"Forget what you are hearing about stiffer mortgage lending requirements. It’s not true. Real estate expert Fabian Calvo says, “If you can fog up a mirror or you have a pulse, they will give you a home loan. That’s what they have done with the car loans, and that’s what they are doing with housing loans.” The so-called new rules do not have any down payment credit score requirement. Zero percent down loans are going to make a very big comeback. According to Calvo, “After the mid-term election, you’re going to see no-money-down loans just really roar back. It’s all part of the pump and dump I’ve been telling you about for well over a year.” So, are the housing market problems behind us? Calvo, whose company buys and sells $100 million in distressed real estate debt annually, says, “Bottom line is we are still in a situation where half of every mortgaged home in America is completely underwater, and the Fed is going to have to print money for a very long time before those values return. It’s just a matter of fact.” Calvo goes on to say, “Now, worst of all, they are beginning to securitize so they can bring in even more capital. A third of all real estate in America is rental properties. You are going to have Wall Street being the biggest landlord in America. It’s subprime 2.0.”
at http://usawatchdog.com/half-of-every-mortgaged-home-in-america-still-completely-underwater-fabian-calvo/
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