Prices on the most expensive houses have yet to reach bottom because there’s limited political support for helping the wealthy, according to Pacific Investment Management Co. “It’s very, very popular to help the median and below in terms of the mortgage market, but the high end, there’s just not a lot of sympathy,” said Scott Simon, Pimco’s mortgage-bond chief. “‘Oh yeah, that guy bought a $2 million house. We should bail him out.’ That’s just not a thought.” …Banks try to find ways to avoid qualifying buyers of higher-end homes for loans and charge “nasty fees” even if the client pays 30 percent upfront, he said.
By Ken Prewitt and Bryan Keogh, Nov. 5, 2009 Bloomberg
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