Combined with Fannie Mae and Freddie Mac

Archy1 | Dec 26, 2012 02:27 PM ET Comments such as: shut down Fannis and Freddie, Obama as a Free Ride, free money forever, I want my free house. All show one thing. Many have been fooled by the bank\`s and Wallstreet\`s propaganda Kool Aid. The place where blame should lie is the criminal behavior perpetrated by our financial institutions who figured out how to manipulate our mortgages into credit default swaps, derivatives and worst of all Mortgage Securitization. The poor end user is chastized for not knowing that Wallstreet was profiting from mortgage failure. This was not the worst real estate collapse in US history because of some normal economic cycle. We were duped into the great Amercian mortgage heist and then blamed for it. Wise up fellow commentors.

rk | Dec 26, 2012 02:41 PM ET [\"Combined with Fannie Mae and Freddie Mac, which buy loans and repackage them as securities for investors, Washington\`s footprint in the market has grown to account for nearly nine of every 10 mortgages.\"]_________________________________How can there NOT be a bubble here ? Government GSEs should not be touching 9 out of every 10 mortgages. We need to cut those numbers in half ! How about letting private industry perform these functions. This is a great example of why government can\`t seem to cut spending. These programs just grow and grow and grow. Some social engineering projects are best left to the local communities.

tradereye | Dec 26, 2012 02:50 PM ET JimR441 : I don\`t understand your theory. Refinance a mortgage at a LOWER rate than what was taken out originally....and you are presuming that the bank will accept a lower rate of interest on their note? Who is going to go along with that? I don\`t see any banks lining up to accept a lower rate of interest from ANYTHING....unless of course Uncle Sugar takes up the difference (ie: taxpayers that is). The multitudes of bank CEO\`s VP, Second VP\`s etc would veto anything that cuts into their huge bonuses and salaries.

JimR441 | Dec 26, 2012 03:36 PM ET No - not on their note. The financial institution makes a new loan. The original mortgage is paid off during the refi, and the new mortgage is based on the current rate. The critical factor is the borrower\`s ability to repay, as demonstrated by their credit history, just as in the past the loan was dependent on the value of the collateral. There isn\`t even an increased danger of a foreclosure -- if someone defaults on the new (lower) payment schedule they would have already lost their home based on the older (higher) schedule. You can see banks accepting a lower rate of interest every day, just by looking at current mortgage rates in the newspaper . . .

TEA_BAGGIN_IDIOT | Dec 26, 2012 04:07 PM ET What kind of dummy buys a house....I rent a fine house and Section 8 pays 100% of my rent.....so....I guess you taxpayers are supporting me.....thanks!

MOS250 | Dec 26, 2012 04:09 PM ET my buddy\`s aunt makes $76/hour on the laptop. She has been without a job for 9 months but last month her pay was $12677 just working on the laptop for a few hours. Here\`s the site to read more tiny.cc/w4vkpw

TEA_BAGGIN_IDIOT | Dec 26, 2012 04:09 PM ET oh....thanks for the food stamps and medicaid too.....my pregnant girlfriend thanks you too.....along with all my dependent children....eight right now.....nine is coming.

tradereye | Dec 26, 2012 04:48 PM ET JimR441 : yes, I understand there is a new note. Point is: presumably you would have to extend t he payment time frame to get a noticeable drop in payment (ie: from 360 months 600 months (from 30 years to 50 years, for example). An average 2% drop in rate percentage (3% average from approx 5 or 6) would not make that much difference, if the borrower was already at their income ratio and the closing costs would hurt if added onto the pile. Property taxes are going up everywhere and that would have to be factored in for wiggle room. I just don\`t see that lowering an interest rate ALONE would make that much difference without also adjusting the time frame and I truly don\`t think any bank is going to be happy about doing that. If a lower interest rate was the magic formula, I think






Start a Conversation - Add Comments

Your Comment: ( Please enter all fields and security code. )

Name:
Email:
Website:
Topic:
Comments:
 
Word Verification:
 

Latest Comments

we`ve back to mortgages with 100% financing and refinancing at 95% - Mr.Clumpus | Feb 5, 2013 11:39 AM ET Just recently Diana was gloom and doom about housing. Now we`re in a bubble. LOL

j_m_h | Feb 5, 2013 11:40 AM ET One of the signs of a new bubble ... - by Mort2482

US Mortgage Applications Post Big Drop - matt1966 | Dec 19, 2012 10:32 AM ET Loan demand drying up? Oh, that`s ez to fix. Just start lowering the standards- It`s only a matter of time before the drumbeat to do that occurs. Or maybe there wo... - by Max64

People cannot manage their own finances and overextend themselves - David Simons March 20, 2013 Great. First these people cannot manage their own finances and overextend themselves. Then they go bankrupt. Then I/We pay. THEN they go out and try again. And why are r... - by EMaTeo

US Consumer Watchdog Tightens Mortgage Lending Rules on Banks - matt1966 | Jan 10, 2013 05:11 AM ET It`s a shame that it`s taken until now to codify these common sense rules. On the other hand, it`s a shame that it`s even necessary to codify these common sense ru... - by GZ3C

the banks are holding a ton of homes - MandyBrazil | Jan 22, 2013 01:04 PM ET @Mr.Clumpus what if the prices are forced to go up because those holding the supply are hoarding them? in plain simple terms, the banks are holding a ton of hom... - by VZZ8752



Combined with Fannie Mae and Freddie Mac

Real Estate Agent Directory

Are you looking for a real estate agent in your area? At housing news blog, you can search for your local realtor and real estate service by using our agent search features.

Real Estate Agent Directory

Get listed!

Are you a real estate agent? Get listed for free with us! Complete a real estate agent profile form and get listed in a few days. Click on the link below to get started!

Free agent profile!