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"The Big Picture"
Whenever the Fed lowers interest rates, there is always a lot of anticipation, publicity and reaction in the markets. Most consumers think that the drop by the Fed means that mortgage rates will be lower. There is not a direct cause and effect relationship between these two. Here are some of the reasons: The Federal [...]
Continue Reading →Fannie Mae (FNMA) and Freddie Mac (FHLMC) create aloan limit for loans that they will purchase. It is currentlyat $417,000 for a single-family home. This limit is reviewedannually and is primarily determined by whether prices ofhomes have gone up or down during the year. In light of the disruption in the mortgage market, lawmakersare looking [...]
Continue Reading →Because of the problems that contributed to the “sub-prime” crisisand have a large number of borrowers facing default and foreclosure,the House passed bill 3915 in an effort to limit abuses and badbusiness practices in the mortgage industry. The proposed legislation would include: – Require a nationwide licensing system for mortgage brokers and bank loan officers [...]
Continue Reading →I was interviewed and included in an article by Mike Hoganthat appeared October 15, 2007 in Barron’s. Here is thetext of the article: Things are so, so bad that some wag has created the Mortgage Lender Implode-O-Meter to count lender defunctions. What a great time to borrow or refinance. Widespread pain in real estate makes [...]
Continue Reading →Whenever we go through these wild gyrations in the market,the correction to the problem is usually a very conservativereaction, many times overly conservative. In the last eight weeks, as the sub-prime mortgage marketcreated doubt among the investors that the quality of theloan products was as good as they were led to believe, theinvestors also pulled [...]
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