Would you like a subprime loan at a par rate? Want to buy a house with no money down and roll any down payment into the loan amount? Want to buy a house on the market for $730,000 or under on a 5%, 30-year, no-down-payment plan, even though you have marginal credit and not enough income to actually qualify for that amount loan? Does this sound familiar, like the boom is back? Does it sound too good to be true?

C’mon if inflation rears its ugly head in the future you have the perfect hedge in the real estate you now own, with a 5% loan, who wouldn’t want that? And, if the market keeps dropping further and further into the abyss as it’s likely to, so what, you simply stop making your house payments and live rent-free until they foreclose on you, or, if you’re an investor, rake in the rent for a year, it usually takes about a year for them to foreclose, especially considering it’s a GSA loan we’re talking about here.

Now, remember this is a government-subsidized loan and we (the taxpayers) are the government, in this situation, being as we bailed Fannie out and now she’s already back to her old ways. I mean c’mon … geez, women … you’d think she’d be grateful that we bailed her out so quickly? I mean, just when you think you got her figured out … before the housing boom she had much higher standards … especially for FHA loans; she didn’t just loan to anybody, and you had to have the 3.5% d.p. with full documentation and she only loaned up to $362,000 but now … man she doubled the loan amount, lowered her qualifying standards and here we go, again. The banks tightened up so she loosened up?

Well that’s really nice of her and myself, being a Realtor, I’m thinking about all the houses I can sell but then the arithmetic-slanted portion of my cerebellum, or is it the cerebrum, tells my mortgage broker side that these loans are going to implode just exactly as the last tsunami of them did but wait a minute can’t they just re-package them up and sell them as derivatives? Oh well … yeah … sure they can … and I’m sure they will … oh my Gawd; here we go again …

May our friends respect us, trouble neglect us, angels protect us and heaven accept us.