Subprime ARM Delinquencies in WA State

[jillayne]

[Jay]

[redmondjp]

[jillayne]

[Denny Retrograde]

Awesome link, Jillayne. A treat to see how our DFI is looking at this, especially how it takes pains to explain it couldn't have done anything, ever, at all, to forestall this or, y'know, warn anyone before now. The "tangled web" graphic on regulation is hilarious.

And the pinkest elephant in the living room! No mention that, um, only an actual housing downturn would cause these tinderbox mortgages to combust, or that the velocity of events suggests a classic speculative bubble on the wane. It circles around it, yeah, but never ever mentions it - like at Thanksgiving when we pretend Pappy's not too drunk to carve.
Favorite lines:
- "The general relaxation of credit standards over the last 25 years should not be blamed for the present mortgage situation." [emphasis his. The "25 years" meme nicely points the shaming finger away from anyone not at their job 25 years ago - loan "officers," elected and appointed officials, Fed governors, congress, Wall Street traders, journalists, realtors... it wasn't me!)
- "But continued relaxation without consistent, adequate safeguards is partially to blame." [emphasis added. "Consistent, adequate"? How 'bout "any"?]

Jillayne or anyone attend this speech? Do you recall whether Jarvis spoke aloud the words "speculative," "bubble," "deflating," "for years to come," or "plotz"?

[jillayne]

Hi Denny Retrograde,

I did not hear the speech so I can't vouch for anything that might have been said regarding a bubble.

Realize that the author was speaking in the role of state regulator to a roomful of mortgage brokers. Their continued existence will continue to fund the salaries of his government staff including his salary. Polite restraint was most likely in order. His job was to show the audience what his division is doing to help consumers AND help the people in the audience.

The tangled web graphic is on slide number 28 and shows all the number state and federal laws governing mortgage lending, the state and federal agencies, and then all the possible types of business entities (bank, broker, and so forth.)

It sure makes me think that:

1) we absolutely do not need any more laws

2) we absolutely ought to expect that more laws will be passed.

[sniglet]

[rose-colored-coolaid]