The Homa Files

Excerpted from WSJ, “Call Them Irresponsible”, March 2, 2009

Rewarding those who put the ‘liar’ in liar loans …

At the height of the housing boom, Americans were pulling $300 billion each year out of their home equity

Since 2005, cash-out refinancings have represented a third of all mortgage originations in the United States.

Close to half of subprime mortgages were cash-out refis … meaning that borrowers were converting to more risky mortgages, typically with higher monthly payments.

According to Freddie Mac, most of its refinancings have resulted in larger loan amounts in every quarter since the middle of 2004.

Full article:
http://online.wsj.com/article/SB123595305743805193.html

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This entry was posted on March 3, 2009 at 7:35 am and is filed under Mortgage Crisis, Obama - Promises Made & Kept. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.