Unfortunate Details of the Bailout

[patientrenter]

FHA will be full doc until that proves to be an obstacle to supporting inflated home prices. Then some, er, flexibility will be introduced. The whole point of all these measures is to inflate home prices, to keep the majority of voters happy. Why would the pols stop until they have tried every old and new trick?

Here’s a Bloomberg article giving you a glimpse into how far along, and how radical, are the proposals being shaped right now to keep inflated home prices, and inflated asset prices generally, as inflated as possible.

http://www.bloomberg.com/apps/news?pid=20601103&sid=arcwG_0LM0lM&refer=us

Patient renter in OC

[SD Realtor]

Pasadena Broker I am glad you chimed in. I almost passed out when I got the email.

I have spoke to a few brokers today and I have received a variety of stories. The bottom line is that it all sounds somewhat subjective until we actually see the legislation 100% passed.

Let me be clear on this for everyone, I am by no means in favor of any of this. It is bad in just so many ways that I cannot begin to start.

JWM your point about nobody in the secondary market would buy this crud rings clear but dude… they are FHA insured man. FHA insured. FHA insured. See what I am saying?

Pasadena I am glad that these loans are all full doc but by the same token, if you compare lending guidelines that are in place right now as we type, with the guidelines that will be in affect once this legislation goes through, it will be easier for buyers to qualify tomorrow then it is today. Also there are new homebuyers that effectively are locked out of the market today that will not be tomorrow.

As for myself something like this really bums me out. Hopefully the effects will not be pronounced. I am not advocating for anyone to buy now but to say this will not result in some additional sales is something I do not agree with.

SD Realtor

[SD Realtor]

Pasadena Broker I am glad you chimed in. I almost passed out when I got the email.

I have spoke to a few brokers today and I have received a variety of stories. The bottom line is that it all sounds somewhat subjective until we actually see the legislation 100% passed.

Let me be clear on this for everyone, I am by no means in favor of any of this. It is bad in just so many ways that I cannot begin to start.

JWM your point about nobody in the secondary market would buy this crud rings clear but dude… they are FHA insured man. FHA insured. FHA insured. See what I am saying?

Pasadena I am glad that these loans are all full doc but by the same token, if you compare lending guidelines that are in place right now as we type, with the guidelines that will be in affect once this legislation goes through, it will be easier for buyers to qualify tomorrow then it is today. Also there are new homebuyers that effectively are locked out of the market today that will not be tomorrow.

As for myself something like this really bums me out. Hopefully the effects will not be pronounced. I am not advocating for anyone to buy now but to say this will not result in some additional sales is something I do not agree with.

SD Realtor

[SD Realtor]

Pasadena Broker I am glad you chimed in. I almost passed out when I got the email.

I have spoke to a few brokers today and I have received a variety of stories. The bottom line is that it all sounds somewhat subjective until we actually see the legislation 100% passed.

Let me be clear on this for everyone, I am by no means in favor of any of this. It is bad in just so many ways that I cannot begin to start.

JWM your point about nobody in the secondary market would buy this crud rings clear but dude… they are FHA insured man. FHA insured. FHA insured. See what I am saying?

Pasadena I am glad that these loans are all full doc but by the same token, if you compare lending guidelines that are in place right now as we type, with the guidelines that will be in affect once this legislation goes through, it will be easier for buyers to qualify tomorrow then it is today. Also there are new homebuyers that effectively are locked out of the market today that will not be tomorrow.

As for myself something like this really bums me out. Hopefully the effects will not be pronounced. I am not advocating for anyone to buy now but to say this will not result in some additional sales is something I do not agree with.

SD Realtor

[SD Realtor]

Pasadena Broker I am glad you chimed in. I almost passed out when I got the email.

I have spoke to a few brokers today and I have received a variety of stories. The bottom line is that it all sounds somewhat subjective until we actually see the legislation 100% passed.

Let me be clear on this for everyone, I am by no means in favor of any of this. It is bad in just so many ways that I cannot begin to start.

JWM your point about nobody in the secondary market would buy this crud rings clear but dude… they are FHA insured man. FHA insured. FHA insured. See what I am saying?

Pasadena I am glad that these loans are all full doc but by the same token, if you compare lending guidelines that are in place right now as we type, with the guidelines that will be in affect once this legislation goes through, it will be easier for buyers to qualify tomorrow then it is today. Also there are new homebuyers that effectively are locked out of the market today that will not be tomorrow.

As for myself something like this really bums me out. Hopefully the effects will not be pronounced. I am not advocating for anyone to buy now but to say this will not result in some additional sales is something I do not agree with.

SD Realtor

[SD Realtor]

Pasadena Broker I am glad you chimed in. I almost passed out when I got the email.

I have spoke to a few brokers today and I have received a variety of stories. The bottom line is that it all sounds somewhat subjective until we actually see the legislation 100% passed.

Let me be clear on this for everyone, I am by no means in favor of any of this. It is bad in just so many ways that I cannot begin to start.

JWM your point about nobody in the secondary market would buy this crud rings clear but dude… they are FHA insured man. FHA insured. FHA insured. See what I am saying?

Pasadena I am glad that these loans are all full doc but by the same token, if you compare lending guidelines that are in place right now as we type, with the guidelines that will be in affect once this legislation goes through, it will be easier for buyers to qualify tomorrow then it is today. Also there are new homebuyers that effectively are locked out of the market today that will not be tomorrow.

As for myself something like this really bums me out. Hopefully the effects will not be pronounced. I am not advocating for anyone to buy now but to say this will not result in some additional sales is something I do not agree with.

SD Realtor

[p-dude]

I think you all worry too much. If some one wants to
pay 4K for a house that collects 2k rents. Let them
go for it. If because of this new legislation same
house mortgage becomes 2k, I would buy it. It’s all
about PE and nothing else. At least this is the way I look at it!

After all set and done this will be another fail attempt
to bail out housing. Been there done that, super SIV,
bond insurance bail out, …….
Furthermore who the hell is going to buy this crap from
Fannie and Freddie. As far as I can tell they already in
deep with altA and non performing assets. Just take a
look at their stock.

As far as benefiting from this situation goes. I used to
invest in a fund that was following 10 yr yield. I made
some money out of it when fed was raising interest rate,
but nothing to write home about it. I think in long run
treasury would fall and interest on 10yr will have to
increase to attract investors. Especially with new budget
which came out today. If this what you are looking
for take a look at RYJAX. I probably put some money in it
after next rate cut.

Here is chart comparing it to 10yr yield.

http://finance.yahoo.com/charts#chart9:symbol=ryjax;range=2y
;compare=^tyx;charttype=line;crosshair=on;logscale=on;
source=undefined

[p-dude]

I think you all worry too much. If some one wants to
pay 4K for a house that collects 2k rents. Let them
go for it. If because of this new legislation same
house mortgage becomes 2k, I would buy it. It’s all
about PE and nothing else. At least this is the way I look at it!

After all set and done this will be another fail attempt
to bail out housing. Been there done that, super SIV,
bond insurance bail out, …….
Furthermore who the hell is going to buy this crap from
Fannie and Freddie. As far as I can tell they already in
deep with altA and non performing assets. Just take a
look at their stock.

As far as benefiting from this situation goes. I used to
invest in a fund that was following 10 yr yield. I made
some money out of it when fed was raising interest rate,
but nothing to write home about it. I think in long run
treasury would fall and interest on 10yr will have to
increase to attract investors. Especially with new budget
which came out today. If this what you are looking
for take a look at RYJAX. I probably put some money in it
after next rate cut.

Here is chart comparing it to 10yr yield.

http://finance.yahoo.com/charts#chart9:symbol=ryjax;range=2y
;compare=^tyx;charttype=line;crosshair=on;logscale=on;
source=undefined

[p-dude]

I think you all worry too much. If some one wants to
pay 4K for a house that collects 2k rents. Let them
go for it. If because of this new legislation same
house mortgage becomes 2k, I would buy it. It’s all
about PE and nothing else. At least this is the way I look at it!

After all set and done this will be another fail attempt
to bail out housing. Been there done that, super SIV,
bond insurance bail out, …….
Furthermore who the hell is going to buy this crap from
Fannie and Freddie. As far as I can tell they already in
deep with altA and non performing assets. Just take a
look at their stock.

As far as benefiting from this situation goes. I used to
invest in a fund that was following 10 yr yield. I made
some money out of it when fed was raising interest rate,
but nothing to write home about it. I think in long run
treasury would fall and interest on 10yr will have to
increase to attract investors. Especially with new budget
which came out today. If this what you are looking
for take a look at RYJAX. I probably put some money in it
after next rate cut.

Here is chart comparing it to 10yr yield.

http://finance.yahoo.com/charts#chart9:symbol=ryjax;range=2y
;compare=^tyx;charttype=line;crosshair=on;logscale=on;
source=undefined

[p-dude]

I think you all worry too much. If some one wants to
pay 4K for a house that collects 2k rents. Let them
go for it. If because of this new legislation same
house mortgage becomes 2k, I would buy it. It’s all
about PE and nothing else. At least this is the way I look at it!

After all set and done this will be another fail attempt
to bail out housing. Been there done that, super SIV,
bond insurance bail out, …….
Furthermore who the hell is going to buy this crap from
Fannie and Freddie. As far as I can tell they already in
deep with altA and non performing assets. Just take a
look at their stock.

As far as benefiting from this situation goes. I used to
invest in a fund that was following 10 yr yield. I made
some money out of it when fed was raising interest rate,
but nothing to write home about it. I think in long run
treasury would fall and interest on 10yr will have to
increase to attract investors. Especially with new budget
which came out today. If this what you are looking
for take a look at RYJAX. I probably put some money in it
after next rate cut.

Here is chart comparing it to 10yr yield.

http://finance.yahoo.com/charts#chart9:symbol=ryjax;range=2y
;compare=^tyx;charttype=line;crosshair=on;logscale=on;
source=undefined

[p-dude]

I think you all worry too much. If some one wants to
pay 4K for a house that collects 2k rents. Let them
go for it. If because of this new legislation same
house mortgage becomes 2k, I would buy it. It’s all
about PE and nothing else. At least this is the way I look at it!

After all set and done this will be another fail attempt
to bail out housing. Been there done that, super SIV,
bond insurance bail out, …….
Furthermore who the hell is going to buy this crap from
Fannie and Freddie. As far as I can tell they already in
deep with altA and non performing assets. Just take a
look at their stock.

As far as benefiting from this situation goes. I used to
invest in a fund that was following 10 yr yield. I made
some money out of it when fed was raising interest rate,
but nothing to write home about it. I think in long run
treasury would fall and interest on 10yr will have to
increase to attract investors. Especially with new budget
which came out today. If this what you are looking
for take a look at RYJAX. I probably put some money in it
after next rate cut.

Here is chart comparing it to 10yr yield.

http://finance.yahoo.com/charts#chart9:symbol=ryjax;range=2y
;compare=^tyx;charttype=line;crosshair=on;logscale=on;
source=undefined

[NotCranky]

Where does mortgage insurance fit into this?

For those who don’t know, this is how FHA supposedly works:

Mutual Mortgage Insurance Fund:
Government sponsored mortgage insurance administered by the Federal Housing Administration which insures mortgage loans on one- to four-family residential housing. The plan is designed to be self-funding, the FHA collects premiums from mortgagors and pays lender claims on losses from mortgage defaults. Borrowers pay a one time premium or MIP which is a part of the monthly payment. Maybe some of those big 6% seller contributions go to that?

On the bright side, Bidding on HUD repos is fun.

[NotCranky]

Where does mortgage insurance fit into this?

For those who don’t know, this is how FHA supposedly works:

Mutual Mortgage Insurance Fund:
Government sponsored mortgage insurance administered by the Federal Housing Administration which insures mortgage loans on one- to four-family residential housing. The plan is designed to be self-funding, the FHA collects premiums from mortgagors and pays lender claims on losses from mortgage defaults. Borrowers pay a one time premium or MIP which is a part of the monthly payment. Maybe some of those big 6% seller contributions go to that?

On the bright side, Bidding on HUD repos is fun.

[NotCranky]

Where does mortgage insurance fit into this?

For those who don’t know, this is how FHA supposedly works:

Mutual Mortgage Insurance Fund:
Government sponsored mortgage insurance administered by the Federal Housing Administration which insures mortgage loans on one- to four-family residential housing. The plan is designed to be self-funding, the FHA collects premiums from mortgagors and pays lender claims on losses from mortgage defaults. Borrowers pay a one time premium or MIP which is a part of the monthly payment. Maybe some of those big 6% seller contributions go to that?

On the bright side, Bidding on HUD repos is fun.

[NotCranky]

Where does mortgage insurance fit into this?

For those who don’t know, this is how FHA supposedly works:

Mutual Mortgage Insurance Fund:
Government sponsored mortgage insurance administered by the Federal Housing Administration which insures mortgage loans on one- to four-family residential housing. The plan is designed to be self-funding, the FHA collects premiums from mortgagors and pays lender claims on losses from mortgage defaults. Borrowers pay a one time premium or MIP which is a part of the monthly payment. Maybe some of those big 6% seller contributions go to that?

On the bright side, Bidding on HUD repos is fun.

[Author]

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