James Hagerty is cautiously optimistic about the new, standardized good faith estimate form which has been mandated by the Department of Housing and Urban Development. If you get one of these forms from three or four different lenders, and they all fill out this table, then being able to choose the best mortgage for you is going to be much easier than it has been until now.
Yesterday, I asked Megan McArdle how much of one’s life’s savings should be given to the bank before they take one’s house. She answers, gratifyingly, that in the particular case I was writing about, “obviously he should have walked away immediately.” Good, we’re in agreement on that. If you’re going to lose your house, best just to lose your house, rather than to lose your house and your savings.
I’m noticing a theme chez John Hempton: a few weeks ago he was writing about the dangers of shorting frauds, and now he’s writing about the dangers of shorting an industry in terminal decline. At least he’s not doing this kind of thing at book length: David Einhorn spent 380 pages detailing the dangers of shorting Allied Capital.