You folks want to throw up???

[galileoreloaded]

http://www.google.com/hostednews/afp/article/ALeqM5iYHIKusEsznUi30DtAwrV0m88LFw

Subprime home mortgages back to pre-crisis levels: Fed

"The subprime market had shrunk to virtually zero percent in the first quarter of 2008 after triggering the housing collapse following defaults by borrowers.

Subprime borrowers, usually lacking good credit histories, find it nearly impossible to obtain mortgage loans from mainstream lenders.

Since the January-March period last year, "increased FHA (Federal Housing Administration) lending... has revived this segment of the market," Krainer said.

"After plummeting in early 2008, the share of borrowers with FICO credit scores lower than 660 has returned to just higher than 20 percent, the same share as when subprime securitization peaked in 2006," he said."

Gets better......

http://www.bloomberg.com/apps/news?pid=20601087&sid=arqAG5n7wEVw&pos=3

Nov. 18 (Bloomberg) -- The Federal Housing Administration, the agency that insures home purchases made with down payments as small as 3.5 percent, may create another lending crisis, Toll Brothers Inc. Chief Executive Officer Robert Toll said.

“Yesterday’s subprime is today’s FHA,” Toll said today at a New York conference for builders sponsored by UBS AG. “It’s a definite train wreck and the flag will go up in the next couple of months: Bail us out. Give us more money.” Toll Brothers is largest U.S. luxury homes builder.

The FHA’s insurance reserve ratio fell to 0.53 percent, the lowest level in history, and more steps are needed to shore up the agency that guarantees one of every five single family loans, Housing and Urban Development Secretary Shaun Donovan said Nov. 12.




Good god.

[T Wolf]

1. The bandits were bailed out by "our" leaders and are back to their old ways. Talk about

short attention spans!

These financial criminals are the kind who would hit on someone at their wife's funeral. Total scum, with no conscience.

Think we'll learn?

[optimator]

2. they will plunder until physically stopped

and who will stop them?
Dems? no
Repubs? no
the public? no

[sandnsea]

3. They adjusted everyone's scores downward

What used to be a 660 is now below 600. A current 660 would have been 700+ a few years ago. If they're starting to give 660 loans, that's a good thing because 6 months ago people with excellent credit couldn't get a loan for anything.

[EnlightenedOne]

4. I don't believe

the real problem was with the borrowers - it was the credit default swaps and the fraudulent loan practices that were the real problem.

[galileoreloaded]

6. I agree re: the borrowers. Oh, and I was thinking about what you said about default

swaps and came up with this pearl:


(Go to OTC-I, pg 5, top of page)
http://www.zerohedge.com/sites/default/files/otc_hy0911.pdf

The Bank of International Settlements says that over the counter derivatives contracts are back up 10% in the last six months. Read it for yourself.

[Recursion]

5. That's because everybody's credit is fucked now

It doesn't mean they've gone on an orgy of subprime lending. But the guy who borrowed 5 years ago with a FICO of 700 still has that mortgage now that his FICO is 580.