Comments on: Regulators “You can Do Better” http://www.socalbubble.com/2007/03/regulators-you-can-do-better.html Southern California is Experiencing a Real Estate Bubble like never before Fri, 04 Feb 2011 01:16:46 -0700 hourly 1 http://wordpress.org/?v=3.1 By: Dr. Housing Bubble http://www.socalbubble.com/2007/03/regulators-you-can-do-better.html/comment-page-1#comment-1571 Dr. Housing Bubble Mon, 05 Mar 2007 22:24:39 +0000 http://www.socalbubble.com/2007/03/regulators-you-can-do-better.html#comment-1571 Going down to Chinatown. Last week, I was chatting with a few folks and I was telling them they should short subprime lenders for a quick buck and look at more traditional lenders such as Wells Fargo and Countrywide on the longer term horizon to short. The feeling they gave me was that the subprime lenders got caught up in the market freefall and they would rebound. Let us take a look at NEW this morning. Nope, no rebound here. :) Hate to say it but this is the stuff we bubble bloggers have been preaching for ages. I'm just happy to make a profit and see corrupt lenders go down in flames. Dr. Housing Bubble http://drhousingbubble.blogspot.com Going down to Chinatown. Last week, I was chatting with a few folks and I was telling them they should short subprime lenders for a quick buck and look at more traditional lenders such as Wells Fargo and Countrywide on the longer term horizon to short. The feeling they gave me was that the subprime lenders got caught up in the market freefall and they would rebound.

Let us take a look at NEW this morning. Nope, no rebound here. :) Hate to say it but this is the stuff we bubble bloggers have been preaching for ages. I’m just happy to make a profit and see corrupt lenders go down in flames.

Dr. Housing Bubble

http://drhousingbubble.blogspot.com

]]> By: L.A. Renter http://www.socalbubble.com/2007/03/regulators-you-can-do-better.html/comment-page-1#comment-1553 L.A. Renter Mon, 05 Mar 2007 16:42:13 +0000 http://www.socalbubble.com/2007/03/regulators-you-can-do-better.html#comment-1553 Tell all those real estate people, this isn't the bottom. Not even close. Even GMAC said that they are starting to have some problem loans. They only lend to good credit customers. The stock market is saying that the economy isn't going to be so rosy in the future. Tell all those real estate people, this isn’t the bottom. Not even close. Even GMAC said that they are starting to have some problem loans. They only lend to good credit customers.

The stock market is saying that the economy isn’t going to be so rosy in the future.

]]> By: Troubled Loner http://www.socalbubble.com/2007/03/regulators-you-can-do-better.html/comment-page-1#comment-1514 Troubled Loner Sun, 04 Mar 2007 21:13:04 +0000 http://www.socalbubble.com/2007/03/regulators-you-can-do-better.html#comment-1514 I believe you're right about what will stop this insanity. As soon as the lending standards get back to normal, so do prices. Generally, those who are able to buy a $500,000 house now in So Cal with a toxic loan would most likely only be able to qualify for $275,000 or so - and that will be where the market goes. The lenders can't keep making these crazy loans forever. Eventually they will stop, either because of the losses or because regulations force them to. When this happens, the market shifts overnight. I believe you’re right about what will stop this insanity. As soon as the lending standards get back to normal, so do prices. Generally, those who are able to buy a $500,000 house now in So Cal with a toxic loan would most likely only be able to qualify for $275,000 or so – and that will be where the market goes.

The lenders can’t keep making these crazy loans forever. Eventually they will stop, either because of the losses or because regulations force them to. When this happens, the market shifts overnight.

]]> By: AJ http://www.socalbubble.com/2007/03/regulators-you-can-do-better.html/comment-page-1#comment-1467 AJ Sun, 04 Mar 2007 01:44:45 +0000 http://www.socalbubble.com/2007/03/regulators-you-can-do-better.html#comment-1467 Live interview with Freddie Mac's chief on CNBC early Tuesday morning. Freddie Mac essentially announced that they would "stop purchasing subprime loans or any securities with high risks of default." In 2006, about 15% of new mortgage originations (not refis) were sub prime. Add in the various "liar loans" where there is no income check and no documentation is required, and other flavors of exotic fare such as interest-only loans, and piggyback mortgages that allow 100% loan to value, and you have as many as 30% of new mortgages. With one fell swoop, Freddie just eliminated between 15% and 25% of home purchasers from the credit pool, and that just set the housing bottom-callers back another year. Live interview with Freddie Mac’s chief on CNBC early Tuesday morning. Freddie Mac essentially announced that they would “stop purchasing subprime loans or any securities with high risks of default.”

In 2006, about 15% of new mortgage originations (not refis) were sub prime. Add in the various “liar loans” where there is no income check and no documentation is required, and other flavors of exotic fare such as interest-only loans, and piggyback mortgages that allow 100% loan to value, and you have as many as 30% of new mortgages.

With one fell swoop, Freddie just eliminated between 15% and 25% of home purchasers from the credit pool, and that just set the housing bottom-callers back another year.

]]> By: LAEF2 http://www.socalbubble.com/2007/03/regulators-you-can-do-better.html/comment-page-1#comment-1454 LAEF2 Sat, 03 Mar 2007 04:57:45 +0000 http://www.socalbubble.com/2007/03/regulators-you-can-do-better.html#comment-1454 The regulatory thing was a land mine for a politician. You bust up on a subprime lender and the minorities are all over your ass for being a racist/elietest. I'd really like to see them go after insiders who sold like crazy from NEW FMT... and then had to restate or delay their financials. That was very enron esque... The regulatory thing was a land mine for a politician.

You bust up on a subprime lender and the minorities are all over your ass for being a racist/elietest.

I’d really like to see them go after insiders who sold like crazy from NEW FMT… and then had to restate or delay their financials.

That was very enron esque…

]]> By: IrvineRenter http://www.socalbubble.com/2007/03/regulators-you-can-do-better.html/comment-page-1#comment-1450 IrvineRenter Fri, 02 Mar 2007 19:09:56 +0000 http://www.socalbubble.com/2007/03/regulators-you-can-do-better.html#comment-1450 Interesting timing: http://www.irvinehousingblog.com/2007/03/01/financially-conservative-home-financing/ Interesting timing:

http://www.irvinehousingblog.c.....financing/

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