We are so different again.

Once again it is different here.

That is correct. In the USofA they are called ‘Liar’ Loans we call them ‘low-doc’. However the outcome is much the same when the smelly stuff starts hitting the fan.

Fitch says self-employed borrowers have been hit hard, which has pushed arrears among prime low documentation loans to a record 3.97 per cent – slightly higher than the previous peak of mortgage delinquencies in this segment reached during the peak of the financial crisis in the December quarter of 2008.

This is a category of loans where borrowers meet the usual lending criteria, but are unable to supply sufficient evidence of their regular income, often because they are self-employed or contract workers with fluctuating earnings.

Repossessions at historic highs in Queensland and Western Australia and now prime low doc defaults at the same. We thought we were in the middle of a BOOM here ?

And it has only just begun…


Disclaimer: The content on this blog is the opinion of the author only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation, no matter how much it seems to make sense, to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The author has no position in any company or advertiser reference unless explicitly specified. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult someone who claims to have a qualification before making any investment decisions.

Latest posts by __ADAM__ (see all)

Comments