I’ve avoided the entire “Chicken Little” the sky is falling on the housing market to pump up my blog stats. But, I’m sooooo tired of the constant whining about the mortgage crisis and especially annoyed at a naive article from Matrix Development (Legend Homes) CEO, David Oringdulph on Sunday, October 21st that Ryan Frank wrote in The Oregonian. They ran a “5 Questions” snippet interview where Mr. Oringdulph RANTS about the media as the main culprit behind the housing recession.
“There’s really nothing wrong with the housing market from the standpoint of economics. The loan rate is low. The income level is doing about 11/2 percent this year as far as income increase. We also got a population growth of close to 2 percent a year. If you look at all the numbers and you look at how everything else is doing, why isn’t housing doing well?” He goes on to say: “Why? The media. We blame it a lot on the media. Where else would someone get the idea that there’s something wrong with our housing market when it’s not?”
So, if we are to believe Mr. Oringdulph the housing recession doesn’t exist and is only a perception of the media making a big deal out of nothing. Well sir, not to be disrespectful, but you are full of hot air!
Mortgage companies were greedy and made loans to people who shouldn’t have qualified. It’s commonly known that in Portland, any real estate broker you chat with had a saying — if you could “fog a mirror” then you could get a loan. No money down, 110% financing, low-single digit ARM’s, — no problem — and any other “creative” financing method you want — now it’s no shirt, no shoes. This flies in the face of common sense sir and if something is too good to be true then it likely is.
Mr. Oringdulph/Legend Homes wants us to feel sorry for their reduced revenue while they whine about how the market recession isn’t REAL? It’s a fabrication of our over active imagination which the media created and continues to foster. If only the evening news would stop talking about all those foreclosures the market would magically be robust again. What planet did he just beam down from? Good grief! Just today BofA quits wholesale mortgage business laying off 700 jobs and shares of Countrywide plunge to $13.07 which is the lowest in more than 4 years. Oh yeah, it’s just our imagination Mr. Oringdulph!!
Many of us have gone without the double whip carmel machiotta so we can make mortgage payments and have made hard financial decisions to purchase a home with out being enabled by “no money down” predatory promotions from the “mega” builders and/or their cooperative lending divisions.
Mr. Oringdulph needs to step down off his Lake “O” perch and talk to the people in foreclosure about how this is the media’s fault and is only imagination.
I’m annoyed at his attempt to dismiss the whole crisis as psychological trickle-down economics. He obfuscated facts after trends were well established. And, I for one don’t want to subsidize financial mistakes of others or the lending institutions that recklessly loaned money to people who clearly were at risk. Hey David, here’s an idea…lets have the mortgage company or builder reward the home owners that have purchased homes responsibly and continue to make their payments. Now there’s an idea!
Mr. Oringdulph statements were offensive to those of us who work hard to be responsible and his PR team was very foolish to allow a public peek into his philosophical views and executive prowness! The Oregonian (that’s you Mr. Ryan Frank) should have been more assertive in challenging his thinking vs. providing him a soap box to evangelize his incorrect perspective. No, I don’t work for or in the media, but I know “spin” when I see it.
The housing market will run its due course with out any artificial stimulus that he or others may want to wish up on it!
If you feel the same as I do then email Ryan at: firstname.lastname@example.org and tell him what you think. Maybe the power of the blog-O-sphere will force a follow up article with some balance.