I guess the net impact of the insurers going belly up is a worsening of the credit crunch. The MBS market will not likely come back as anytime soon, premium to insure these thing will probably go up big time.
The only game in town for a long time may be conforming loans bought up by GSEs Fannie Mae, Freddie Mac.
Not sure % of homes financed with conforming loans in SoCal, it must be low. Net result, more downward pressure on home prices. Anybody hazard a guess at any other possible scenario?
Large downpayments with perfect credit become even more important. I wonder who will be in position to finance jumbos or any type of exotic loan? The GSEs may be the only ones standing with financial ability
