Originally Posted by haha
I put in the zip south of mine. It varies from expensive lakeside homes to beater bad dope dens closer to town.
Rated "low risk" anyway.
I believe these ratings must be backward looking. If prices start coming off, more of these areas likely will be higher risk.
Yeah, as I mentioned, WaMu is a bit ahead of the curve. They've already downgraded all of Seattle by one notch. But then they may be a bit more sensitive to risk taking than other lenders.
We're seeing how a credit crunch gets implemented. Money is cheap, but lenders are getting tighter. Fannie and Freddie are making their guidelines tougher, and all lenders will have to follow suit.
What's interesting is that the government is asking Fannie to increase their conforming loan limit just as Fannie is whining about their "prime" portfolio taking an "unexpected" credit default hit.