Dan, Those figures are amazing. And some think that we are not in a real estate bubble. Thanks for posting. ===============================================================
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."
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