WSJ lets Ramsey sneak in an op-ed

[4plexowner]

“Toxic financing abruptly stopped during the spring of 2007. By that summer, there were no more 100% financing, negative amortization option ARMs, piggyback seconds, or the now-infamous NINJA (no income no job no assets) loans.”

he forgot to mention that affordable jumbo loans have become a thing of the past

it would be interesting to hear Ramsey’s take on how the lack of jumbo loans will affect SoCal’s high end markets

[4plexowner]

“But what if the high end actually does worse than the rest of the market? Consider:

Jumbo Defaults. This past week, data showed that the delinquency rate for jumbo mortgages — those too big to qualify for backing by the government — at 6.9% of prime loans …”

Housing Down. Rich Hit Most?

http://online.wsj.com/article/SB123335694204035027.html?mod=googlenews_wsj

“those too big to qualify for backing by the government”

meaning that after these high end houses default, the only potential buyers are people with cash to buy down the mortgage to govt backed size or with enough cashflow to afford the higher interest rate on a jumbo loan (assuming they can find a jumbo loan at all)

[4plexowner]

“But what if the high end actually does worse than the rest of the market? Consider:

Jumbo Defaults. This past week, data showed that the delinquency rate for jumbo mortgages — those too big to qualify for backing by the government — at 6.9% of prime loans …”

Housing Down. Rich Hit Most?

http://online.wsj.com/article/SB123335694204035027.html?mod=googlenews_wsj

“those too big to qualify for backing by the government”

meaning that after these high end houses default, the only potential buyers are people with cash to buy down the mortgage to govt backed size or with enough cashflow to afford the higher interest rate on a jumbo loan (assuming they can find a jumbo loan at all)

[4plexowner]

“But what if the high end actually does worse than the rest of the market? Consider:

Jumbo Defaults. This past week, data showed that the delinquency rate for jumbo mortgages — those too big to qualify for backing by the government — at 6.9% of prime loans …”

Housing Down. Rich Hit Most?

http://online.wsj.com/article/SB123335694204035027.html?mod=googlenews_wsj

“those too big to qualify for backing by the government”

meaning that after these high end houses default, the only potential buyers are people with cash to buy down the mortgage to govt backed size or with enough cashflow to afford the higher interest rate on a jumbo loan (assuming they can find a jumbo loan at all)

[4plexowner]

“But what if the high end actually does worse than the rest of the market? Consider:

Jumbo Defaults. This past week, data showed that the delinquency rate for jumbo mortgages — those too big to qualify for backing by the government — at 6.9% of prime loans …”

Housing Down. Rich Hit Most?

http://online.wsj.com/article/SB123335694204035027.html?mod=googlenews_wsj

“those too big to qualify for backing by the government”

meaning that after these high end houses default, the only potential buyers are people with cash to buy down the mortgage to govt backed size or with enough cashflow to afford the higher interest rate on a jumbo loan (assuming they can find a jumbo loan at all)

[4plexowner]

“But what if the high end actually does worse than the rest of the market? Consider:

Jumbo Defaults. This past week, data showed that the delinquency rate for jumbo mortgages — those too big to qualify for backing by the government — at 6.9% of prime loans …”

Housing Down. Rich Hit Most?

http://online.wsj.com/article/SB123335694204035027.html?mod=googlenews_wsj

“those too big to qualify for backing by the government”

meaning that after these high end houses default, the only potential buyers are people with cash to buy down the mortgage to govt backed size or with enough cashflow to afford the higher interest rate on a jumbo loan (assuming they can find a jumbo loan at all)

[rocket science]

For all the loan modification proponents out there…

Finally, loan modification is not only ineffective, it is evil. Coercing borrowers to continue paying a mortgage on a home that is hopelessly overvalued and not informing them of alternatives is predatory lending.

Yep, modify their loans because they we victims of predatory lending, give them some more.

[rocket science]

For all the loan modification proponents out there…

Finally, loan modification is not only ineffective, it is evil. Coercing borrowers to continue paying a mortgage on a home that is hopelessly overvalued and not informing them of alternatives is predatory lending.

Yep, modify their loans because they we victims of predatory lending, give them some more.

[rocket science]

For all the loan modification proponents out there…

Finally, loan modification is not only ineffective, it is evil. Coercing borrowers to continue paying a mortgage on a home that is hopelessly overvalued and not informing them of alternatives is predatory lending.

Yep, modify their loans because they we victims of predatory lending, give them some more.

[rocket science]

For all the loan modification proponents out there…

Finally, loan modification is not only ineffective, it is evil. Coercing borrowers to continue paying a mortgage on a home that is hopelessly overvalued and not informing them of alternatives is predatory lending.

Yep, modify their loans because they we victims of predatory lending, give them some more.

[rocket science]

For all the loan modification proponents out there…

Finally, loan modification is not only ineffective, it is evil. Coercing borrowers to continue paying a mortgage on a home that is hopelessly overvalued and not informing them of alternatives is predatory lending.

Yep, modify their loans because they we victims of predatory lending, give them some more.

[Author]

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