patrick.net

Call it Crazy says

When the majority of the "sheep" wake up to this fact, and realize that a house is shelter FIRST, and not their future retirement plan, then the housing market will return to sanity...

Who still thinks this??

Strategist says

You are very confident.

Math,Data and Facts matters in these debates and I admit I have a great advantage since this is what we do for a living and I have all the data points to reference to my views.

90% of my debates with people in the past 100% of the them had no idea how the standards were with

GSE, FHA, and VA and the best is they all go check and then come back to me and say... wow you're right.

I am going to be the Galileo of this topic because my discipline will never allow me to deviate from the truth

Strategist says

Implies tighter lending standards

You're correct. We verify income now and no longer allow 100% loans that are stated income loans 2/28 & 3/27 and option arms which has a horrible default rate if the home owners couldn't refinance out of them

That's a good thing for this country and I will do my best to fight against any movement by the U.S. government to allow such garbage loans back into the system. Which I know 100% they won't since they have all been banned in America. This is a good thing for America and a bad thing for crooked financial types.

Stated incomes loans are being done every day with big down payments.

The days of fraud are over in America in terms of lying on your applications on your income. Now it's back to normal, which is

Paystubs
W2
4506-T
Bank Statements
Jobs

Tax returns
P&L YTD

Yes, this is the new America, the old days of lying are done!

IOW the worlds biggest case of the King's New Clothes.

I might add that housing is just one aspect of this story. War is another, TARP is another, Entitlements is another, ZIRP is another, Student loans is another, Public Transfers is another, and the one everyone claims is a conspiracy theory is the Fed.

With all of that we have an 18 trillion dollar GDP that is a real juggernaut that will probably survive the entitlement surge only because of this juggernaut, But theys going to have to be some changes or else it taint.

I think one of the big problems we will encounter, when depending on those most snake bit from the last crash to carry the next leg up for house prices,is that it's extremely hard to picture the kind of price appreciation we've known in the past, continuing into the future.

Everything is already prohibitively expensive. How can those emerging from credit jail be expected to buy with the assumption that appreciation will outpace debt service, even with rates already so low?

Its as fresh in their minds as anyone's, just how quickly the paper value of your house, can evaporate