An adjustible floating rate mortgage could sink your ship of state. But don’t count on the government bailing you out….

An adjustible floating rate mortgage could sink your ship of state.  But don’t count on the government bailing you out.  Those working in Rome on the Potomac believe that the free-market system only exists to prey upon borrowers.   Nevermind the fact that borrowers were the beneficiaries of five years of artificially low rates….

“Most of the other bills are still in planning stages, like numerous measures to regulate and penalize mortgage lenders who engage in predatory lending. Schumer acknowledged, however, that it won’t help anyone already suffering with a bad mortgage.

“This won’t do anything about what happened in the past, but it will prevent the present crisis from getting worse, because mortgage brokers are still preying on these people,” Schumer said.”
http://biz.yahoo.com/ap/070903/risky_mortgages_congress.html?.v=1

“Bad” mortgages or not, private equity sources know how to do due diligence on vetting potential subprime borrowers.  We don’t just need a return to the liquidity in the credit market, we need a return to common sense in lending without government interference.

Correct me if I’m wrong but am I seeing another bad banker news release coming from the Hill?

Frank Statement on the President’s Remarks on the Mortgage Markets
Washington, DC – Rep. Barney Frank (D-MA), Chairman of the House Committee on Financial Services, today offered the following statement in response to President’s address on problems in the mortgage markets:

“I welcome the Administration’s recognition that a greater public response is required and I look forward to working with them because I agree with a number of specific things that they propose. The Financial Services Committee has already advanced legislation, including a GSE bill that awaits Senate consideration, and we hope to send the FHA bill over soon.  We also are working with the Ways and Means Committee to address the tax issues involved.  However, there are some points of difference that we will need to work out going forward:

With regard to the FHA, going forward, I don’t think that working people and lower income people who are making payments to the federal government should be charged more than others. 

Second, I agree that the rules that regulators have developed for banks have been good ones, but I believe that federal action is necessary to apply them to all originators and the time for further study is over.

Third, there should be some rules to provide some quality assurance to investors in the secondary market. At his speech in Jackson Hole, Federal Reserve Chairman Bernanke noted the need for modification of the securitization process to provide greater investor protection and increased incentives for responsible lending. I believe that well- drafted legislation is essential to achieving this. 

Next, I continue to believe that the portfolios of Fannie Mae and Freddie Mac can play a bigger role than they are currently are playing, particularly in helping the refinancing of subprime mortgages that are about to experience significant interest rate increases.  I believe that the Administration’s objections to this are not based on safety and soundness grounds, but represent their one remaining ideological refusal to recognize the need for a greater institutional role in this regard. 

Finally, there needs to be a federal role in the construction of new affordable housing and preservation of existing affordable housing.”
http://www.house.gov/apps/list/press/financialsvcs_dem/press083107.shtml

For more information about HR1852, The Expanding Homeownership Act of 2007, please click on the following link:

http://www.house.gov/apps/list/press/financialsvcs_dem/press050307.shtml

For more information about HR1427, The Federal Housing Finance Reform Act of 2007, please click on the following links:
http://www.house.gov/apps/list/press/financialsvcs_dem/press032907.shtml 

http://financialservices.house.gov/index.shtml

Best in Success,
Maria Fee
REMI KNOX, LLC
Trading Financial Futures TM
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Is the future so bright you just have to wear shades?

Got that big promotion? Will you be moving to take that new job?  Shall I send over some sunglasses because the future is looking so bright?!

Won’t you be surprised when you go to sell your home and your prospective buyer can’t even qualify for a bank loan in spite of the fact that they intend to make very large down payment and have stellar credit histories!  Horror of horrors, they cannot find a bank that wants to underwrite a conventional jumbo mortgage loan!

Welcome to the world of the home-grown subprime mortgage liquidity meltdown!  You respond in bewilderment by saying that your home is in an upscale neighborhood and the “good” buyers in front of you have easily qualified for jumbo loans before (that is to say home loans greater than $417,000).

With a certain incredible air in your voice, you say your property does not even reside in California where the median home price is well above $500,000 (and jumbo mortgages are as much as 44 percent of all mortgages issued in certain metro areas, according to data from First American LoanPerformance).

Maybe it’s time to consider Owner Financing just to get out of Dodge….?!

I am not making this up.  Consider these articles:

                                                  http://biz.yahoo.com/ap/070829/mortgage_applications.html?.v=1

                                                      http://biz.yahoo.com/ap/070829/expensive_homes.html?.v=2

Best in Success,
Maria Fee
REMI KNOX, LLC
Trading Financial Futures TM
281-346-0400   BUS  |  EMAIL   MariaFee@REMIKNOX.com
866-871-5914   BUS  | 
281-346-1300   FAX  |  WEB     www.REMIKNOX.com
 
Be your OWN BOSS! PART TIME NOTE BROKERING FOR FULL-TIME PROFIT.
Visit http://www.reminote.com/brokernotes.php.

Did anyone happen to see where residential mortgage applications in the United States fell last week?

“The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity fell 5.5% to 641.1 in the week ended August 17.  Applications, however, may have climbed earlier in August as a major lender hurt by turmoil in mortgage bond and other financial markets closed its doors, forcing borrowers to reapply elsewhere, said Jay Brinkmann, a vice president of research at the MBA.  The drop in applications we see here may be an indication that those borrowers have now been taken care of,’ he said.”  You can read about it here: 

                                http://www.cnbc.com/id/20387510

Mr. Brinkmann at the Mortgage Bankers Association posits that due to the fact  Countrywide Financial had to lay off most of their lending help that every single perspective home loan borrower somehow got their lending needs met elsewhere! Do you think that’s the case? Do you think that every single perspective borrower found a private money lender to meet their housing needs?!

I’m not buying it.  Owner Financing certainly is one way to go forward during this liquidity crunch but conventional lenders are simply not making mortgage loans like they used to.

I also read where privately held First Magnus Financial filed for bankruptcy and will no longer be issuing mortgages which leaves a gaping hole where the residential mortgage market used to be.

I smell money on the private mortgage side the likes of which haven’t been conceived of in over 20 plus years!

Best in Success,
Maria Fee
REMI KNOX, LLC
Trading Financial Futures TM
281-346-0400   BUS  |  EMAIL   MariaFee@REMIKNOX.com
866-871-5914   BUS  | 
281-346-1300   FAX  |  WEB     www.REMIKNOX.com
 
Be your OWN BOSS! PART TIME NOTE BROKERING FOR FULL-TIME PROFIT.
Visit http://www.reminote.com/brokernotes.php.