Saturday, July 12, 2014

Mortgage Bankers: ‘Unsustainable Housing Bubble Is Inflating’

by Wolf Richter
Wolf Street


Observations about a housing bubble being once again inflated in many areas in the US have transitioned from bloggers throwing around unpleasant party-pooper data to mortgage bankers.
In a survey conducted by the Professional Risk Managers’ International Association for FICO – the same company after which the infamous and ubiquitous FICO score is named – found that industry insiders directly involved in mortgage lending are now on edge. They’re seeing from the close-up viewpoint what we have seen for over a year, and what the Fed still refuses to see – while it categorically declares that it cannot be seen by anyone in the first place.
So 56% of the mortgage banker respondents fretted that “an unsustainable real estate bubble is inflating.”
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