Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

Dan, Those figures are amazing. And some think that we are not in a real estate bubble. Thanks for posting.
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Hi Joe,
Not being a Fleck sub, I just came across what I presume to be the total excerpted section of the earlier post....

"From today's Fleck:

Turning to the real-estate mania chronicles department, a reader who is knowledgeable in the mortgage arena forwarded a nice data-collection summary of the lunacy taking place in house financing. I would like to pass it along as is, and I encourage everyone to read this a couple of times.
"Here are some more stunning stats!
(1) 2001: 2% of CA loans IO [interest-only]. 2004: 49% (people just stretching and stretching to get into a home).

(2) 70% of refis are now 'cash-out refi' (draining savings).

(3) Total equity takeout, meaning cash-out refi and HELOC [home-equity line of credit], on homes in 2004 accounted for 77% of total U.S. consumption.

(4) 2004: 20% of payment option MTG's [mortgages] were NegAM'ing [negative amortization]. Currently, 40% are NegAM'ing. God help them when px's [prices] stabilize or GO DOWN!

(5) WAMU's [Washington Mutual] new product, 40-yr. MTG, no biggie, but they are going to allow you to do 100% financing, 80/20 HELOC, and further allow you to do pay option on the 1st, i.e. NegAM/IO. Yikes!

(6) Almost 30% of 2004 MTG's were second/vaca/investment property."

http://www.siliconinvestor.com/readmsg.aspx?msgid=21323170
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You might find the reply to the above post to be of interest as well.... <ng>

http://www.siliconinvestor.com/readmsg.aspx?msgid=21323211