subprime mortgage: “The New Subprime, What Does that Mean?”
- 03/28/14 10:50 PM
“The New Subprime, What Does that Mean?” One announcement after another from lenders reducing credit scores. Just last week one lender will now go down to 540 and the other at 550 for FHA loans. Before everyone starts going crazy that we will be heading for another mortgage and real estate meltdown, get that out of your heads. There are situations that warrant a mortgage for a client with lower credit scores. Dave (his actual legal name), purchased a home in 2003 with a girlfriend. The relationship went bad and his girlfriend moved out, however she had his … (27 comments)
subprime mortgage: “Niche Lenders Looking for Business”
- 03/15/14 10:30 PM
“Niche Lenders Looking for Business” There was a time, when there were so many niche lenders, they were falling over themselves. This is starting to happen all over again, maybe not as many as there once were, as they are just starting to come into the market place. Folks that can’t get certain loans done, may have more options than they once had. I’m not talking about stupid loans or the so called liar loans, but loans that can’t get done through Fannie Mae, Freddie Mac, FHA, VA or USDA, now may have some options. If you have a … (22 comments)
More and more is being written about subprime loans or non QM loans. Between Dodd-Frank, the CFPB and Washington, they really have no clue when it comes to the need for the major banks and Wall Street desire for higher returns and profits, they will become more aggressive and take more risk. As these institutions see less revenues from mortgages, they will figure out ways to make more money.
When the original subprime loans came into existence in the late 90’s and into the 2000’s, there was a hunger for higher returns and … (7 comments)
subprime mortgage: “One of the Benefits of Higher Interest Rates”
- 06/17/13 02:14 AM
“One of the Benefits of Higher Interest Rates” It is just a matter of time, when subprime mortgages once again become available. As of 1/14/14 new guidelines and regulations will go into effect that will have major negative effects on many prospective home buyers, as a result of the Dodd-Frank Act. Many will not be able to qualify for the “normal” conventional, FHA, VA and USDA mortgages. There are already numerous groups that are getting ready to fill the void. I’m not talking about some of the stupid mortgages that went on during the Clinton Administration and then continued during … (9 comments)
Subprime mortgages are a function of demand and higher interest rates. If subprime loans are based on rates between 150 to 650 basis points above the prime rate, well at the current prime rate, we won’t see these loans. Here is the question, do you see the prime rate at these current levels forever? You already know the answer to the question.
The demand is already there, but here is what I don’t want to see. I don’t want to see any prepayment penalties. I want the consumer to have … (1 comments)
subprime mortgage: DON'T FEEL BAD ABOUT A 590 MILLION DOLLAR SETTLEMENT WITH CITIGROUP
- 08/31/12 04:10 AM
“Don’t Feel Bad About a 590 Million Dollar Settlement with Citigroup” They made plenty of profit on these loans, I mean lots of money. The frustrating part, is the settlement is going to stockholders, not the individuals that were harmed by the subprime loan that they bought into. Yes, I know there is 26 billion dollar settlement with folks that were harmed by subprime loans and part of the settlement was with CitiBank. These investors that won this settlement, made an investment that didn’t work out. I wonder if we should start an action to get back any money … (10 comments)
subprime mortgage: IS THE REAL ESTATE WORLD READY FOR THE NEW SUBPRIME?
- 04/05/12 03:58 AM
“Is the Real Estate World Ready for the New Subprime?” I met with a mortgage banker today for lunch. He was speaking of the meetings that he has been having with a number of Wall Street firms that are interested in raising pools of money that would be available to clients that couldn’t get a conventional or FHA loan. I asked how serious is Wall Street about raising pools of money for this purpose. He said that they were starving for higher yields and they were waiting signs that real estate values were firming and ready to start moving up. … (5 comments)
“The New Subprime, What Does that Mean?” One announcement after another from lenders reducing credit scores. Just last week one lender will now go down to 540 and the other at 550 for FHA loans. Before everyone starts going crazy that we will be heading for another mortgage and real estate meltdown, get that out of your heads. There are situations that warrant a mortgage for a client with lower credit scores. Dave (his actual legal name), purchased a home in 2003 with a girlfriend. The relationship went bad and his girlfriend moved out, however she had his … (27 comments)
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