We have a potential pipeline of 2.5 million more foreclosures (almost assured in the 90 day group). Then you have another 2.5 million with at least one missed payment that have a low cure rate as well. This doesn’t seem like good news to me given the horrible cure rate on these loans.

This study is offensive. It provides no useful or actionable information. What are we supposed to do, start giving borrowers math tests? It was clearly undertaken to support an agenda and disguise the truth — the opposite of what academic pursuits are supposed to do. Everyone involved should be embarrassed.

The lenders created this mess, and they need to experience the consequences of their foolish lending otherwise they will do nothing to learn from their mistakes and prevent doing it again. They loaned too many people too much money under unstable loan terms. They deserve the pain they get. They do not deserve our tax dollars or assistance.

Credit bubbles must be reinflated to maintain owners’ and lenders’ solvency, but credit bubbles inflate prices to the point that there is no demand from qualified buyers and thus nothing to keep prices from falling further. There is an unresolvable paradox at the heart of the government’s desperate attempts to keep housing prices from falling [...]

Credit Suisse has released an updated version of their popular Mortgage Reset & Recast Chart. Here is the new one: Here is last year’s chart: And, here is the original: There are some thoughts to consider: There are about 2.5 years of huge resets and recasting ahead.  Because the foreclosure pipeline is already so backlogged, [...]