Comments on: Fannie Mae: Building The Underwater Mortgages Of Tomorrow http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/ "He who defends everything defends nothing." - Frederick the Great Tue, 16 Mar 2010 15:28:08 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Coffee http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/comment-page-1/#comment-15343 Coffee Tue, 20 May 2008 17:40:08 +0000 http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/#comment-15343 Julie 15th, 2008 the new MI rates come out. The 95 and 97% showing 3.5% 5 year insurance. All MI rates are going up. Thank you FNMA. The cost is transfered to all new "Hipotecarios". Julie 15th, 2008 the new MI rates come out. The 95 and 97% showing 3.5% 5 year insurance. All MI rates are going up. Thank you FNMA. The cost is transfered to all new “Hipotecarios”.

]]> By: Tobby http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/comment-page-1/#comment-15325 Tobby Mon, 19 May 2008 20:19:21 +0000 http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/#comment-15325 You are correct Coffee, the M/I companies are still cutting back, and some of them will not even insure condos in some markets (Florida). Additionally, lenders are on the hook for Representations and Warrants so are unlikely to stick their necks out for free. Higher LTVs are likely to cost a lot in both rate hits and insurance. Probably a lot more than FHA which is why I don't think FNMA's pronouncement means much. Mortgage brokers and of course the main stream press are oblivioius to these facts. You are correct Coffee, the M/I companies are still cutting back, and some of them will not even insure condos in some markets (Florida). Additionally, lenders are on the hook for Representations and Warrants so are unlikely to stick their necks out for free. Higher LTVs are likely to cost a lot in both rate hits and insurance. Probably a lot more than FHA which is why I don’t think FNMA’s pronouncement means much.

Mortgage brokers and of course the main stream press are oblivioius to these facts.

]]> By: brucewho http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/comment-page-1/#comment-15324 brucewho Mon, 19 May 2008 18:30:05 +0000 http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/#comment-15324 Oh yeah that pesky MI requirement. What the hell, watch that fall by the wayside soon enough. In the national interest Congress will relax that as well. All caution to the wind, full speed ahead! Oh yeah that pesky MI requirement. What the hell, watch that fall by the wayside soon enough. In the national interest Congress will relax that as well. All caution to the wind, full speed ahead!

]]> By: Coffee http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/comment-page-1/#comment-15323 Coffee Mon, 19 May 2008 17:43:56 +0000 http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/#comment-15323 What I hear is "Not so fast" FNMA! >You are requiring MI on the loans, we the MI companies will adjust to the higher Risk you will accept and transferred back to us the MI Co's by simply increasing MI Rates. What I hear is “Not so fast” FNMA!

>You are requiring MI on the loans, we the MI companies will adjust to the higher Risk you will accept and transferred back to us the MI Co’s by simply increasing MI Rates.

]]> By: Coffee http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/comment-page-1/#comment-15322 Coffee Mon, 19 May 2008 17:31:22 +0000 http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/#comment-15322 FNMA and Freddie still require Mortgage insurance for less than 20% down. FNMA has been getting the heat for the the declining market classification but until MI companies, MAGIC, PMI, RMIC follow suit this is just blowing in the wind. Mortgage insurance not delivered by FNMA and FNMA but is still will require for MI with loans less than 80% LTV. FNMA and Freddie still require Mortgage insurance for less than 20% down. FNMA has been getting the heat for the the declining market classification but until MI companies, MAGIC, PMI, RMIC follow suit this is just blowing in the wind. Mortgage insurance not delivered by FNMA and FNMA but is still will require for MI with loans less than 80% LTV.

]]> By: brucewho http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/comment-page-1/#comment-15319 brucewho Mon, 19 May 2008 16:33:11 +0000 http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/#comment-15319 Seems evident that unless the reqirements are relaxed Fannie (and Freddie) won't be making very many loans. Soon they'll be writing them just like New Century, CWF, MAMU and all the rest. Only need to have a pulse to qualify. Got to get the market going again. Seems evident that unless the reqirements are relaxed Fannie (and Freddie) won’t be making very many loans. Soon they’ll be writing them just like New Century, CWF, MAMU and all the rest. Only need to have a pulse to qualify. Got to get the market going again.

]]> By: nick42 http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/comment-page-1/#comment-15317 nick42 Mon, 19 May 2008 16:21:31 +0000 http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/#comment-15317 It sounds to me like someone must have told them at a high level that it was more important to be giving away money to people liberally than worrying about staying solvent. Either that, or their executives are really, really dumb. Maybe the government let them know through back channels that they were too big to fail. Or maybe they know they will fail anyway, so they are trying to look altruistic so that when they go belly-up, they can plead that they were trying to help the American people, and strengthen their bailout case. Either way, I would certainly not want to own their stock after a move like this. It sounds to me like someone must have told them at a high level that it was more important to be giving away money to people liberally than worrying about staying solvent. Either that, or their executives are really, really dumb.

Maybe the government let them know through back channels that they were too big to fail. Or maybe they know they will fail anyway, so they are trying to look altruistic so that when they go belly-up, they can plead that they were trying to help the American people, and strengthen their bailout case. Either way, I would certainly not want to own their stock after a move like this.

]]> By: foreclosure_expert http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/comment-page-1/#comment-15314 foreclosure_expert Mon, 19 May 2008 13:26:26 +0000 http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/#comment-15314 Loan guidelines are changing all the time in this market. Anyone who thinks they know all the facets of lending hasn't checked the news lately: http://www.foreclosureexpert.info/2008/05/sorry---that-wa.html Loan guidelines are changing all the time in this market. Anyone who thinks they know all the facets of lending hasn’t checked the news lately:

http://www.foreclosureexpert.info/2008/05/sorry—that-wa.html

]]> By: toysarefun http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/comment-page-1/#comment-15313 toysarefun Mon, 19 May 2008 13:17:28 +0000 http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/#comment-15313 It sounds as if they have nothing to lose, and that they were apparently only worried for a little bit. It sounds as if they have nothing to lose, and that they were apparently only worried for a little bit.

]]> By: Keith http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/comment-page-1/#comment-15312 Keith Mon, 19 May 2008 12:36:04 +0000 http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/#comment-15312 There's so much wrong with that article, it's hard to know where to start. But I'll try. 1) Key's to Recovery? Sounds more like they're holding the keys to the jail, knowing uneducated or undisciplined buyers are willing to step into the cell. Fannie Mae is speaking of recovering their own assets, not about recovering the housing market. 2) No longer requiring higher down payments in markets where home prices are declining. Are you kidding me? Who doesn't see the writing on the wall for this one? And how does that accomplish their stated goal of bringing liquidity to all communities? Aren't they loaning money? The last time I checked, debt and liquidity are not the same. Neither are liquidity and equity. So how do you build liquidity by allowing loans with less equity in a declining market? 3) Two words: Desktop Underwriter. //shiver// There’s so much wrong with that article, it’s hard to know where to start. But I’ll try.

1) Key’s to Recovery? Sounds more like they’re holding the keys to the jail, knowing uneducated or undisciplined buyers are willing to step into the cell. Fannie Mae is speaking of recovering their own assets, not about recovering the housing market.

2) No longer requiring higher down payments in markets where home prices are declining. Are you kidding me? Who doesn’t see the writing on the wall for this one? And how does that accomplish their stated goal of bringing liquidity to all communities? Aren’t they loaning money? The last time I checked, debt and liquidity are not the same. Neither are liquidity and equity. So how do you build liquidity by allowing loans with less equity in a declining market?

3) Two words: Desktop Underwriter. //shiver//

]]> By: Hutch http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/comment-page-1/#comment-15309 Hutch Mon, 19 May 2008 07:33:06 +0000 http://housingdoom.com/2008/05/19/fannie-mae-building-underwater-mortgages/#comment-15309 I guess they want a bigger elephant. http://news.yahoo.com/s/ft/20080509/bs_ft/fto050920081327143194 Igor says nohope I guess they want a bigger elephant.
http://news.yahoo.com/s/ft/20080509/bs_ft/fto050920081327143194
Igor says nohope

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