« Small Banks Looking Smaller | Fedspeak, July 1, 2009 »
The mortgage market turns a corner - Wachovia retires Pick-a-Pay
Wachovia retires Pick-a-Pay: “While this has been covered extensively elsewhere with various regard I think we’ve reached a very important part in the mortgage market correction. The return of sensible underwriting is finally getting back to basics. The elimination of exotic mortgages like the pick-a-pay is exactly what the housing and mortgage markets need to return to normalcy and sustainable, responsible growth.”
While I agree with my friend Morgan about the return to sensible underwriting being an important part of the market correction, I think it’s sort of like an auto accident victim who’s broken wrist got repaired in surgery. It’s a good thing, but it doesn’t do much for the punctured lung, the two broken legs and the closed head injury the patient also had.
A step in the right direction going forward? Absolutely. But we’re a long ways from THE corner, in my opinion.
Tom