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Thread: weekend commentary - you do NOT want to be classified as a 'subprime' borrower ...

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    Banned Melonie's Avatar
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    Default weekend commentary - you do NOT want to be classified as a 'subprime' borrower ...

    "Sunday, December 03, 2006
    Mortgage Bonds Hurt by Delinquencies, Housing Slump
    finally.......

    "Dec. 1 (Bloomberg) -- The mortgage bond market is beginning to buckle under the weight of the worst U.S. housing slump in six years.

    Yields on so-called sub-prime mortgage securities rated BBB have risen to 6.52 percent on average from 6.28 percent on Sept. 5, data compiled by Bank of America Corp. show. The yield premium, or spread above the one-month London interbank offered rate, a lending benchmark, rose to a seven-month high of 1.2 percentage points."

    that is the key! even if i do not compare apples with apples but the 10 year has fallen almost 350 basispoints in the meantime! this is out of the reach for the fed. when you read the latest warnings from h&r block or fifth third bancorp you see the impact on earnings

    endgame could be that even if the fed lowers rates the subprime borrower has to pay the same or higher rates."(snip)

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    Featured Member Katherine's Avatar
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    Default Re: weekend commentary - you do NOT want to be classified as a 'subprime' borrower ..

    What credit score put you in that category? 625 or less? 650 or less?

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    God/dess Deogol's Avatar
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    Default Re: weekend commentary - you do NOT want to be classified as a 'subprime' borrower ..

    The score plays a role but it isn't the only thing that matters. Believe me, when it comes to making a decision they have lots and lots of underwriting rules.

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