My first question regarding current home purchases is to know the quality of the loan–if it’s more subprime, it’s more of the same garbage.
Where will the current subprime borrowers find refinancing as lending standards tighten and the $$ dries up?
it is a disgusting and blatant testimony that confirms again that SoCAL was a playground of bogus lending. Maybe newly-made “New Century” millionaires are coming in to buy up all the property —- otherwise, who is going to afford the current prices – especially while standards tighten. Common sense tells you that a $50K median income cannot afford a home 10X that. The subprime lending market will dry up. New Century is one example –facing investigation and not expecting to make a profit for the next 6 mths…how many banks are willing to continue this risk?
