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CA renter.
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January 12, 2011 at 9:58 PM #653699January 13, 2011 at 11:49 AM #652847
Diego Mamani
Participant[quote=bearishgurl]”Fannie, Freddie and the FHA” were in place LONG BEFORE independent mortgage brokers began originating an abundance on NINA mortgages, I/O “exploding mortgages,” limited-doc programs and using every avenue to defraud the lender (fabricating tax returns for the client/fabricating W-2’s/bank statements/investment statements and/or fabricating business licenses or asking the client to obtain a business license and then washing it and backdating it). This all went on in broad daylight right here in SD County for several years! “Fannie, Freddie and the FHA” are probably not going anywhere.[/quote]You just stated the obvious, but how does that contradict my statement that the so-called GSEs contribute to keep prices artifically inflated today?
[quote]The “courts” are only “meddling” in “judicial foreclosure states.” CA is not one of these.[/quote]Again, you state the obvious. This thread is not about foreclosures in CA.
We are about the enter a relatively high inflation period; obviously not this week or next quarter, but at some point all the liquidity injected into the system will result in a devalued dollar (menaing, everything will cost more in dollars). Therefore, it makes no sense that someone would lend hundreds and hundreds of thousands of dollars at a fixed rate for 30 years at a ridiculously low interest rate of below 5%.
It makes no sense, of course, until you realize that Fannie and Freddie guarantee those loans! Then no wonder Wells Fargo is so nice to home buyers lending them money for such a low interest rate: It’s Uncle Sam who is left holding the bag!
CA Renter got it right above. If we take out the GSEs, there would be no market… or more appropriately said, the market would require that house prices drop and interest rates increase to more realistic levels.
BTW, “GSEs” is no longer what these entities are. They are now part of the Federal Government and their obligations are part of the national debt.
January 13, 2011 at 11:49 AM #652913Participant[quote=bearishgurl]”Fannie, Freddie and the FHA” were in place LONG BEFORE independent mortgage brokers began originating an abundance on NINA mortgages, I/O “exploding mortgages,” limited-doc programs and using every avenue to defraud the lender (fabricating tax returns for the client/fabricating W-2’s/bank statements/investment statements and/or fabricating business licenses or asking the client to obtain a business license and then washing it and backdating it). This all went on in broad daylight right here in SD County for several years! “Fannie, Freddie and the FHA” are probably not going anywhere.[/quote]You just stated the obvious, but how does that contradict my statement that the so-called GSEs contribute to keep prices artifically inflated today?
[quote]The “courts” are only “meddling” in “judicial foreclosure states.” CA is not one of these.[/quote]Again, you state the obvious. This thread is not about foreclosures in CA.
We are about the enter a relatively high inflation period; obviously not this week or next quarter, but at some point all the liquidity injected into the system will result in a devalued dollar (menaing, everything will cost more in dollars). Therefore, it makes no sense that someone would lend hundreds and hundreds of thousands of dollars at a fixed rate for 30 years at a ridiculously low interest rate of below 5%.
It makes no sense, of course, until you realize that Fannie and Freddie guarantee those loans! Then no wonder Wells Fargo is so nice to home buyers lending them money for such a low interest rate: It’s Uncle Sam who is left holding the bag!
CA Renter got it right above. If we take out the GSEs, there would be no market… or more appropriately said, the market would require that house prices drop and interest rates increase to more realistic levels.
BTW, “GSEs” is no longer what these entities are. They are now part of the Federal Government and their obligations are part of the national debt.
January 13, 2011 at 11:49 AM #653501Participant[quote=bearishgurl]”Fannie, Freddie and the FHA” were in place LONG BEFORE independent mortgage brokers began originating an abundance on NINA mortgages, I/O “exploding mortgages,” limited-doc programs and using every avenue to defraud the lender (fabricating tax returns for the client/fabricating W-2’s/bank statements/investment statements and/or fabricating business licenses or asking the client to obtain a business license and then washing it and backdating it). This all went on in broad daylight right here in SD County for several years! “Fannie, Freddie and the FHA” are probably not going anywhere.[/quote]You just stated the obvious, but how does that contradict my statement that the so-called GSEs contribute to keep prices artifically inflated today?
[quote]The “courts” are only “meddling” in “judicial foreclosure states.” CA is not one of these.[/quote]Again, you state the obvious. This thread is not about foreclosures in CA.
We are about the enter a relatively high inflation period; obviously not this week or next quarter, but at some point all the liquidity injected into the system will result in a devalued dollar (menaing, everything will cost more in dollars). Therefore, it makes no sense that someone would lend hundreds and hundreds of thousands of dollars at a fixed rate for 30 years at a ridiculously low interest rate of below 5%.
It makes no sense, of course, until you realize that Fannie and Freddie guarantee those loans! Then no wonder Wells Fargo is so nice to home buyers lending them money for such a low interest rate: It’s Uncle Sam who is left holding the bag!
CA Renter got it right above. If we take out the GSEs, there would be no market… or more appropriately said, the market would require that house prices drop and interest rates increase to more realistic levels.
BTW, “GSEs” is no longer what these entities are. They are now part of the Federal Government and their obligations are part of the national debt.
January 13, 2011 at 11:49 AM #653637Participant[quote=bearishgurl]”Fannie, Freddie and the FHA” were in place LONG BEFORE independent mortgage brokers began originating an abundance on NINA mortgages, I/O “exploding mortgages,” limited-doc programs and using every avenue to defraud the lender (fabricating tax returns for the client/fabricating W-2’s/bank statements/investment statements and/or fabricating business licenses or asking the client to obtain a business license and then washing it and backdating it). This all went on in broad daylight right here in SD County for several years! “Fannie, Freddie and the FHA” are probably not going anywhere.[/quote]You just stated the obvious, but how does that contradict my statement that the so-called GSEs contribute to keep prices artifically inflated today?
[quote]The “courts” are only “meddling” in “judicial foreclosure states.” CA is not one of these.[/quote]Again, you state the obvious. This thread is not about foreclosures in CA.
We are about the enter a relatively high inflation period; obviously not this week or next quarter, but at some point all the liquidity injected into the system will result in a devalued dollar (menaing, everything will cost more in dollars). Therefore, it makes no sense that someone would lend hundreds and hundreds of thousands of dollars at a fixed rate for 30 years at a ridiculously low interest rate of below 5%.
It makes no sense, of course, until you realize that Fannie and Freddie guarantee those loans! Then no wonder Wells Fargo is so nice to home buyers lending them money for such a low interest rate: It’s Uncle Sam who is left holding the bag!
CA Renter got it right above. If we take out the GSEs, there would be no market… or more appropriately said, the market would require that house prices drop and interest rates increase to more realistic levels.
BTW, “GSEs” is no longer what these entities are. They are now part of the Federal Government and their obligations are part of the national debt.
January 13, 2011 at 11:49 AM #653963Participant[quote=bearishgurl]”Fannie, Freddie and the FHA” were in place LONG BEFORE independent mortgage brokers began originating an abundance on NINA mortgages, I/O “exploding mortgages,” limited-doc programs and using every avenue to defraud the lender (fabricating tax returns for the client/fabricating W-2’s/bank statements/investment statements and/or fabricating business licenses or asking the client to obtain a business license and then washing it and backdating it). This all went on in broad daylight right here in SD County for several years! “Fannie, Freddie and the FHA” are probably not going anywhere.[/quote]You just stated the obvious, but how does that contradict my statement that the so-called GSEs contribute to keep prices artifically inflated today?
[quote]The “courts” are only “meddling” in “judicial foreclosure states.” CA is not one of these.[/quote]Again, you state the obvious. This thread is not about foreclosures in CA.
We are about the enter a relatively high inflation period; obviously not this week or next quarter, but at some point all the liquidity injected into the system will result in a devalued dollar (menaing, everything will cost more in dollars). Therefore, it makes no sense that someone would lend hundreds and hundreds of thousands of dollars at a fixed rate for 30 years at a ridiculously low interest rate of below 5%.
It makes no sense, of course, until you realize that Fannie and Freddie guarantee those loans! Then no wonder Wells Fargo is so nice to home buyers lending them money for such a low interest rate: It’s Uncle Sam who is left holding the bag!
CA Renter got it right above. If we take out the GSEs, there would be no market… or more appropriately said, the market would require that house prices drop and interest rates increase to more realistic levels.
BTW, “GSEs” is no longer what these entities are. They are now part of the Federal Government and their obligations are part of the national debt.
January 13, 2011 at 5:04 PM #653137SK in CV
ParticipantYves Smith at naked capitalism (who may just be the best and brightest economics blogger out there today, and has been closely following and reporting on this subject for months) has a great analysis on a proposal by DC thinktank Third Way to let the TBTF banks off the hook for their transgressions in mortgage processing. She calls it another bailout. If this is a subject you’re interested in, don’t miss it.
DC Puts Its Bankster-Friendly Solution for Foreclosure Fraud on the Table
January 13, 2011 at 5:04 PM #653202ParticipantYves Smith at naked capitalism (who may just be the best and brightest economics blogger out there today, and has been closely following and reporting on this subject for months) has a great analysis on a proposal by DC thinktank Third Way to let the TBTF banks off the hook for their transgressions in mortgage processing. She calls it another bailout. If this is a subject you’re interested in, don’t miss it.
DC Puts Its Bankster-Friendly Solution for Foreclosure Fraud on the Table
January 13, 2011 at 5:04 PM #653788ParticipantYves Smith at naked capitalism (who may just be the best and brightest economics blogger out there today, and has been closely following and reporting on this subject for months) has a great analysis on a proposal by DC thinktank Third Way to let the TBTF banks off the hook for their transgressions in mortgage processing. She calls it another bailout. If this is a subject you’re interested in, don’t miss it.
DC Puts Its Bankster-Friendly Solution for Foreclosure Fraud on the Table
January 13, 2011 at 5:04 PM #653925ParticipantYves Smith at naked capitalism (who may just be the best and brightest economics blogger out there today, and has been closely following and reporting on this subject for months) has a great analysis on a proposal by DC thinktank Third Way to let the TBTF banks off the hook for their transgressions in mortgage processing. She calls it another bailout. If this is a subject you’re interested in, don’t miss it.
DC Puts Its Bankster-Friendly Solution for Foreclosure Fraud on the Table
January 13, 2011 at 5:04 PM #654250ParticipantYves Smith at naked capitalism (who may just be the best and brightest economics blogger out there today, and has been closely following and reporting on this subject for months) has a great analysis on a proposal by DC thinktank Third Way to let the TBTF banks off the hook for their transgressions in mortgage processing. She calls it another bailout. If this is a subject you’re interested in, don’t miss it.
DC Puts Its Bankster-Friendly Solution for Foreclosure Fraud on the Table
January 13, 2011 at 8:11 PM #653203CA renter
Participant[quote=SK in CV]Yves Smith at naked capitalism (who may just be the best and brightest economics blogger out there today, and has been closely following and reporting on this subject for months) has a great analysis on a proposal by DC thinktank Third Way to let the TBTF banks off the hook for their transgressions in mortgage processing. She calls it another bailout. If this is a subject you’re interested in, don’t miss it.
Great. The idiot specuvestors who choose to overpay by outbidding more qualified and more prudent buyers now think they deserve loan mods that reduce pricipal balances. So, based on this precedent, anytime somone overpays for something, and the price goes down afterward, as long as they borrowed against it, they are entitled to have the price (and corresponding debt) reduced?
The mass insanity is remarkable. I guess everyone should outbid everyone else — but be sure to borrow all or most of the money used to bid — and we can just reduce our price and debt after the fact. It’s all good. Nope, no moral hazard issues there!
January 13, 2011 at 8:11 PM #653268Participant[quote=SK in CV]Yves Smith at naked capitalism (who may just be the best and brightest economics blogger out there today, and has been closely following and reporting on this subject for months) has a great analysis on a proposal by DC thinktank Third Way to let the TBTF banks off the hook for their transgressions in mortgage processing. She calls it another bailout. If this is a subject you’re interested in, don’t miss it.
Great. The idiot specuvestors who choose to overpay by outbidding more qualified and more prudent buyers now think they deserve loan mods that reduce pricipal balances. So, based on this precedent, anytime somone overpays for something, and the price goes down afterward, as long as they borrowed against it, they are entitled to have the price (and corresponding debt) reduced?
The mass insanity is remarkable. I guess everyone should outbid everyone else — but be sure to borrow all or most of the money used to bid — and we can just reduce our price and debt after the fact. It’s all good. Nope, no moral hazard issues there!
January 13, 2011 at 8:11 PM #653853Participant[quote=SK in CV]Yves Smith at naked capitalism (who may just be the best and brightest economics blogger out there today, and has been closely following and reporting on this subject for months) has a great analysis on a proposal by DC thinktank Third Way to let the TBTF banks off the hook for their transgressions in mortgage processing. She calls it another bailout. If this is a subject you’re interested in, don’t miss it.
Great. The idiot specuvestors who choose to overpay by outbidding more qualified and more prudent buyers now think they deserve loan mods that reduce pricipal balances. So, based on this precedent, anytime somone overpays for something, and the price goes down afterward, as long as they borrowed against it, they are entitled to have the price (and corresponding debt) reduced?
The mass insanity is remarkable. I guess everyone should outbid everyone else — but be sure to borrow all or most of the money used to bid — and we can just reduce our price and debt after the fact. It’s all good. Nope, no moral hazard issues there!
January 13, 2011 at 8:11 PM #653990Participant[quote=SK in CV]Yves Smith at naked capitalism (who may just be the best and brightest economics blogger out there today, and has been closely following and reporting on this subject for months) has a great analysis on a proposal by DC thinktank Third Way to let the TBTF banks off the hook for their transgressions in mortgage processing. She calls it another bailout. If this is a subject you’re interested in, don’t miss it.
Great. The idiot specuvestors who choose to overpay by outbidding more qualified and more prudent buyers now think they deserve loan mods that reduce pricipal balances. So, based on this precedent, anytime somone overpays for something, and the price goes down afterward, as long as they borrowed against it, they are entitled to have the price (and corresponding debt) reduced?
The mass insanity is remarkable. I guess everyone should outbid everyone else — but be sure to borrow all or most of the money used to bid — and we can just reduce our price and debt after the fact. It’s all good. Nope, no moral hazard issues there!
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