smoothlid

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    • Mon Apr 21st 23:06 PM | Rating: 0 0
      Commented on:
      The Worst Is Behind Us (unless massive bank failure is considered a bad thing)
      If I had to guess, this won't all come out in the was until, say, right around December/January....af... the general election...that's when you will see large failures & a real meltdown.

      Good luck to the next prez!
      View article »
    • Tue Mar 18th 21:12 PM | Rating: 0 0
      Commented on:
      Homeownership: The Root of All Evil, or the American Dream?
      One more thing to add, Andrew....
      Rates SHOULD be lower right now. When the rest of the market starts BUYING mortgage backled securities instead of net selling them (due to writedowns, leverage, etc...) we WILL get the rate reduction later this year....rates could go as low as 4.5% on a 30 yr loan.

      What needs to happen is Congress should pass the FHA bill, get the new guidelines out there, Fannie should roll back some of the surcharges, & give us a few months of no volatile changes in rates, rules, etc....& then we can work through some of this mess.
      View article »
    • Tue Mar 18th 21:09 PM | Rating: 0 0
      Commented on:
      Homeownership: The Root of All Evil, or the American Dream?
      Andrew, they are not overcharging, it is based on the cost of lending the funds in the first place.

      Do you know what Fannie & Freddie are imposing on us as mortgage lenders to pass along to you as a borrower?
      They have imposed surcharges adding up to 2.75% to the cost of doing a loan. These surcharges are based on FICO socre & LTV, & guess, what??? I got an email today that they are already going to increase them shortly. pretty soon, if you have a 620 or under FICO, and an 80 LTV loan for a cash out debt consolidation refi, I have to charge or absorb somehow 4 % payable to Fannie Mae. on a $250,000 loan, thats $10,000 I have to figure into your deal...that's your equity, being paid to Fannie & Freddie, to shore up the balance sheets there. It kills the avg homeowner/buyer....Thi... is over & above your typical closing costs, & before I make a penny for originating your loan. Know what else??? The PMI companies are clamping down on issuing PMI for all but the most worthy & high scoring borrowers. This is a really bad sign.

      Yes the market got ridiculous issuing loans to idots who had no idea what they were doing & never should have qualified. This needed to end. The loose liar loans needed to be curbed, too. But we are in the midst of some of the absolute worst over-reaching and mind boggling credit problem ever faced.

      Pretty soon, unless you score 700+, and have plenty of equity or down payment, can fully document your income, etc, you will not be able to get a loan to buy or refi.

      This spells further trouble as it shuts out people who need to refi 7 can't, and first time buyers can't buy that discounted home you want to unload. These people need to be able to buy, to trigger other sales.

      hang on, it's getting worse!
      I'm really worried about the near future.
      View article »
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