Wells Fargo has both prime and subprime units. They place the loans accordingly.
To me, if $1 million property buyers don’t have at least 15% downpayments, it means that they can’t afford those homes. A 10% correction will hurt a whole lot of owners.
If upper middle class buyers are doing no-docs loans, there’s something amiss. If they are so “upstanding” why don’t they do full doc loans to save on interest? Actually, why wouldn’t anyone want to do full-doc to get the best possible deal?
Only time will tell.
It’s not extremist to say that rent vs. buy should be in equilibrium. That’s rational to me.
In my view, it’s extremist to say that the market will reach bottom in 2007.
