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The mortgage industry has adopted the business model of the Rent-to-Own stores that feed on the poor.
They sell an overpriced but highly desirable product with nothing down and "affordable" payments that cannot sustain a long term commitment to buy. This whole thing is gonna get ugly. As the housing market get softer, I expect we'll see more and more folks walk away from "interest only" and "negative am" loans. The default rates will be extraordinary.
As for posting earnings that should remain on the books as recievables, it is at least intellectually dishonest unless they have calculated in an expected default rate.
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My work here is nearly finished.
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