{"id":355628,"date":"2018-04-07T07:56:54","date_gmt":"2018-04-07T06:56:54","guid":{"rendered":"http:\/\/rinf.com\/alt-news\/newswire\/subprime-mortgages-on-fire-again\/"},"modified":"2018-04-07T07:56:54","modified_gmt":"2018-04-07T06:56:54","slug":"subprime-mortgages-on-fire-again","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/newswire\/subprime-mortgages-on-fire-again\/","title":{"rendered":"Subprime Mortgages on Fire Again"},"content":{"rendered":"
\n\t\t\t\t\t\t\t \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n

\u201cAs a dog returns to its vomit,<\/span>\u00a0<\/span>so fools repeat their folly.\u201d \u2013 Prov. 26:11<\/span><\/span><\/p>\n

It appears there is some repeat folly brewing.<\/p>\n

Remember subprime mortgages? Well, they\u2019re back.\u00a0<\/p>\n

According to an\u00a0article published by\u00a0SovereignMan<\/em><\/a>, subprime volume at US banks doubled over the last 12 months and it is on pace to double again this year. Subprime loans rank among the fastest\u00a0growing investments for banks in the US.<\/p>\n

SovereignMan<\/em>\u00a0has dubbed these foolish bankers \u201cfinancius dumbassus\u201d\u00a0<\/em>to emphasize the folly of repeating a practice that nearly brought down the entire global economy.<\/p>\n

\n

Bottom line\u2013\u00a0financius dumbassus<\/em>\u00a0is once again back to its old ways\u2026 making risky loans to borrowers with pitiful credit. What could possibly go wrong? Leave it to\u00a0financius dumbassus<\/em>\u00a0to try the same thing again and expect a different result. It\u2019s textbook insanity.\u201d<\/p>\n<\/blockquote>\n


\n\"\"<\/a><\/span><\/span>
\nHow an Economy Grows a…<\/a><\/span><\/span>
\nPeter D. Schiff, Andre…<\/span>
\nBest Price: <\/span>$1.98<\/span><\/span>
\nBuy New <\/span>$5.89<\/span><\/span>
\n(as of 03:40 EDT – Details<\/span>)<\/span><\/span>
\n<\/a><\/span>
\n<\/span><\/p>\n

But this isn\u2019t an identical repeat performance. The banking industry has changed the name. We no longer call these risky loans \u201csubprime.\u201d Now we call them \u201cnon-QM,\u201d meaning \u201cnon-qualified mortgage.\u201d But we are talking about essentially the same thing. Banks extend loans to borrowers who don\u2019t qualify for conventional mortgages because they have bad credit ratings or don\u2019t have enough money to make a down payment.<\/p>\n

Indeed, we\u2019ve seen this folly before, and as\u00a0SovereignMan<\/em>\u00a0points out, nearly the entire financial system got into the game the last time around.<\/p>\n

\n

The mortgage brokers raked in huge fees for closing individual loans. The investment bankers made money packaging the loans into subprime bonds. And the ratings agencies (like S&P and Moody\u2019s)…<\/p>\n<\/blockquote>\n<\/div>\n

Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cAs a dog returns to its vomit,\u00a0so fools repeat their folly.\u201d \u2013 Prov. 26:11 It appears there is some repeat folly brewing. Remember subprime mortgages? Well, they\u2019re back.\u00a0 According to an\u00a0article published by\u00a0SovereignMan, subprime volume at US banks doubled over the last 12 months and it is on pace to double again this year. Subprime […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[519],"tags":[],"class_list":{"0":"post-355628","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-newswire"},"_links":{"self":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/355628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=355628"}],"version-history":[{"count":0,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/355628\/revisions"}],"wp:attachment":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=355628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=355628"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=355628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}