Julio E. Sune Jr. (FL)
Senior Member
- Joined
- Jan 16, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Florida
http://money.cnn.com/2008/12/23/real_estate/home_sales_November/index.htm
Most of us have experienced seeing real estate recessions and bounce backs…but, this one seems more severe, perplexing and sobering. There is hardly a day that goes by without some bad or negative news. The latest fiasco, the "Maddof" Ponzi scheme......We would like to think that the government regulators would be more evident in hoisting warning flags.
Remember the Appraiser's Petition??.......Was anything done??.......No!!!.....Loan production was and always be the "rule" of the "game".....Real value was not needed, only a number in a paper in order to make whatever loan would generate the required $$$.
With "how much is it really worth" and "the borrower's ability to repay the loan" thrown out of the window or completely ignored, we are now seeing the result.
Globilization—we now learn that our economy is entwined with global influences. Global investors were attracted to our packages of high yield mortgages. Ratings of those packages overvalued their credit strength. Greed on Wall Street is difficult to regulate yet alone monitor.....
Tighten your belts......it is not over....[JES]
Most of us have experienced seeing real estate recessions and bounce backs…but, this one seems more severe, perplexing and sobering. There is hardly a day that goes by without some bad or negative news. The latest fiasco, the "Maddof" Ponzi scheme......We would like to think that the government regulators would be more evident in hoisting warning flags.
Remember the Appraiser's Petition??.......Was anything done??.......No!!!.....Loan production was and always be the "rule" of the "game".....Real value was not needed, only a number in a paper in order to make whatever loan would generate the required $$$.
With "how much is it really worth" and "the borrower's ability to repay the loan" thrown out of the window or completely ignored, we are now seeing the result.
Globilization—we now learn that our economy is entwined with global influences. Global investors were attracted to our packages of high yield mortgages. Ratings of those packages overvalued their credit strength. Greed on Wall Street is difficult to regulate yet alone monitor.....
Tighten your belts......it is not over....[JES]
