prepayment speed risk: Ginnie Mae MBS seen vulnerable to FHA loan losses – By Julie Haviv – Reuters
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California: The Real Estate Recovery of … 2030 – By Paul Kedrosky – When will collapsed U.S. real estate prices regain their prior peaks? Moody’s has out a bleakly amusing new figure showing that California (and Arizona and Florida) is looking at the early 2030s – Infectuous Greed Blog

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A Reckoning on Option ARMs – By BOB TEDESCHI – … Joseph Mason, a banking professor at Louisiana State University, who has studied these loans, …  “The only ones left in the product now are those who couldn’t afford something else when they got the loan,” Mr. Mason added. “Now all they can likely afford is the minimum payment, so they’re just buying time in a dwelling until their reset date.” … – The New York Times

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Homeowners who ’strategically default’ on loans a growing problem – By Kenneth R. Harney – A study shows that people who abruptly and intentionally abandon their mortgages often have high credit scores, in stark contrast with most financially distressed borrowers. – hat tip Palmer – L.A. Land: The Times real estate blog