Are there going to be reprecussions when the mortgage market changes - if interest rates go up, or housing really is in a bubble, and it pops? I think so. A lot of people have signed up for loans that they won't be able to handle. Since internet marketers have started to draw a lot of profit from this market, I wonder what will happen if it starts to go south.
Don't believe it will happen? Here's an article on Motley Fool which has emails from industry types who seem worried:
T.B., the owner of a mortgage-financing company, says: I have to chastise my fellow mortgage professionals for their money hungry nearsightedness. The interest only and option-ARM (pick your payment) loans are going to come back to haunt the majority of those who have chosen to use them.
The mortgage companies and lending institutions that are heavily promoting these loan programs don't care about the borrower (their customer!) all they care about is making a fast buck.
For internet marketers, a mortgage market shake-out or increased regulation will slow down the easy money in the most lucrative online lead market. One thing to watch out for is the inevitable blame game after the shake out, where the government or Eliot Spitzer tries to make people feel better by going after the people who made a ton of money when times were good.