- Joined
- May 2, 2002
- Professional Status
- Certified General Appraiser
- State
- Arkansas
Greenspan's remarks were obtuse weren't they? I wonder what they are up to.
Greenspan's remarks were obtuse weren't they? I wonder what they are up to.
Denis,
Just for the record, every newletter I subsribe to, both my brokers, and all of my friends I talked to on the Chciago Board of Trade yesterday tell me this is an aberration and will quickly correct.
I've never been long!!!
The easy money is making a quick exit out of risky mortgages.
During the housing boom that ended in 2005, money was poured with abandon into exotic home loans that let people buy homes with little down or without verifying their incomes. Now, lenders, financiers and buyers of mortgages are pulling back.
The move comes as default rates are rising, smaller lenders are starting to fail and investors are shunning bonds backed by mortgages.
“Lenders and originators are being significantly penalized for the loose standards that we saw last year,” said Brian J. Carlin, head of fixed-income trading at JPMorgan Private Bank. “And they are going to take that out on current borrowers.”
First Franklin, one of the nation’s largest sub-prime lenders and a subsidiary of Merrill Lynch & Company, recently told mortgage brokers it does business with that it was raising the minimum credit scores for borrowers who wanted to finance 100 percent of a home’s purchase price.
All first-time home buyers will be required to put down at least 5 percent of the purchase price, or verify their income with tax documents.