Joe Waltuch, the new head of the Nevada Mortgage Lending Division, defended the subprime mortgage industry and downplayed the foreclosure crisis in his first interview.
Although he acknowledged a problem, he said, "You're missing the positive side of all this."
Subprime loans - high interest loans given to people with spotty credit histories - represent just 15 percent of the market, he said. Only 1.5 percent of all mortgages, he said, will end up in foreclosure: "Everybody seems to think we need to protect the 1,500 at the expense of the 98,500 good loans."
"We put a lot of people in homes who wouldn't otherwise be in homes," he said.
The comments were counterintuitive, considering recent grim data: Foreclosures nationwide hit a record high in the second quarter, and Nevada is one of four states - along with Florida, California and Arizona - driving the national numbers, according to a survey released last week by the Mortgage Bankers Association
How ridiculous can you get. Read it all.
Posted September 9, 2007 at 3:10 pm
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