Comments on: Will the Second Mortgage Crisis Directly Affect You? http://www.subprimeblogger.com/2009/02/06/will-the-second-mortgage-crisis-directly-affect-you/ Your Mortgage News Source Thu, 18 Mar 2010 03:00:23 -0700 http://wordpress.org/?v=2.8.5 hourly 1 By: Subprime Blogger » Mortgage Rate Predictions - Pimco’s Bill Gross Says 4.5% http://www.subprimeblogger.com/2009/02/06/will-the-second-mortgage-crisis-directly-affect-you/comment-page-1/#comment-1784 Subprime Blogger » Mortgage Rate Predictions - Pimco’s Bill Gross Says 4.5% Sat, 14 Feb 2009 15:37:27 +0000 http://www.subprimeblogger.com/?p=1404#comment-1784 [...] Will the Second Mortgage Crisis Directly Affect You? [...] [...] Will the Second Mortgage Crisis Directly Affect You? [...]

]]> By: king http://www.subprimeblogger.com/2009/02/06/will-the-second-mortgage-crisis-directly-affect-you/comment-page-1/#comment-1695 king Mon, 09 Feb 2009 07:49:57 +0000 http://www.subprimeblogger.com/?p=1404#comment-1695 1000000000000? This is a staggering number of I hope not to have a second financial crisis Thanks! 1000000000000? This is a staggering number of
I hope not to have a second financial crisis
Thanks!

]]> By: king http://www.subprimeblogger.com/2009/02/06/will-the-second-mortgage-crisis-directly-affect-you/comment-page-1/#comment-1680 king Sun, 08 Feb 2009 09:09:52 +0000 http://www.subprimeblogger.com/?p=1404#comment-1680 Very good article Thanks! Very good article
Thanks!

]]> By: LJ http://www.subprimeblogger.com/2009/02/06/will-the-second-mortgage-crisis-directly-affect-you/comment-page-1/#comment-1664 LJ Sat, 07 Feb 2009 23:39:07 +0000 http://www.subprimeblogger.com/?p=1404#comment-1664 People had no business taking on a mortgage they could not afford. Banks had no business lending them the money. The Feds ( the Dems and Barney Frank and company) who MANDATED the banks do so are culpable for this mess. I see next to nothing about this truth in the papers. Attempting to bail out all these individuals and institutions will bankrupt the country. They MUST be allowed to fail, and let the business cycle turn things around. This will NOT happen instantly, it will take a few years. If you believe that Obama can do it instantly, I have a bridge in Brooklyn to sell you! People had no business taking on a mortgage they could not afford. Banks had no business lending them the money. The Feds ( the Dems and Barney Frank and company) who MANDATED the banks do so are culpable for this mess. I see next to nothing about this truth in the papers. Attempting to bail out all these individuals and institutions will bankrupt the country. They MUST be allowed to fail, and let the business cycle turn things around. This will NOT happen instantly, it will take a few years. If you believe that Obama can do it instantly, I have a bridge in Brooklyn to sell you!

]]> By: silverfox http://www.subprimeblogger.com/2009/02/06/will-the-second-mortgage-crisis-directly-affect-you/comment-page-1/#comment-1660 silverfox Sat, 07 Feb 2009 22:02:27 +0000 http://www.subprimeblogger.com/?p=1404#comment-1660 It is easy to get the impression that no one really knows the full extent of the financial disaster. Every media comment or political response seems to acknowledge the damage that is now obvious to everyone, but no one is putting forward a detailed understanding of the entire scope of the crisis andwhat is yet to come within the next several months or even years. Last week the Republican Senate held hearings on the bank crisis, and the three witnesses responding to questioning all agreed that the banks still needed between $1.2 and $2 trillion dollars more? And now this warning of more mortgages collapsing? Were does it end? It is easy to get the impression that no one really knows the full extent of the financial disaster. Every media comment or political response seems to acknowledge the damage that is now obvious to everyone, but no one is putting forward a detailed understanding of the entire scope of the crisis andwhat is yet to come within the next several months or even years.
Last week the Republican Senate held hearings on the bank crisis, and the three witnesses responding to questioning all agreed that the banks still needed between $1.2 and $2 trillion dollars more? And now this warning of more mortgages collapsing? Were does it end?

]]> By: Prof. Samuel D. Bornstein http://www.subprimeblogger.com/2009/02/06/will-the-second-mortgage-crisis-directly-affect-you/comment-page-1/#comment-1657 Prof. Samuel D. Bornstein Sat, 07 Feb 2009 17:43:32 +0000 http://www.subprimeblogger.com/?p=1404#comment-1657 RE: Small Business, The Housing Market, Foreclosures, and Job Loss: It is a tragedy when an individual borrower defaults on the mortgage and loses his/her home. The tragedy is magnified when the borrower is a small business owner, employing from 1 to 10 employees. The loss of jobs related to mortgage defaults and the resulting business failures will further weaken our economy and prolong the recession. On December 14, 2008, CBS’s “60 Minutes” had a segment on the 2nd Wave of Foreclosures. CBS indicated that experts were expecting another wave of mortgage defaults on ALT-A and Option ARMs mortgages which will dwarf the Subprime Mortgage Crisis. CBS MISSED A VERY IMPORTANT FACT! Many fail to realize that there are millions of self-employed smaller businesses that are holding these “toxic” mortgages that are going to reset in 2009 through 2012. These borrowers are Prime and Near-Prime borrowers who hold ALT-A, Option ARMs, Interest-Only mortgages. There are $1 Trillion ALT-As, and $500-600 Billion Option ARMs. So, here we have a major problem… Not only will these small business owners lose their homes, but there will be the resulting JOB LOSSES on their business failure. Although President Obama is stressing the need to create 3 million new jobs, we must understand that “JOB RETENTION IS AS IMPORTANT AS JOB CREATION”. I authored a survey which was conducted by the National Association for the Self-Employed (NASE) to its national membership. The NASE survey is at http://advocacy.nase.org/research.asp See the NASE News for the Survey on Toxic Mortgages. Please read my Commentary. According to this survey, it is estimated that 3,709,800 small business owners hold Alt-A and other “toxic” mortgages. Of this number, 3 million are “very worried” about their ability to make the monthly payment due at “reset” , and 1,279,800 are already delinquent as they have missed one to three or more monthly mortgage payments at mid-November, before the expected “Resets” that are scheduled to begin in 4th Quarter 2008 through 2012. The solution lies in the hands of Congress as they meet in January to structure an Economic Stimulus package. Congress should take note of this survey and be “proactive” in addressing the situation, rather than “reactive” as the case has been in the Subprime Mortgage Crisis. We can’t afford another shock to our economic system at this time. This 2nd Wave of Foreclosures which will be caused by the ALT-A and Option ARMs will not only result in Foreclosures, but also Job Loss. Thank you, Samuel D. Bornstein Professor of Accounting & Taxation Kean University, School of Business, Union, NJ Tel: (732) 493 - 4799 Email: bornsteinsong@aol.com RE: Small Business, The Housing Market, Foreclosures, and Job Loss:
It is a tragedy when an individual borrower defaults on the mortgage and loses his/her home. The tragedy is magnified when the borrower is a small business owner, employing from 1 to 10 employees. The loss of jobs related to mortgage defaults and the resulting business failures will further weaken our economy and prolong the recession.

On December 14, 2008, CBS’s “60 Minutes” had a segment on the 2nd Wave of Foreclosures. CBS indicated that experts were expecting another wave of mortgage defaults on ALT-A and Option ARMs mortgages which will dwarf the Subprime Mortgage Crisis. CBS MISSED A VERY IMPORTANT FACT!
Many fail to realize that there are millions of self-employed smaller businesses that are holding these “toxic” mortgages that are going to reset in 2009 through 2012. These borrowers are Prime and Near-Prime borrowers who hold ALT-A, Option ARMs, Interest-Only mortgages. There are $1 Trillion ALT-As, and $500-600 Billion Option ARMs.
So, here we have a major problem… Not only will these small business owners lose their homes, but there will be the resulting JOB LOSSES on their business failure. Although President Obama is stressing the need to create 3 million new jobs, we must understand that “JOB RETENTION IS AS IMPORTANT AS JOB CREATION”.
I authored a survey which was conducted by the National Association for the Self-Employed (NASE) to its national membership. The NASE survey is at
http://advocacy.nase.org/research.asp
See the NASE News for the Survey on Toxic Mortgages. Please read my Commentary.
According to this survey, it is estimated that 3,709,800 small business owners hold Alt-A and other “toxic” mortgages. Of this number, 3 million are “very worried” about their ability to make the monthly payment due at “reset” , and 1,279,800 are already delinquent as they have missed one to three or more monthly mortgage payments at mid-November, before the expected “Resets” that are scheduled to begin in 4th Quarter 2008 through 2012.
The solution lies in the hands of Congress as they meet in January to structure an Economic Stimulus package. Congress should take note of this survey and be “proactive” in addressing the situation, rather than “reactive” as the case has been in the Subprime Mortgage Crisis.
We can’t afford another shock to our economic system at this time. This 2nd Wave of Foreclosures which will be caused by the ALT-A and Option ARMs will not only result in Foreclosures, but also Job Loss.
Thank you,
Samuel D. Bornstein
Professor of Accounting & Taxation
Kean University, School of Business, Union, NJ
Tel: (732) 493 – 4799
Email: bornsteinsong@aol.com

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