National Debt Clock

Thursday, August 6, 2009

About half of U.S. mortgages seen underwater by 2011


Home price declines will have their biggest impact on prime "conforming" loans that meet underwriting and size guidelines of Fannie Mae and Freddie Mac, the bank said in a report. Prime conforming loans make up two-thirds of mortgages, and are typically less risky because of stringent requirements.

Tell me that without Freddie and Fannie all this would still be happening?

Deutsche's dire assessment comes amid a bolt of evidence in recent months that point to stabilization in the U.S. housing market after three years of price drops.

It ain't over and my guess would be that this report is swept under the rug for few months until its predictions start coming true.

No comments:

Post a Comment