Humpty Dumpty

Did Inaccurate Credit Scores Cause Subprime Crisis?

If this theory is to be used then the creditors i.e credit cards, collection companies, mortgages etc who report to the Bureau (repository) are to blame. The FICO is a snapshot at a particular point in time based on raw data reported by the creditors. This could be an interesting argument based on the fact that the secondary market had so much confidence in empirical data

What the Housing 'Apocalypse' Prophets Aren't Revealing

As an existing mortgage officer thank you for very important facts. My take is we have a conundrum at stake. When the media says jump consumers say how high as is the case once again with the fed cut and the hype on rates- (one really has little to do with the other).
How many equity lines are being maxed out for cash? ( lenders are closing them ) How much is going to their bank accounts because they are realizing their homes real worth and are bracing for the worse. Another question with tighter lending standards what will be the conversion rate from application to funding? And of course my main concern is real estate valuation going forward. We are seeing major depreciation in chicagoland and as 2008 progresses our echo systems are being polluted with foreclosures and short pays and it is a mater of time before they visit your neighborhood. This conundrum could have more to do with affordability than rate- that`s the wild card. The consumer is running scared.

Where are all the kings horses and all the kings men because we need to put humpty dumpty ( economy ) back together again.