Delinquencies Accelerate

[Julio E. Sune Jr. (FL)]

http://www.mortgagedaily.com/DelinquencyMba091202.asp

"Rise in delinquencies mainly due to a rise in unemployment"

[So, when will the "desk-jockeys" of HUD will understand that loans go bad when the borrower STOPS paying the mortgage and NOT because of "appraisals"]

8)

 

[Leon Stewart]

Not necessarily from unemployment, but the significant increase in "Borderline" Borrowers to increase homeownership. Sometimes referred to as "Sub-prime" for non-FHA Loans. I think the "powers that be" knew the default rate would increase, but now they are trying to find a "scapegoat". This stuff isn't Rocket Science, and we have a history to support the outcome, but Appraisers should not expect an increase of "Full" Appraisals in the future as the "Power's try to relate the increase in foreclosures to faulty value estimates, because they will continue to move their program in the direction of a non-appraisal system.

leon