mortgage: Trickle Down Jumbos
- 03/07/08 01:43 AM
This is a play on words to some extent. The Fed has raised the Jumbo amount to over $700k in some areas. The Fed also believes that by raising the Jumbo loan limits that there will be much more refinancing over the next several months making late spring and into the summer a better economic picture. The play on would is from the phrase "Trickle Down Economics" the theory that if those with means do not spend than those with no means do not work. How much will the ability of $700k plus loans being refinanced weigh on the economy ... here is … (1 comments)
mortgage: Fannie Changes Rules
- 03/05/08 02:05 AM
News Flash Fannie Mae says appraisers are not to be induced or threatened to inflate appraisals by banks or lenders. Shocker! Never thought that Fannie Mae had to come out and actually tell banks and lenders that "You really shouldn't threaten appraisers with pulling business if they give you a low appraisal." I must be the stupidest person alive to think that the job of an appraiser is to give a realistic view of what the house is worth to "Protect" the bank from potential losses. This is called sarcasm. We are in trouble because of the simple fact that our entire industry … (2 comments)
mortgage: Why Do They Do It?
- 12/29/07 11:38 AM
Well if Location, Location, Location are the words to live by in real estate than Fees, Fees, Fees are the driving force behind decisions made on many of the SIV (Special Investment Vehicles) messes we read about everyday. A typical fee is 1-1.5% of the total underwriting (billions have been underwritten). So one of the reasons we have many of the situations we have today is the need to feed the beast. That beast being the investors and Wall Street that were craving sub-prime loans. This need lead to some poor decisions from the banking industry. Decisions such as qualifying loans on the … (2 comments)
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This is a play on words to some extent. The Fed has raised the Jumbo amount to over $700k in some areas. The Fed also believes that by raising the Jumbo loan limits that there will be much more refinancing over the next several months making late spring and into the summer a better economic picture.;)
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