- This topic has 75 replies, 10 voices, and was last updated 15 years, 9 months ago by Nor-LA-SD-guy.
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March 23, 2009 at 3:28 PM #15352March 23, 2009 at 3:55 PM #371858DWCAPParticipant
Why would this put a floor under housing? The only way that would happen is if the real problem was that good credit risks couldnt get loans. This isnt the problem. Good credit risks, people with jobs, and real DP’s, and good credit histories, can get loans that historically speaking are retarded for the banks to be doing. But they are there, loaning away, at 4.5% again.
Or I guess if the banks didnt learn their lesson and started lending to all warm bodies regardless then housing will have a floor put under it. But we would be right back here again soon enough, and then people would get linched.
No, this is all about stopping the overcorrection from trend. We will revert to normal relationships compared to incomes.
All the other stuff is BS from/for the guys who bought Congress calling in their chips.March 23, 2009 at 3:55 PM #372315DWCAPParticipantWhy would this put a floor under housing? The only way that would happen is if the real problem was that good credit risks couldnt get loans. This isnt the problem. Good credit risks, people with jobs, and real DP’s, and good credit histories, can get loans that historically speaking are retarded for the banks to be doing. But they are there, loaning away, at 4.5% again.
Or I guess if the banks didnt learn their lesson and started lending to all warm bodies regardless then housing will have a floor put under it. But we would be right back here again soon enough, and then people would get linched.
No, this is all about stopping the overcorrection from trend. We will revert to normal relationships compared to incomes.
All the other stuff is BS from/for the guys who bought Congress calling in their chips.March 23, 2009 at 3:55 PM #372144DWCAPParticipantWhy would this put a floor under housing? The only way that would happen is if the real problem was that good credit risks couldnt get loans. This isnt the problem. Good credit risks, people with jobs, and real DP’s, and good credit histories, can get loans that historically speaking are retarded for the banks to be doing. But they are there, loaning away, at 4.5% again.
Or I guess if the banks didnt learn their lesson and started lending to all warm bodies regardless then housing will have a floor put under it. But we would be right back here again soon enough, and then people would get linched.
No, this is all about stopping the overcorrection from trend. We will revert to normal relationships compared to incomes.
All the other stuff is BS from/for the guys who bought Congress calling in their chips.March 23, 2009 at 3:55 PM #372358DWCAPParticipantWhy would this put a floor under housing? The only way that would happen is if the real problem was that good credit risks couldnt get loans. This isnt the problem. Good credit risks, people with jobs, and real DP’s, and good credit histories, can get loans that historically speaking are retarded for the banks to be doing. But they are there, loaning away, at 4.5% again.
Or I guess if the banks didnt learn their lesson and started lending to all warm bodies regardless then housing will have a floor put under it. But we would be right back here again soon enough, and then people would get linched.
No, this is all about stopping the overcorrection from trend. We will revert to normal relationships compared to incomes.
All the other stuff is BS from/for the guys who bought Congress calling in their chips.March 23, 2009 at 3:55 PM #372471DWCAPParticipantWhy would this put a floor under housing? The only way that would happen is if the real problem was that good credit risks couldnt get loans. This isnt the problem. Good credit risks, people with jobs, and real DP’s, and good credit histories, can get loans that historically speaking are retarded for the banks to be doing. But they are there, loaning away, at 4.5% again.
Or I guess if the banks didnt learn their lesson and started lending to all warm bodies regardless then housing will have a floor put under it. But we would be right back here again soon enough, and then people would get linched.
No, this is all about stopping the overcorrection from trend. We will revert to normal relationships compared to incomes.
All the other stuff is BS from/for the guys who bought Congress calling in their chips.March 23, 2009 at 4:06 PM #372486daveljParticipant[quote=DWCAP]Why would this put a floor under housing? The only way that would happen is if the real problem was that good credit risks couldnt get loans. This isnt the problem. Good credit risks, people with jobs, and real DP’s, and good credit histories, can get loans that historically speaking are retarded for the banks to be doing. But they are there, loaning away, at 4.5% again.
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The banks aren’t going to be holding this paper. Freddie and Fannie (and other govt entities) – that is we, the taxpayers – will be holding it.
March 23, 2009 at 4:06 PM #372373daveljParticipant[quote=DWCAP]Why would this put a floor under housing? The only way that would happen is if the real problem was that good credit risks couldnt get loans. This isnt the problem. Good credit risks, people with jobs, and real DP’s, and good credit histories, can get loans that historically speaking are retarded for the banks to be doing. But they are there, loaning away, at 4.5% again.
[/quote]
The banks aren’t going to be holding this paper. Freddie and Fannie (and other govt entities) – that is we, the taxpayers – will be holding it.
March 23, 2009 at 4:06 PM #371873daveljParticipant[quote=DWCAP]Why would this put a floor under housing? The only way that would happen is if the real problem was that good credit risks couldnt get loans. This isnt the problem. Good credit risks, people with jobs, and real DP’s, and good credit histories, can get loans that historically speaking are retarded for the banks to be doing. But they are there, loaning away, at 4.5% again.
[/quote]
The banks aren’t going to be holding this paper. Freddie and Fannie (and other govt entities) – that is we, the taxpayers – will be holding it.
March 23, 2009 at 4:06 PM #372330daveljParticipant[quote=DWCAP]Why would this put a floor under housing? The only way that would happen is if the real problem was that good credit risks couldnt get loans. This isnt the problem. Good credit risks, people with jobs, and real DP’s, and good credit histories, can get loans that historically speaking are retarded for the banks to be doing. But they are there, loaning away, at 4.5% again.
[/quote]
The banks aren’t going to be holding this paper. Freddie and Fannie (and other govt entities) – that is we, the taxpayers – will be holding it.
March 23, 2009 at 4:06 PM #372159daveljParticipant[quote=DWCAP]Why would this put a floor under housing? The only way that would happen is if the real problem was that good credit risks couldnt get loans. This isnt the problem. Good credit risks, people with jobs, and real DP’s, and good credit histories, can get loans that historically speaking are retarded for the banks to be doing. But they are there, loaning away, at 4.5% again.
[/quote]
The banks aren’t going to be holding this paper. Freddie and Fannie (and other govt entities) – that is we, the taxpayers – will be holding it.
March 23, 2009 at 4:08 PM #372481HuckleberryParticipantThis will not put a floor under housing prices.
The only way to do that is once again allow exotic mortgages so people can get into mortgages out of their income range. Without this segment of the market, there is not enough leverage (buying power) for people to continue moving up into higher price ranges.
I agree, all this will do is slow the decent so we don’t have a catastrophic meltdown. Price are still going to head lower, and once they do stabilize, will have stagnant appreciation for at least a few years, if not longer…
March 23, 2009 at 4:08 PM #372368HuckleberryParticipantThis will not put a floor under housing prices.
The only way to do that is once again allow exotic mortgages so people can get into mortgages out of their income range. Without this segment of the market, there is not enough leverage (buying power) for people to continue moving up into higher price ranges.
I agree, all this will do is slow the decent so we don’t have a catastrophic meltdown. Price are still going to head lower, and once they do stabilize, will have stagnant appreciation for at least a few years, if not longer…
March 23, 2009 at 4:08 PM #371868HuckleberryParticipantThis will not put a floor under housing prices.
The only way to do that is once again allow exotic mortgages so people can get into mortgages out of their income range. Without this segment of the market, there is not enough leverage (buying power) for people to continue moving up into higher price ranges.
I agree, all this will do is slow the decent so we don’t have a catastrophic meltdown. Price are still going to head lower, and once they do stabilize, will have stagnant appreciation for at least a few years, if not longer…
March 23, 2009 at 4:08 PM #372154HuckleberryParticipantThis will not put a floor under housing prices.
The only way to do that is once again allow exotic mortgages so people can get into mortgages out of their income range. Without this segment of the market, there is not enough leverage (buying power) for people to continue moving up into higher price ranges.
I agree, all this will do is slow the decent so we don’t have a catastrophic meltdown. Price are still going to head lower, and once they do stabilize, will have stagnant appreciation for at least a few years, if not longer…
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