I once heard a blogging wiz say “a day in blogging is like a month in the real world”. So, since I decided to turn things off for 10 days and focus on family, it feels like I’ve been gone 10 months (almost a year). This is not to say that other bloggers were inactive though. In fact there are two must read mortgage related blog posts from the holidays which I read over the holidays and want to share with you:
1. Dru Bloomfield (At Home in Scottsdale) gives a nice overview of the upcoming changes to residential mortgage financing. She covers the whole gambit from increased fees to FHA modernization.
2. Calculated Risk estimates that when all is said and done there will almost be $1 trillion in loses stemming from the mortgage industry. This is a staggering number. Their reasoning is quite simple:
The $1 trillion number is a simple calculation: If prices fall 30%, then approximately 20 million U.S. homeowners will be upside down on their mortgages. If half of these homeowners walk away from their homes, with an average 50% loss to lenders and investors, that is $1 trillion in losses (the average mortgage is just over $200K).