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Old 08-21-2019, 08:14 PM
 
Location: Around and about
598 posts, read 392,093 times
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They're baaackkk!!

https://www.investmentwatchblog.com/...sky-borrowers/
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Old 08-22-2019, 10:18 AM
 
3,594 posts, read 7,778,311 times
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This is a non-article, basically clickbait SPAM. Non-QM has been around for several years and has stringent guidelines, specifically involving LTV.
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Old 08-22-2019, 10:20 AM
 
1,155 posts, read 804,965 times
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This is so disturbing! We have a neighbor who is a broker, and even he is uncomfortable with this trend. I know of a distant family member who did a cash-out re-fi last month and bought a bunch of new “toys” and paid off credit cards. Imbecilic.
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Old 08-22-2019, 10:22 AM
 
1,155 posts, read 804,965 times
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Quote:
Originally Posted by Pfhtex View Post
This is a non-article, basically clickbait SPAM. Non-QM has been around for several years and has stringent guidelines, specifically involving LTV.
That is a lie! This was on Fox Business this morning! I know of people doing it as well as a mortgage broker neighbor who told us lending is changing not for the good. Its risky business again. “Stringent” will be a moot point if these homeowners go to sell and find their home values down and they took out fake equity cash loans.
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Old 08-22-2019, 11:33 AM
 
3,594 posts, read 7,778,311 times
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Quote:
Originally Posted by Sharpydove View Post
That is a lie! This was on Fox Business this morning! I know of people doing it as well as a mortgage broker neighbor who told us lending is changing not for the good. Its risky business again. “Stringent” will be a moot point if these homeowners go to sell and find their home values down and they took out fake equity cash loans.
Oh, well, if it was on Fox Business News...

Google "Non-QM." Been around at least five years.

You know "a lot" of people "doing it." No you don't.

You clearly do not know anything about banking, lending, or mortgage.

I can't begin to decipher your last sentence but let's give it a shot:

The whole LTV thing refers to non-QM loans requiring large down payments, and, if a refinance, limiting the loan amount to, yes, a stringent level, versus the appraised value of the home.

And what is a fake equity cash loan?? Where have you seen these? If you refer to a second mortgage line of credit, there is no such thing as a non-QM HELOC. And, if you're talking about a first-mortgage cashout, those loan amounts are hard to get, and the loan amounts are limited to 70-75% of the value of the home.

Among non-QM options, there are no 2/29 ARMs with prepayment penalties, there are no low-fico no-down-payment loans, there are no low-fico SISA loans, there are no low-fico non-owner-occupied no-down-payment loans with teaser rates.

You simply do not have the slightest clue what you are talking about.
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Old 08-22-2019, 12:09 PM
 
Location: Gainesville, FL
318 posts, read 71,204 times
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Quote:
Originally Posted by Pfhtex View Post
This is a non-article, basically clickbait SPAM. Non-QM has been around for several years and has stringent guidelines, specifically involving LTV.
The link posted is clickbait. Click through to the WSJ article, though. It goes over how it’s not new but more big banks are following suit.
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Old 08-22-2019, 12:24 PM
 
Location: Middle of the ocean
32,397 posts, read 20,410,524 times
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Quote:
Originally Posted by Pfhtex View Post
This is a non-article, basically clickbait SPAM. Non-QM has been around for several years and has stringent guidelines, specifically involving LTV.
No, it is also in the Wall Street Journal.
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Old 08-22-2019, 01:34 PM
 
3,594 posts, read 7,778,311 times
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Quote:
Originally Posted by Mikala43 View Post
No, it is also in the Wall Street Journal.
Oh, the Wall Street Journal: https://www.housingwire.com/articles...entional-loans



Where it says this:

But it noted that credit-ratings firms point out that non-QM loans are vastly different – and safer than – their pre-crisis counterparts, thanks in part to “ability-to-repay” rules that require lenders to determine a borrower can pay off their debt and improved underwriting and due diligence practices.
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Old 08-22-2019, 02:13 PM
 
Location: Around and about
598 posts, read 392,093 times
Reputation: 1031
Quote:
Originally Posted by Pfhtex View Post
Oh, the Wall Street Journal: https://www.housingwire.com/articles...entional-loans



Where it says this:

But it noted that credit-ratings firms point out that non-QM loans are vastly different – and safer than – their pre-crisis counterparts, thanks in part to “ability-to-repay” rules that require lenders to determine a borrower can pay off their debt and improved underwriting and due diligence practices.





https://www.wsj.com/articles/mortgag...rs-11566379802
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Old 08-22-2019, 02:40 PM
 
1,155 posts, read 804,965 times
Reputation: 2159
Quote:
Originally Posted by Pfhtex View Post
Oh, well, if it was on Fox Business News...

Google "Non-QM." Been around at least five years.

You know "a lot" of people "doing it." No you don't.

You clearly do not know anything about banking, lending, or mortgage.

I can't begin to decipher your last sentence but let's give it a shot:

The whole LTV thing refers to non-QM loans requiring large down payments, and, if a refinance, limiting the loan amount to, yes, a stringent level, versus the appraised value of the home.

And what is a fake equity cash loan?? Where have you seen these? If you refer to a second mortgage line of credit, there is no such thing as a non-QM HELOC. And, if you're talking about a first-mortgage cashout, those loan amounts are hard to get, and the loan amounts are limited to 70-75% of the value of the home.

Among non-QM options, there are no 2/29 ARMs with prepayment penalties, there are no low-fico no-down-payment loans, there are no low-fico SISA loans, there are no low-fico non-owner-occupied no-down-payment loans with teaser rates.

You simply do not have the slightest clue what you are talking about.

I guess i touched a nerve. Yes, i do know people getting cash-out re-fis who have absolutely no business obtaining them. Despite your delusions, they are NOT hard to get any longer and that is the problem and what is being discussed on many outlets. People with low credit scores are being encouraged to get them and use the cash to pay off things. Ridiculous.
A “stringent level” is a crock of bull poop. Its based on an appraisal...a best guess estimate of what the property is worth that day. Did you know that (gasp) property values can DROP??? Drop below what you owe after you take your big pile of spending cash and blow through it.
Big banks joining in on the fun now.


https://finance.yahoo.com/news/citig...120312906.html
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