Housing.com News, Analysis & Opinion: Wednesday Housing News: Housing Bubble Beat Down

My first reaction was "Where the %$#! were you guys two years ago when the bubble was first blossoming?" Greenspan was cutting rates like the Iron Chef to spur the economy through home buying and price appreciation, and now it's a problem?

Sigh. Day late, dollar short, closing the barn door after the tornado hits, pick your cliche. Still, at least they're actually paying attention now.

No doubt the OCC realizes that its mandate to raise minimum credit card payments will probably cause many stretched homeowners to default on at least one payment area, so they're trying to soften the blow by ending the reliance on no-document loans and ARMs to keep the market propped up. But, as a certain f$!ked borrower points out, as long as there's money to be made by pushing those loans and brokers earning their 6 percent, the increasing creativity of mortgages will continue.

This's another reason why I champion discount brokers and Internet sellers. Not only do we cut out the middleman, but we save you more money on the front and back end. Brokers don't pressure you into making a deal because they like you...it's because they want their pound of flesh. And in this market, it's Venice and everyone is Shylock.

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An array of government agencies and associations have issued joint "guidance" on the dangers of "creative mortgages". Here's the press statement from The National Credit Union Association, and another headed up by the Office of the Comptroller of the Currency. My first reaction was "Where the %$#! were you guys two years ago when the bubble was first blossoming?" Greenspan was cutting rates like the Iron Chef to spur the economy through home buying and price appreciation, and now it's a problem? Sigh. Day late, dollar short, closing the barn door after the tornado hits, pick your cliche. Still, at least they're actually paying attention now. No doubt the OCC realizes that its mandate to raise minimum credit card payments will probably cause many stretched homeowners to default on at least one payment area, so they're trying to soften the blow by ending the reliance on no-document loans and ARMs to keep the market propped up. But, as a certain f$!ked borrower points out, as long as there's money to be made by pushing those loans and brokers earning their 6 percent, the increasing creativity of mortgages will continue. This's another reason why I champion discount brokers and Internet sellers. Not only do we cut out the middleman, but we save you more money on the front and back end. Brokers don't pressure you into making a deal because they like you...it's because they want their pound of flesh. And in this market, it's Venice and everyone is Shylock.