FNM/FRE to discontinue jumbo-conforming

[ucodegen]

I hope this is true and I hope 20% down payments become mandatory.

Hear hear.. and across the board too.. for all loans. One of the worst things that happened to low-income homebuyers was the Community Revitalization Act 1977 (and subsequent amendments/revisions). Before this act, most houses (median) were priced at about 3x gross income (median). Afterwords the ratio shot up. The result is that people (particularly low-income) pay a greater percentage of their income to cover ‘renting their own house‘ than any other expense. The secondary result is that discretionary income drops as well as the ability to save.

[peterb]

Looks like the govt may have a bailout for all that want it:

http://mrmortgage.ml-implode.com/2008/11/04/no-more-mortgage-payments-soon-get-ready-to-default/

[peterb]

Looks like the govt may have a bailout for all that want it:

http://mrmortgage.ml-implode.com/2008/11/04/no-more-mortgage-payments-soon-get-ready-to-default/

[peterb]

Looks like the govt may have a bailout for all that want it:

http://mrmortgage.ml-implode.com/2008/11/04/no-more-mortgage-payments-soon-get-ready-to-default/

[peterb]

Looks like the govt may have a bailout for all that want it:

http://mrmortgage.ml-implode.com/2008/11/04/no-more-mortgage-payments-soon-get-ready-to-default/

[peterb]

Looks like the govt may have a bailout for all that want it:

http://mrmortgage.ml-implode.com/2008/11/04/no-more-mortgage-payments-soon-get-ready-to-default/

[Eugene]

[quote=ucodegen]
Hear hear.. and across the board too.. for all loans. One of the worst things that happened to low-income homebuyers was the Community Revitalization Act 1977 (and subsequent amendments/revisions). Before this act, most houses (median) were priced at about 3x gross income (median). Afterwords the ratio shot up. The result is that people (particularly low-income) pay a greater percentage of their income to cover ‘renting their own house‘ than any other expense. The secondary result is that discretionary income drops as well as the ability to save.

[/quote]

All else equal, it is harder for a low-income homebuyer to save enough money for 20% of 3x his gross income. Basic cost of living is the same for everyone – non-discretionary expenses constitute greater fraction of income. Above certain level, every extra dollar of income (less taxes) can be saved. Thus it’s much easier to save 120k when you make 200k than to save 30k when you make 50k.

Mandatory 20% down payment for everyone would push disproportionate numbers of low-income families into rentals and disproportionate numbers of low-income houses into investors’ hands.

[Eugene]

[quote=ucodegen]
Hear hear.. and across the board too.. for all loans. One of the worst things that happened to low-income homebuyers was the Community Revitalization Act 1977 (and subsequent amendments/revisions). Before this act, most houses (median) were priced at about 3x gross income (median). Afterwords the ratio shot up. The result is that people (particularly low-income) pay a greater percentage of their income to cover ‘renting their own house‘ than any other expense. The secondary result is that discretionary income drops as well as the ability to save.

[/quote]

All else equal, it is harder for a low-income homebuyer to save enough money for 20% of 3x his gross income. Basic cost of living is the same for everyone – non-discretionary expenses constitute greater fraction of income. Above certain level, every extra dollar of income (less taxes) can be saved. Thus it’s much easier to save 120k when you make 200k than to save 30k when you make 50k.

Mandatory 20% down payment for everyone would push disproportionate numbers of low-income families into rentals and disproportionate numbers of low-income houses into investors’ hands.

[Eugene]

[quote=ucodegen]
Hear hear.. and across the board too.. for all loans. One of the worst things that happened to low-income homebuyers was the Community Revitalization Act 1977 (and subsequent amendments/revisions). Before this act, most houses (median) were priced at about 3x gross income (median). Afterwords the ratio shot up. The result is that people (particularly low-income) pay a greater percentage of their income to cover ‘renting their own house‘ than any other expense. The secondary result is that discretionary income drops as well as the ability to save.

[/quote]

All else equal, it is harder for a low-income homebuyer to save enough money for 20% of 3x his gross income. Basic cost of living is the same for everyone – non-discretionary expenses constitute greater fraction of income. Above certain level, every extra dollar of income (less taxes) can be saved. Thus it’s much easier to save 120k when you make 200k than to save 30k when you make 50k.

Mandatory 20% down payment for everyone would push disproportionate numbers of low-income families into rentals and disproportionate numbers of low-income houses into investors’ hands.

[Eugene]

[quote=ucodegen]
Hear hear.. and across the board too.. for all loans. One of the worst things that happened to low-income homebuyers was the Community Revitalization Act 1977 (and subsequent amendments/revisions). Before this act, most houses (median) were priced at about 3x gross income (median). Afterwords the ratio shot up. The result is that people (particularly low-income) pay a greater percentage of their income to cover ‘renting their own house‘ than any other expense. The secondary result is that discretionary income drops as well as the ability to save.

[/quote]

All else equal, it is harder for a low-income homebuyer to save enough money for 20% of 3x his gross income. Basic cost of living is the same for everyone – non-discretionary expenses constitute greater fraction of income. Above certain level, every extra dollar of income (less taxes) can be saved. Thus it’s much easier to save 120k when you make 200k than to save 30k when you make 50k.

Mandatory 20% down payment for everyone would push disproportionate numbers of low-income families into rentals and disproportionate numbers of low-income houses into investors’ hands.

[Eugene]

[quote=ucodegen]
Hear hear.. and across the board too.. for all loans. One of the worst things that happened to low-income homebuyers was the Community Revitalization Act 1977 (and subsequent amendments/revisions). Before this act, most houses (median) were priced at about 3x gross income (median). Afterwords the ratio shot up. The result is that people (particularly low-income) pay a greater percentage of their income to cover ‘renting their own house‘ than any other expense. The secondary result is that discretionary income drops as well as the ability to save.

[/quote]

All else equal, it is harder for a low-income homebuyer to save enough money for 20% of 3x his gross income. Basic cost of living is the same for everyone – non-discretionary expenses constitute greater fraction of income. Above certain level, every extra dollar of income (less taxes) can be saved. Thus it’s much easier to save 120k when you make 200k than to save 30k when you make 50k.

Mandatory 20% down payment for everyone would push disproportionate numbers of low-income families into rentals and disproportionate numbers of low-income houses into investors’ hands.

[an]

[quote=esmith]
All else equal, it is harder for a low-income homebuyer to save enough money for 20% of 3x his gross income. Basic cost of living is the same for everyone – non-discretionary expenses constitute greater fraction of income. Above certain level, every extra dollar of income (less taxes) can be saved. Thus it’s much easier to save 120k when you make 200k than to save 30k when you make 50k.

Mandatory 20% down payment for everyone would push disproportionate numbers of low-income families into rentals and disproportionate numbers of low-income houses into investors’ hands.
[/quote]
I call B/S. I know low income people who live extremely frugal to save their 20% to buy their house. So it’s very doable if you put your mind to it. It won’t be as easy as if you make more money obviously, but it’s still doable. If they don’t have the will power and the discipline to save up that 20%, they shouldn’t be buying anyways. Easy money is what got us into this mess.

[an]

[quote=esmith]
All else equal, it is harder for a low-income homebuyer to save enough money for 20% of 3x his gross income. Basic cost of living is the same for everyone – non-discretionary expenses constitute greater fraction of income. Above certain level, every extra dollar of income (less taxes) can be saved. Thus it’s much easier to save 120k when you make 200k than to save 30k when you make 50k.

Mandatory 20% down payment for everyone would push disproportionate numbers of low-income families into rentals and disproportionate numbers of low-income houses into investors’ hands.
[/quote]
I call B/S. I know low income people who live extremely frugal to save their 20% to buy their house. So it’s very doable if you put your mind to it. It won’t be as easy as if you make more money obviously, but it’s still doable. If they don’t have the will power and the discipline to save up that 20%, they shouldn’t be buying anyways. Easy money is what got us into this mess.

[an]

[quote=esmith]
All else equal, it is harder for a low-income homebuyer to save enough money for 20% of 3x his gross income. Basic cost of living is the same for everyone – non-discretionary expenses constitute greater fraction of income. Above certain level, every extra dollar of income (less taxes) can be saved. Thus it’s much easier to save 120k when you make 200k than to save 30k when you make 50k.

Mandatory 20% down payment for everyone would push disproportionate numbers of low-income families into rentals and disproportionate numbers of low-income houses into investors’ hands.
[/quote]
I call B/S. I know low income people who live extremely frugal to save their 20% to buy their house. So it’s very doable if you put your mind to it. It won’t be as easy as if you make more money obviously, but it’s still doable. If they don’t have the will power and the discipline to save up that 20%, they shouldn’t be buying anyways. Easy money is what got us into this mess.

[an]

[quote=esmith]
All else equal, it is harder for a low-income homebuyer to save enough money for 20% of 3x his gross income. Basic cost of living is the same for everyone – non-discretionary expenses constitute greater fraction of income. Above certain level, every extra dollar of income (less taxes) can be saved. Thus it’s much easier to save 120k when you make 200k than to save 30k when you make 50k.

Mandatory 20% down payment for everyone would push disproportionate numbers of low-income families into rentals and disproportionate numbers of low-income houses into investors’ hands.
[/quote]
I call B/S. I know low income people who live extremely frugal to save their 20% to buy their house. So it’s very doable if you put your mind to it. It won’t be as easy as if you make more money obviously, but it’s still doable. If they don’t have the will power and the discipline to save up that 20%, they shouldn’t be buying anyways. Easy money is what got us into this mess.

[Author]

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