[patientrenter]

Kevin, this seems a fun but very academic topic.

I think everyone assumes that the GSEs really are “too big to fail”. The public discussion of the silent but assumed federal government guarantee of their debts (and support for their role in propping up home prices) is widespread and never denied by Congress. What are the odds that a majority in Congress will vote to pull the plug on the GSEs? A majority of voters want home prices to stay as high as possible, so I’d say it’s as close to zilch as you can get in politics.

Patient renter in OC

[patientrenter]

Kevin, this seems a fun but very academic topic.

I think everyone assumes that the GSEs really are “too big to fail”. The public discussion of the silent but assumed federal government guarantee of their debts (and support for their role in propping up home prices) is widespread and never denied by Congress. What are the odds that a majority in Congress will vote to pull the plug on the GSEs? A majority of voters want home prices to stay as high as possible, so I’d say it’s as close to zilch as you can get in politics.

Patient renter in OC

[patientrenter]

Kevin, this seems a fun but very academic topic.

I think everyone assumes that the GSEs really are “too big to fail”. The public discussion of the silent but assumed federal government guarantee of their debts (and support for their role in propping up home prices) is widespread and never denied by Congress. What are the odds that a majority in Congress will vote to pull the plug on the GSEs? A majority of voters want home prices to stay as high as possible, so I’d say it’s as close to zilch as you can get in politics.

Patient renter in OC

[patientrenter]

Kevin, this seems a fun but very academic topic.

I think everyone assumes that the GSEs really are “too big to fail”. The public discussion of the silent but assumed federal government guarantee of their debts (and support for their role in propping up home prices) is widespread and never denied by Congress. What are the odds that a majority in Congress will vote to pull the plug on the GSEs? A majority of voters want home prices to stay as high as possible, so I’d say it’s as close to zilch as you can get in politics.

Patient renter in OC

[patientrenter]

Kev, if the borrower can’t afford the current monthly payment, then the lender can lower it for a few more years to avoid a foreclosure during that period. Then the lender re-evaluates the market and the borrower’s ability to pay at the end of that extension and repeats the extension only if necessary. To lower the rate more than a few years out at any one time seems unnecessary and very expensive to me.

Patient renter in OC

[patientrenter]

Kev, if the borrower can’t afford the current monthly payment, then the lender can lower it for a few more years to avoid a foreclosure during that period. Then the lender re-evaluates the market and the borrower’s ability to pay at the end of that extension and repeats the extension only if necessary. To lower the rate more than a few years out at any one time seems unnecessary and very expensive to me.

Patient renter in OC

[patientrenter]

Kev, if the borrower can’t afford the current monthly payment, then the lender can lower it for a few more years to avoid a foreclosure during that period. Then the lender re-evaluates the market and the borrower’s ability to pay at the end of that extension and repeats the extension only if necessary. To lower the rate more than a few years out at any one time seems unnecessary and very expensive to me.

Patient renter in OC

[patientrenter]

Kev, if the borrower can’t afford the current monthly payment, then the lender can lower it for a few more years to avoid a foreclosure during that period. Then the lender re-evaluates the market and the borrower’s ability to pay at the end of that extension and repeats the extension only if necessary. To lower the rate more than a few years out at any one time seems unnecessary and very expensive to me.

Patient renter in OC

[patientrenter]

Kev, if the borrower can’t afford the current monthly payment, then the lender can lower it for a few more years to avoid a foreclosure during that period. Then the lender re-evaluates the market and the borrower’s ability to pay at the end of that extension and repeats the extension only if necessary. To lower the rate more than a few years out at any one time seems unnecessary and very expensive to me.

Patient renter in OC

[patientrenter]

Any lender that converts a variable rate loan to a 5% rate that’s fixed for 30 years, to prevent an imminent default, is nuts. Why would a lender fix the rate this far below market for longer than a few more years?

Patient renter in OC

[patientrenter]

Any lender that converts a variable rate loan to a 5% rate that’s fixed for 30 years, to prevent an imminent default, is nuts. Why would a lender fix the rate this far below market for longer than a few more years?

Patient renter in OC

[patientrenter]

Any lender that converts a variable rate loan to a 5% rate that’s fixed for 30 years, to prevent an imminent default, is nuts. Why would a lender fix the rate this far below market for longer than a few more years?

Patient renter in OC

[patientrenter]

Any lender that converts a variable rate loan to a 5% rate that’s fixed for 30 years, to prevent an imminent default, is nuts. Why would a lender fix the rate this far below market for longer than a few more years?

Patient renter in OC

[patientrenter]

Any lender that converts a variable rate loan to a 5% rate that’s fixed for 30 years, to prevent an imminent default, is nuts. Why would a lender fix the rate this far below market for longer than a few more years?

Patient renter in OC

[patientrenter]

duplicate

Patient renter in OC

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