Commentary: Subprime Thinking from Wednesday morningre-posted with permission from the author When I started this blog in January 2005, one of my goals was to alert people to the housing bubble, and to discuss the possible consequences of the then approaching housing bust. Residential investment has historical been one of the best leading indicators for […]

When you need to understand something, look to the comics for the best explainations. And a this sketch on the subprime problem.

I had an informal discussion with a manager in an MBS IT area last month. Just a general conversation about the field and the data people check.  He mentioned FICO scores and I noted that I’m not fond of using them to evaluate a mortgage, especially for first-time homebuyers. Part of this is simple: it’s […]