[Effective Demand]

Watching mortgage underwriting guidelines is a great way for determining the direction of housing. Personally I’ve been doing so since early 2006. Right now it is much easier to track underwriting for the whole market since there are basically 3 major guidelines, Fannie, Freddie and FHA. Some lenders will have more restrictive overlays over the top but in general reading about Fannie/Freddie/FHA guidelines will get you a great idea of what is going on.

That said, I don’t see any huge underwriting changes on the horizon, they’ve raised min ficos somewhat over time and reduced max DTI but (IMHO!) the vast majority of restrictive guidelines are in the past.

The issue addressed in the article is a company (Citi) in this case not underwriting to the guidelines they said they were following. In reviewing the mortgages that they had purchased from Citi , Freddie had determined they were flawed. Basically, Citi is being sloppy. This is NOT the same as huge underwriting guideline changes coming down the pike from Fannie/Freddie/FHA, it is just that Citi will have to clean up their underwriting and get their paperwork in order.

I dont see this as a huge driver of a contraction of mortgage credit and its effect on the market will be negligble.

[Effective Demand]

Watching mortgage underwriting guidelines is a great way for determining the direction of housing. Personally I’ve been doing so since early 2006. Right now it is much easier to track underwriting for the whole market since there are basically 3 major guidelines, Fannie, Freddie and FHA. Some lenders will have more restrictive overlays over the top but in general reading about Fannie/Freddie/FHA guidelines will get you a great idea of what is going on.

That said, I don’t see any huge underwriting changes on the horizon, they’ve raised min ficos somewhat over time and reduced max DTI but (IMHO!) the vast majority of restrictive guidelines are in the past.

The issue addressed in the article is a company (Citi) in this case not underwriting to the guidelines they said they were following. In reviewing the mortgages that they had purchased from Citi , Freddie had determined they were flawed. Basically, Citi is being sloppy. This is NOT the same as huge underwriting guideline changes coming down the pike from Fannie/Freddie/FHA, it is just that Citi will have to clean up their underwriting and get their paperwork in order.

I dont see this as a huge driver of a contraction of mortgage credit and its effect on the market will be negligble.

[Effective Demand]

Watching mortgage underwriting guidelines is a great way for determining the direction of housing. Personally I’ve been doing so since early 2006. Right now it is much easier to track underwriting for the whole market since there are basically 3 major guidelines, Fannie, Freddie and FHA. Some lenders will have more restrictive overlays over the top but in general reading about Fannie/Freddie/FHA guidelines will get you a great idea of what is going on.

That said, I don’t see any huge underwriting changes on the horizon, they’ve raised min ficos somewhat over time and reduced max DTI but (IMHO!) the vast majority of restrictive guidelines are in the past.

The issue addressed in the article is a company (Citi) in this case not underwriting to the guidelines they said they were following. In reviewing the mortgages that they had purchased from Citi , Freddie had determined they were flawed. Basically, Citi is being sloppy. This is NOT the same as huge underwriting guideline changes coming down the pike from Fannie/Freddie/FHA, it is just that Citi will have to clean up their underwriting and get their paperwork in order.

I dont see this as a huge driver of a contraction of mortgage credit and its effect on the market will be negligble.

[Effective Demand]

Watching mortgage underwriting guidelines is a great way for determining the direction of housing. Personally I’ve been doing so since early 2006. Right now it is much easier to track underwriting for the whole market since there are basically 3 major guidelines, Fannie, Freddie and FHA. Some lenders will have more restrictive overlays over the top but in general reading about Fannie/Freddie/FHA guidelines will get you a great idea of what is going on.

That said, I don’t see any huge underwriting changes on the horizon, they’ve raised min ficos somewhat over time and reduced max DTI but (IMHO!) the vast majority of restrictive guidelines are in the past.

The issue addressed in the article is a company (Citi) in this case not underwriting to the guidelines they said they were following. In reviewing the mortgages that they had purchased from Citi , Freddie had determined they were flawed. Basically, Citi is being sloppy. This is NOT the same as huge underwriting guideline changes coming down the pike from Fannie/Freddie/FHA, it is just that Citi will have to clean up their underwriting and get their paperwork in order.

I dont see this as a huge driver of a contraction of mortgage credit and its effect on the market will be negligble.

[Effective Demand]

Watching mortgage underwriting guidelines is a great way for determining the direction of housing. Personally I’ve been doing so since early 2006. Right now it is much easier to track underwriting for the whole market since there are basically 3 major guidelines, Fannie, Freddie and FHA. Some lenders will have more restrictive overlays over the top but in general reading about Fannie/Freddie/FHA guidelines will get you a great idea of what is going on.

That said, I don’t see any huge underwriting changes on the horizon, they’ve raised min ficos somewhat over time and reduced max DTI but (IMHO!) the vast majority of restrictive guidelines are in the past.

The issue addressed in the article is a company (Citi) in this case not underwriting to the guidelines they said they were following. In reviewing the mortgages that they had purchased from Citi , Freddie had determined they were flawed. Basically, Citi is being sloppy. This is NOT the same as huge underwriting guideline changes coming down the pike from Fannie/Freddie/FHA, it is just that Citi will have to clean up their underwriting and get their paperwork in order.

I dont see this as a huge driver of a contraction of mortgage credit and its effect on the market will be negligble.

[Effective Demand]

[quote=SD Realtor]Nothing makes them more special effective demand. The truth of the matter is that I don’t really care. The other truth is that for the handyman making 30k a year, that 900 buck job that he may or may not have reported income on is more important to him then to me. The bottom line is that this policy will probably hurt many lower wage earners then the wealthier people that employ them. Again, I don’t really care one way or another, but I know alot of people in those shoes and they are pretty unhappy about it.[/quote]

This will only hurt those being dishonest and not reporting income. Suprisingly, I’m ok with that.

[Effective Demand]

[quote=SD Realtor]Nothing makes them more special effective demand. The truth of the matter is that I don’t really care. The other truth is that for the handyman making 30k a year, that 900 buck job that he may or may not have reported income on is more important to him then to me. The bottom line is that this policy will probably hurt many lower wage earners then the wealthier people that employ them. Again, I don’t really care one way or another, but I know alot of people in those shoes and they are pretty unhappy about it.[/quote]

This will only hurt those being dishonest and not reporting income. Suprisingly, I’m ok with that.

[Effective Demand]

[quote=SD Realtor]Nothing makes them more special effective demand. The truth of the matter is that I don’t really care. The other truth is that for the handyman making 30k a year, that 900 buck job that he may or may not have reported income on is more important to him then to me. The bottom line is that this policy will probably hurt many lower wage earners then the wealthier people that employ them. Again, I don’t really care one way or another, but I know alot of people in those shoes and they are pretty unhappy about it.[/quote]

This will only hurt those being dishonest and not reporting income. Suprisingly, I’m ok with that.

[Effective Demand]

[quote=SD Realtor]Nothing makes them more special effective demand. The truth of the matter is that I don’t really care. The other truth is that for the handyman making 30k a year, that 900 buck job that he may or may not have reported income on is more important to him then to me. The bottom line is that this policy will probably hurt many lower wage earners then the wealthier people that employ them. Again, I don’t really care one way or another, but I know alot of people in those shoes and they are pretty unhappy about it.[/quote]

This will only hurt those being dishonest and not reporting income. Suprisingly, I’m ok with that.

[Effective Demand]

[quote=SD Realtor]Nothing makes them more special effective demand. The truth of the matter is that I don’t really care. The other truth is that for the handyman making 30k a year, that 900 buck job that he may or may not have reported income on is more important to him then to me. The bottom line is that this policy will probably hurt many lower wage earners then the wealthier people that employ them. Again, I don’t really care one way or another, but I know alot of people in those shoes and they are pretty unhappy about it.[/quote]

This will only hurt those being dishonest and not reporting income. Suprisingly, I’m ok with that.

[Effective Demand]

[quote=SD Realtor]It is not hard to do but it is a pain in the ass. It hurts the providers for the service alot more then the landlords. Lots of handymen type and other guys who do an honest days work will now be 1099’d for alot more of the work they used to not declare.

So good thing our govt is there to track them down and squeeze every cent out of them.[/quote]

Curious, What makes handymen so special that they get to cheat on their taxes and not be criminals?

I do an honest days work too, can I cheat on my taxes?

[Effective Demand]

[quote=SD Realtor]It is not hard to do but it is a pain in the ass. It hurts the providers for the service alot more then the landlords. Lots of handymen type and other guys who do an honest days work will now be 1099’d for alot more of the work they used to not declare.

So good thing our govt is there to track them down and squeeze every cent out of them.[/quote]

Curious, What makes handymen so special that they get to cheat on their taxes and not be criminals?

I do an honest days work too, can I cheat on my taxes?

[Effective Demand]

[quote=SD Realtor]It is not hard to do but it is a pain in the ass. It hurts the providers for the service alot more then the landlords. Lots of handymen type and other guys who do an honest days work will now be 1099’d for alot more of the work they used to not declare.

So good thing our govt is there to track them down and squeeze every cent out of them.[/quote]

Curious, What makes handymen so special that they get to cheat on their taxes and not be criminals?

I do an honest days work too, can I cheat on my taxes?

[Effective Demand]

[quote=SD Realtor]It is not hard to do but it is a pain in the ass. It hurts the providers for the service alot more then the landlords. Lots of handymen type and other guys who do an honest days work will now be 1099’d for alot more of the work they used to not declare.

So good thing our govt is there to track them down and squeeze every cent out of them.[/quote]

Curious, What makes handymen so special that they get to cheat on their taxes and not be criminals?

I do an honest days work too, can I cheat on my taxes?

[Effective Demand]

[quote=SD Realtor]It is not hard to do but it is a pain in the ass. It hurts the providers for the service alot more then the landlords. Lots of handymen type and other guys who do an honest days work will now be 1099’d for alot more of the work they used to not declare.

So good thing our govt is there to track them down and squeeze every cent out of them.[/quote]

Curious, What makes handymen so special that they get to cheat on their taxes and not be criminals?

I do an honest days work too, can I cheat on my taxes?

[Author]

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