Mortgage resets a relative “non-event” per LA Times article

[Bugs]

According to the banker I was talking to yesterday, we’re looking at a good news-bad news scenario on rates.

The good news is that the rates are still low because there are still buyers for the paper.

The bad news is that it (supposedly) isn’t the foreign investors who are buying the paper, its those domestic lenders that are still solvent. It seems that since they aren’t making that many loans and they still have to make money that buying the best tranches at a discount is the next best thing.

Unfortunately, their liquidity is limited, and once they get maxed out that will be it. The other bummer is that once they buy those loans they are still vulnerable to any underperformance therein.

I’m just passing along the “rumor”. But if it’s substantially true we could soon be looking at significant increases in mortgage interest rates as these lenders run out of buyers for these loans.

[Anonymous]

Bugs,If I’m not mistaken, there would only be a bad component to that scenario for FB’s trying to hold onto their homes. For the rest of us looking to buy at affordable prices, it wouldn’t be a problem because higher interest rates would only hasten the downward spiral of home prices.

Or did I miss something?

[Anonymous]

Bugs,If I’m not mistaken, there would only be a bad component to that scenario for FB’s trying to hold onto their homes. For the rest of us looking to buy at affordable prices, it wouldn’t be a problem because higher interest rates would only hasten the downward spiral of home prices.

Or did I miss something?

[Anonymous]

Bugs,If I’m not mistaken, there would only be a bad component to that scenario for FB’s trying to hold onto their homes. For the rest of us looking to buy at affordable prices, it wouldn’t be a problem because higher interest rates would only hasten the downward spiral of home prices.

Or did I miss something?

[Anonymous]

Bugs,If I’m not mistaken, there would only be a bad component to that scenario for FB’s trying to hold onto their homes. For the rest of us looking to buy at affordable prices, it wouldn’t be a problem because higher interest rates would only hasten the downward spiral of home prices.

Or did I miss something?

[Anonymous]

Bugs,If I’m not mistaken, there would only be a bad component to that scenario for FB’s trying to hold onto their homes. For the rest of us looking to buy at affordable prices, it wouldn’t be a problem because higher interest rates would only hasten the downward spiral of home prices.

Or did I miss something?

[cr]

I think someone should tell this guy that many of these people were probably planning on selling their homes when their payments went up.

Most,not all, but most took a loan that allowed them to pay as little as possible, and when it went up they probably thought they could sell at an even bigger profit.

If not though, then all they have to worry about is the recession.

[cr]

I think someone should tell this guy that many of these people were probably planning on selling their homes when their payments went up.

Most,not all, but most took a loan that allowed them to pay as little as possible, and when it went up they probably thought they could sell at an even bigger profit.

If not though, then all they have to worry about is the recession.

[cr]

I think someone should tell this guy that many of these people were probably planning on selling their homes when their payments went up.

Most,not all, but most took a loan that allowed them to pay as little as possible, and when it went up they probably thought they could sell at an even bigger profit.

If not though, then all they have to worry about is the recession.

[cr]

I think someone should tell this guy that many of these people were probably planning on selling their homes when their payments went up.

Most,not all, but most took a loan that allowed them to pay as little as possible, and when it went up they probably thought they could sell at an even bigger profit.

If not though, then all they have to worry about is the recession.

[cr]

I think someone should tell this guy that many of these people were probably planning on selling their homes when their payments went up.

Most,not all, but most took a loan that allowed them to pay as little as possible, and when it went up they probably thought they could sell at an even bigger profit.

If not though, then all they have to worry about is the recession.

[stockstradr]

According to this LA times article, the looming mortgage resets are not going to be as bad as preceived.

Here’s my response.

Bloomberg TV played an interview today of the CEO of Wells Fargo. Yes he said that resets are a non event, because his company is seeing over 30% default rates (subprime mortgages) happening BEFORE those mortgages even reset, and over 5% default rates before reset similarly with ARM’s held by what they thought were strongest prime borrowers. He explained that the resets were less of a factor because many homeowners were in homes they cannot afford on ANY loan payment plan, even neg-amort payment plans.

I think he said the Wells Fargo mortgage portfolio is something like twelve billion.

I’m thinking to myself, “OK, then why did you banking retards approve loans to those homeowners?”

[stockstradr]

According to this LA times article, the looming mortgage resets are not going to be as bad as preceived.

Here’s my response.

Bloomberg TV played an interview today of the CEO of Wells Fargo. Yes he said that resets are a non event, because his company is seeing over 30% default rates (subprime mortgages) happening BEFORE those mortgages even reset, and over 5% default rates before reset similarly with ARM’s held by what they thought were strongest prime borrowers. He explained that the resets were less of a factor because many homeowners were in homes they cannot afford on ANY loan payment plan, even neg-amort payment plans.

I think he said the Wells Fargo mortgage portfolio is something like twelve billion.

I’m thinking to myself, “OK, then why did you banking retards approve loans to those homeowners?”

[stockstradr]

According to this LA times article, the looming mortgage resets are not going to be as bad as preceived.

Here’s my response.

Bloomberg TV played an interview today of the CEO of Wells Fargo. Yes he said that resets are a non event, because his company is seeing over 30% default rates (subprime mortgages) happening BEFORE those mortgages even reset, and over 5% default rates before reset similarly with ARM’s held by what they thought were strongest prime borrowers. He explained that the resets were less of a factor because many homeowners were in homes they cannot afford on ANY loan payment plan, even neg-amort payment plans.

I think he said the Wells Fargo mortgage portfolio is something like twelve billion.

I’m thinking to myself, “OK, then why did you banking retards approve loans to those homeowners?”

[stockstradr]

According to this LA times article, the looming mortgage resets are not going to be as bad as preceived.

Here’s my response.

Bloomberg TV played an interview today of the CEO of Wells Fargo. Yes he said that resets are a non event, because his company is seeing over 30% default rates (subprime mortgages) happening BEFORE those mortgages even reset, and over 5% default rates before reset similarly with ARM’s held by what they thought were strongest prime borrowers. He explained that the resets were less of a factor because many homeowners were in homes they cannot afford on ANY loan payment plan, even neg-amort payment plans.

I think he said the Wells Fargo mortgage portfolio is something like twelve billion.

I’m thinking to myself, “OK, then why did you banking retards approve loans to those homeowners?”

[Author]

Posts