A confluence of issues is coming together to keep the mortgage issue front and center for this year.
I’ve heard similar noise regarding five-year notes and commercial properties. That idea is based on a lot of bad deals went down from 2006 through 2008. Look for that fall-out to begin in 2011 and worsen through 2013. Fun times ahead, indeed.
From the link:
Robert Manning, research professor and director of the Center for Consumer Financial Services at the Rochester Institute of Technology here, contends that three issues-poor loan modifications, adjustable rates resetting, and five-year interest-only and jumbo loans coming due-will combine to make the mortgage mess worse in 2009.
“That’s what Obama’s administration is trying to prepare for,” said Manning, whose analysis for the Filene Research Institute’s study on the foreclosure crisis in Michigan helped him draw that conclusion. “We are going to have such a disaster in the housing market this year because we have three very different waves of foreclosures coming together at once.”
David Kirkpatrick 