Tuesday, September 8, 2015

NINJAs Will be the Final Anhiliilation of Housing Bubble 2.0

Low documentation loans have actually been back for a while now if you have the credit score.  How many buyers in the past few years have used semi-exotic loan products?  How many of those have incomes directly related to the worldwide credit bubble ponzi?  I'd bet a sizable portion of the upper-middle and low-upper have done yoga contortions to squeeze into loans.  It's not a matter of these loans resetting and the monthly nut increasing as much as the global economic slowdown bringing the upper income earners back into the recession most never left.  Interesting times ahead...

Via Zero Hedge...

For “subprime”, read “non-prime”.
Yield-hungry investors are ready to endorse a revival of bonds backed by riskier US residential mortgages, as lenders warm to housebuyers who do not meet strict borrowing guidelines introduced after the financial crisis.  But the now toxic label of subprime mortgages has been dropped. Instead, Angel Oak Capital is in the process of pricing a deal for a bond offering of so-called “non-prime mortgages” — a term funds are using to describe mortgages that do not meet government standards. Lone Star Funds completed a deal worth $72m in August.

10 comments:

  1. I know a third of your income is a good general rule...but how high can/do people push that?

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  2. For some odd reason, a lot of us have forgotten what the previous recession was like. For just a temporary time, people started becoming more deliberate about where and how to spend their money. But as soon as the recession stopped good times came back again and the old habit of conspicuous spending began again. I believe as a result that the American people will never, ever, ever learn. There must be something within the American psyche that makes us want to spend more than we earn. Everyone wants to act like they have a boatload of money when they may be just getting by.

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    1. That's definitely easier to do than to practice self-restraint and save...so I'm not that surprised people default to that mindset. It's definitely not good for people. "Contentment" definitely isn't a value that gets much praise or attention. New gadgets, cars, houses, etc...maybe that will bring happiness?

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  3. Please get back to the keyboard and blog! We know it's hard, but so is everything else that's worth doing (and important).

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  4. Yeah...cmon Nihilist! Post something before I lose my nerve and go buy a house! :)

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  5. I'm convinced prices won't see much change until the next recession. The FED is too afraid to move on rates, so those aren't going to be the catalyst to drop prices. The question is when is the next recession, and how bad will it be. My brain hurts from reading stuff.

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    1. You inspire me friend nathan118 :-)

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    2. This comment has been removed by the author.

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    ReplyDelete