matty2tan

'Seasonality' Not a Factor in June Case-Shiller Improvement

It's a good point! As someone who has sold new homes for the last 15 years I agree completly with his statement that the "seasonality" is actually January/June rather than April/June. If you're going to base your reasoning on a "seasonality" factor, I agree with Tom that it should be an accurate one!

'Seasonality' Not a Factor in June Case-Shiller Improvement

It's a good point! As someone who has sold new homes for the last 15 years I agree completly with his statement that the "seasonality" is actually January/June rather than April/June. If you're going to base your reasoning on a "seasonality" factor, I agree with Tom that it should be an accurate one!

Is the FHA Effectively Condoning Mortgage Fraud?

No, I am neither. And the price can always be negotiated-that is, down OR up. And it is a gift, according to FHA definitions, regardless of how it got there. They don't differentiate between a higher sales price, or a negotiated sales price and the source of the gift. Their definitions, not mine. And if they allow these loans with full knowledge of gifted funds and an appraisal to match (and how many inflated appraisals are getting by these days?) -who are you to say it's fraud-a congressman?

Seek first to understand, then be understood: Stephen Covey

Is the FHA Effectively Condoning Mortgage Fraud?

Jane, I agree wholeheartedly with your comments about renting being a viable option instead of buying, and the effects of bad loans, however, Michael led off his article with a statement that makes it seem like D.R.Horton is the only one "getting around the system" (his words, and not exactly neutral) And yes, if you're making a point about who uses the DP assistance program, it's does matter that you disclose all the participants, like private sellers, and builders, and even public agencies. Highlighing one company out of the dozens, maybe hundreds of entities using DP assistance is not exactly fair. If builders are the largest users of this program, why not say that? Also, a gift DP is always a gift, and never has to be paid back, even if it is rolled into the price-no getting around that. Banning DP assistance would mean the family "gift" rules go out too, because that "no-repay gift" rule is exactly what allows family members, friends, and yes, 3rd party DP assistance providers to provide that gift. Does anyone remember what the original purpose of Nehemiah ( one of the original down payment assistance providers) was-or what it means? Perhaps the rule needs to be amended to eliminate 3rd party gifts? Or, to be on point about using money efficiently, how about bringing back 4-5 month reserves, if you use DP assistance?

Is the FHA Effectively Condoning Mortgage Fraud?

First of all, why highlight D.R Horton? The down payment assistance you are talking about can be, and is, used by everybody in the business, private sellers included! The FHA is not allowing sellers to "circumvent" the down payment requirement-they are merely allowing gift funds (with no repayment requirement) to be used for the DP. This allows parents, for example, to assist in their childrens home purchase by "gifting" funds". It also allows other parties to contribute to the DP, provided the no repayment requirement is met. And who says that all these buyers can't come up with a down payment? Quite a few have money in the bank, giving them an extra cushion instead of draining the account for a down payment. Why wouldn't you take advantage of a seller paid down payment if you could, especially at todays low rates. Wouldn't you rather pay a tax deductible $30-35 extra a month to keep your $6000-7000 nest egg in the bank in these uncertain economic times?

The Real Reason to Avoid Homebuilders

The sky is falling-the sky is falling! That's quite a stretch, to compare real estate corruption to wall street scandals! The real estate market is already transparent-and buyers agents and sellers agents have strict fiduciary responsibilitys to their clients-a change instituted specifically by the enactment of 'buyers brokerages" laws. Mortgages have always been transparent, with standarized HUD-1's and good faith estimates to compare line by line, if you take the time. It's generally those unrepresented who are taken advantage of. And "title insurance" as an obscure fee? Come on!