Companies who constantly peddled the interest only mortgage are now a being revealed as contributing to the mortgage crisis and the rise in foreclosures. Quicken Loans offered their version of the interest only mortgage stressing the “savings” over fully amortized options calling it a “Smart Loan”.

Ha!

Interest Only Mortgage - Are They Smart Loans?

Hardly!

The Housing Economic Recovery Act of 2008 became law today and I am sad to say it will offer no help to consumers, home owners, or foreclosure victims. As with most political solutions to economic events, the new law has more bark than bite.

In an interview on Bloomberg (see video below), Thomas Atteberry of First Pacific Advisors warns against putting too much faith in lawmakers to solve the housing, credit, and foreclosure problems.

Home values are the biggest indicator as to when we can say the foreclosure crisis and mortgage crunch will soon be over. Once home values stabilize lenders, investors, and home owners can all breathe a collective sigh of relief…and that day may soon be here!