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Originally posted by dkendall1979

Are you Russian?

Perhaps I can buy your kid his first car too?

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quote:

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Originally posted by peter


d damiano wrote:

"Fannie announces no more declining markets and lower Down Payment requirements, but will the private mortgage insurance companies insure the loans?

If they don't should the Gov't step in and insure those loans?"

I think the government thru funding from the Federal Reserve should reactivate the
now dead secondary market for piggyback purchase money 2nds to 95% CLTV. By
providing liquidity to this now dead market, lenders will be able to originate
2nd piggyback purchase loans as an alternative to PMI. This would be an option
to the homebuyer without having to throw support or to insure conventional loans.
The 2nd loan market has been left for the private sector entirely and now the
private sector is dead as far as buying 2nds loans for securitization. So, the
Fed and the Government need to come in and revive this market to be consistent with
the policy of encouraging homeownership and to provide recovery to the market in which
PMI as well as lack of alternative financing options have remained an obstacle to
new purchases.

The cost of not doing anything and let massive foreclosures hit the door while
also not clearing the obstacles to homebuyer by new buyers would the a much higher
cost than creating this option.

Peter

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Originally posted by Tsnyder

The problem is when you say "the government" what
you're really saying is "a bunch of greedy politicians
pandering to various interest groups for votes and
campaign contributions."

So... no... they shouldn't.

Tsnyder

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Originally posted by rtrefflich

Why should they, they already have programs available via FHA to help stimulate the economy through allowing people to refi and purchase properties with lower LTV. These limits are pretty good in most areas so that the majority of the people can qualify to buy or refi. Here are a few things that conventional offers that FHA does not.

For SE borrowers there is no stated income on FHA so a few people who truly would qualify for their income would not after write offs.

There is no mandatory PMI or upfront PMI on Conventional

There is absolutely no reason for the govt. to take more risk when the means are out there to get it done through FHA.

What the govt. should do is create incentives for banks to allow upside down borrowers to refinance their ARMS before they recast. This will prevent future foreclosures and more profitability for banks. If someone has a 3 yr ARM at a 6% IR Interest Only, govt. should create incentives (not force) for the bank to allow that payment to stay the same or slightly increase to begin paying down a little principle. I know very few people who have walked away from their homes because their home has dropped in value, I know tons of people who have walked away because they can no longer afford their payments upon reseting.

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