I have full faith in the United States Government and that they will not lead us into any more housing problems...

[rudder]

We really are doomed!

I know this is only once case. But this is a FHA loan. How many more loans like this are getting approved? The young lady in the article has 3 jobs to pay the mortgage. She is doing this an an investment... but using the government to bail her out if any issues arise.

Oh well at least the little folk can get the same perks as the financial powerhouses on wall street..

 

[Darwin333]

I have been saying this for months and no one cares. The default rate on current FHA loans is absurdly high and thats not taking into account these new loans using the housing credit. Naw, we are to worried about some asshole getting a bonus to care that the the taxpayers are guaranteeing another round of subprime mortgages.

The important question is, knowing that a majority of these loans will end up in foreclosure , who is the Gov really trying to help? Renting a house to someone and then kicking them out in a year or two with a foreclosure on their record sure as hell isn't what I would call "help".

 

[StageLeft]

Speaking of which reminds me I need to call boa about the fha-backed loan they quoted me on last week

 

[zephyrprime]

Well of course, this FHA stuff is to support the banks. It allows them to sell some of their foreclosed property and when the new buyers go belly up, the goverment FHA program will pay out the mortgage insurance to the bank. The banks successfully unload a foreclosed home thanks to the US taxpayer.

 

[rudder]

Originally posted by: zephyrprime
Well of course, this FHA stuff is to support the banks. It allows them to sell some of their foreclosed property and when the new buyers go belly up, the goverment FHA program will pay out the mortgage insurance to the bank. The banks successfully unload a foreclosed home thanks to the US taxpayer.

That's it. I am pooling all my money and starting a bank. I suppose I could use the FHA and a risk free investment tool... but I think with owning a bank you get richer quicker.

 

[Slew Foot]

That chick is fat

 

[rudder]

Originally posted by: Slew Foot
That chick is fat

so is her checking account. She made $100,000 in one month.

 

[JS80]

Originally posted by: rudder

Originally posted by: Slew Foot
That chick is fat

so is her checking account. She made $100,000 in one month.

false. mark-to-imagination paper income.

 

[piasabird]

These guys are pretty smart. I watched the video. Their dad had a novel idea Save money every month. Then when you have the minimum down payment go buy your house. Maybe they did not have to save up to 20% but they took advantage of the situation life gave them. The video actually makes more sense than the article. They might be living on the edge a bit, but so are a lot of people in the USA. If the government is going to offer a house at such good financing, they you have to expect people to take advantage of it. Plus the real estate will probably rise in price.

 

[StageLeft]

Originally posted by: rudder

Originally posted by: zephyrprime
Well of course, this FHA stuff is to support the banks. It allows them to sell some of their foreclosed property and when the new buyers go belly up, the goverment FHA program will pay out the mortgage insurance to the bank. The banks successfully unload a foreclosed home thanks to the US taxpayer.

That's it. I am pooling all my money and starting a bank. I suppose I could use the FHA and a risk free investment tool... but I think with owning a bank you get richer quicker.

You don't need money, just borrow it from Bernanke.

false. mark-to-imagination paper income.

mark to valuation imagination, i laughed when i read it

These guys are pretty smart.

I think having three jobs so that you can make mortgage payments on a house you don't need doesn't qualify as smart!

 

[thegimp03]

The FHA doesn't do any of their own due diligence on high risk mortgagors? 20 years old, 3 jobs, mortgage payment is over 50% of her monthly income...doesn't that qualify her as extremely high risk? This chick doesn't have a clue, she just wanted to be able to say she bought a house at 20 before her brother did at 21.

 

[Patranus]

I love how the Democrats in congress and the white house are also trying to expand the community reinvestment act.

 

[mizzou]

Bought my first home at age 24. Co-signed with a fiance. Now married and 4 years later, still happy with what we did. Mortgage was $124500.00. It costs less then renting, but when you factor in other costs like upkeep, etc., it is more expensive in the short term by far.

Both of us work hard, and were smart about what we did. I worked in bankruptcy at the time so I was well aware of the crap people were getting themselves into. Our mortgage payments are about 1/7th to 1/8th our annual income. How the hell people afford to do this with 1/2 their income is beyond me!

Neither of us make a ton of $, but the only debt we have is #1 our home and #2 a bit left on a car loan.

All school payments are saved and paid out of pocket towards our advanced college degrees, so as long as we don't have kids or lose one of our jobs, we will be living on easy street without a big buck paying career. =)

 

[Ozoned]

Originally posted by: rudder
We really are doomed!

I know this is only once case. But this is a FHA loan. How many more loans like this are getting approved? The young lady in the article has 3 jobs to pay the mortgage. She is doing this an an investment... but using the government to bail her out if any issues arise.

Oh well at least the little folk can get the same perks as the financial powerhouses on wall street..

If she meets all of the qualifications to get the loan, do you think she should be denied because you think she is stupid?

 

[Vic]

Originally posted by: Patranus
I love how the Democrats in congress and the white house are also trying to expand the community reinvestment act.

Only morons still believe in Limbaugh's myth that the CRA had anything to do with the housing bubble.

The OP is a troll. In fact, the article itself is pretty shameful in its complete and utter ignorance of lending practices. From the other links on it, it looks like it has a pretty strong anti-FHA bias.

 

[SirStev0]

Originally posted by: Vic

Originally posted by: Patranus
I love how the Democrats in congress and the white house are also trying to expand the community reinvestment act.

Only morons still believe in Limbaugh's myth that the CRA had anything to do with the housing bubble.

The OP is a troll. In fact, the article itself is pretty shameful in its complete and utter ignorance of lending practices. From the other links on it, it looks like it has a pretty strong anti-FHA bias.

I love how he speculates at the end of the article about her father, yet could have easily asked her. Makes me think that he did ask and her answer didn't fit his rhetoric.

 

[alphatarget1]

Originally posted by: JS80

Originally posted by: rudder

Originally posted by: Slew Foot
That chick is fat

so is her checking account. She made $100,000 in one month.

false. mark-to-imagination paper income.

Broken sarcasm meter.

 

[Zstream]

Originally posted by: Vic

Originally posted by: Patranus
I love how the Democrats in congress and the white house are also trying to expand the community reinvestment act.

Only morons still believe in Limbaugh's myth that the CRA had anything to do with the housing bubble.

The OP is a troll. In fact, the article itself is pretty shameful in its complete and utter ignorance of lending practices. From the other links on it, it looks like it has a pretty strong anti-FHA bias.

So you believe that CRA had nothing to do with Predatory lending and the fact they could use CRA as a loophole?

 

[WhipperSnapper]

I have full faith in the United States government...to lead us over a cliff.

 

[Vic]

Originally posted by: Zstream

Originally posted by: Vic

Originally posted by: Patranus
I love how the Democrats in congress and the white house are also trying to expand the community reinvestment act.

Only morons still believe in Limbaugh's myth that the CRA had anything to do with the housing bubble.

The OP is a troll. In fact, the article itself is pretty shameful in its complete and utter ignorance of lending practices. From the other links on it, it looks like it has a pretty strong anti-FHA bias.

So you believe that CRA had nothing to do with Predatory lending and the fact they could use CRA as a loophole?

Please tell us exactly which 'predatory lenders' used CRA as a loophole. Name names and describe how they did it. I'll await your reply.

 

[rudder]

Originally posted by: Ozoned

Originally posted by: rudder
We really are doomed!

I know this is only once case. But this is a FHA loan. How many more loans like this are getting approved? The young lady in the article has 3 jobs to pay the mortgage. She is doing this an an investment... but using the government to bail her out if any issues arise.

Oh well at least the little folk can get the same perks as the financial powerhouses on wall street..

If she meets all of the qualifications to get the loan, do you think she should be denied because you think she is stupid?

She does not meet the debt to income ratio. Says that she is spending 50% of her pay on her mortgage. Yes she is stupid but so if the FHA program for approving it.

 

[LegendKiller]

Originally posted by: rudder

Originally posted by: Ozoned

Originally posted by: rudder
We really are doomed!

I know this is only once case. But this is a FHA loan. How many more loans like this are getting approved? The young lady in the article has 3 jobs to pay the mortgage. She is doing this an an investment... but using the government to bail her out if any issues arise.

Oh well at least the little folk can get the same perks as the financial powerhouses on wall street..

If she meets all of the qualifications to get the loan, do you think she should be denied because you think she is stupid?

She does not meet the debt to income ratio. Says that she is spending 50% of her pay on her mortgage. Yes she is stupid but so if the FHA program for approving it.

Doesn't say whether that is pre or post tax.

I do love the shitstains that keep parroting CRA, despite being shot down dozens of times by Vic and myself.

 

[Vic]

Originally posted by: rudder

Originally posted by: Ozoned

Originally posted by: rudder
We really are doomed!

I know this is only once case. But this is a FHA loan. How many more loans like this are getting approved? The young lady in the article has 3 jobs to pay the mortgage. She is doing this an an investment... but using the government to bail her out if any issues arise.

Oh well at least the little folk can get the same perks as the financial powerhouses on wall street..

If she meets all of the qualifications to get the loan, do you think she should be denied because you think she is stupid?

She does not meet the debt to income ratio. Says that she is spending 50% of her pay on her mortgage. Yes she is stupid but so if the FHA program for approving it.

A DTI > 50% would be outside of FHA's approval guidelines and thus unapprovable. So either (1) the borrower's income has gone down since the loan was originated, or (2) the author of the article is embellishing the story, like using net income when he is supposed to use gross, or (3) the loan was originated using fraudulent documentation. Scenario #1 is very possible given the current economic environment, but IMO scenario #2 is most likely. In the event of scenario #3, the FHA would be able to refuse to pay the insured lender of the loan any potential losses arising from default just like any other insurance company can deny a fraudulently-derived claim.

 

[Aimster]

I don't like FHA's mortgage protection fee of 1.5%.
That's B.S

Because of that I got an ARM instead and put 10% down.

 

[charrison]

govt an eager buyer for bad loans.

There was always a problem with this theory. Mortgage brokers had to be able to sell their mortgages to someone. They could only produce what those above them in the distribution chain wanted to buy. In other words, they could only respond to demand, not create it themselves. Who wanted these dicey loans? The data shows that the principal buyers were insured banks, government sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac, and the FHA?all government agencies or private companies forced to comply with government mandates about mortgage lending. When Fannie and Freddie were finally taken over by the government in 2008, more than 10 million subprime and other weak loans were either on their books or were in mortgage-backed securities they had guaranteed. An additional 4.5 million were guaranteed by the FHA and sold through Ginnie Mae before 2008, and a further 2.5 million loans were made under the rubric of the Community Reinvestment Act (CRA), which required insured banks to provide mortgage credit to home buyers who were at or below 80% of median income. Thus, almost two-thirds of all the bad mortgages in our financial system, many of which are now defaulting at unprecedented rates, were bought by government agencies or required by government regulations.

Dont forget the current admin wants to allow CRA 2009 to extend to credit unions and other financial institutions.