I'm heading off to Kansas today for the Thanksgiving holiday, so there won't be any posts for a while. My PC also crashed and I'm having an extremely difficult time re-installing Windows, so even when I get back, it might be a while before I can post again..
Two quick notes:
Goldman Sachs today announced that mortgage lenders may need to scale back lending by up to $2 trillion dollars which could lead to a "substantial recession."
In response to the mortgage meltdown, the House voted to strengthen the rules on mortgage lenders. I don't have enough information now on the details of this particular bill, but I do think something needs to be done to help prevent the current situation from happening again. One thing that troubles me is that the bill prohibits balloon payments. As a private or hard-money lender, all of the mortgages and loans that I make have balloon payments. They are interest-only loans with the entire principle due in a balloon payment at the end of the term. However, I am not sure if this bill would apply to private money lenders, so it may not even affect people like me.
Friday, November 16, 2007
Going On Vacation
Posted by Shaun at 7:10 AM
Labels: hard money, subprime
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