“The simultaneous mixing of these mortgage financing components formed the DNA of a foreclosure. The only question now would be who is going to pay?? A good guess would be those who the industry exported the loans to” says Faust.
Charlotte, N.C. (PRWEB) March 29, 2012
The chemical compound HCN is a combination of hydrogen, carbon, and ammonia or what is commonly known as Cyanide. The individual components of HCN are harmless, however when structured together, the colorless, odorless substance can be lethal. "And so it was with the U.S. secondary mortgage market which rapidly filled its coffers by selling loans under an inconspicuously toxic set of underwriting criteria. Though sweet to the palate for many, this profitable, odorless cocktail would prove deadly and wreak havoc on millions of unwitting participants worldwide" says Restore Mortgages Founder Duane Faust
According to Wikipedia, the components of America’s mortgage and foreclosure crisis include the following: The percentage of subprime loans rising from 8% in 2003 to 20% in 2006. The debt to disposable income ratio increasing from, 77% in 1990 to 127% in 2007. The criteria of these high risk loans dramatically eased so as to offer stated income, no doc, 100% financing, interest only, and a host of other unconventional loans. Adding insult to injury, 90% of all subprime loans were adjustable! Therefore, when interest rates began to rise and housing prices fell, defaults were plentiful and it became evident, neither the house nor the borrower were qualified for the loan to begin with. “The simultaneous mixing of these mortgage financing components formed the DNA of a foreclosure! The question now is -- whose going to pay for this mess? A good guess would be those who the industry exported the loans to – the international investors,” says Faust. The numbers vary from country to country, however the International Monetary Fund estimates the amount of global mortgage toxic assets to be 4T.
To date, many housing initiatives have been tested, however all have underperformed. Therefore, Restore Mortgages implores The White House and Federal Reserve to implement its patent – pending hybrid product, Treasury Mortgage Securities (Timmies), to upgrade the condition of America’s economy from critical to stable, by way of affordable housing and job creation. The National Association of Realtors says, “for every two loans closed, one job is created.” Furthermore, MSN Real Estate says, “housing is the key,” and they credit a strong housing market for positive effects on a wide range of issues, from crime and transportation to schools and employment.
‘Zero percent mortgages for all homeowners’ is the prescription needed to cure the U.S. housing market and will also be the antidote for those countries infected by America’s virus.