Who can forget this scene from The Big Short when Jamie Shipley says “It’s starting.” The first minute of this video will provide some flashbacks to those who followed me on my radio show and when New Century Financial went tango uniform back in the day.
To all who had a flashback, I thank you for returning to where we started some 15 years later.
In the news from September 1, 2022 that I did not catch until today:
Excerpt from the National Mortgage Professional website:
Mortgage lenders are the latest to abruptly shut down.
As the housing market continues to contract thanks to rising mortgage rates and shrinking affordability, the Thursday ahead of the long holiday weekend became a day of doom — two more mortgage lenders appear to have shut their doors, while a third lowered the boom on a significant number of its staff.
Both Atlanta-based direct-to-consumer lender AmeriSave Wholesale Mortgage Solutions (AWMS) and Phoenix-based lender Suburban Mortgage Inc. abruptly shut down, while Homepoint appears to have laid off hundreds of its employees.
AWMS announced its closing on Facebook. In a message posted Thursday to a mortgage loan officer group, the company stated it is “closing it doors effective immediately.”
Company officials did not respond to requests for comment.
At least the CFO’s didn’t go Bed Bath and Splat on their investors (too soon?).
With Bank of America’s recent announcement of the return of ZERO down mortgages to “minorities” it is obvious that the banksters once again, just like 2007, are looking for the last suckers to sign up for crap paper to dump on the taxpayers so they can unload the inventory of housing which is growing weekly.
The good thing is the Bubblevisions and local teevee stations will still have their experts on that say “housing always goes up” even when it can not even come close to keeping pace with inflation.
The Great Financial Crisis will be peanuts compared to this implosion in housing as it will be the retirees who bear the greatest burden.
All because they believed housing always goes up and refinancing to take profits is always a win-win situation. That or using it for an AirBnB party house is a no lose proposition.
Until it is and the homeowner can no longer service the note because they decide eating is more important.