I wonder how long is going totake to make those changes happening, and how much longer will take for prices to respond – i.e. go down significantly?

I wonder how long is going totake to make those changes happening, and how much longer will take for prices to respond – i.e. go down significantly?

I read the article and I’d like to see all of these measures happen. I’d like to see the US return to the portfolio mortgage as our major source of real estate financing. In portfolio lending, the decisions are either made locally (local bank/credit union) or through the “Big Bank’s” own rules and guidelines.

Folks who “depend upon the FHA,” as the article states, in order to purchase RE are not really ready to purchase RE, IMO. If this leaves moderate/low income buyers out of homebuying, then this group needs to find a way to save money and elevate themselves to get a pay raise. I’m observing that most of this group has no problem spending on consumer goods. They will just have to make a choice as to what they REALLY want (a house or a constant stream of new consumer goods).

As I posted in ctr70’s recent thread, I’d like to see the end of the taxpayer funded, incompetent, money-sucking Fannie and Freddie. Both have made a complete fool of themselves in recent years and serve no purpose in today’s mortgage lending market. With them, MERS can also pare back to what it is already is unable to keep track of. The portfolio lenders won’t be needing to register any paper with “MERS.”

If banks are servicing their own (performing) mortgages, they will have a steady stream of funds to keep lending. The key here is selecting mortgagees who will “perform” and also insure they have enough incentive to do so.

As you can tell, I’m thoroughly disgusted with the status quo. It has really messed up things for people that have kept their “noses to the grindstone.”

[end of rant]

I read the article and I’d like to see all of these measures happen. I’d like to see the US return to the portfolio mortgage as our major source of real estate financing. In portfolio lending, the decisions are either made locally (local bank/credit union) or through the “Big Bank’s” own rules and guidelines.

Folks who “depend upon the FHA,” as the article states, in order to purchase RE are not really ready to purchase RE, IMO. If this leaves moderate/low income buyers out of homebuying, then this group needs to find a way to save money and elevate themselves to get a pay raise. I’m observing that most of this group has no problem spending on consumer goods. They will just have to make a choice as to what they REALLY want (a house or a constant stream of new consumer goods).

As I posted in ctr70’s recent thread, I’d like to see the end of the taxpayer funded, incompetent, money-sucking Fannie and Freddie. Both have made a complete fool of themselves in recent years and serve no purpose in today’s mortgage lending market. With them, MERS can also pare back to what it is already is unable to keep track of. The portfolio lenders won’t be needing to register any paper with “MERS.”

If banks are servicing their own (performing) mortgages, they will have a steady stream of funds to keep lending. The key here is selecting mortgagees who will “perform” and also insure they have enough incentive to do so.

As you can tell, I’m thoroughly disgusted with the status quo. It has really messed up things for people that have kept their “noses to the grindstone.”

[end of rant]

I read the article and I’d like to see all of these measures happen. I’d like to see the US return to the portfolio mortgage as our major source of real estate financing. In portfolio lending, the decisions are either made locally (local bank/credit union) or through the “Big Bank’s” own rules and guidelines.

Folks who “depend upon the FHA,” as the article states, in order to purchase RE are not really ready to purchase RE, IMO. If this leaves moderate/low income buyers out of homebuying, then this group needs to find a way to save money and elevate themselves to get a pay raise. I’m observing that most of this group has no problem spending on consumer goods. They will just have to make a choice as to what they REALLY want (a house or a constant stream of new consumer goods).

As I posted in ctr70’s recent thread, I’d like to see the end of the taxpayer funded, incompetent, money-sucking Fannie and Freddie. Both have made a complete fool of themselves in recent years and serve no purpose in today’s mortgage lending market. With them, MERS can also pare back to what it is already is unable to keep track of. The portfolio lenders won’t be needing to register any paper with “MERS.”

If banks are servicing their own (performing) mortgages, they will have a steady stream of funds to keep lending. The key here is selecting mortgagees who will “perform” and also insure they have enough incentive to do so.

As you can tell, I’m thoroughly disgusted with the status quo. It has really messed up things for people that have kept their “noses to the grindstone.”

[end of rant]

There are definitely a lot of dark clouds on the horizon for lending:

1. FHA wants to reduce it’s footprint in the mortgage market so it continues to raise monthly mortgage insurance (it’s twice what it was 6 mos ago)

2. Fannie Mae is making loans really expensive for everyone except 20% down and perfect credit

3. Rates have risen

4. If they ever get private label lending to come back (and that’s what the Gov wants to do), it ain’t going be at 4.5%

5. Fannie is looking to lower the max loan from $729k to $625k…that means super tough lending guidelines and big down payments for over $625k loans

6. The Gov is going to make banks have more skin in the game so they are more on the hook to buy back bad loans…this will make the banks even more conservative on lending

All this will result in making it a lot more expensive to own real estate and reduce the buyer pool. And it has to hit prices hard.

Starting in the late 1990’s California real estate was pushed up by the “tailwind” of easy lending. It will NOT have that same “tailwind” pushing up prices this go around. Appreciation will have to be driven by *income growth*. Which is the way it should be.

There are definitely a lot of dark clouds on the horizon for lending:

1. FHA wants to reduce it’s footprint in the mortgage market so it continues to raise monthly mortgage insurance (it’s twice what it was 6 mos ago)

2. Fannie Mae is making loans really expensive for everyone except 20% down and perfect credit

3. Rates have risen

4. If they ever get private label lending to come back (and that’s what the Gov wants to do), it ain’t going be at 4.5%

5. Fannie is looking to lower the max loan from $729k to $625k…that means super tough lending guidelines and big down payments for over $625k loans

6. The Gov is going to make banks have more skin in the game so they are more on the hook to buy back bad loans…this will make the banks even more conservative on lending

All this will result in making it a lot more expensive to own real estate and reduce the buyer pool. And it has to hit prices hard.

Starting in the late 1990’s California real estate was pushed up by the “tailwind” of easy lending. It will NOT have that same “tailwind” pushing up prices this go around. Appreciation will have to be driven by *income growth*. Which is the way it should be.