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mortgages: S&P Raises Loss Expectations For Mortgages - 07/07/09 08:26 AM
In the latest sign that the housing market continues to deteriorate, according to Reuters, Standard & Poors recently raised loss expectations for Alt-A, and subprime loans.
The reason this downgrade by S&P of mortgage securities is relevant is because home values are driven by demand and supply, Jim Cramer.  So long as foreclosures (supply) continue to rise and demand remains anemic, property values will continue to erode.
Here is what the new Standard and Poors loss projections looks like compared to their previous ones.  Loss rates are based on the vintage or the year that the loan was originated.  The number in parentheses is the previous projection.
                    2005                       2006                         2007
… (5 comments)

mortgages: Are these negative equity numbers right? - 12/27/08 06:05 PM
For the past several weeks there has been a lot of exposure about the "next wave" of foreclosures that will be a result of Alt-A and Option ARM loans resetting.  I was glad to see that 60 Minutes did a feature about this as the volume of loans that will reset and are at risk of foreclosure over the next four years will trump the sub prime tsunami that made land-fall in 2007 and 2008.  This is a problem that is not going to go away and as such, needs to be accounted for when debating how soon the real estate market and broader economy is going … (10 comments)

 

Mark MacKenzie

Phoenix, AZ

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Mark MacKenzie Real Estate Planning

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