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

To: RockyBalboa who wrote (133405)	7/12/2008 5:30:44 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

Leverage and the fact that the GSE's "automated underwriting" system will prove to be fatally flawed by it's overreliance on FICO scores. A lot of the conforming loans they bought (a huge amount of which are still on their books) were "alt-A light" in my book and will suffer tremendous defaults (worse still when the higher conforming limits are enacted and all the resets from Clownifornia get crammed down their throats). They are toast, the rest you hear from Lockhart and the like is subterfuge presented to try and keep the game going so the big boys can escape. Read Alan Sinai's interview from yesterday.