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October 05, 2007


tom stone

Wamu pushed their teaser rate ARMS hard during 05 and 06 here in northern California,and these were largely portfolio loans...the underwriting was laughable but better than World Savings.The folks at World told me it was OK they had these Appraisal thingies that showed their borrowers paying market price.at the peak.at 12x their annual income.but hey they didn't qualify folks at the 1% teaser rate like Wamu did for a few months.Always nice to deal with educated financial professionals,it's like,you know, reassuring.Except when they are insane.


Check out the posts on the 6th of October showing the rate of REOs for CFC and other lenders. The banks are getting REOs faster than homebuilders are selling homes.

newport coast homes for sale

This trend is very strong now, with defaults in mortgages trending upward, not downward. Of course, WaMu is trading higher after this news because some traders actually believe that this is over.

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