Michael Burry Quotes

Home purchases that are very highly leveraged or unaffordable subject the borrower and lender to a great deal of risk. Moreover, even in a strong economy, unforeseen life events and risks in local real estate markets make highly leveraged borrowers vulnerable.

Some people, they got housing loans, and I think they're responsible for taking a loan they didn't qualify for?

Indeed, the FHA was born out of the Great Depression, which was also caused in significant part by a foreclosure crisis. Mortgages in the early 1930s were mostly three- to five-year 'bullet' loans, which did not amortize and were due in full at maturity.

The decline in home equity makes it more difficult for struggling homeowners to refinance and reduces the financial incentive of stressed borrowers to remain in their homes.

The Adjustable Rate Mortgage (ARM) is like the neutron bomb. It’s going to kill all the people but leave the house standing

Houses were sold with the idea that the people who bought them would not be able to pay for them..

Under Bill Clinton's HUD Secretary Andrew Cuomo, Community Reinvestment Act regulators gave banks higher ratings for home loans made in 'credit-deprived' areas. Banks were effectively rewarded for throwing out sound underwriting standards and writing loans to those who were at high risk of defaulting.

How about we all stop paying our mortgages! It's a moral hazard.

I had a couple come in with a negative amortization mortgage on a house that costs way too much relative to their income. They're consuming real estate, not investing in it.

Debt, we've learned, is the match that lights the fire of every crisis. Every crisis has its own set of villains - pick your favorite: bankers, regulators, central bankers, politicians, overzealous consumers, credit rating agencies - but all require one similar ingredient to create a true crisis: too much leverage.

More than a quarter of mortgage borrowers are underwater, and 11 percent of all homes are vacant.

The most troubling loan we had was actually to the 'Octomom'. That was a terrible situation, and we worked very, very hard to move her to another home that they could afford.

I look at subprime lending and I see the American dream in action.

Debt is a mistake between lender and borrower, and both should suffer.

In the old days, when you took out a mortgage, it was probably through a local bank or a credit union, and whoever gave you your loan held on to it for life. If you lost your job or got too sick to work and suddenly had trouble making your payments, you could call a human being and work things out.

Private student loans should be avoided at all costs.

Footballers are an easy target. They are offered big lines of credit. Every sport is vulnerable; it's such a big gambling industry, and there are problems with syndicates in other countries.

It is very difficult to predict when a bond crisis could happen.

Making loans accessible to millions of the previously unbankable customers is a noble goal. Getting them hooked to such loans isn't.

I'm short-selling my house. I have more loans than I can sell the house for. The house will not go into foreclosure. It will be a short sale. I can't afford the house as I once could.

I invested all my money in debt.

What the banking system needs is creditors who monitor risk and cut their exposure when that risk is too high. Unlike regulators, creditors and counterparties know the details of a deal and have their own money on the line.

Credit cards are like snakes: Handle 'em long enough, and one will bite you.

If nobody can sell mortgage-backed securities based on trillions of dollars of unpayable instruments, there's a lot less risk in the overall system.

No nation can miss interest or principle payments without some negative impact on its credit standing.