Great, "innovative" mortgage financing is returning!n (repost) Anyone remember these "innovations" leading into the 2007/2008 financial crisis ... * NINJA Loans and "Liar Loans" ("No Income, No Job, Approved,") * Adjustable-Rate Mortgages (ARMs) * Interest-Only and Negative Amortization Loans * 100% and “Over 100%” Loan-to-Value Loans * Alt-A and Option ARM Loans --- What the public needs is LOWER home prices. To accomplish that, you need ALL home prices to go down, meaning current homeowners have to take a (unrealized) loss. Mortgage innovation is an acknowledgment that home prices are too high and unaffordable for the average first-time homebuyer (chart). Instead of lowering prices, we stand on our heads to find ways for non-homebuyers to "afford" current prices through innovations in mortgage finance. How did that work out?(Jim Bianco)