mortgage delinquencies

[RWebb]

Federal Housing Administration reports it is seeing mortgage delinquencies slowing. WSJ buried this on p. 5

Only a couple of months ago it was assumed that the FHA and its portfolio would be the next big bailout.

[Crowbob]

At some point, the rate of delinquencies has to slow down because not every mortgage is subprime or created for people who should never have gotten a mortgage in the first place. It will get worse if unemployment doesn't turn around, and quicky.

[cgarr]

I cleaned up my back woods and got rid of all the dead wood. Now there is no more dead wood!

[McLovin]

Hey, on the upside, the fires are almost all out!

[Brando]

Originally Posted by McLovin

Hey, on the upside, the fires are almost all out!

Couldn't have put it in a better analogy.

[RWebb]

moreover, the banks have become more stringent - not less

maybe you guys should form your own gloom club

[Brando]

Originally Posted by RWebb

moreover, the banks have become more stringent - not less

maybe you guys should form your own gloom club

Hey guys, don't worry about the "housing bubble" that popped, helped ease us into this dismal economic state and recession... The banks are more stringent! We're saved! They'll never lend to unqualified buyers ever again!

[Rick Lee]

I just made the first payment on my latest FHA loan last week. The process wasn't too difficult, but then we were overqualified. The thing that really chapped my ass about it was they did another employment verification the day after close of escrow but before they released funds. And they couldn't get a hold of my wife's HR folks. We were literally minutes away from the deadline to have the funds released and deed recorded before it dragged into the next week when I got my wife to get her boss to call the lender. Nevermind the lender's office was almost within view of my wife's car in her company parking lot and she sent emails from her work email. I could have had any stranger make that call and vouch for her and they would have bought it. PITA!

[Porsche-O-Phile]

Originally Posted by RWebb

moreover, the banks have become more stringent - not less

maybe you guys should form your own gloom club

Care to comment on the role that the CRA had in this?

[sammyg2]

Originally Posted by RWebb

Federal Housing Administration reports it is seeing mortgage delinquencies slowing. WSJ buried this on p. 5

Only a couple of months ago it was assumed that the FHA and its portfolio would be the next big bailout.

Wow. You mean they are finally running out of low-lifes and dead-beats? Who-da thunk?

The FHA has been given many hundreds of millions of dollars to give to poor people who can't afford to pay back a mortgage. THIS YEAR!
Nothing has changed. "Our" government is still loaning money to po' people who can't pay it back. They have not learned their lesson.
What could possibly go wrong?

[Porsche-O-Phile]

This is my biggest complaint about the current economic mess - we're not learning a damn thing from it.

This SHOULD BE a huge learning experience for us all, but we're still making the same damn mistakes we were making before the pop. Spending/living way beyond our means, borrowing way too much, not enforcing accountability, allowing social engineering policy to trump fiscal conservatism, etc.

We've learned nothing. Isn't the clinical definition of stupidity doing the same thing over and over and expecting different results?

[cbush]

That is the clinical definition of insanity. But yea, it is stupid too

[turbo6bar]

Originally Posted by Porsche-O-Phile

This SHOULD BE a huge learning experience for us all, but we're still making the same damn mistakes we were making before the pop. Spending/living way beyond our means, borrowing way too much, not enforcing accountability, allowing social engineering policy to trump fiscal conservatism, etc.

If we learn from our mistakes, the glory days of the US will end. I'm not saying we'll start living in caves, but we'll miss the days of overconsumption, gluttony, and waste.

webb is the PPOT equivalent of Benny Bernanke's "The problems in subprime have been contained."

By my experience, the tightening of credit to only the most creditworthy will dampen the market further. I'm not suggesting credit be loosened. Also, the leveling of the mortgage delinquency rate is a partly/mostly due to the fact the delinquencies are being moved through foreclosure. It can't be counted as delinquent when it is no longer in possession of the borrower. No doubt the incompetents at FHA will say, "Look! Delinquency rate down," whilst obstructing the ocean of foreclosed inventory.

[myamoto1]

Originally Posted by Porsche-O-Phile

This is my biggest complaint about the current economic mess - we're not learning a damn thing from it.

This SHOULD BE a huge learning experience for us all, but we're still making the same damn mistakes we were making before the pop. Spending/living way beyond our means, borrowing way too much, not enforcing accountability, allowing social engineering policy to trump fiscal conservatism, etc.

We've learned nothing. Isn't the clinical definition of stupidity doing the same thing over and over and expecting different results?

Totally agree with this. I put my house on the market, hoping to take advange of the down market and upgrade to a larger house. I go through the pre-qual process and qualify for about $150k more than I should really be able to afford.
It pisses me off that these lending institutions are still making poor loan approvals and still offering people more than they can afford.

Not only that, but they're taking forever on processing short sales and foreclosed properties. They're trying to squeeze every last dime out of the defunct (or soon to be) loans. Sounds logical, until you factor in that the several grand a month they're eating on the original loan, taxes, etc. They drag out the sale 6+ months in hopes of saving $5k - $10k on the sale price.

The "bait and switch marketing" they're employing is also frustrating. Houses are constantly being listed for prices the banks have no intention of selling the house for. I know of one house that was listed for $300k. Friend offered $270k for it. Bank countered at $325k. WTF I'd also like to know where all of my tax bail-out dollars went and how that's helping the banks help me. Maybe it's just me, but I'm not seeing it.

[Hugh R]

Didn't we have a thread a few days ago in which the Dems thought 5% down payment was too high for some folks (minoritories and poorer people)? They don't learn.

[RWebb]

Originally Posted by Porsche-O-Phile

.. still making the same damn mistakes we were making before the pop.
[1] Spending/living way beyond our means,
[2] borrowing way too much,
[3] not enforcing accountability,
[4] allowing social engineering policy to trump fiscal conservatism, etc.
...

1 & 2. borrowing is down for all types - savings rates are UP

- so are saying they have not changed enuff, or what??

3. examples?

4. "social engineering" has always been engaged in -- e.g. the US Govt. gave enormous grants to RR's -- to get the transcontinental RR built - it worked. was it worth it??

another e.g - the entire robber baron era was built on a govt'l substructure

then there's the space program...

so, you need to be more specific about your objections

[Tobra]

Randy, I must congratulate you on this excellent thread. Full of cogent posts, with germaine anecdotes and well supported arguments, with a few exceptions. Posts 1 and 16 in particular.

[RWebb]

maybe you're reading it upside down

[Zeke]

I don't know if this means anything, but there are more houses for sale in the high rent district here than I've ever seen.

[Tobra]

Originally Posted by RWebb

maybe you're reading it upside down

either that or dyslexic