Go ahead! Throw tomatoes at me if you must. FHA is a subprime type program.
Recently I read "Subprime home loans are back - Las Vegas mortgage borrowers go FHA"*. Just so happens this favorite blogger of mine, Esko Kiuru, is from Las Vegas.
However I'm adding FHA never left the subprime type market. It just became less popular starting in the late 90's.
You see, before subprime as it's labeled today gained popularity, FHA was the program of choice for subprime type borrowers. That is, consumers with little cash and less than perfect credit.
Personally I'm not a big fan of government programs intended to fix business. But I can't argue a fact. FHA is the most successful government program of all time. The reason is because FHA is a program funded by consumers and FHA's insurance fund is there to cover losses.
Now take a step back for just a moment and let's consider why the subprime industry created such a debacle. It was NOT the fault of loan programs. It was NOT the fault of homeowners. It was NOT the fault of mortgage brokers.
I resent the superiority-complex and finger pointing of the agencies, Fannie and her siblings, at the onset of the debacle as if it were the products, homeowners and mortgage brokers that caused the fall. Homeowners, mortgage brokers and loan products were only the scapegoat.
Had banks been required to maintain higher loan reserves, similar to the FHA insurance fund, they would have been able to ride out storms. Yet in some instances, banks were lending 20 times more than they had in reserves.
Excessive leveraging by banks brought the real estate market to its knees. Talk about living beyond your means.
Now back to today, FHA is again the program of choice for subprime type borrowers but FHA insurance funds have been reported lately as running low. Were any lessons learned?
Will there be enough funds to cover future losses or will the tax payer again be on the hook?
Yesterday it happened. The unthinkable. I lost everything. And I could have easily avoided the loss.
But let me back up a couple of months ago when I was approached by my friends who own the website, Military Family Matters specializing in money matters for military families. They asked if I would write an article for them on the special needs of the military when considering renting vs buying a house.
But I would have done well to follow their advice about saving.
I have quite a few irons in the fire which probably contributed to losing everything yesterday. Anyway, I asked Military Family Matters if they could be patient with me as I freed myself from the projects I was in the middle of.
Then this week I saw some light at the end of the tunnel and began my article for them. (I'll let you know when it's published of course). It was coming together really nicely as I recalled my experiences over the years of working with active military and VA mortgages.
And then... It happened. Argh. I discovered sitting right here at my desk that I'd lost everything.
Now don't you think it's ironic that while I was working on an article for a website on money matters that I took a dive comparable to a bankruptcy?
Well, before I go any further, I confess the loss I sustained yesterday happened when my computer seized during a Microsoft update. And foolish me, I had not saved any of my work.
So my article was gone in a flash. My entire article, every cent word. My day's efforts were bankrupted. I couldn't recover one single dollar sentence.
But as we know, good can spring from bad. I ended up writing a very different article today and in my humble opinion, a much better one. And most of all, I re-learned a valuable lesson.
I've asked before. I'll ask again. With Fannie, Freddie and FHA raising their skirts to qualify more home buyers, who is looking out for mortgage affordability?
"The subprime market had shrunk to virtually zero percent in the first quarter of 2008 after triggering the housing collapse following defaults by borrowers. The market share of subprime US home mortgages [thanks to Fannie Mae, Freddie Mac and Ginnie Mae] has returned to pre-crisis levels, a central bank report showed Monday."AFP 2009**
Are you kidding me?
To quote my favorite movie, "And that's all I have to say about that." Forrest Gump 1994
I like fresh avocado but yuck! I'm disgusted with opening the dishwasher only to find yesterday's dinner still stuck to the silverware.
Do I need to apologize that this has nothing to do with real estate?
Anyway I had a bright idea yesterday. Dig out a flashlight, get down on my hands and knees and check out the inside of my trusty dishwasher than is never supposed to need repairing. You know... courtesy of the folks who bring us the lonely Maytag guy.
Blech. Gunk, gunk and more gunk.
Ahhh, THAT'S WHY remnants of grapefruit pulp coat my glassware. And bits of cilantro redeposit on the pasta bowls.
Not only is the filter clogged, but the arm thingies barely spin and where there should be holes, I find three years of granite.
Back upstairs I'm sitting at my computer on a mission. After reading through mindless answers on Yahoo I revert to my cure for the world's ills. White vinegar.
Back downstairs I empty the dishwasher, all but three glasses filled with vinegar. I run it on the hottest longest cycle. (I never do anything half-way)
This morning I check it out. Gunk everywhere. Chunks of rock. Chalk. Black gravel. Sand. But I can see the heating element. Holes reopen and arms spin. Glassware sparkles. And the pink goo around the hinges disappeared.
Hmmm, I start to think. Could vinegar be a better choice for a rinse aid?
Now I'm no engineer. I'll be the first to admit I have broken several small appliances while "upgrading" them. So I thought I'd ask before I try this out. Do you think it's safe to fill the rinse aid reservoir with white vinegar?
Dishwashers are more expensive than the coffee maker I just killed so please can anyone advise? Who can help?
I'd ask the lonely Maytag guy but I'm thinking he's pretty busy these days.
A number of noses landed on the ground last week across America according to CNNMoney.com.
For the first time in a few weeks, mortgage rates rose above 5% and mortgage applications took a 14% dive. The result? Home buyers and homeowners by the droves cut off their nose to spite their face.
But let's consider this logically. By drawing the line at 4.99% and refusing to budge, you are merely cutting off your own nose.
Take these numbers for example. A 30 year monthly house payment for $200,000 at 4.99% is $1073. Now raise that rate to 5.04%. Your payment rose $6.
$6!
Yes, I know! One rate boasts the 4's compared to the unwelcome stigma of 5%. (a little sarcasm)
But PLEASE do your pretty face a favor. Keep your nose. $6 a month is not worth losing a mortgage rate lower than we've seen in many years because you determined you wouldn't go over 5%.
Let's prove my point with YOUR mortgage. Follow the link to my easy squeezy mortgage payment calculator. Insert the amount you owe on your house. Instead of drawing the line at a certain mortgage rate that you've been holding out for, calculate a payment using a few different interest rates. Try 5.01% or even (gasp) 5.25%.
Experiment! It's free! But considered yourself warned. Once you begin playing around with my easy to use calculator, you may never be able to stop!
Your friend, Kate Ford
My Way Of Giving Back - THE PAINLESS SIGN-UP - For Real Estate Agents and Mortgage Lenders
Realtors, what are you waiting for? Promote your profile 24 hours a day, 7 days a week => Kate's Real Estate Directory USA and yes, it's free!
Mortgage Lenders, take advantage of this today. Reaching homeowners around the clock => Kate's List of Mortgage Companies and yes, it's free!
Get-Your-Best-Mortgage-Rate and Prime-Real-Estate-Articles
Cory Richardson, not one to hang around waiting for the economy to get stronger, is contributing to a better life for fellow Nevadans. That is why he is the editor of The Green Valley Savvy, a community magazine fresh off the press in Henderson, Nevada.
As well as distributing the magazine, The Green Valley Savvy is hosting up to six fund raising events per year. The proceeds from each event will be donated to local charities.
It might interest you to know The Green Valley Savvy has exclusive rights to a half-man, half-rabbit who jumps over anything and everything he can think of in Henderson. Local residents in the Las Vegas area can submit their request to see The Henderson Hopper in action, vaulting over their favorite object.
But don't let the presence of The Henderson Hopper fool you into thinking the magazine is anything but serious. In fact, it may be the most important thing you ever read. The next edition is coming out not only on the web but also in hard copy and will be distributed free.
Here is what you will absolutely love! November will feature a real estate section. Yours Truly is authoring the opening article. I'll give you one guess what it's about. But believe me, if you don't guess correctly I will be deeply disappointed.
Here's a hint. Who is the most important person in the life of a home buyer? Well now for sure you guessed and it wasn't even a challenge.
The real estate agent!
What else will you find in The Green Valley Savvy?
Fun and Games:
Activities
Sudoku
Jokes and Cartoons
Famous Birthdays
Strange News
Shout Outs
What Say You?
Car Corner
Live Healthy
This Month in History
Delicious Recipes
Local Interest:
Featured Business
Restaurant Review
Local Art
Calendar of Events
Important Places
Words on Paper:
Spirit of an Independent Film
Extreme Makeover: DMV Edition
Up and coming: Focus on a local high school student!
The Green Valley Savvy understands for the community and by the community. Let's give Cory Richardson a warm welcome!
Your friend, Kate Ford
My Way Of Giving Back - THE PAINLESS SIGN-UP - For Real Estate Agents and Mortgage Lenders
Realtors, what are you waiting for? Promote your profile 24 hours a day, 7 days a week => Kate's Real Estate Directory USA and yes, it's free!
Mortgage Lenders, take advantage of this today. Reaching homeowners around the clock => Kate's List of Mortgage Companies and yes, it's free!
Get-Your-Best-Mortgage-Rate and Prime-Real-Estate-Articles
Really! I think it's silly to dream of simpler days. Simple or relaxing is what we make of our time, today.
Yesterday afternoon, I picked up one of my granddaughters and took her to a nearby canyon full of chipmunks and bunnies. Armed with a baggie of oyster crackers, we set off in pursuit of new friends. We named them Alvin, Simon and Theodore even though there were too many to keep track of pouring out of the rocks.
I watched as my granddaughter sat very still with cracker crumbs around her, whispering that she was their friend. But patience is not a virtue learned by 5 and the desire to pet them would overcome her. Back under the rocks they'd scatter.
The dance would continue until the cracker crumbs were gone. It was our turn for dinner and we had to leave.
Next time we are going back to visit the bunnies. They like cooler evenings and longer shadows.
Your friend, Kate Ford
My Way Of Giving Back - THE PAINLESS SIGN-UP - For Real Estate Agents and Mortgage Lenders
Realtors, what are you waiting for? Promote your profile 24 hours a day, 7 days a week => Kate's Real Estate Directory USA and yes, it's free!
Mortgage Lenders, take advantage of this today. Reaching homeowners around the clock => Kate's List of Mortgage Companies and yes, it's free!
Get-Your-Best-Mortgage-Rate and Prime-Real-Estate-Articles
Has normal wear and tear caught up with your kitchen cabinets? Are your cabinet drawers looking worn or grimy?
Scott and Cindy Miller, owners of Pro Cabinets, a local Kitchen Tune-Up franchise know how to tune up and re-face your existing kitchen cabinets.
That's right! You don't have to buy a whole new kitchen to have a kitchen that looks and feels like new. Scott and Cindy are making cabinets look new at a fraction of the cost with Kitchen Tune-Up!
As a homeowner, I appreciate their eight trustpoints. Scott and Cindy...
guarantee their estimates
guarantee their work
arrive on time
clean work areas daily
return messages within 24 hours
strive to be in harmony with the homeowner's routine
tell the customer what they're going to do BEFORE they do it
listen carefully, tell it straight and keep their promises
Holidays are coming up. Wouldn't it be nice to show off a gorgeous kitchen? Call Scott and Cindy at 702.270.4390. You'll be surprised at how affordable a kitchen tune-up is!
The business of fulfilling dreams... Cathie France creates custom wedding gowns. And owns her own business!
With 35 years of tailoring and sewing experience, Cathie also specializes in mother of the bride, flower girl dresses, prom dresses and any other kind of gown or outfit for women and girls. She even recreates designer gowns and tailors men's suits.
Guess what else! In addition, Cathie makes Halloween costumes. I'd say she's got us covered.
Cathie is friendly. "Las Vegas is a wonderful city to work in and I have met a lot of nice people here. Please let me know how I can be of any help to you, Kate," she told me when we first met.
Hear what one bride says, "Cathie hemmed my wedding gown in time for my wedding. Her professionalism and outstanding workmanship are commendable. Her service fees are very affordable and reasonable."
Self-employment, an all-American dream until trying to find health insurance! I know this all too well. So Scott Marczynski's ad captured my attention on iShopNevada.
You'll find Scott at Health Markets, the company who insures the self-employed with personalized plans. The plans cover the insured nationwide and Canada or 30 days or less out of the country. Being portable, if an insured leaves Nevada, they can take their policy with them.
He is able to provide their association to anyone anywhere which has discounts and benefits but can only provide insurance policies in Nevada.
Scott moved here from Denver, Colorado ten years ago. He is an avid reader, hiker and for fun, attends singles events with his church.
When I asked Scott what attracted him to the insurance industry, he told me, "I enjoy helping people in any way I can. My mission is to do my best to help all those who come to me or refer them to someone who can."
If you are in the market for a health insurance plan in Nevada or want to compare policies, call Scott Marczynski.
Just thinking about a home loan can be nerve wracking. That's normal. You are about to ask for more money than you've seen in your life. Your hopes and dreams are riding on a stranger's decision. Let me set your mind at ease.
Buying a house and owning a home is the American Dream. But let's face it. The ABC's of home buying and refinancing weren't taught in school. I can help with that!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
As well as distributing the magazine, The Green Valley Savvy is hosting up to six fund raising events per year. The proceeds from each event will be donated to local charities.
With 35 years of tailoring and sewing experience, Cathie also specializes in mother of the bride, flower girl dresses, prom dresses and any other kind of gown or outfit for women and girls. She even recreates designer gowns and tailors men's suits.
You'll find Scott at Health Markets, the company who insures the self-employed with personalized plans. The plans cover the insured nationwide and Canada or 30 days or less out of the country. Being portable, if an insured leaves Nevada, they can take their policy with them.
;)
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