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Next stop: Recession (pg. 4)
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| Zombie0729 |
| quote: | Originally posted by djGT
Any of those with 100% financing? But then again, 1 month ago, a few creative loans still existed. A lot has happened since then. Of course these are always a good deal, for mortgage companies, bankers, and Realtors®. Okay, maybe not so good for bankers who's left holding the dirty bag and selling at a loss. I'm just not sure if it's a good time for the buyers though. I have the feeling that some of these will go back as short sales / foreclosures. At least that means something is happening.
My friend told me last night he got laid-off, he was a programmer for a 60+ mortgage company in Irvine. It's now about 1/3 the size compared to when he first started 2-3 years ago. :(
I visit that site quite often. I also like these.
http://bubbletracking.blogspot.com/
http://www.socalbubble.com/
http://www.irvinehousingblog.com/ |
thankfully most of my business is Fannie MAE DU stuff, i have the occasional jumbo from a real estate developer that i work with but thats only about 4-5 deals a year.
I also think you're right about equity being gone but it's been fictitious from the get go. San Diego, especially, saw 10-20% increases in some of the past years which is just a joke. It only occured becuase more buying power was had with these Neg AM loans and now that values are dipping and their loans are growing are we seeing the issue.
the 417k-650k range is whats going to dip the most, a lot of those homes are going back into the conforming arena and home prices will fall hard.
good for me though, this year a lone i must be on a 5:1 purchase to refinance ratio.
i guess my point is this:
- appreciation from these exotic loans created a great amount of fictitious equity
- stated income, especially made it even worse
- now we're getting back to the way of conventional lending, you walk into the bank with your W2 and your down payment and we tell you how much you can afford
- now MORE people will be able to afford homes. There will also be a decline in debt because people won't have to taken on more just to get their foot in the door of these homes |
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| djGT |
| quote: | Originally posted by Zombie0729
- appreciation from these exotic loans created a great amount of fictitious equity
- stated income, especially made it even worse
- now we're getting back to the way of conventional lending, you walk into the bank with your W2 and your down payment and we tell you how much you can afford
- now MORE people will be able to afford homes. There will also be a decline in debt because people won't have to taken on more just to get their foot in the door of these homes |
I agree with all your points except the last part. Now that prices are so inflated, less people will be able to afford these homes with conventional lending standards. Until prices go down closer to the affordability level, I don't think we will be solving the slow sales and inventory issues accross the nation, especially in the high bubble areas like Florida, Nevada, Arizona, and California. |
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| djGT |
Capital One to Shut Unit, Cut 1,900 Jobs
| quote: | Capital One Financial Corp. said Monday it will cut 1,900 jobs and shutter its wholesale mortgage banking business, a move that comes as lenders continue to struggle in the nation's housing and mortgage markets.
Capital One said it will shut down GreenPoint Mortgage and eliminate most of the jobs by the end of year. The McLean, Va.-based company will close 31 GreenPoint locations in 19 states and "cease residential mortgage origination" effective immediately but said it will honor commitments to customers with locked rates who have loans already in the pipeline. |
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| Zombie0729 |
capital one is seriously amazing to me... for how long i've worked with greenpoint, i NEVER knew cap one owned them. good p.r.
i was in this weekends san diego union tribune front page article about the mortgage market!
"Anthony Ross says, 'i use to be able to qualify 6 or 7 of every 10 people i talked to for some kind of loan, now its down to 2 or 3'"
heh :) |
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| Zombie0729 |
someone big is going to have to buy them out, their portfolio is huge...
china anyone? |
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| ninetyninej |
| quote: | Originally posted by Zombie0729
someone big is going to have to buy them out, their portfolio is huge...
china anyone? |
yeah, the head of HUD has been trying to dump as much of our mortgage backed waste overseas for months! ;)
Another one bites the dust: Accredited Home Lending
http://bloomberg.com/apps/news?pid=...f5CU&refer=home
I have some close friends that work with this company, some with families/kids to support :(
I posted the following just 1 week ago and both Accredited and NovaStar have died :<
| quote: | Originally posted by gimmebeatz
selling ur stocks just because the market it down is not the smart way to invest at all. if ur not planning on retiring right now, what the market is doing should be of no concern. im 23 and continually invest monthly with dollar cost averaging and it doesnt bother me at all when the market goes down, because all that means is that the stocks are "on sale" right now and when the market comes back up ill have bought even more shares from it being down. unless ur 60-65 and planning on retiring soon, this shouldnt matter at all to u.
Originally posted by ninetyninej
you should invest heavily into Countrywide then (symbol: CFC)
buy Accredited (symbol: LEND) and NovaStar (symbol: NFI) stocks too, hurry! :wtf: |
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| djGT |
Fannie, Freddie could help to stimulate jumbo mortgage loans
| quote: | Some lawmakers are calling on Congress to stimulate the moribund jumbo-loan market by letting Fannie Mae and Freddie Mac purchase substantially larger loans on homes in high-cost metro areas.
Today, Fannie and Freddie can purchase single-family loans up to $417,000 in the continental United States. The limit is 50 percent higher - $625,500- in Hawaii, Alaska, Guam and the Virgin Islands because years ago, those outlying areas were considered high cost. These limits are indexed to inflation and are higher for multi-family dwellings. |
Yeah, let's keep this party going, million dollar homes for everybody! :wtf: |
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| djGT |
It's ok though since mr Mozilo took a pay cut back in May 2007.
Angelo Mozilo, the co-founder of Countrywide Financial Corp., agreed to a pay cut from the $50 million he made in 2006.
| quote: | | In the past two years, he has received four stock awards totaling 787,694 shares; has exercised options on 13.4 million shares, and has sold shares 254 times. The sales totaled 13.4 million shares for $494,469,881, according to Thomson Financial. |
That figure was back in May, he's been very active lately. So he's sold over half a billion dollars worth of shares, way to have such faith in your company mr Mozilo! :wtf:
Of course, I would probably exercise those options too. :p |
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| ninetyninej |
Perfect quote to add to these articles:
"I would argue that Countrywide is insolvent. Their only asset is their pricing platform, their business algorithm, and that's not working. The next biggest asset they have is the toner for their copiers."
—Joe Mason, CNNMoney in the August 17th
http://money.cnn.com/2007/08/17/rea...sion=2007081712
:wtf: |
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