Hi Everyone,
Here’s the follow up from class:
Here is a link to the Credit Suisse chart showing all the recasts of the Pay Option ARMs coming our way through 2012. Remember the good news here is that 46% of all Pay Option ARMs are currently in default. This means some of those bad loans will work their way through the system now, instead of dragging this mess on for years.
I also mentioned Pr./Dr. Shiller’s idea of the continuous workout mortgages. Here’s more info on his book.
You gave me a great idea for a new clock hour class next year on boundaries so watch for that class which will likely be offered at SKCAR in 2010!
We didn’t get time to fully dive in to credit scores. The MyFico website has a fantastic education resource center. I really like this article and visual which helps explain how late mortgage payments affect a person’s credit score.
Thanks for coming to class!