What do you all think?



http://biz.yahoo.com/ap/080907/mortgage_giants_crisis.html



Good thing or bad thing?


Now what's gonna happen to our houses and mortgages?

I think it will prolong the agony. The markets should be allowed to correct themselves.

All it tells me is that I am being made to be the fool because I was diligent in paying my mortgage all these years ON TIME.

In short, now we are ALL going to have to pay for the people who got into intro rates, interest onlys, and other exotic adjustables.

Nice move Bush.

"A failure would affect the ability of Americans to get home loans, auto loans and other consumer credit and business finance," Paulson said.

Uh, yeah,......[dummy] That has been the problem, anyone with a heartbeat from 2003 to 2006 could get a loan.

Have any of you guys heard about these "Ninja" loans that are starting to come to light?

In short, it means No income, No job, No assets. Nice huh? It was a spin off from loan programs I've taken advantage of for years now called "No doc's" (They are really in essence low docs, meaning I've provided very little info on income to secure the loan. They usually look at my last years tax returns and just go on stated income after that.

Worked well for independent contractors with high write off (low tax) rates.


But give me a break, NO INCOME, NO JOB & No ASSETS and you still somehow qualified for a mortgage?:confused:

They made bad business decisions they deserve to fail.

Yep...

Make the honest, responsible with money people, to pay for the mistakes that everyone else has made, just like every other gov't program that supports people who cannot be responsible for themselves.

THIS IS GOING TO BE BAD.

They made bad business decisions they deserve to fail.

Problem with that is they either literally hold or guarantee almost half of the mortgages nation wide. I'm not sure what would happen if they went under.

Then again, some people say that in 4-5 years time they could have been really profitable, I'm sure our government will see to it that THAT will never happen!

Problem with that is they either literally hold or guarantee almost half of the mortgages nation wide. I'm not sure what would happen if they went under.

Then again, some people say that in 4-5 years time they could have been really profitable, I'm sure our government will see to it that THAT will never happen!

I'm pretty sure these are the only two companies that hold mortgages in the whole country.

I'm in the process of refinancing my house right now, and every quote I have gotten from a lending institution has Fannie or Freddie written in the fine print.

The lending institutions are just middle men when it comes to mortgages.

Correct me if I'm wrong.

You're wrong, but not too far off.

Plenty of local banks do loans they consider "portfolio" meaning they intend to keep the note in house (for ever). They can lend using their own criteria, although it usually very closely resembles FNMA standards.

Decisions on in house loans are made by a board of directors, not by regular fannie underwriting standards.

This accounts for multi- MILLIONS in loans just in my little hick county, so I'm positive it's into the multi-billions nation wide.

Fannie was just supposed to be a "Federal backing", not unlike an insurance policy for the lenders in most cases.

I think it will prolong the agony. The markets should be allowed to correct themselves.

All it tells me is that I am being made to be the fool because I was diligent in paying my mortgage all these years ON TIME.

In short, now we are ALL going to have to pay for the people who got into intro rates, interest onlys, and other exotic adjustables.

Nice move Bush.

While I hardly ever agree with you politically, I do on this point. Except non of this can be pinned on Bush alone. I'm sure you were only referring to the gov. take over on that point, which requires more than just the prez saying so.

I say if the business made bad decisions let them fail, just another example of the government trying to protect us from ourselves. If I squander off all of my business assests and plunge into arrears will big brother come bail me out?
If so what is the point of trying to succeed I can just become another dependent of the state.

You're wrong, but not too far off.

Plenty of local banks do loans they consider "portfolio" meaning they intend to keep the note in house (for ever). They can lend using their own criteria, although it usually very closely resembles FNMA standards.

Decisions on in house loans are made by a board of directors, not by regular fannie underwriting standards.

I'm familiar with the BOD at the local banks and credit unions are the one's who determine whether they will give you the loan or not, because they are next in line if you default on your payments, but it was my understanding the money you're borrowing is coming from Frannie or Freddie, not from the banks themselves.?

Guess this means John McCain shouldn't boast about the record number of new homeowners during the republican administration.
In case you don't remember GW bragged about this all the time saying it indicated how well the economy was doing.

I have a friend that was a private lender. He had several mil that he wanted to invest so he started in real estate doing his own loans. Say he would give Fred G. a loan for 1mil for his house with say 5% interest. He would finance the loan and then sell it off shortly after to the big 2. He would basically dump all of his risk and he would pocket 50% of the interst for the life of the loan up front.

I'm familiar with the BOD at the local banks and credit unions are the one's who determine whether they will give you the loan or not, because they are next in line if you default on your payments, but it was my understanding the money you're borrowing is coming from Frannie or Freddie, not from the banks themselves.?

Not that I'm aware of?

If that's the case, where to they get their money or backing from? There has to be an investor somewhere along the line?

What happens to fannie/freddie stock holders when the government walks in, fires the CEOS and takes over Monday morning? [nonono]

Guess this means John McCain shouldn't boast about the record number of new homeowners during the republican administration.
In case you don't remember GW bragged about this all the time saying it indicated how well the economy was doing.

Not to mention that the economy is "Fundamentally Sound". Doesn't appear too sound to me.

Matter of fact, they pretty much feared that if they didn't take them over we could get cast back into the 1930's economy wise.:(

George Orwell comes to mind.

When I bought my first house, I was 21 so I didn't have much of a credit history, but it took forever to get approved and wasn't very easy at all.

Then the lending got nuts a few years later (government controlled?) and foreclosures, bankruptcies, credit card debt, etc., went through the roof.

Now that I'm refinancing, it's back to where it was 10 years ago, maybe tougher, in the qualifications you must have to get money lent to you, and all I'm doing is buying a house that I already own!

I've never missed or been late on a payment in my life, either.

Now the government is going to control this to.[verymad]

Makes me think........

Maybe when they had their panties in a wad about that huge national security issue last year, you know the one,....STEROIDS IN THE MLB, they should have been looking into federal banking regulations!

What a joke. We desperately need a real third party, one which actually represents the PEOPLE.

Does anyone know what if any effect this will have on rates?

Looks to me like they were poised to drop (again, 4th straight week). I'm seeing (real) 30 year rates right at 6% even today.

If I can get locked at 6 even with no points I will have a new shop up and complete by Thanksgiving.

Makes me think........

Maybe when they had their panties in a wad about that huge national security issue last year, you know the one,....STEROIDS IN THE MLB, they should have been looking into federal banking regulations!

What a joke. We desperately need a real third party, one which actually represents the PEOPLE.

Yeah, let'em do steroids...anything to make baseball more interesting.[yuk]

Definitely not a government issue...Not with my tax dollars anyway.

A Third Party would be great...but how can they compete with the other two entities?

Makes me think........

Maybe when they had their panties in a wad about that huge national security issue last year, you know the one,....STEROIDS IN THE MLB, they should have been looking into federal banking regulations!

What a joke. We desperately need a real third party, one which actually represents the PEOPLE.


I Just fell out of my chair.. I agree with ya[laugh]

Makes me think........

Maybe when they had their panties in a wad about that huge national security issue last year, you know the one,....STEROIDS IN THE MLB, they should have been looking into federal banking regulations!

What a joke. We desperately need a real third party, one which actually represents the PEOPLE.


Exactly!! But you know that steroid thing was soooo important!

I Just fell out of my chair.. I agree with ya[laugh]

I keep it up and I'll have to change my voter registration! :o

2 working points of the communist manifesto #1 is happening #2 already has limiting term limits to 10years max in the congress sounds better everyday.

1.Centralization of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly.
2.Centralization of the means of communication and transport in the hands of the State.

I keep it up and I'll have to change my voter registration! :o

You are leaning a little to the right on this one, be carefull the dark side may lose it's grip on you![laugh][laugh]

Does anyone know what if any effect this will have on rates?

Looks to me like they were poised to drop (again, 4th straight week). I'm seeing (real) 30 year rates right at 6% even today.

If I can get locked at 6 even with no points I will have a new shop up and complete by Thanksgiving.

Rates are low now...who knows what they will do after this?

Pretty soon we will have camera's in our house to make sure we are doing nothing illegal though...since the gov't will be the lein holder...getting fined for smoking or having too much to drink while sitting on your couch laws will be enforced.

Well, I know how well they've handled Social Security, so I am pretty confident this will be a cluster f before long.

Wonder if private investors/companies can or will be able to compete with the Federal Government in the mortgage industry, or will they be the only game in town.......

?

How can anybody compete with the Federal Government?

There will probably be a new HouseHold Security Department, headed by Tom Ridge, and our taxes will go up to handle all the processing fees associated with this.

And a new Homerowners tax and Homeowners Privledge tax as well.

http://www.washingtonpost.com/wp-dyn/content/discussion/2008/09/07/DI2008090700715.html

P.J. You are right about 1/2.

What is the meaning of this?

What?

Well, obviously this has been a hot topic for talk radio today. I learned quite a bit from the experts. Seems that in time, this has the potential to be a good[/I thing for the taxpayers. There is a better than not probability that our current housing and economy in general is going to straighten itself out here sooner rather than later. If that is indeed the case, rather than being a total loser of a deal (for the average tax payer), it could end up generating revenue that would go straight into the treasury.

Listen to what he is saying here:

[I]Your problem is that you are forgetting to consider what would happen if nothing were done. You think you'll be fine because you have your mortgage. But if you or your children needed to move and wanted a mortgage, that would be an issue. And it would be an issue if your pension money was invested in stuff that suddenly cratered because the financial system froze up as a result of a Fannie and Freddie bankruptcy. And the company you work for might suddenly have its lines of credit pulled and have to close down some operations, which wouldn't be exactly the best thing for your household, or the Greater Riverton economy.


And this too:

The benefit to each and every American is that (1) they probably will get back any cash they put in, and then some, when all this is over, because the Treasury has been pretty tough in setting considitions for government intervention and (2) each and every American will get the benefit of having a financial system that doesn't collapse and the continued availability of mortgages at a time when banks and investors don't want to hold them (and can't be forced to hold them except in fascist states!).

Plus, his name ends with "stein", so he probably knows what he's talking about when it comes to money.[whistle]

I hope it works out and they reinstate them as private companies with possible fed oversight after they get the bugs out.

Plus, his name ends with "stein", so he probably knows what he's talking about when it comes to money.[whistle]

Ummmm careful there [nonono] That could be taken as a racist remark...... I recall you making a big point recently about NOT being racist in any form or manner. [whistle]

This country has become a Corptocracy. Big money and lobbyists rule. They get tax breaks that the working man can only dream of. Bush signed into law, regulations making it harder for the working man to file for bankruptcy even if you have a bankruptcy resulting from a medical emergency. Yet 2 major bailouts for the fat cats have come on his watch. These bailouts for the rich sends the message that looting the system isn't just condoned, it's federally subsidized. We’re in trouble if we can’t get back control of our country.

I think there is plenty of blame to go around, bankers, mortgage brokers and borrowers. While they deserve their share of the blame, it can’t all be put on the borrowers. It’s not only first time borrowers, it was the habitual refinancing of the mortgage every few years by long time home owners. If people would have just let the equity in their homes build like our parents and grandparents did, we might not be in this mess. It’s been a fairly long ride of people constantly refinancing their homes to pay off consumer and credit card debt so they could live beyond their means. It’s one of the most massive transfer’s of real estate wealth in our nations history and now, as always, it’s the working class tax payer fitting the bill. People do silly things. Spending $10,000 in closing costs to buy a $2000 big screen TV. Instant material gratification. Since we don’t produce much here anymore, it’s what has been driving our economy for years, and now it's all coming crashing down.

Just joking Lary. Plus, I tend to follow the belief that most stereotypes are based somewhat in truth.

Just joking Lary. Plus, I tend to follow the belief that most stereotypes are based somewhat in truth.

sure nice that the Dems don't use racist stereotypes like us Republicans do.
maybe McCain will give Obama a cabinet position as head of basketball relations, and put Bill Richardson in charge of refried bean futures trading. [dummy][dummy][dummy]

sure nice that the Dems don't use racist stereotypes like us Republicans do.
maybe McCain will give Obama a cabinet position as head of basketball relations, and put Bill Richardson in charge of refried bean futures trading. [dummy][dummy][dummy]

Uh, yeah.

Grow up.

Who said I was a democrat anyway?

Uh, yeah.

Grow up.

Who said I was a democrat anyway?

so if i grow up, can i judge people's qualifications by their last names like you?
can't elect someone with a name like Obama, 'cause he must be a Muslim terrorist, and can't elect a guy named McCain 'cause he's probably drunk all the time.

can't elect a guy named McCain 'cause he's probably drunk all the time.

Wouldn't be far from most Republicans I know. Hammered and "knowing it all" at happy hour on Friday, in church on Sunday.

Wouldn't be far from most Republicans I know. Hammered and "knowing it all" at happy hour on Friday, in church on Sunday.

That's a pretty broad, if not unfair, statement. Maybe you need to make new friends or stay out of the bars on Fridays..

Wouldn't be far from most Republicans I know. Hammered and "knowing it all" at happy hour on Friday, in church on Sunday.


Not true at all, I go to church on saturday at 16:00 to avoid said situation. [duhhh] [laugh]



Tim

That's a pretty broad, if not unfair, statement. Maybe you need to make new friends or stay out of the bars on Fridays..

Stereotypes are broad by nature, correct? ;)

I'm more of a Saturday night bar type, happy hour is LONG over when we start drinking.

WOW! This has gotten way off the track, across the ditch and into the woods. Look way over there. In the distance. I can barely see Freddie and Fannie. [laugh][laugh][laugh]

Wouldn't be far from most Republicans I know. Hammered and "knowing it all" at happy hour on Friday, in church on Sunday.

WOW! I guess I'm a pretty sorry Republican. I haven't been to a Happy Hour in over 5 years. [nonono] I do see the inside of a bar about once a month. Usually because I am eating a meal at the same time. I am usually in Church on a Saturday night or Sunday though. I guess I need to start hitting the bars more often and getting [duhhh].:(

WOW! I guess I'm a pretty sorry Republican. I haven't been to a Happy Hour in over 5 years. [nonono] I do see the inside of a bar about once a month. Usually because I am eating a meal at the same time. I am usually in Church on a Saturday night or Sunday though. I guess I need to start hitting the bars more often and getting [duhhh].:(


Ditto last time I was in a bar was 1991 now I do injoy an adult beverage at home.
Church took its place in my life when I dedicated my life to service to the Lord.

WOW! This has gotten way off the track, across the ditch and into the woods. Look way over there. In the distance. I can barely see Freddie and Fannie. [laugh][laugh][laugh]


tends to happen when the person who recently posted this:



"just about everyone I know under 35 is totally sick of the way their parents and grandparents have hammered falsehoods about entire races into their heads."



then goes ahead and posts these hypocritical words of wisdom:


Just joking Lary. Plus, I tend to follow the belief that most stereotypes are based somewhat in truth.

Wouldn't be far from most Republicans I know. Hammered and "knowing it all" at happy hour on Friday, in church on Sunday.


someone preaching against stereotypes last week, now seems to think it's o.k. to use Christian, Jewish, and Republican stereotypes in a thread about about the mortgage crisis this week........ makes sense, right?

tends to happen when the person who recently posted this:



"just about everyone I know under 35 is totally sick of the way their parents and grandparents have hammered falsehoods about entire races into their heads."



then goes ahead and posts these hypocritical words of wisdom:







someone preaching against stereotypes last week, now seems to think it's o.k. to use Christian, Jewish, and Rupublican stereotypes in a thread about about the mortgage crisis this week........ makes sense, right?

That's a pretty tough observation!!
Absolutely true but very tough. ;););)

Funny, happy hour around here was set up I believe to entice the UAW crowd leaving the plants/offices at 5 o'clock. Most of them being union, were democrats. Funny how most of the union offices in this state have a bar or two within a block of them? Don't let me forget, Teamster's too. Don't get me wrong, I'm glad they give special prices to the "workin' man".