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bsrsharma
Participantif Hillary or Obama picks up this football
Just to clarify, my use of the term "political" is to mean as public policy, not so much Bush/Hillary/Obama angle. I am wondering what may be the public policy response to simultaneous existence of millions of former home owners who may not be creditworthy to be renters and millions of empty homes. And to state the obvious, former home owners will be angry and bitter voters while empty homes can't vote!
ParticipantI think that half-million will be the new magic number…
Yes, $521,250 is the Magic Number. I am predicting a Limbo dance around that.
ParticipantI think that half-million will be the new magic number…
Yes, $521,250 is the Magic Number. I am predicting a Limbo dance around that.
ParticipantI think that half-million will be the new magic number…
Yes, $521,250 is the Magic Number. I am predicting a Limbo dance around that.
August 19, 2007 at 12:38 PM in reply to: What’s with the Kool-Aid doom-and-gloom “Jumbo loans are going to disappear” #77971ParticipantAnd why are the down payments higher for larger amounts?
They are riskier. Can't sell to GSE. Lender has to hold due to lack of MBS support.
August 19, 2007 at 12:38 PM in reply to: What’s with the Kool-Aid doom-and-gloom “Jumbo loans are going to disappear” #78095ParticipantAnd why are the down payments higher for larger amounts?
They are riskier. Can't sell to GSE. Lender has to hold due to lack of MBS support.
August 19, 2007 at 12:38 PM in reply to: What’s with the Kool-Aid doom-and-gloom “Jumbo loans are going to disappear” #78117ParticipantAnd why are the down payments higher for larger amounts?
They are riskier. Can't sell to GSE. Lender has to hold due to lack of MBS support.
August 19, 2007 at 12:21 PM in reply to: What’s with the Kool-Aid doom-and-gloom “Jumbo loans are going to disappear” #77951ParticipantI don’t think they will vanish. But once bitten lenders are going to demand larger down payments.
A random thought:
Loan amount Down payment
500K 20% = 100K
700K 30% = 210K
1M 40% = 400KAs you can see, the qualifying pool will shrink like melting snow.
August 19, 2007 at 12:21 PM in reply to: What’s with the Kool-Aid doom-and-gloom “Jumbo loans are going to disappear” #78074ParticipantI don’t think they will vanish. But once bitten lenders are going to demand larger down payments.
A random thought:
Loan amount Down payment
500K 20% = 100K
700K 30% = 210K
1M 40% = 400KAs you can see, the qualifying pool will shrink like melting snow.
August 19, 2007 at 12:21 PM in reply to: What’s with the Kool-Aid doom-and-gloom “Jumbo loans are going to disappear” #78096ParticipantI don’t think they will vanish. But once bitten lenders are going to demand larger down payments.
A random thought:
Loan amount Down payment
500K 20% = 100K
700K 30% = 210K
1M 40% = 400KAs you can see, the qualifying pool will shrink like melting snow.
ParticipantI would add another line to Borat’s list:
4. How many people satisfying 1,2,3 do not Already own a home. In this era of very high home ownership rate, it will be rare to find someone unencumbered by present ownership And having a lot of cash in a bank account. May be a few Piggingtonians; but who else?
ParticipantI would add another line to Borat’s list:
4. How many people satisfying 1,2,3 do not Already own a home. In this era of very high home ownership rate, it will be rare to find someone unencumbered by present ownership And having a lot of cash in a bank account. May be a few Piggingtonians; but who else?
ParticipantI would add another line to Borat’s list:
4. How many people satisfying 1,2,3 do not Already own a home. In this era of very high home ownership rate, it will be rare to find someone unencumbered by present ownership And having a lot of cash in a bank account. May be a few Piggingtonians; but who else?
ParticipantSD,
I will go with you. That still leaves the question: Who will live in those homes? There will be millions of ex-owners, who are unlikely to become owners. So, if those homes are not going to be owner occupied, to whom will the buyers rent it?
I don’t think there are millions of “Piggingtonians” who will swoop down, buy at a bargain paying 20+% down payment and live there. Just the sheer size of the (home losing) population is going to create its own dynamics. This is like a Southern California forest fire that creates its own weather system. And we have not even considered the political impact of all these. I don’t think the lenders can get away just playing by the rules of the mortgage contract. -
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