Ramsey Su who wrote (46130)	11/25/2005 2:39:40 PM
From: ild	Read Replies (2) \| Respond to of 110194

<<<90+% LTV. FICO 600. 2-28 terms with start rate at 5.5% fully amortized>>> This isn't current offer, is it? I guess it's two year old plan.

To: Ramsey Su who wrote (46130)	11/26/2005 4:40:29 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

Loan 1 clearly, but I just think the quality of the non-subprime loans is dicey as well. Per the Fitch MBS surveillance update from July, 44% of all Alt A mortgages in 2004 were IOs, and heavily in Calf (43%). Only 33% of Alt A were full document, and 21% were non-owner occupied. The loan amounts are high as well, so 2% rate resets add up. I'll bet the loan to value in high priced states like Calf are lower than the averages.

To: Ramsey Su who wrote (46130)	11/28/2005 6:17:59 PM
From: ggamer	Read Replies (2) \| Respond to of 110194

All I can tell you from Northern Cal (SF Bay Area) is that the loan business is strong. I continue to see people around me get richer as we are predicting the sky to fall. There are many many schemes going on at the moment and the loan brokers are making tons of money. Homes all around me are coming to the market and being sold whithin 30-40 days. I think just like the stock market was predicted to crash in 1997 and 1998, the housing/credit bubble still has some room left. Would you say there is another 6-8 months before we see a full blown crash in the market? Most people in the Bay Area believes that even if the bubble bursts it will be a 5-10% price reduction.