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Good News, could be a early thaw

Good News, A thaw is heating up

Posted by Dave

February 3, 2009

If the thawing of credit is paramount to an economic rebound, the first signs of spring may be here.

On Monday, the Fed released its quarterly survey of 84 member banks. In it, the Fed says that fewer than half of the responding banks tightened “prime” mortgage guidelines over the last 3 months.

This is good news for active home buyers and other Americans in need of a new mortgage.

The word “Prime” is a term that is vague in respect to home loans, but it generally refers to mortgage applicants who can document:

has equity
downpayment for a home

To view the rest of the story head on over to the Mad Mortgage Machine site and it is posted there

have a great week. I am so ready for the thaw

Dave

Posted by Dave Woodson on 02/03/2009 01:25 PM

Comments (6)

spring, thaw, dave woodson

Originally posted at: The Mad Mortgage Machine: Good News, could be a early thaw

Post is included in group: Porter County Indiana
Post is included in group: Northwest Indiana - Building a Great Community
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Post is included in group: LaPorte County Indiana

6 Comments on Good News, could be a early thaw

FEB

This is a prime time to keep prime trimed primed and not increase it.

I can't say that I agree that it is a good thing that the market place has gotten so tight on fnma and freddie products.

These credit score hits for people with good credit are taking people that should qualify and tossing them out.

Look at fnma and freddie adjustments for a 660 score. People with a 660 score are no more a threat to default than that of of 680 or 700. I would argue that in some cases people with a 660-700 score are better able to handle their debt than a 740 score with limited history. The current scoring system flaws are adversely affecting people that should not be penalized.

Additionally the penalty or exclusion of offering financing to people like Genworth has done with the new FICO based TPO could be over reaching and the law of unintended consequences could be at work and reduce our ability to work and earn.

For NOW ...FHA is king

just my opinion of course

FHA is king, hopefully a fannie mae and freddie mac streamline?

JOe and Jon

FHA IS King, but we need the prime borrower. now more than ever to "insure" some stablility in the market.

Dave

Always when something goes wrong, there is an over correction. If we can let the markets adjust without government interferrence, we will be better off.

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