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

To: sammaster who wrote (59528)	8/9/2006 6:59:10 PM
From: Elroy Jetson	Respond to of 306849

Most home mortgages in the 1980s were syndicated and sold off to either Fannie Mae or private investors like pension funds and life insurance companies. When you talk about offshore investors today, they are primarily purchasing Fannie Mae Mortgage Backed Bonds. The primary reason lending gets shut off is that existing property owners don't qualify as those inclined to borrow have little equity. No lender will lend 100% financing when home prices are falling. Its like 1932. Mortgage rates declined to 3%, but hardly anyone qualified for a loan. .