Sunday, February 7, 2016

"Push Button, Get Mortgage"

And it's 2006 all over again.


jim said...

No actually it is nothing at all like 2006.

I suspect that if the Quicken app had been around in 2006 it would have helped prevent asome of the stupid mortgages by simply exposing their stupidity.

In 2005 and 2006 Private investors financed more than $2.5 trillion in US residential mortgages. For a lot of those mortgages, the borrowers and lenders were counting on the profits from appreciation of the property to supply the income to payback the loan and without that income from appreciation those mortgages were not viable.

Today the amount of home mortgages financed by private investors is close to zero and so is the number of borrowers counting on the appreciation of the collateral to supply the income to payback a mortgage.

The quicken app is not going to convert the reality of today into the reality of 2006. If anything it will help prevent that delusional thinking of 2006 from returning.

The Arthurian said...

Push button, get mortgage.