Home › Forums › Financial Markets/Economics › Spank your GSE day
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4plexowner.
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November 20, 2007 at 7:05 AM #10954November 20, 2007 at 9:25 AM #101642
TheBreeze
ParticipantActually, I believe Freddie crashed down today because they reported a $3+ dollar loss for the quarter. Freddie is trading for less than $30 currently. A few more quarters like that and they will be insolvent. Fannie probably went down because of the Freddie earnings report.
I would love to see both of these POSs fail and then have the government not bail them out. Then we would really see a decline in home prices. With no quasi-governmental entity to guarantee mortgages, we’d start to see home prices gravitate to their true market value. That would be a great day.
Also, I disagree that the decline is due to a fear of future bad loans being stuffed into Fannie and Freddie. Based on Freddie’s huge loss, it looks like the GSEs already have tons of bad loans on their books. I recently got pre-approved for a ~ $300K mortgage from ELoan. Since it could be sold to Fannie, I wouldn’t have had to put any money down — all my closing costs could be folded into the loan. I think Fannie and Freddie are backing the same crappy mortgage loans as every one else — they just have a whole bunch of smaller bad loans instead of a bunch of jumbo bad loans.
BTW, is it OK if this news about Freddie and Fannie makes me giddy? Because it does.
November 20, 2007 at 9:25 AM #101728TheBreeze
ParticipantActually, I believe Freddie crashed down today because they reported a $3+ dollar loss for the quarter. Freddie is trading for less than $30 currently. A few more quarters like that and they will be insolvent. Fannie probably went down because of the Freddie earnings report.
I would love to see both of these POSs fail and then have the government not bail them out. Then we would really see a decline in home prices. With no quasi-governmental entity to guarantee mortgages, we’d start to see home prices gravitate to their true market value. That would be a great day.
Also, I disagree that the decline is due to a fear of future bad loans being stuffed into Fannie and Freddie. Based on Freddie’s huge loss, it looks like the GSEs already have tons of bad loans on their books. I recently got pre-approved for a ~ $300K mortgage from ELoan. Since it could be sold to Fannie, I wouldn’t have had to put any money down — all my closing costs could be folded into the loan. I think Fannie and Freddie are backing the same crappy mortgage loans as every one else — they just have a whole bunch of smaller bad loans instead of a bunch of jumbo bad loans.
BTW, is it OK if this news about Freddie and Fannie makes me giddy? Because it does.
November 20, 2007 at 9:25 AM #101740TheBreeze
ParticipantActually, I believe Freddie crashed down today because they reported a $3+ dollar loss for the quarter. Freddie is trading for less than $30 currently. A few more quarters like that and they will be insolvent. Fannie probably went down because of the Freddie earnings report.
I would love to see both of these POSs fail and then have the government not bail them out. Then we would really see a decline in home prices. With no quasi-governmental entity to guarantee mortgages, we’d start to see home prices gravitate to their true market value. That would be a great day.
Also, I disagree that the decline is due to a fear of future bad loans being stuffed into Fannie and Freddie. Based on Freddie’s huge loss, it looks like the GSEs already have tons of bad loans on their books. I recently got pre-approved for a ~ $300K mortgage from ELoan. Since it could be sold to Fannie, I wouldn’t have had to put any money down — all my closing costs could be folded into the loan. I think Fannie and Freddie are backing the same crappy mortgage loans as every one else — they just have a whole bunch of smaller bad loans instead of a bunch of jumbo bad loans.
BTW, is it OK if this news about Freddie and Fannie makes me giddy? Because it does.
November 20, 2007 at 9:25 AM #101759TheBreeze
ParticipantActually, I believe Freddie crashed down today because they reported a $3+ dollar loss for the quarter. Freddie is trading for less than $30 currently. A few more quarters like that and they will be insolvent. Fannie probably went down because of the Freddie earnings report.
I would love to see both of these POSs fail and then have the government not bail them out. Then we would really see a decline in home prices. With no quasi-governmental entity to guarantee mortgages, we’d start to see home prices gravitate to their true market value. That would be a great day.
Also, I disagree that the decline is due to a fear of future bad loans being stuffed into Fannie and Freddie. Based on Freddie’s huge loss, it looks like the GSEs already have tons of bad loans on their books. I recently got pre-approved for a ~ $300K mortgage from ELoan. Since it could be sold to Fannie, I wouldn’t have had to put any money down — all my closing costs could be folded into the loan. I think Fannie and Freddie are backing the same crappy mortgage loans as every one else — they just have a whole bunch of smaller bad loans instead of a bunch of jumbo bad loans.
BTW, is it OK if this news about Freddie and Fannie makes me giddy? Because it does.
November 20, 2007 at 9:25 AM #101786TheBreeze
ParticipantActually, I believe Freddie crashed down today because they reported a $3+ dollar loss for the quarter. Freddie is trading for less than $30 currently. A few more quarters like that and they will be insolvent. Fannie probably went down because of the Freddie earnings report.
I would love to see both of these POSs fail and then have the government not bail them out. Then we would really see a decline in home prices. With no quasi-governmental entity to guarantee mortgages, we’d start to see home prices gravitate to their true market value. That would be a great day.
Also, I disagree that the decline is due to a fear of future bad loans being stuffed into Fannie and Freddie. Based on Freddie’s huge loss, it looks like the GSEs already have tons of bad loans on their books. I recently got pre-approved for a ~ $300K mortgage from ELoan. Since it could be sold to Fannie, I wouldn’t have had to put any money down — all my closing costs could be folded into the loan. I think Fannie and Freddie are backing the same crappy mortgage loans as every one else — they just have a whole bunch of smaller bad loans instead of a bunch of jumbo bad loans.
BTW, is it OK if this news about Freddie and Fannie makes me giddy? Because it does.
November 20, 2007 at 9:40 AM #101657justme
Participant4plexowner,
Do you think increasing the jumbo limit to 1M is a scheme to pawn already existing not-yet-but-soon-bad jumbo loans onto the taxpaying public? I have to say that it is brilliant if it works. Very evil. I’m impressed. NOT!
November 20, 2007 at 9:40 AM #101743justme
Participant4plexowner,
Do you think increasing the jumbo limit to 1M is a scheme to pawn already existing not-yet-but-soon-bad jumbo loans onto the taxpaying public? I have to say that it is brilliant if it works. Very evil. I’m impressed. NOT!
November 20, 2007 at 9:40 AM #101755justme
Participant4plexowner,
Do you think increasing the jumbo limit to 1M is a scheme to pawn already existing not-yet-but-soon-bad jumbo loans onto the taxpaying public? I have to say that it is brilliant if it works. Very evil. I’m impressed. NOT!
November 20, 2007 at 9:40 AM #101774justme
Participant4plexowner,
Do you think increasing the jumbo limit to 1M is a scheme to pawn already existing not-yet-but-soon-bad jumbo loans onto the taxpaying public? I have to say that it is brilliant if it works. Very evil. I’m impressed. NOT!
November 20, 2007 at 9:40 AM #101801justme
Participant4plexowner,
Do you think increasing the jumbo limit to 1M is a scheme to pawn already existing not-yet-but-soon-bad jumbo loans onto the taxpaying public? I have to say that it is brilliant if it works. Very evil. I’m impressed. NOT!
November 20, 2007 at 3:26 PM #1019504plexowner
ParticipantIncreasing loan limits to $1 mil creates more options for the 450,000 ARM mortgages that are going to reset EACH QUARTER in 2008
Some of these resetting mortgages could qualify for conforming GSE loans if the loan limits were increased – otherwise these people will be looking for jumbo mortgages that may or may not exist at affordable rates
~
Question for you, justme: do you think it is appropriate to offer $1 mil loans via programs that are intended for low-income people who are trying to purchase affordable housing? Do you have a problem that your tax dollars will back these $1 mil loans?
November 20, 2007 at 3:26 PM #1020314plexowner
ParticipantIncreasing loan limits to $1 mil creates more options for the 450,000 ARM mortgages that are going to reset EACH QUARTER in 2008
Some of these resetting mortgages could qualify for conforming GSE loans if the loan limits were increased – otherwise these people will be looking for jumbo mortgages that may or may not exist at affordable rates
~
Question for you, justme: do you think it is appropriate to offer $1 mil loans via programs that are intended for low-income people who are trying to purchase affordable housing? Do you have a problem that your tax dollars will back these $1 mil loans?
November 20, 2007 at 3:26 PM #1020424plexowner
ParticipantIncreasing loan limits to $1 mil creates more options for the 450,000 ARM mortgages that are going to reset EACH QUARTER in 2008
Some of these resetting mortgages could qualify for conforming GSE loans if the loan limits were increased – otherwise these people will be looking for jumbo mortgages that may or may not exist at affordable rates
~
Question for you, justme: do you think it is appropriate to offer $1 mil loans via programs that are intended for low-income people who are trying to purchase affordable housing? Do you have a problem that your tax dollars will back these $1 mil loans?
November 20, 2007 at 3:26 PM #1020654plexowner
ParticipantIncreasing loan limits to $1 mil creates more options for the 450,000 ARM mortgages that are going to reset EACH QUARTER in 2008
Some of these resetting mortgages could qualify for conforming GSE loans if the loan limits were increased – otherwise these people will be looking for jumbo mortgages that may or may not exist at affordable rates
~
Question for you, justme: do you think it is appropriate to offer $1 mil loans via programs that are intended for low-income people who are trying to purchase affordable housing? Do you have a problem that your tax dollars will back these $1 mil loans?
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