President Bush to speak on Sub-Prime Lending and Adjustable Mortgages

Missy, Whatever he tried to say, but probably didn't say right right had a good affect on the market today. We didn't see it as our heads are buried in following up on our comment trail for the week. We've got a few escrows closing too that are getting in the way of our blogwork;-)

Also want to thank you for taking your time to comment on the crest folly we recently did. It was much appreciated.

And also appreciate this comment trail. From your lead, we thought it was going to be far more political than it is. Oh darn. 

Missy,

I was glad to hear resistance to bailing out the lenders who chose to make risky loans.  I fear that the knee-jerk reaction to this mess will leave a lot of people who would have qualified for a loan unable to get one or paying rates that are too high.  Hopefully folks will learn that 100% financing with no money down is not usually a good idea!   

I missed the actual news conference, but I have read a transcript and it sounds like the President and the government are working in the right direction.  Much of what he suggested is passing the baton to congress...so there is still a time lapse to getting things done - but at least we are moving int he right direction.

Now Have a Blessed Day,

John Occhi, Hemet CA REALTOR
Mission Grove Realty

To be honest, I am in no way of a fan of Bush.  But today he did a great thing.  Just commenting on the issue will bring confidence back.

 Some things to look for:

FHA will go to 99% LTV with no down payment assistance.

FHA will make it MUCH easier for the broker to get licensed.

All Fannie and Freddie programs will require some sort of down payment.

100% mortgages will no longer exist.

Hard money will be the new subprime because most of them will go 100% with a seller hold second (not FHA like every says).  Also, I have not seen a single guideline change to hard money.

The bottom line is if you don't know true FHA guidelines (manual UW) and Hard Money inside and out, you won't survive. 

http://www.virtualloanpro.com/

I'm always nervous when the government tries to help out.  The motive is right, but the solution sometimes is worse than the cure.  Let's hope for the best!

And Lenn...that's hilarious.  My brother-in-law has a Bush doll that has two buttons...one for inspirational stuff he's said and the other one for his crazy speech errors.  My favorite one is "The question we have to ask ourselves is, is our chirldren learning?"

Yesterday's proposal looks like a band-aid solution to a problem that started in the 1980's.  The Eighties were an era of deregulation.  The White House and Congress were in a hurry to do away with all sorts of nasty government regulations in the banking industry, credit card industry and yes, even the mortgage industry.  Remember the motto of the 80's?  Let the good times roll!

The problem began when lenders, investors and speculators took the ball and ran with it.  Greed played a part, of course, and predatory lending is an offshoot of that.  We used to have Usury Laws in this country, but they were watered-down or abolished altogether in the rush to de-regulate.  As a result, credit card companies started putting the squeeze on unsuspecting consumers with ridiculously high rates and hidden charges.  The same thing happened with "junk fees" in mortgages until the government cracked down. 

So the pendulum swings from one extreme to another.  The voting public has an appallingly short memory.

Talk is cheap  - and Mr Bush hasn't exactly been successful at much as of late.  I do too get nervous when the Government tries to help 

"Hello Ma'am - We are with the Government; We are here to help"  -eek!

While I am not convinced that it is the governments job to bail out people who can't read the fine print; I agree that many folks are in real trouble.

I just hope the government DOES step in and stop these aggressive lenders.

Missy -

Thanks for the post, so many times we get wrapped up in other things so it's to get these type of posts that gives us all the heads-up, we're staying optimistic about the end-results!

Missy...

Well. It looks like some people are not too thrilled with Bush.

Hey. Maybe instead of making an arse out of himself he will just stand their and say "No Comment" for an hour or so :)

TLW...ROAR!

Missy..... I was so busy last week that I didn't know any of this. While reading some posts here on AR, it appears to be the FHA secure loan that will come out. The only problem that I have with so many writing about this loan is that from my understanding, it's not official as of yet.  I think congress still needs to approve this. 

On another note, someone mentioned that FHA will be the new subprime. Yea, only if some lenders abuse the FHA loan and try to make a lot of money on it... people keep failing to realize that FHA has been around since 1934... it's not new. Just too many loan officers and lenders that took the east road prior to the subprime meltdown. Sad... but it's a fact.

Overall, time will tell....  thanks for the post.

I had to come back to see what I said :)

Yeah. Okay. That was funny :)

TLW...ROAR!

Missy- I agree with Lenn that the government just helps people who are too lazy to work, do not accept responsibility for their own actions and blame others for their circumstances. It is a sad day when the norm is an entitlement mentality, irresponsibility and gimme gimme. The hard working people do not get a break. They care about their responsibilities and get rewarded with higher taxes and more Big Brother controls. 

You know me, you get the real me when I post, talk and comment. I do not care about being politically correct and I have integrity and values. Bush has done the best he can with the idiotic congress and senate he has to work with. People who care more about spending tons of our tax dollars doing ongoing investigations over and over again just to get their agenda and they do not care at who's expense. As you can tell I am not fan of government, especially the waste! 

FHA loans will not help us here much in this part of Florida as our homes exceed the FHA limit. Katerina 

MIssy,

I heard that, but I do not know exactly if this will work or not, hopefully it will make things better, :P

Ray Saenz

Michigan is hurting and I don't hold my breath for help from Bush.  Sorry but its true.  Reading the info herein is helpful though.  Thanks for your topic. 

Missy, I'd have to say, You Rock.