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Bloomberg.com: Worldwide
Feb. 5 (Bloomberg) -- Fannie Mae, the mortgage-finance company under U.S. government control, will loosen rules for homeowners seeking to lower their loan payments by refinancing.
Fannie Mae will drop some credit-score requirements, reduce income-documentation standards and waive the need for appraisals in some cases,
Is this a WTF moment or just business as usual and not to be noticed?
Bloomberg.com: Worldwide
Feb. 5 (Bloomberg) -- Fannie Mae, the mortgage-finance company under U.S. government control, will loosen rules for homeowners seeking to lower their loan payments by refinancing.
Fannie Mae will drop some credit-score requirements, reduce income-documentation standards and waive the need for appraisals in some cases,
Is this a WTF moment or just business as usual and not to be noticed?
Judging from crap like this, I do believe we are a nation of idiots.
Just thought I'd highlight the key part you're overlooking.
It is still a failure to assure they can afford the new amount and that the home is worth the amount being refinanced. Copyright doesn't allow posting the entire link. A high percentage of those who did refinance to avoid foreclosure are late again on their payments.
http://www.cnbc.com/id/29028031 (broken link)
US housing markets from Florida to California have suffered price drops of 50 percent or more from their peak, but now, at long last, a bottom is within sight, likely in the fourth quarter nationally, according to a report from Moody's Economy.com.
Where in the peak to trough is any housing market and individual house value? How do you determine the market value of a neighborhood or house without an appraisal. Who will be gaining or losing if the house is refinanced at a higher or lower rate? Will a truer market value be obvious in a year? What if the house is refinanced at a lower rate then the market is and the owner then has measurable equity while the original note holder has a loss?
Just thought I'd highlight the key part you're overlooking.
You are kidding me aren't you? key part I was overlooking? Read the thread title and that is highlighted. The word refinance is in the thread title! Did you just see my name and jump in to argue without reading the thread title? Y
I've been looking forward towards an opportunity where we could finally butt heads.
In answer to your question, no. As pointed out this is a program to keep borrowers from simply walking away from their debt.
There is an ancillary issue that hasn't gotten much notice. In cities like Cleveland, the problem they are facing is that when borrowers walk away from their homes, the homes become abandoned. Once abandoned the home becomes the target of thieves who strip the home of wiring and plumbing reducing the value of the property to a point in which it is uninhabitable. As a result, the city is forced to bulldoze the property.
It is better to keep people in their homes whether they are delinquent or not.
I've been looking forward towards an opportunity where we could finally butt heads.
In answer to your question, no. As pointed out this is a program to keep borrowers from simply walking away from their debt.
There is an ancillary issue that hasn't gotten much notice. In cities like Cleveland, the problem they are facing is that when borrowers walk away from their homes, the homes become abandoned. Once abandoned the home becomes the target of thieves who strip the home of wiring and plumbing reducing the value of the property to a point in which it is uninhabitable. As a result, the city is forced to bulldoze the property.
It is better to keep people in their homes whether they are delinquent or not.
This also drives down property values for those who own their homes.
You are kidding me aren't you? key part I was overlooking? Read the thread title and that is highlighted. The word refinance is in the thread title! Did you just see my name and jump in to argue without reading the thread title? Y
But do you think the problem with the housing crisis involved people refinancing at a lower interest rate with a loan with the same principal amount? It didn't. It occurred because people borrowed more money they could afford to purchase their homes, and because people took more and more equity out of their homes. It did not occur because people with mortgages simply refinanced their mortgage to a lower rate.
The program as described is not intended to help people purchase new homes, or get more equity out of their current homes. Rather, it's intended to help people lower their monthly payments, with the hope that they'll be able to afford those payments, won't be foreclosed on, won't have to find new housing, and won't have yet another blighted property in the middle of a neighborhood pulling down property values. For those who aren't in such dire straits, it might give them a little more spending money which they can use to purchase things which might give a little bit of help to the economy.
I've been looking forward towards an opportunity where we could finally butt heads.
In answer to your question, no. As pointed out this is a program to keep borrowers from simply walking away from their debt.
There is an ancillary issue that hasn't gotten much notice. In cities like Cleveland, the problem they are facing is that when borrowers walk away from their homes, the homes become abandoned. Once abandoned the home becomes the target of thieves who strip the home of wiring and plumbing reducing the value of the property to a point in which it is uninhabitable. As a result, the city is forced to bulldoze the property.
It is better to keep people in their homes whether they are delinquent or not.
No disagreement with the intent. But think of the dialog over the last two years and does it make sense knowing how perception is everything? Compromising steps to rush them through can create another set of cards that if they fall will bring down the house even more. Much of the promise with refinancing was that it would be for people who were worthy and not just dead beats. How is that being determined without any checks?
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