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

To: Ilaine who wrote (21112)	8/12/2007 1:48:10 PM
From: carranza2	Read Replies (1) \| Respond to of 219162

I have maintained that teaser rates and ARMs require tougher loan undewriting standards than for fixed rates since, obviously, the risk is that the borrower won't be able to repay when things reset. Thus, a solid borrower is required, one who can handle the resets. The waves of bad news, pain, defaults, etc., which will ripple through the economy will be brutal, especially next year when the bulk of the funny money loans reset in the spring. There's a lot of time for the Fed to do something to prevent widespread dislocation, but not too much time.

To: Ilaine who wrote (21112)	8/12/2007 1:54:11 PM
From: thinkclear	Read Replies (1) \| Respond to of 219162

llaine, Was this woman a victim of predatory lenders, circumstance:everybody else is doing it, or of her own naivety and greed? -thinkclear BTW -- the most "interesting" bankruptcy I've seen yet is a grocery store cashier who leveraged her home equity to or past the max and bought two more houses for investments. Now that the teaser loans have locked she has $5K in mortgages on just one of the houses. She was grossing $40K but the grocery store cut her back to part time ($25K) because their sales have dropped.