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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (15424)	3/15/2007 6:35:32 PM
From: TobagoJack	Read Replies (1) \| Respond to of 217901

<<You are way, WAY too pesimistic>> I did write "or some script close enough not to matter operationally in how and what we ought to do" :0)

To: energyplay who wrote (15424)	3/15/2007 7:51:00 PM
From: rotweil	Read Replies (1) \| Respond to of 217901

You are assuming it's only a subprime problem. Fannie and Freddie were right in the thick of things the last few years when it comes to poor underwriting standards. It was not uncommon for Fannie to approve loans with a 60% of gross income back end ratio. I have even seen 70% ratios get fannie approval. In the early 90's the back end ratio limit was 36%. Think about a borrower paying 70% of their gross income on monthly debt. What's left to eat with after taxes. Plus fannie and freddie jump big into the 100% LTV loans. Subprime was the first shot. BTW most of the subprime loans the last few years were 2/28 or 2/27. Those are balloon payment loans. So now that credit standards have tightened and home values have come down the borrowers can't refi. Since prices are set at the margine a few of these subprime borrowers in your sub division and all sellers will need to adjust.