Ex-mortgage broker believes the stock market is in for more troubling news regardless of Fed’s rate cut. Ally says, "Fed needs to cut the Fed rate down to at least 3.0% for the market to get any better and those who have adjustable rates and fell for the option arm start rate of 1.25% are in for a rude awakening. Lenders and brokers are qualifying millions of Americans for Option ARM program with start rates as low as 1.25%. Usually someone who can’t afford and won’t be able to afford a $400,000 home in the next 6 months will qualify for that program and foreclosure is just a matter of time. As long as people are qualifying for these programs we will have bad news. The Federal Reserve may cut the rates down but when it comes time to increase them again we will have even more problems." http://www.rmdirect.net/
