1. THERE ALWAYS WAS A SUBPRIME MARKET MORTGAGE FINANCE UPDATE NATIONAL AUCTIONEERS ASSOCIATION Jillayne Schlicke Dec 1, 2008
2.
3.
4.
5. Feedback Loop Higher Rates Rising Bank Losses Lower Home Values Rising Inventory Fewer Buyers Tighter UW Guidelines Rising SS & F Lower Home Values Rising Foreclosures Time
14. Option ARM Non-Bomb? 11 th District COFI 60% of ARMS tied to LIBOR 25% tied to various treasuries 15% tied to the COFI (many in Calif) Many option ARM holders were making the min payment or paying interest only. When the loans recast , the borrower will begin making the amortized payment, which could have a much larger impact on the monthly payment than the rate reset .
17. THERE ALWAYS WAS A SUBPRIME MARKET MORTGAGE FINANCE UPDATE NATIONAL AUCTIONEERS ASSOCIATION CEFORWARD.COM MORTGAGEFIDUCIARIES.COM RAINCITYGUIDE.COM Jillayne Schlicke Dec 1, 2008