I’ve had my Realtors here asking me/telling me my business is going to be jumping once the changes go into affect. I’ve also had fellow associates in the mortgage brokering business rubbing their hands hoping as well.
You’re right sd, there is a 5% declining/softening market that has gone into affect. The problem I see with this increase is three fold.
One, we’re prolonging the natural cycle of where we ought to be heading with this market, and I’m sure I can get an ‘amen’ from the Pigg crowd on this. Someone on Capital Hill is smoking some good green to think this one up.
Two, this isn’t for new homebuyers but for all the ones underwater. Under-water, yup, mortgage outweighs the equity. So how in the hell is this going to help them refi out of that fantastico Option Arm, 80/20 purchase, 2/28 or 2/27 loan? Loan limits raised, hey that’s great, but Mr. Borrower, you don’t have the equity, can you bring $50K to escrow?
Three, FHA loans are FULL DOC. All the $500K+ loans were stated income. What underwriter is going to be convinced that the welder guy and his receptionist wife make $150K a year when salary info can easily be looked up Salary.com?
It’s just another way of blowing smoke by the thieving, lying bastards on Capital Hill and Sacto, they’re scrambling because we’re knee deep in poo. I’d say ‘go Ron Paul’ but that guy would probably get shot if he were to get anywhere near the White House.
Oh, btw, if none of this makes sense, my apology. I get my point across much better in person than writing. I’m a verbal type of guy.
