Effect of subprime loans on the economy

Coming from a person of his qualifications I tend to somewhat agree but the magnitude of this statement is very serious. I don’t know how extensive the subprime defaults will be and how much of the loan the lender will be able to recover by selling the house. We have seen a lot of home value appreciation in large sections of the country - so the lenders themselves should survive. I wonder if he’s hinting at the consumer and the effect this will have. So, I don’t know the cumulative effect, but again coming from such an expert I’m a bit unsure.

Bloomberg.com: Worldwide: ““We have a trillion dollars of subprime mortgages and we’re going to have huge defaults,” Heebner, 66, said in a telephone interview today from his office in Boston. “If you’re looking at the housing market, it’s not the darkest before dawn, it’s the darkest before pitch black,” Heebner said. “

Welcome to the Arizona Mortgage Guru blog, a great resource for all your home financing needs. If you're new here and like the content, you can subscribe to my RSS feed to get regular updates on all things related to mortgages. Thanks for visiting.

Related posts brought to you by Yet Another Related Posts Plugin.