Wednesday, August 22, 2007

Mortgage Massacre 2007 Continues

Get a clue. Home buyers will NOT BE ABLE TO GET MORTGAGES....without 10-20% down, and a real income. Duh. Hmmmmm, sounds like the tech bubble days when suddenly everyone wanted real revenues to validate high prices on tech stocks. Duh, again. PS - it's 7 years later and the NASDQ still hasn't returned to it's highs.

Here's one of our favorite quotes of the day: "Nearly overnight, mortgage company execs saw their personal wealth evaporate. Some will find it hard to adapt to a less lavish lifestyle. " Awwwww.

From Business Week: In February, Michael Strauss, founder and chief executive officer of American Home Mortgage (AHMI.Q), went to bed, safe in the knowledge that his 4.5 million shares in the company were worth $160 million. Six months later, pretty much all of that wealth has vanished. Fears over subprime mortgages led to a credit crunch, squeezing subprime specialist American Home to the point that it filed for bankruptcy Aug. 6."

And this: Accredited Home Lenders Shuts Down Much of Its Business Amid Mortgage Turmoil

SAN DIEGO (AP) -- Accredited Home Lenders Holding Co. plans to shut down most of its business to survive the troubles in the home lending industry, the company said Wednesday.

Accredited Home Lenders said it will cut its work force to 1,000 people -- from 2,600 at the end of June -- and close 65 branches. The company will immediately stop accepting applications for home loans in the U.S., though it will honor the loans it has already committed to finance.