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

To: GraceZ who wrote (51584)	4/7/2006 12:43:38 PM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

“But a regulatory crackdown on the loans, known as interest-only and option mortgages, could prove problematic for some pricey real estate markets, such as the Washington area, where buyers have become increasingly dependent on such loans.” “About two-thirds of all people who bought homes in the Washington area in 2005 used interest-only or option mortgages, many of which have adjustable interest rates, up from 2.2 percent in 2000.” “‘These types of products have been enablers when it comes to allowing home prices to rise,’ said Christopher Cruise, a Silver Spring-based mortgage trainer who runs classes for lenders and regulators around the country. ‘Without these products, homes couldn’t be purchased. If they are taken off the market, it could precipitate a disaster of epic proportions.’” thehousingbubbleblog.com