Big Players Call On OFHEO to Rethink GSE Decision

RE:Big Players Call On OFHEO to Rethink GSE Decision

Purple Flash — Mon, 27 Aug 2007 11:00:00 GMT

Again to Andrew About your Jumbo Clients. Payment history is only ONE componet of proper underwriting. Debt to Income Ratios' is another (the ability to pay the payment. DTI's show how High a payment a client (good payment history or bad) can afford to pay comfortably. You are probably used to these most times ridiclous back end debt ratios of 55 and 60%. (for most borrowers unrealistic but were allowed. but like Glenn Alexander said, lenders only cared about quotas and records.

RE:Big Players Call On OFHEO to Rethink GSE Decision

Purple Flash — Mon, 27 Aug 2007 11:00:00 GMT

To Andrew. I too am a mortgage broker. Again if your clients are in foreclosure now and can't refinance, its because they could not afford the adjustable loan they got in. When you write an adjustable, you must counsel the client of the WORST CASE SCENARIO (adjuStment or recast) and they must feel that they can still pay in that case. Whe worst case is what thas happened. As far as the Jumbo clients - remember this is a NECESSARY ADJUSTMENT - the jumbo's will fall back in line in time.

RE:Big Players Call On OFHEO to Rethink GSE Decision

Glenn Alexander — Sun, 26 Aug 2007 11:00:00 GMT

I left a mortgage lender which is in the news these days in Feb 07. The loans that we sold to people were wrong, but we had quotas and records to break. I warned some customers and told them to wait. But, others sold them anyway. A bailout would simply be removing responsibility and accountability from all parties involved, irresponsible lenders and borrowers!

RE:Big Players Call On OFHEO to Rethink GSE Decision

Andrew — Tue, 21 Aug 2007 11:00:00 GMT

To purple flash: I am aware of my bias as a mortgage broker, but I am seeing people every day who are facing forclosure, and cannot refinance due to the credit liquidity crunch, and not due to their payment history. This crisis is also severely effecting borrowers with excellent credit and high net worth individuals, trying to obtain jumbo loans (over 417k). I had a borrower last week with 760 credit, $100k in reserves, and cannot get a loan under 10%, if at all.

RE:Big Players Call On OFHEO to Rethink GSE Decision

Purple Flash — Mon, 20 Aug 2007 11:00:00 GMT

To Anita McKee The president is NOT making a mistake here. Those around you who are having their homes foreclosed on are because they were able to obtain loans that in the end they were not going to be able to afford (I saw this coming two years ago). They got loans that that shouldn't ever have been allowed. (there was the mistake - the loose underwriting that caused this mess). These bad loans artificially raised the value of these homes. And now the market is adjusting. painful necessary

RE:Big Players Call On OFHEO to Rethink GSE Decision

Anita McKee — Mon, 20 Aug 2007 11:00:00 GMT

I am totally disgusted with this President's lack of foresight and obvious lack of financial knowledge and his dogmatic stance on not listening to those in the financial markets who do know what needs to be done. I am in a County that has become devastated by the mortgage crisis. We have hard working people who cannot pay their high rate mortgages nor can they sell their homes because there isn't anyone out there who can qualify for a loan. Foreclosures are all around me. It's sad & wrong.

RE:Big Players Call On OFHEO to Rethink GSE Decision

FRED — Mon, 20 Aug 2007 11:00:00 GMT

A little too little a lot too late. Schumer is merely grandstanding as always. Where was he when the problems were being created? They were years in the making.