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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 (47309)	12/14/2005 1:13:54 PM
From: loantech	Respond to of 110194

lack of applicants.

To: Ramsey Su who wrote (47309)	12/14/2005 8:09:22 PM
From: George K.	Read Replies (1) \| Respond to of 110194

Certain type of "refi" activity is ripping right now - construction loan conversion to permanent. All those construction loans taken out 9-18 months ago. The places are all finished and it's the end of those teaser deals that were handed out to those building. One interesting change in this bubble is it used to be the loan amount stayed the same and there wasn't a new mortgage or trust deed. This time I'm seeing them borrow extra in the take out stage which I believe would juice refi numbers as there is actually a new mortgage - not just a conversion. Not sure on that though. Have a sense that some of these younger borrowers are pretty stretched. On the other hand, for years I've had a theory that the parents will keep them afloat - do anything actually - to keep them from coming home! Awful lot of wealth in this aging parental generation. I see no evidence whatever of tighter residential standards. If anything, the banks I know seem alarmed at the fall off in business. Exotic products never really caught on in my area. Geo.