Today’s News – Chronicles of Subprime’s Return
Two different news pieces caught my eye this morning; the first one was yesterday’s news that first quarter 2009 foreclosures "is the highest quarterly total of completed foreclosures" since the crisis began. The number of pre-foreclosure filings also reached a new high: 600,000." Let’s think about that for a moment and remember, it’s also been widely reported the vast majority of them have been to PRIME borrowers, while the much smaller segment have been on those nasty toxic, NON-PRIME sub-human borrowers who got those filthy Subprime loans.
The other headline: "Residential Lending at ‘TARP Banks’ Rising" and it speaks to the Wells production numbers and others (I need to remind all of you that Well Home Mortgage was once Dial Finance out of Des Moines, a subprime lender for 8 decades!) who have improved balance sheets geting back into buying mortgages. Soon they’ll see what is so glaring to me, and that is PRIME ain’t so darn PRIME, nor are NON-PRIME customers all that toxic (IF underwritten properly).
Sitting on the sidlines are tens of millions of people who are not PRIME that need to be served, they won’t be ignored for too much longer!
