Banks and Mortgages

I don't know how the state of banking and mortgages doesn't get more negative press. It makes me feel like I'm not getting what's going on. Fannie and Freddie are endless pits of incompetence and are simply engaging in a financial model that does not work. And THEY are propping up the entire banking industry since the overwhelming majority of the collateral that the banks are counting on is houses. And no one even talks about FHA which has actually been originating more loans that Fannie and Freddie. The entire market is on life support, sustained by the Federal government. Period.

Add to that the fact that it's getting cool to tell your bank to go eff itself by simply ceasing to send in the monthly mortgage payment since you are under water anyway. It takes them a year to finally notice and kick you out, meanwhile you've saved $15,000 in mortgage payments and you move into an apartment. Anyone out there else feel like a total sucker for paying in full?

And also this little gem. These are heavy resets of mortgage rates in 2010 and 2011. Maybe it's no big deal because reset rates are going to be pretty low but it's another piece of tinder in the forest.


Good Times.

Brace yourself.