Sunday, October 19, 2008

The Worst is Behind

One of the measures of the primary problem, the number of ARM re-sets (adjustable rate mortgage), is already falling, with greater than two-thirds of the "nightmare" behind, according to figures compiled by the Federal Reserve.

Of course, for the 1/3 left and the 2/3 who 'bought some time', that is no comfort whatsoever.

Ridiculous ARMs are one of the structural excesses of the sub-prime grab-and-run, done by so-called 'mortgage brokers'. (Another were heart stopping pre-payment penalties.)

Of the secondary problems, the knock-on impacts and economic stress, both self-fulfilling and otherwise, ... still bite.

Mortgage Maps

By the way, have you noticed how little information about the dimensions of the problems actually makes it into the press and most commentary?

It does suggest that deliberate or passive inscrutability remains near to the core of this mess, the distribution of these loans, the impossible resets, the woefully inadequate "Hope Now Alliance", the amount of loans refinanced to-date at conventional rates, real-world data on LTV by zip code - all these figures, ... private data only. Gulp!

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