[TerpsandHorns]

IT WAS JUST A MATTER OF TIME..

POLITCAL KNEE-JERK SUICIDES ARE NOW WARMING UP...

1. Hillary Clinton somehow has the idea that at least 2 billion dollars of US taxpayer money should be used for direct bailout of delinquent mortgages.

...what an absurd polarizing "in the moment" political bad idea.

Do the 40% of renters want to see homeowners get "free" money from extra taxation? Do the 90% of homeowners who pay on time want their deadbeat neighbor to get "free" money from extra taxation? Why is this a good idea to simply give amnesty at the cost of others to people who mismanaged their debt?

2. Shoomer and Obama want to eliminate Lender to Broker Compensation.

......once again my profession is at fault. We are an evil greedy cabal of unscrupulous subhumans who caused all this....huh????

Lender to Broker Wholesale relationships are a vital way of ensuring competition that leads to reduced costs. Lenders don't want to bear the costs of direct origination marketing and reference generation. They reward brokers who bring them loans. It insures a one on one customer service personal focused lending experience.

........

Why are these politicians looking to move in directions that can only hurt the recovery?

Direct Government bailout will lead to rising taxes, further restricted lending, and non-stop defaults as Uncle Sam is always there as a hero to deadbeats of the world.

Hampering the ability of mortgage brokers to earn a living will force all loans into the hands of a few giant lenders. Broker will not exist to facilitate the lending experience. It will all fall into large institutional lending. I cannot imagine having 2 or 3 choices of lenders will be cheaper than having 2 or 3 hundred thousand choices of brokers.

[SHEPNYC]

Originally Posted by TerpsandHorns

I admit that I am a closeted MSNBC economic junkie 24-7.

Today's stock market is getting crushed. This credit epidemic is disastrous. The USA economy is cratering out of control.

What a difference a day makes!

Market up 247 today!

[jfkIII]

Originally Posted by SHEPNYC

What a difference a day makes!

Market up 247 today!

...just like a ride on the roller coaster out front of NYNY!

[dano]

dude66 nailed it above.

It seems to me for the last 10 or more years our economy has been driven by "bubbles". First the dot.com mess driven by Wall Street and average investor greed. Then the housing bubble driven by builder/lender/investor greed. Prior that that was a sharp and relatively long-lived recession in the late 80's/early 90's that was blamed on a real estate down-turn. My suspiscion is that that was the beginning of a permanent economic downturn as a result of globalization and the U.S. loosing its manufacturing base mostly as a result of "The China Price". So far we have put 10 years of bandaids on the inevidable.

[cjski21]

Actually, I agree with what you have just said. Something does need to be done. Having grown up in Detroit and visiting family in Flint, I have seen firsthand what the de-industrialization of this country is like. It is not a pretty sight, and I fear that this fate awaits our country at some point.

[gulfer]

My fear is someone in the Government will pass somethings to bail these people out. How many people who's homes value has doubled took out an equity loan and blew the money? Say it isn'to s- My tax dollars can be wasted much better then that!!
Terp: I respect your posts so I don't want to throw stones, but it's hard for me to see having to pay a broker 3% on a 300,000 home sale because you process my paperwork.
How about this for an idea: Buyers get out and find the house they want. Hire a realtor for 1000.00 so they can represent you, pay a broker 1000.00 to process your paperwork. Your 300,000 less a minimum of 6% (yes - 18K) now has become a 282,000 home plus 2K for realtor/broker fees. Now, if the realtor has to work much harder for some buyers the price should be higher. But 9K!!! Not sure I buy that. Well, I guess if I want the home I do

[sheriff]

Well, fortunately, the LV market is flooded with illegal money of all types. The legitimate citizens in LV will sell their children to maintain the lifestyle which they have grown accustomed to---no worries---it's just Las Vegas.

[jfkIII]

Las Vegas...the collapse of the modern city...a textbook case study.

[sheriff]

Originally Posted by jfkIII

Las Vegas...the collapse of the modern city...a textbook case study.

You know, I agree, but I've been feeling that for about 40 years.

[olecapt]

Originally Posted by sheriff

You know, I agree, but I've been feeling that for about 40 years.

And your progeny may also feel it in another 40 years...if the paranoid gene breeds true.