Wednesday, August 22, 2007

ARM Crash

Gotta pass this one along - watch the balance numbers spin higher with negative mortgage amortization! From Adjustable Rate Mortgage Crash. Hat tip to, and see Mr. Mortgage's additional comments at The Great Loan Blog.

This is serious. The period of neg-am, no-doc, 100%+ loans drove prices up beyond what people could prudently afford. I and others are seeking a return to prices based on a reasonable multiple of incomes.

It's not about cheering someone's downfall, it's seeking return to normalcy and affordability. Transition may be painful. But that's a result of the bubble's excesses. I watched this twice before, in the early 1980s and early 1990s.

2 comments:

Math said...

Thanks for the link to my video - although, the link you posted in text goes to the I/O video, not Option ARM Video...

Funny thing today - got an email spam from "Christian Home Loans" - "we help Americans, etc." or the like - guess what they were selling - yep! Option ARM!! A nice twist of religion and NegAM.

Blog Creator -
www.armcrash.com

Westside Bubble said...

Corrected ... and added to my blogroll.