Mr Mortgage

Ten Comments on Housing

Good story but housing prices will fall further that you suspect, especially in jumbo bubble states like CA. Since we have lost all the exotic programs and are back to pre 1990's mortgage lending, you have to apply historic prices multiples and the best is the 100-year 3-4 time household income. In CA, were are still sitting at 7-10 times household income in most zip codes.

What Are Brokers' Exposures to Carlyle Capital?

Hi Barry,

The operative phrase is ..."Based on available information,". Just wait until the Pay Options, ALT-A, Prime and Home Equity loans start popping. They already are starting here in CA. As a matter of fact, in CA 66% of all new foreclosure activity are Notices of Default, which are the 90-day lates (preforeclosure). This means a wave is coming and the lip is just here.

Also, the impact from the 'negative equity effect' is just starting to be realized.

By the sounds of this report, they are still holding to their guns that this is still a 'subprime thing'. They should know better.