What is FNMA smoking

BrianBallsOfSteel | Jan 30, 2013 08:12 PM ET the hell of it is, even if the MTM price of the mortgage goes down...if they hold it until maturity, or until it is paid off...ie the house is sold...then no loss occurs...only a reduced return compared to the current rate...this is the fallacy of MTM accounting...

Harryjh | Jan 30, 2013 08:24 PM ET It`s a fact. Times change and interest rates follow the times. In the 80`s the rates were 18 to 20% for aaa mortgage borrowers. Home prices in the mid $20s to $35,000. Now, rates are 3.5%, No Points, and homes are in the $80,000 t0 $450,000 range excluding high end properties. Prices are continuing to drop even if the propaganda states they are rising. Short sales continue to put pressure on the appraiser to come in with the value needed for the refi or purchase loans to close. Since 1972, I`ve seen rates up and down, but nothing like today, where lenders are requiring prior to doc conditions that make no sense. Fear is the order of the day and stress in the real estate lending community is the result of insane lender underwriting conditions. Stability in real estate values ca

stupid_liberal | Jan 30, 2013 09:04 PM ET hey stu, why dont we talk about the Community Reinvestment Act? Because it is irrelevant to the discussion...thats why. ---- So, forcing banks to lend to the poor is irrelevant to the housing crisis? A true democrat idiot speaks. And yes, Obama just extended the anti-redlining restrictions. People, as long as democrat idiots can get away with lies and anti-economic debt, USA will stay in decline. And this doesn`t count the unfunded liabilities from the democrat entitlements. The only two meaningful questions are 1. when will it implode and 2. who will THE Obama Media blame. We know idiots like Brian will eat up everything THE Obama Media say and write. Effing idiots get what they deserve, eventually. Facts are stubborn things. -Stu

BrianBallsOfSteel | Jan 30, 2013 10:11 PM ET we are talking about refinances today...not brokedick mortgages 5-10 years ago...so your bringing up the CRA is irrelevant to this discussion... you are right that the CRA was a dumb idea...I agree with you...but that is not what this article is about...

tarandfeathers | Jan 30, 2013 10:17 PM ET And what happens to home prices when interest rates go up Ballsofbutter? I rest my case!

Masterpiece25 | Jan 30, 2013 10:28 PM ET Harryjh, you nailed it. The hoops I had to jump through to get my last property were utterly f`ing retarded. I also lost 2 deals as a result of said retardation $%&@!

Masterpiece25 | Jan 30, 2013 10:30 PM ET For instance, I had to show the underwriters a signed rental contract....for a house I hadn`t even purchased yet! What is FNMA smoking??

rob1951 | Jan 30, 2013 10:44 PM ET Are we already back to the house as piggybank refi take money out mentality. Mortgage rates are way too low 3.6% loans don`t even cover the projected default rate let alone inflation. A true non FED sponsered mortgage rate would be about 7% about par to a corporate C grade Junk Bond which is what a mortgage really is. We need to let the market set interest rates and home prices to what real income levels and private capital dictate as appropriate. While we are at it, the government needs to stop underwritting student loans. Easy term low or no money down non maket based loans just create unwanted inflation and government debt for the rest of us.

BrianBallsOfSteel | Jan 30, 2013 11:50 PM ET tarandfeathers | Jan 30, 2013 10:17 PM ET And what happens to home prices when interest rates go up Ballsofbutter? I rest my case! ========= dont rest so fast, tarhead... just when do you think rates will skyrocket...somewhat higher rates will get people off their asses to buy! but do you really think rates will be going up a lot very soon? Do you? rates will be low for a long long time...even if they go up 25pct...still low...very low...might just get people off their asses... that is part of the fed rationale buying MBS`s...give the banks a ready market for mortgages...so they arent so concerned that they have to hold all the mortgages they write... but we are talking about REFI`s...not original mortgages...re-read the article and then come back with a cogent point.

BrianBallsOfSteel | Jan 30, 2013 11:51 PM ET Masterpiece25 | Jan 30, 2013 10:30 PM ET For instance, I had to show the underwriters a signed rental contract....for a house I hadn`t even purchased yet! What is FNMA smoking?? ========= that means you couldnt qualify without the rental income...what is it, did you read a book on income property? LOL.

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