Originally Posted by host

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<b>Three of four of the stocks of these subprime lenders dropped dramatically today. They lent to subprime mortgage applicants across the US, there will be no replacements for these national landers, borrowing qualifications will be tightened, and there will be significantly fewer first time buyers entering the home market. In the now ending, "bubble era:, anyone who wanted to own a home could simply fill out paperwork with little or no verification of it's accuracy, and borrow the entire purchase price and even the closing costs. Only interest had to be paid on these mortgage loans....at under 5 percent annually in many cases, for the first few years. Millions of folks who are obligated to make monthly payments on these mortgages, won't when they find themselves owing ten or twenty percent more than they borrowed, because of real estate price declines, and/or they won't qualify when their short term, subprime "buyer's mortgage", must be refinanced with a new mortgage at a new, lower home appraisal value, and with terms that include a higher interest rate and added principle payments.

Thus it is not difficult to anticipate that there is little foundation to support ace's "no problem here.....", opinion.</b>