Housing: 2007 Thread.

[LegendKiller]

Originally posted by: Vic
It is because, as I predicted, almost no one can get a mortgage right now. So good luck in that bargain hunting you've been looking forward to!

That's funny, my coworker's brother just closed on a conforming loan in LA at 6% with 20% down.

Imagine that!

Even better, both he and another coworker both closed on Jumbo prime loans with 20% down at really good rates.

Wow!

Now who's being a bit extreme?


People who shouldn't have gotten a loan in the first place can't get a loan now. No big loss.

 

[Vic]

Originally posted by: LegendKiller

Originally posted by: Vic
It is because, as I predicted, almost no one can get a mortgage right now. So good luck in that bargain hunting you've been looking forward to!

That's funny, my coworker's brother just closed on a conforming loan in LA at 6% with 20% down.

Imagine that!

Even better, both he and another coworker both closed on Jumbo prime loans with 20% down at really good rates.

Wow!

Now who's being a bit extreme?


People who shouldn't have gotten a loan in the first place can't get a loan now. No big loss.

The conforming at 80% I believe. Fannie is still biz as usual for the most part. The Jumbos must have closed more than a month ago unless you believe that close to 8% and 2 points fee is "really good."

 

[LegendKiller]

Originally posted by: Vic

Originally posted by: LegendKiller

Originally posted by: Vic
It is because, as I predicted, almost no one can get a mortgage right now. So good luck in that bargain hunting you've been looking forward to!

That's funny, my coworker's brother just closed on a conforming loan in LA at 6% with 20% down.

Imagine that!

Even better, both he and another coworker both closed on Jumbo prime loans with 20% down at really good rates.

Wow!

Now who's being a bit extreme?


People who shouldn't have gotten a loan in the first place can't get a loan now. No big loss.

The conforming at 80% I believe. Fannie is still biz as usual for the most part. The Jumbos must have closed more than a month ago unless you believe that close to 8% and 2 points fee is "really good."

Nope, Jumbos are in pretty solid areas with people with 800+ credit scores assets and strong incomes.

 

[Vic]

Originally posted by: LegendKiller

Originally posted by: Vic

Originally posted by: LegendKiller

Originally posted by: Vic
It is because, as I predicted, almost no one can get a mortgage right now. So good luck in that bargain hunting you've been looking forward to!

That's funny, my coworker's brother just closed on a conforming loan in LA at 6% with 20% down.

Imagine that!

Even better, both he and another coworker both closed on Jumbo prime loans with 20% down at really good rates.

Wow!

Now who's being a bit extreme?


People who shouldn't have gotten a loan in the first place can't get a loan now. No big loss.

The conforming at 80% I believe. Fannie is still biz as usual for the most part. The Jumbos must have closed more than a month ago unless you believe that close to 8% and 2 points fee is "really good."

Nope, Jumbos are in pretty solid areas with people with 800+ credit scores assets and strong incomes.

/looks at his various direct rate sheets from Wells Fargo, Citi, and the like.

Nope, dude, you be trippin'.

 

[LegendKiller]

Originally posted by: Vic

Originally posted by: LegendKiller

Originally posted by: Vic

Originally posted by: LegendKiller

Originally posted by: Vic
It is because, as I predicted, almost no one can get a mortgage right now. So good luck in that bargain hunting you've been looking forward to!

That's funny, my coworker's brother just closed on a conforming loan in LA at 6% with 20% down.

Imagine that!

Even better, both he and another coworker both closed on Jumbo prime loans with 20% down at really good rates.

Wow!

Now who's being a bit extreme?


People who shouldn't have gotten a loan in the first place can't get a loan now. No big loss.

The conforming at 80% I believe. Fannie is still biz as usual for the most part. The Jumbos must have closed more than a month ago unless you believe that close to 8% and 2 points fee is "really good."

Nope, Jumbos are in pretty solid areas with people with 800+ credit scores assets and strong incomes.

/looks at his various direct rate sheets from Wells Fargo, Citi, and the like.

Nope, dude, you be trippin'.

Not sure where they got them,I just know that they're closed and I know they got good rates.

 

[Vic]

Originally posted by: LegendKiller

Originally posted by: Vic

Originally posted by: LegendKiller

Originally posted by: Vic

Originally posted by: LegendKiller

Originally posted by: Vic
It is because, as I predicted, almost no one can get a mortgage right now. So good luck in that bargain hunting you've been looking forward to!

That's funny, my coworker's brother just closed on a conforming loan in LA at 6% with 20% down.

Imagine that!

Even better, both he and another coworker both closed on Jumbo prime loans with 20% down at really good rates.

Wow!

Now who's being a bit extreme?


People who shouldn't have gotten a loan in the first place can't get a loan now. No big loss.

The conforming at 80% I believe. Fannie is still biz as usual for the most part. The Jumbos must have closed more than a month ago unless you believe that close to 8% and 2 points fee is "really good."

Nope, Jumbos are in pretty solid areas with people with 800+ credit scores assets and strong incomes.

/looks at his various direct rate sheets from Wells Fargo, Citi, and the like.

Nope, dude, you be trippin'.

Not sure where they got them,I just know that they're closed and I know they got good rates.

Well, if they locked a month or so ago, no issues. Now? Big issues.

 

[Slew Foot]

At this rate, I wont even need a loan, Ill pay the whole thing in cash!

 

[blackangst1]

Vic: out of curiousity how much of the secondary market would affect Fannie? My knowledge is mostly in asset securities, not so much in real estate. And if I remember arent they private? What does that do to their possible impact on securities?

 

[Vic]

Ask LK. He knows everything.

 

[Vic]

Originally posted by: Slew Foot
At this rate, I wont even need a loan, Ill pay the whole thing in cash!

Yep. 'Cause dollars will still be dollars when it takes a hundred and more of them to buy a Big Mac and fries... duh...

 

[theeedude]

I remember reading a story about this guy who bought an airline in Japan during the height of their real estate bubble, and that airline happened to own an office building. This guy sold this office building and got back what he paid for the airline, so he got the airline for free.

 

[Vic]

Originally posted by: senseamp
I remember reading a story about this guy who bought an airline in Japan during the height of their real estate bubble, and that airline happened to own an office building. This guy sold this office building and got back what he paid for the airline, so he got the airline for free.

I'm remembering this story about a guy I knew who dumped his life savings into Pets.com on the margin...

 

[theeedude]

Originally posted by: Vic

Originally posted by: senseamp
I remember reading a story about this guy who bought an airline in Japan during the height of their real estate bubble, and that airline happened to own an office building. This guy sold this office building and got back what he paid for the airline, so he got the airline for free.

I'm remembering this story about a guy I knew who dumped his life savings into Pets.com on the margin...

Here is PDF link to the article.

It is market lore that, in 1989, had the Emperor's Gardens in Tokyo
been offered for sale, they would have been worth more than all the
real estate in California.
Back in those bubbly times, the airlines analyst for Wertheim noted at
a morning meeting that Northwest Airlines' Tokyo office building was
probably worth a lot more than the company's market capitalization.
Al Cecchi, a corporate raider, picked up on that analysis, floated an
LBO, bought the company, sold the office building, and fulfilled his
dream of owning an airline that had cost him nothing. (He later had
a dream to be Democratic Governor of California, but he had, alas,
used up his quota of dreams that would come true.)

 

[blackangst1]

Originally posted by: blackangst1
Vic: out of curiousity how much of the secondary market would affect Fannie? My knowledge is mostly in asset securities, not so much in real estate. And if I remember arent they private? What does that do to their possible impact on securities?

LK?

 

[SiliconJon]

I'm starting to see real estate prices return towards (not yet to) sane prices northeast of St. Louis. People who want to sell are having to sell them for much more reasonable prices in order to move them. Awesome linkage Dullard.

 

[LegendKiller]

Originally posted by: blackangst1
Vic: out of curiousity how much of the secondary market would affect Fannie? My knowledge is mostly in asset securities, not so much in real estate. And if I remember arent they private? What does that do to their possible impact on securities?

Both Fannie and Freddie are public. I haven't looked at any of their debt, I believe they may be trading a little wider than before, but I don't have time to look at bloomberg right now. Freddie and Fannie both are GSEs, as I am sure you know, which people take as an implicit guarantee by the government to cover losses, which isn't wholly correct, since there is no guarantee agreeement but many believe the govt would help. However, that doesn't stop the market from pricing in some type of guarantee, as F&F bonds are seen as higher rated. They have recently looked at expanding their holdings of subprime paper and an increase in the jumbo area.

Keep in mind that they largely trade in prime conforming loans, so they are, for the most part, unaffected materially by the recent market issues.

 

[dullard]

ARM rates soar, customers finally shun them.

I think this is a necessary step to correcting the problem that we have. Far too many people got ARMs to get a house they couldn't afford; instead of using ARMs to help pay off a house quickly. The former is a bad use of ARMs and the latter is a good use.

The 1-year ARM rates jumping 0.73% in one week is a record. It is amazing that it took this long for everyone involved to make that nessary interest rate jump.

 

[smack Down]

Originally posted by: Vic

Originally posted by: Slew Foot
At this rate, I wont even need a loan, Ill pay the whole thing in cash!

Yep. 'Cause dollars will still be dollars when it takes a hundred and more of them to buy a Big Mac and fries... duh...

At that point you won't need a loan you will need bullets.

 

[blackangst1]

Originally posted by: LegendKiller

Originally posted by: blackangst1
Vic: out of curiousity how much of the secondary market would affect Fannie? My knowledge is mostly in asset securities, not so much in real estate. And if I remember arent they private? What does that do to their possible impact on securities?

Both Fannie and Freddie are public. I haven't looked at any of their debt, I believe they may be trading a little wider than before, but I don't have time to look at bloomberg right now. Freddie and Fannie both are GSEs, as I am sure you know, which people take as an implicit guarantee by the government to cover losses, which isn't wholly correct, since there is no guarantee agreeement but many believe the govt would help. However, that doesn't stop the market from pricing in some type of guarantee, as F&F bonds are seen as higher rated. They have recently looked at expanding their holdings of subprime paper and an increase in the jumbo area.

Keep in mind that they largely trade in prime conforming loans, so they are, for the most part, unaffected materially by the recent market issues.

Thanks LK. Any speculation as to why F&F are considering subprime given the current market? They are pretty stable, all things considered...seems odd they would take that gamble...

 

[blackangst1]

Originally posted by: dullard
ARM rates soar, customers finally shun them.

I think this is a necessary step to correcting the problem that we have. Far too many people got ARMs to get a house they couldn't afford; instead of using ARMs to help pay off a house quickly. The former is a bad use of ARMs and the latter is a good use.

The 1-year ARM rates jumping 0.73% in one week is a record. It is amazing that it took this long for everyone involved to make that nessary interest rate jump.

Bingo. Thats the problem. It's the same basic principle with consumer debt...90 days no payments...one year zero %, and all the others. Sure people have the best intentions. Unfortunatly America isnt known for it's citizen's smart financial choices. Nor their discipline (in regards to money).

 

[rpanic]

Bush to outline aid to mortgage holders.

http://biz.yahoo.com/ap/070831...ousing_slump.html?.v=1

Is more to come?

 

[dmcowen674]

Originally posted by: blackangst1

Originally posted by: dullard
ARM rates soar, customers finally shun them.

I think this is a necessary step to correcting the problem that we have. Far too many people got ARMs to get a house they couldn't afford; instead of using ARMs to help pay off a house quickly. The former is a bad use of ARMs and the latter is a good use.

The 1-year ARM rates jumping 0.73% in one week is a record. It is amazing that it took this long for everyone involved to make that nessary interest rate jump.

Bingo. Thats the problem.

It's the same basic principle with consumer debt...90 days no payments...one year zero %, and all the others.

Sure people have the best intentions. Unfortunatly America isnt known for it's citizen's smart financial choices. Nor their discipline (in regards to money).

Why do you place blame 100% on the people?

You don't think there is any deception on the part of your almighty corporations/banks?

 

[theeedude]

Originally posted by: rpanic
Bush to outline aid to mortgage holders.

http://biz.yahoo.com/ap/070831...ousing_slump.html?.v=1

Is more to come?

He's giving a lecture now

 

[dullard]

Originally posted by: dmcowen674
Why do you place blame 100% on the people?

You don't think there is any deception on the part of your almighty corporations/banks?

I place the blame on all parties. Most of the blame should reside on the people. They were the ones buying houses that they couldn't possibly afford and signing documents that they don't understand.

However, I blame everyone else a bit too. Lenders for lending money that couldn't possibly be paid back. Investors who demanded packages with these bad loans. Brokers, some of whom sweet talk people into products that don't suit them, the array of people that approved these mortgages, the appraisers and realtors who convinced them that the house is worth so much money and will keep going up, etc. Even the government who created laws which enabled this bad situation should get some of the blame.

 

[dmcowen674]

Originally posted by: dullard

Originally posted by: dmcowen674
Why do you place blame 100% on the people?

You don't think there is any deception on the part of your almighty corporations/banks?

I place the blame on all parties. Most of the blame should reside on the people. They were the ones buying houses that they couldn't possibly afford and signing documents that they don't understand.

However, I blame everyone else a bit too. Lenders for lending money that couldn't possibly be paid back. Investors who demanded packages with these bad loans. Brokers, some of whom sweet talk people into products that don't suit them, the array of people that approved these mortgages, the appraisers and realtors who convinced them that the house is worth so much money and will keep going up, etc. Even the government who created laws which enabled this bad situation should get some of the blame.

8-31-2007 Bernanke will not bail out investors who made poor decisions

The Federal Reserve is set to act as needed to limit impacts of financial turmoil on the economy but will not bail out investors who made poor decisions, Fed Chairman Ben Bernanke said on Friday.

"It is not the responsibility of the Federal Reserve -- nor would it be appropriate -- to protect lenders and investors from the consequences of their financial decisions," he said.
========================================================
You know he is talking a great game but where is the accountability?

He is not an elected official.

Not that it matter anymore with both elected and non-elected having no accountability.