In my diary on November 25, 2007 I made this note: Two million homeowners now hold subprime mortages totaling $600 Billion. The adjustible rate increase will be due in eight months.
A subprime loan on a $400,000 home originally was $2200 with a teaser rate of 6.5%, when the adjustible rate kicks in that amount will change to $4000! July of 2008 when those payments came into effect is when our economy started to rapidly decay.
I knew then that sales of Rooms and Covers would be very difficult, I realized my sales were hurting the guys who really needed the money so I resigned on Monday July 21, 2008 after eight wonderful years and my final job. I told the crew that if Republicans won the election This recession would last a couple of years and if not at least six years. If we don't get a change in November of 2010 it will last much longer!
hey Marv - what was Rooms & Covers? I agree with you about the Adjustable Rate mortgages being a trigger - also the derivatives that got passed around and around, and into a dozen dozen traunches at different brokerages til nobody knew who held the various mortgages. Thankfully the brokerage firm I worked for for so many years (over 20) never got involved in those. They were very conservative. I left there in early 2004, but I've kept track of what they are up to and have friends there.
ReplyDeleteSun rooms and patio covers. Went from one and one half million to twenty million then back to one and one half when the recession hit.
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