Supporters of the free-market approach to lending boast that the surge in subprime loans helped a record number of Americans buy their own homes in recent years. But the nonprofit Center for Responsible Lending offers a sobering counterpoint.

The center, which tracks abusive lending practices, estimates that a million more people will lose their homes to foreclosure in the coming years than were added during the boom times.

Back to my comments.

The government reaction to mortgage fraud has been late, but not hyperactive. You can’t have thousands of foreclosures/short sales hit the market and expect to understand where the market is at. Supply is being fueled further with a continued lessening of demand due to nonqualified individuals previously receiving mortgages. Not so tough to understand.

If I or the association were trying to simply sell you, why would we even mention anything about the bad side of this market?

During the RE mania that was some other markets Vegas, CA, PHX, etc., I think that caution was completely absent. While a house might always be a sensible PURCHASE, the notion that ANY house is a good INVESTMENT does not necessarily hold. Is a house an investment asset class, or is it a living expense? I say both. Therefore we must separate the cost portion from the speculative portion.

The whole overrun in RE pricing and the mortgage debacle was largely caused by a lack of cautious behavior, driven by a can’t-miss attitude.

In this market, telling someone that they are exhibiting “undue caution” to me sounds like someone who wants to sell me something, more than someone who is advising me.

You may disagree, but I am a non-contigent buyer with cash to put down and no personal debt. I didn’t get that way by “jumping in” willy nilly.

Brian