[Deal Hunter]

The most troubling part of the testimony was when Ben "assured" the rep from Illinois that the "[Dollar] is doing fine and that there is no question that the world accepts the U.S. Dollar are the reserve currency and will continue to respect it as such…"

Weird because that wasn't even the question the Rep asked.  He was asking Bernanke to explain t-bill spreads and why mortgage rates went up as the Fed funds went down.  Bernanke went completely around the explanation and just blurted that manure about the Dollar being strong.

Strange.

[Deal Hunter]

There’s a big difference between Fannie and Freddie “buying” mortgages and “insuring” them.

They still need to “buy” the mortgages, which means they still need to have capital or credit to do so. Back to the same problem everyone else has. Just because caps were lifted doesn’t mean money will now be thrown at them to buy up all those “iffy” mortgages for “iffy” people.

So with limited capital, they will need to stick to insuring mortgages instead of buying them outright – to make the limited capital go farther. Now, to insure mortgages, they have to asses risk – which means insuring the better loans under stricter standards.

Er, seems we’re back where we started.

[Deal Hunter]

There’s a big difference between Fannie and Freddie “buying” mortgages and “insuring” them.

They still need to “buy” the mortgages, which means they still need to have capital or credit to do so. Back to the same problem everyone else has. Just because caps were lifted doesn’t mean money will now be thrown at them to buy up all those “iffy” mortgages for “iffy” people.

So with limited capital, they will need to stick to insuring mortgages instead of buying them outright – to make the limited capital go farther. Now, to insure mortgages, they have to asses risk – which means insuring the better loans under stricter standards.

Er, seems we’re back where we started.

[Deal Hunter]

There’s a big difference between Fannie and Freddie “buying” mortgages and “insuring” them.

They still need to “buy” the mortgages, which means they still need to have capital or credit to do so. Back to the same problem everyone else has. Just because caps were lifted doesn’t mean money will now be thrown at them to buy up all those “iffy” mortgages for “iffy” people.

So with limited capital, they will need to stick to insuring mortgages instead of buying them outright – to make the limited capital go farther. Now, to insure mortgages, they have to asses risk – which means insuring the better loans under stricter standards.

Er, seems we’re back where we started.

[Deal Hunter]

There’s a big difference between Fannie and Freddie “buying” mortgages and “insuring” them.

They still need to “buy” the mortgages, which means they still need to have capital or credit to do so. Back to the same problem everyone else has. Just because caps were lifted doesn’t mean money will now be thrown at them to buy up all those “iffy” mortgages for “iffy” people.

So with limited capital, they will need to stick to insuring mortgages instead of buying them outright – to make the limited capital go farther. Now, to insure mortgages, they have to asses risk – which means insuring the better loans under stricter standards.

Er, seems we’re back where we started.

[Deal Hunter]

There’s a big difference between Fannie and Freddie “buying” mortgages and “insuring” them.

They still need to “buy” the mortgages, which means they still need to have capital or credit to do so. Back to the same problem everyone else has. Just because caps were lifted doesn’t mean money will now be thrown at them to buy up all those “iffy” mortgages for “iffy” people.

So with limited capital, they will need to stick to insuring mortgages instead of buying them outright – to make the limited capital go farther. Now, to insure mortgages, they have to asses risk – which means insuring the better loans under stricter standards.

Er, seems we’re back where we started.

[Deal Hunter]

Was this a refi on an existing rental property or on a new investment?

2) Borrower must prove 2 year history of being a landlord with signed tax returns and schedule E's

Is this in addition to the rental's proforma?

What is the current max LTV for FNMA non owner occ these days?

[Deal Hunter]

Was this a refi on an existing rental property or on a new investment?

2) Borrower must prove 2 year history of being a landlord with signed tax returns and schedule E's

Is this in addition to the rental's proforma?

What is the current max LTV for FNMA non owner occ these days?

[Deal Hunter]

Was this a refi on an existing rental property or on a new investment?

2) Borrower must prove 2 year history of being a landlord with signed tax returns and schedule E's

Is this in addition to the rental's proforma?

What is the current max LTV for FNMA non owner occ these days?

[Deal Hunter]

Was this a refi on an existing rental property or on a new investment?

2) Borrower must prove 2 year history of being a landlord with signed tax returns and schedule E's

Is this in addition to the rental's proforma?

What is the current max LTV for FNMA non owner occ these days?

[Deal Hunter]

Was this a refi on an existing rental property or on a new investment?

2) Borrower must prove 2 year history of being a landlord with signed tax returns and schedule E's

Is this in addition to the rental's proforma?

What is the current max LTV for FNMA non owner occ these days?

[Deal Hunter]

*sigh* HLS, I know you are the resident mortgage guru on this forum, but please don't condescend. You're not the only one who knows the exact difference between a payment recast and principal reamortization.

You said, "don't believe that there is a lender on the planet that doesn't credit extra principal monthly…" And you are right. In the CC example I gave earlier, the disclosure is clear. Any payments to principal are credited each time the payment is made. However, the principal amount from which the interest is determined is calculated on the loan's principal balance on annual anniversary date of the loan. 

I point this out because things like this is what makes these loans suck.  I happen to have found this feature in a Chevy Chase loan I am helping a distressed homeowner modify.  Believe me, I have learned more about mortgage loan details in the past 6 months than I care to know about for the rest of my life.  It's the bad information that no one tells you about that is the danger these days.

[Deal Hunter]

*sigh* HLS, I know you are the resident mortgage guru on this forum, but please don't condescend. You're not the only one who knows the exact difference between a payment recast and principal reamortization.

You said, "don't believe that there is a lender on the planet that doesn't credit extra principal monthly…" And you are right. In the CC example I gave earlier, the disclosure is clear. Any payments to principal are credited each time the payment is made. However, the principal amount from which the interest is determined is calculated on the loan's principal balance on annual anniversary date of the loan. 

I point this out because things like this is what makes these loans suck.  I happen to have found this feature in a Chevy Chase loan I am helping a distressed homeowner modify.  Believe me, I have learned more about mortgage loan details in the past 6 months than I care to know about for the rest of my life.  It's the bad information that no one tells you about that is the danger these days.

[Deal Hunter]

*sigh* HLS, I know you are the resident mortgage guru on this forum, but please don't condescend. You're not the only one who knows the exact difference between a payment recast and principal reamortization.

You said, "don't believe that there is a lender on the planet that doesn't credit extra principal monthly…" And you are right. In the CC example I gave earlier, the disclosure is clear. Any payments to principal are credited each time the payment is made. However, the principal amount from which the interest is determined is calculated on the loan's principal balance on annual anniversary date of the loan. 

I point this out because things like this is what makes these loans suck.  I happen to have found this feature in a Chevy Chase loan I am helping a distressed homeowner modify.  Believe me, I have learned more about mortgage loan details in the past 6 months than I care to know about for the rest of my life.  It's the bad information that no one tells you about that is the danger these days.

[Deal Hunter]

*sigh* HLS, I know you are the resident mortgage guru on this forum, but please don't condescend. You're not the only one who knows the exact difference between a payment recast and principal reamortization.

You said, "don't believe that there is a lender on the planet that doesn't credit extra principal monthly…" And you are right. In the CC example I gave earlier, the disclosure is clear. Any payments to principal are credited each time the payment is made. However, the principal amount from which the interest is determined is calculated on the loan's principal balance on annual anniversary date of the loan. 

I point this out because things like this is what makes these loans suck.  I happen to have found this feature in a Chevy Chase loan I am helping a distressed homeowner modify.  Believe me, I have learned more about mortgage loan details in the past 6 months than I care to know about for the rest of my life.  It's the bad information that no one tells you about that is the danger these days.

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