Is This Really A Big Surprise To Anyone?

This article should not come as a surprise to anyone who is awake. We have also seen recently that anyone who wants to borrow Jumbo Money (over $417,000) is going to get MUCH higher rates (.50-.875 higher than last month) than ever before because of the higher risk involved with these types of mortgages. Many changes are going on in the mortgage business and will greatly affect future borrowers and their ability to even purchase a home.
Kimberly in The Morning:While the collapse of American Home Mortgage may come as a surprise to the New York Times author who wrote the article below, this author on this website has foreseen its coming and that of many other mortgage companies for a long time in its postings. AHM financed speculators and more than 1/3 of its portfolio was made up of loans wherein borrowers could not only not pay down principal, but had the option of not even paying out the full interest rate and allowing the balance to accumulate in principal. The "flippers" counted on ever rising real estate prices fueled in 2004, 2005 and 2006 by easy credit for first time homebuyers, speculators like themselves artificially bidding up prices of real estate, plus scarcity of housing after the hurricanes. Now, credit is tightened, first time homebuyers can't meet their mortgage payments because of increased real estate taxes/home insurance price increases/ARM's adjusting, the speculators have gone home, and the demand for housing has all but dried up as potential purchasers postpone purchases in a declining market waiting for a better deal. More of these to come.....plus...don't forget about the ripple effect in the bond market, equity market, hedge funds, mortgage backed securities markets. Stay tuned in for the ride......Kimberly www.rateinformer.com

The Stock Market is Starting to Feel the Pains of a Sick Mortgage Market

This message was sent to you by Kimberly:Another day, another ripple of a wave in the mortgage market fallout. Just as I predicted earlier in the week, now the Alt-A mortgages (made to people with good credit but who have credit blemishes or are using the proceeds for speculative real estate investments) which have been defaulting for months are starting to show up in Hedge fund losses. so, the stock market has taken another hit. Those who fled to stocks from real estate are not going to find the warm welcome of the 1990's there. As I predicted the other day, the fund market is next on the horizon, even those with credit worthy mortgages. The economy is going to feel further ripples and waves as overall credit becomes prohibitively expensive and dried up because consumers are using more of their dollars toward gasoline, housing insurance, and real estate taxes, especially in Southern states. This, in a year when the weather in the South can be described as nothing but eerie, with August 2007 upon us and not a tropical storm in sight yet. The further fear of Southern mortgages defaulting is if consumer resources need to be further diverted in order to prepared for and/or overcome a hurricane, even on a less than catastrophic scale. Kimberly

The following article show just how the pains and problems of the mortgage business will affect the rest of the financial markets. They are tied together just like the human body. When one part of the body has problems it affects the other parts and the body as a whole suffers even though some parts are still working fine. The financial wizards who keep saying the mortgage problem is not that BIG are just not looking at the whole issue. Even a major heart attack can start out as just a small discomfort in your chest. www.rateinformer.com