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mtgjerk
Dud?


Joined: 02 Mar 2007
Posts: 12

First NLC
PostPosted: Wed Mar 14, 2007 1:38 pm Reply with quoteBack to top

http://yahoo.reuters.com/news/....._N13201203


In this market, it would be considered irresponsible if every company didn't look at each and every means available to survive. There has to be Sub-Prime shops. How else will the low end borrowers get a home loan. This market was never intended to give 100% CLTV homes to anyone let alone borrowers with a 580 Fico (Full Doc) We are hpoefully as an industry waking up from a major drunk, taking a shower, apolagizing to those we hurt, taking our lumps and moving forward. Mazillo said it best yesterday, If we stop making loans to those who want to get into the housing market you essentially stop the natural movement up the social ladder. We must cintinue to do business, but not the way we were for the last few years. Everyone in this market is partially responsible for this implosion.....from the LO to the lender to the investor, including escrow, title, listing and selling agent, everyone.. We all had a flight from quality chasing the almighty buck. We are a self cleansing industry giving ourselves an enema.
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Aaron
A-Bomb


Joined: 24 Jan 2007
Posts: 824
Location: Atlanta, GA

Re: First NLC
PostPosted: Wed Mar 14, 2007 6:46 pm Reply with quoteBack to top

Quote:
How else will the low end borrowers get a home loan.


I hear there is this thing called "renting". I think it was invented by the Phoenecians...

Quote:
If we stop making loans to those who want to get into the housing market you essentially stop the natural movement up the social ladder.


I rent. So I guess that means my future progress "up the social ladder" is arrested?

The reality is the opposite of what you imply. If you spend a little time living below your present means, you can actually save money to improve your life later. That's how it used to be done: you'd buy when you had a sizeable down-payment, so you started out with an equity cushion. Thus, you wouldn't be ruined if you lost your job and had to move within a few years of buying a house.

Home ownership is a potentially dangerous, leveraged financial speculation in the hands of those who can't really afford it.
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bdc63
Schumpeter Reincarnate


Joined: 16 Feb 2007
Posts: 4392
Location: Maryland

Re: First NLC
PostPosted: Wed Mar 14, 2007 7:55 pm Reply with quoteBack to top

[quote="Aaron"]
The reality is the opposite of what you imply. If you spend a little time living below your present means, you can actually save money to improve your life later. That's how it used to be done: you'd buy when you had a sizeable down-payment, so you started out with an equity cushion. Thus, you wouldn't be ruined if you lost your job and had to move within a few years[quote]

I am so glad I found this site. I tried to make this exact point at a dinner party last weekend, and everybody just looked at me like I had 2 heads.

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"Socialism only works in two places: Heaven where they don't need it and h*ll where they already have it." -- Ronald Reagan
"Everybody, sooner or later, sits down to a banquet of consequences." -- Robert Louis Stevenson
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Aaron
A-Bomb


Joined: 24 Jan 2007
Posts: 824
Location: Atlanta, GA

Re: First NLC
PostPosted: Wed Mar 14, 2007 8:27 pm Reply with quoteBack to top

Just shows you how widespread (almost universal) crazy ideas can become -- even if they were always fundamentally flawed, and long after events show them to be disastrous (hence Senator "Dudd" agitating to bail out/defend subprime lending: http://globaleconomicanalysis......nized.html)
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