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.”
