[gunnut]

You are righter than you know. As a 30 year veteran of the mortgage industry both underwriting and as a mortgage broker I can tell you that these cycles are never ending. When rates go up and business slows down the first thing that happens is they come around and tell the underwriters to loosen up. Then the no doc loans come back and the 97% and 100% loan programs. As 30 year rates rise the ARM’s get hot again. Less than perfect credit programs come back. The one and only thing to remember is that lenders are in business to lend money. If they can’t lend money they go broke.

The problem is not with lenders making business decisions to make money. The problem is with government backing these loans.

[Georgia Girl 2]

I agree. All lending should be private. No more FHA, VA, FNMA etc. Capitalism works.

What I stated in my previous post is what the reality is now and has been for over 30 years.