Knife catchers jump in

[Eugene]

By the way, the lending standard is tightening. So if you don’t have 20%+ down, good credit score etc, you theoretically will be “priced out forever” soon.

I think it’s a big misconception. “Tightening lending standards” only apply to private lenders. Government is doing the opposite. You can get a FHA loan of up to $625,000 with 3% down, credit score of 660, and 45% gross DTI ratio. That does not qualify as “tightening” for me.

[peterb]

“I think it’s a big misconception. “Tightening lending standards” only apply to private lenders. Government is doing the opposite. You can get a FHA loan of up to $625,000 with 3% down, credit score of 660, and 45% gross DTI ratio.”

Interesting. As I learned in the mortgage business, the devils are inthe details. Any details here that may slow this down?
If not, this would be a strong inflationary force on the RE market as well as crowd out many lenders. If any are still interested in this market?

[peterb]

“I think it’s a big misconception. “Tightening lending standards” only apply to private lenders. Government is doing the opposite. You can get a FHA loan of up to $625,000 with 3% down, credit score of 660, and 45% gross DTI ratio.”

Interesting. As I learned in the mortgage business, the devils are inthe details. Any details here that may slow this down?
If not, this would be a strong inflationary force on the RE market as well as crowd out many lenders. If any are still interested in this market?

[peterb]

“I think it’s a big misconception. “Tightening lending standards” only apply to private lenders. Government is doing the opposite. You can get a FHA loan of up to $625,000 with 3% down, credit score of 660, and 45% gross DTI ratio.”

Interesting. As I learned in the mortgage business, the devils are inthe details. Any details here that may slow this down?
If not, this would be a strong inflationary force on the RE market as well as crowd out many lenders. If any are still interested in this market?

[peterb]

“I think it’s a big misconception. “Tightening lending standards” only apply to private lenders. Government is doing the opposite. You can get a FHA loan of up to $625,000 with 3% down, credit score of 660, and 45% gross DTI ratio.”

Interesting. As I learned in the mortgage business, the devils are inthe details. Any details here that may slow this down?
If not, this would be a strong inflationary force on the RE market as well as crowd out many lenders. If any are still interested in this market?

[peterb]

“I think it’s a big misconception. “Tightening lending standards” only apply to private lenders. Government is doing the opposite. You can get a FHA loan of up to $625,000 with 3% down, credit score of 660, and 45% gross DTI ratio.”

Interesting. As I learned in the mortgage business, the devils are inthe details. Any details here that may slow this down?
If not, this would be a strong inflationary force on the RE market as well as crowd out many lenders. If any are still interested in this market?

[carlsbadworker]

[quote=esmith]I think it’s a big misconception. “Tightening lending standards” only apply to private lenders. Government is doing the opposite. You can get a FHA loan of up to $625,000 with 3% down, credit score of 660, and 45% gross DTI ratio. That does not qualify as “tightening” for me. [/quote]

Yes, you are right. In fact, “Government-insured home loans in July soared to 29.1% of all home loan applications, up from 8.4% just 12 months earlier, reports the Mortgage Bankers Association”.
The problem is, if the foreclosure rates continue to increase or even if they hold steady, the FHA is left holding the bag. The FHA has been the only government agency that does not rely on taxpayers for funding, and operates solely on mortgage insurance premiums paid by homeowners with FHA-approved loans.
Of course, the government might change that one day, we will see…
But if the taxpayer money is on hook one day, it is really hard to justify not to tighten FHA loan standards.

[carlsbadworker]

[quote=esmith]I think it’s a big misconception. “Tightening lending standards” only apply to private lenders. Government is doing the opposite. You can get a FHA loan of up to $625,000 with 3% down, credit score of 660, and 45% gross DTI ratio. That does not qualify as “tightening” for me. [/quote]

Yes, you are right. In fact, “Government-insured home loans in July soared to 29.1% of all home loan applications, up from 8.4% just 12 months earlier, reports the Mortgage Bankers Association”.
The problem is, if the foreclosure rates continue to increase or even if they hold steady, the FHA is left holding the bag. The FHA has been the only government agency that does not rely on taxpayers for funding, and operates solely on mortgage insurance premiums paid by homeowners with FHA-approved loans.
Of course, the government might change that one day, we will see…
But if the taxpayer money is on hook one day, it is really hard to justify not to tighten FHA loan standards.

[carlsbadworker]

[quote=esmith]I think it’s a big misconception. “Tightening lending standards” only apply to private lenders. Government is doing the opposite. You can get a FHA loan of up to $625,000 with 3% down, credit score of 660, and 45% gross DTI ratio. That does not qualify as “tightening” for me. [/quote]

Yes, you are right. In fact, “Government-insured home loans in July soared to 29.1% of all home loan applications, up from 8.4% just 12 months earlier, reports the Mortgage Bankers Association”.
The problem is, if the foreclosure rates continue to increase or even if they hold steady, the FHA is left holding the bag. The FHA has been the only government agency that does not rely on taxpayers for funding, and operates solely on mortgage insurance premiums paid by homeowners with FHA-approved loans.
Of course, the government might change that one day, we will see…
But if the taxpayer money is on hook one day, it is really hard to justify not to tighten FHA loan standards.

[carlsbadworker]

[quote=esmith]I think it’s a big misconception. “Tightening lending standards” only apply to private lenders. Government is doing the opposite. You can get a FHA loan of up to $625,000 with 3% down, credit score of 660, and 45% gross DTI ratio. That does not qualify as “tightening” for me. [/quote]

Yes, you are right. In fact, “Government-insured home loans in July soared to 29.1% of all home loan applications, up from 8.4% just 12 months earlier, reports the Mortgage Bankers Association”.
The problem is, if the foreclosure rates continue to increase or even if they hold steady, the FHA is left holding the bag. The FHA has been the only government agency that does not rely on taxpayers for funding, and operates solely on mortgage insurance premiums paid by homeowners with FHA-approved loans.
Of course, the government might change that one day, we will see…
But if the taxpayer money is on hook one day, it is really hard to justify not to tighten FHA loan standards.

[carlsbadworker]

[quote=esmith]I think it’s a big misconception. “Tightening lending standards” only apply to private lenders. Government is doing the opposite. You can get a FHA loan of up to $625,000 with 3% down, credit score of 660, and 45% gross DTI ratio. That does not qualify as “tightening” for me. [/quote]

Yes, you are right. In fact, “Government-insured home loans in July soared to 29.1% of all home loan applications, up from 8.4% just 12 months earlier, reports the Mortgage Bankers Association”.
The problem is, if the foreclosure rates continue to increase or even if they hold steady, the FHA is left holding the bag. The FHA has been the only government agency that does not rely on taxpayers for funding, and operates solely on mortgage insurance premiums paid by homeowners with FHA-approved loans.
Of course, the government might change that one day, we will see…
But if the taxpayer money is on hook one day, it is really hard to justify not to tighten FHA loan standards.

[Bugs]

During the last bust we had (I believe) 3 mini- rallies between peak to trough. I can see no reason to believe this is anything other than another pause on the way down the hill.

We have a lot of forced-sale inventory coming yet and the pace of sales hasn’t increased so much as to mitigate that trend. We still have a gross oversupply and we’re still losing mortgage-quality employment.

I’m sure it will eventually turn around, but not yet.

[Bugs]

During the last bust we had (I believe) 3 mini- rallies between peak to trough. I can see no reason to believe this is anything other than another pause on the way down the hill.

We have a lot of forced-sale inventory coming yet and the pace of sales hasn’t increased so much as to mitigate that trend. We still have a gross oversupply and we’re still losing mortgage-quality employment.

I’m sure it will eventually turn around, but not yet.

[Bugs]

During the last bust we had (I believe) 3 mini- rallies between peak to trough. I can see no reason to believe this is anything other than another pause on the way down the hill.

We have a lot of forced-sale inventory coming yet and the pace of sales hasn’t increased so much as to mitigate that trend. We still have a gross oversupply and we’re still losing mortgage-quality employment.

I’m sure it will eventually turn around, but not yet.

[Bugs]

During the last bust we had (I believe) 3 mini- rallies between peak to trough. I can see no reason to believe this is anything other than another pause on the way down the hill.

We have a lot of forced-sale inventory coming yet and the pace of sales hasn’t increased so much as to mitigate that trend. We still have a gross oversupply and we’re still losing mortgage-quality employment.

I’m sure it will eventually turn around, but not yet.

[Author]

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