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Old 06-01-2009, 10:33 AM
 
Location: Fort Worth and Las Vegas
255 posts, read 556,915 times
Reputation: 73

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Report: Nevada leads in home-loan delinquencies

Report: Nevada leads in home-loan delinquencies - Las Vegas Sun
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Old 06-01-2009, 10:35 AM
 
Location: Fort Worth and Las Vegas
255 posts, read 556,915 times
Reputation: 73
How many homes do banks really own?

Some analysts have suggested that banks may have as many as 25,000 homes in foreclosure inventory that they have been holding back to prevent prices from dropping too far.

How many homes do banks really own? - Las Vegas Sun
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Old 06-01-2009, 01:31 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,847,817 times
Reputation: 958
Delinquincies do not a foreclosure make. As a matter of fact, most lenders won't even consider a short sale or modification unless the homeowner is 3 months behind on payments and are advising homeowners that if they want a mod (regardless of financial situation) that they will need to skip 3 payments (putting aside all legalities and ethics regarding advising a client to not make payments). How much of that 11%+ delinquency rate is due to note holders' advice to folks trying to mod or short sell I can't say.

However, again I refuse to call or not call bottom.
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Old 06-01-2009, 01:57 PM
 
Location: Fort Worth and Las Vegas
255 posts, read 556,915 times
Reputation: 73
Come on, you know you want to.
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Old 06-01-2009, 02:52 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,847,817 times
Reputation: 958
Quote:
Originally Posted by rpachigo View Post
Come on, you know you want to.

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Old 06-01-2009, 04:54 PM
 
Location: Fort Worth and Las Vegas
255 posts, read 556,915 times
Reputation: 73
What kind of rates are you offering these days for investors?
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Old 06-01-2009, 06:14 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,847,817 times
Reputation: 958
The absolute best I am seeing right now is 5.625% with 1 origination pt and no discount pts, assuming a 740+ FICO, 25% down, single family home, and a $125,000 loan amount. With no points at all you would be looking at 6.25%. The bond markets fell off of another cliff today so pricing will be worse tomorrow. We had gained back about 50% of last Wednesday's losses on Friday, and then lost another 100+ bps today, bringing the grand total since Wednesday to around a 300 bps loss in pricing in less than a week (4 business days to be exact). I wonder what happened to .gov's QE effort?
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Old 06-01-2009, 06:32 PM
 
1,347 posts, read 2,448,277 times
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Quote:
Originally Posted by Daddys///M3 View Post
I wonder what happened to .gov's QE effort?
The Fed can only buy so much. As the equity markets continue to rally, investor's appetite for risk returns. They're dumping treasury debt and moving back into equities.
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Old 06-01-2009, 07:10 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,847,817 times
Reputation: 958
Quote:
Originally Posted by tony soprano View Post
The Fed can only buy so much. As the equity markets continue to rally, investor's appetite for risk returns. They're dumping treasury debt and moving back into equities.
According to my calculations, they still have a committed $1 trillion to buy mortgage bonds alone. I am also aware of the basic relationship between fixed income and equities as it pertains to investment strategy. What I don't understand is how on Wednesday the DJIA was relatively flat, but the benchmark 4.0 FNMA 30 yr bond lost 200 bps in pricing, and before the day was out the 4.0 was no longer the benchmark and the 4.5 was (it's not anymore), or how MBS rallied on Friday with a flat to slightly up DJIA. On top of all that I can't for the life of me figure out what is driving the equities rally. In my defense I don't really follow the stock market, so if it is something silly (at least these days) like actual market fundamentals that is driving the rally then I must apologize for my lack of insight. I somehow get the feeling that it is not market fundamentals driving the rally though.

That being said, today was textbook (as far as fixed incomes vs equities go). However I fear that real money (particularly foreign) investors selling on fear based on certain comments by certain rating agencies, as well as the rumor (I still can't seem to confirm it) that China is liquidating a portion of it's US debt holdings, is what is actually driving the massive sell off of MBS.
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Old 06-01-2009, 07:34 PM
 
Location: Fort Worth and Las Vegas
255 posts, read 556,915 times
Reputation: 73
Quote:
Originally Posted by Daddys///M3 View Post
The absolute best I am seeing right now is 5.625% with 1 origination pt and no discount pts, assuming a 740+ FICO, 25% down, single family home, and a $125,000 loan amount. With no points at all you would be looking at 6.25%. The bond markets fell off of another cliff today so pricing will be worse tomorrow. We had gained back about 50% of last Wednesday's losses on Friday, and then lost another 100+ bps today, bringing the grand total since Wednesday to around a 300 bps loss in pricing in less than a week (4 business days to be exact). I wonder what happened to .gov's QE effort?
I'm alright with all that except the loan amount. If the loan amount is less, what rate did you have today?
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