In a recent Wall Street Journal article entitled “Mortgage Lenders Ease Rules for Home Buyers in Hunt for Business” by Nick Timiraos and Annamaria Andriotis, we continue to hear that banks are beating the bushes for borrowers; and they are relaxing some of the tough lending requirements that have stymied may would-be homebuyers in the last few years. The reason? The refi boom which was triggered by ever lower interest rates has about run its course. In the search for other profit centers, many banks are trying to fill the void with loan origination business. Continue reading “Are Mortgage Lending Rules Easing?”
A change in how the most widely used credit score in the U.S. is tallied will likely make it easier for tens of millions of Americans to get loans. ~Wall Street Journal Online, August 7, 2014.
According to a recent Wall Street Journal online article [FICO Recalibrates Its Credit Scores], FICO is going to get under the hood and re-jigger some of its proprietary algorithms, to deal with the realities of the damage wreaked on distressed homeowners over the past five years. Continue reading “Fair Isaac Co. (aka “FICO”) Just Got Fairer!”
“…the United States is still producing around $800 billion a year less in goods and services than it would if the economy were at full health, and as a result millions of people aren’t working who would be if conditions were better.” Neil Irwin, senior economics correspondent, N.Y. Times, Aug. 4, 2014.
If the U.S. economy were a person, we’d characterize them as suffering from chronic malaise, interrupted by occasional bursts of vitality. In a recent N.Y. Times article subtitled “A Recovery in Need of a Recovery” (here), author, Neil Irwin, the paper’s senior economics correspondent, does an excellent job identifying and discussing those sectors of the economy in need of a Venti Americano, with a few extra shots of caffeine. Continue reading “America’s Economic Malaise And The Importance Of Real Estate”
Jabberwocky: “Total nonsense. A fit of rambling which resembles a civilized language but in fact is meant only to obfuscate meaning or confuse the victim, or listener.” Directly taken from the story “Alice Through the Looking Glass” by Lewis Carroll. [Urbandictionary.com][1] Continue reading “Nuts and Dolts: How Total Nonsense Helped Win An Election”
AND THE AWARD GOES TO… [complimentary drum roll here] Jason Furman and James Stock! [Hereinafter collectively referred to as “J&J.”] Both economists,[1] apparently shilling for the White House, are calling for the dismemberment of Fannie and Freddie, the government sponsored enterprises, or “GSEs,” with something – anything – else. They have recently co-authored a puff piece [“The Moment is Right for Housing Reform”] that managed to make it onto the Wall Street Journal opinion page, mercifully “below the fold.”
Both gentlemen appear to have all the right credentials to be comfortably ensconced in the ivory towers of Ivy League academia. But for all their whiz-bang credentials in economics and statistics [here], one would think this article would contain a little more meat and a little less mush. In fact, the article is so packed with political pablum it ought to carry a warning against reading it without first putting on a bib. The piece appears to be directed to those folks in the audience who nod knowingly, but know nothing. In other words, J&J’s intent is not to inform, but to influence. To its credit, the article appears to comply with the federal mandates set forth in the “No Idiot Left Behind” learning program for useless information. Congratulations guys!
Continue reading “Nuts and Dolts: White House Puff Piece On “Housing Reform””
In a recent Wall Street Journal article entitled “Mortgage Lenders Ease Rules for Home Buyers in Hunt for Business” by Nick Timiraos and Annamaria Andriotis, we continue to hear that banks are beating the bushes for borrowers; and they are relaxing some of the tough lending requirements that have stymied may would-be homebuyers over the past few years. The reason? The refi boom which was triggered by ever lower interest rates has about run its course. In the search for other profit centers, many banks are trying to fill the void with loan origination business. Continue reading “Easing Bank Credit Standards And Lending Terms? It’s About Time!”
Ludd·ite – noun \ˈlə-ˌdīt\: one of a group of early 19th century English workmen destroying laborsaving machinery as a protest; broadly : one who is opposed to especially technological change Luddite adjective. http://www.merriam-webster.com/dictionary/luddite
If the shoe fits…. Hmmm. This sounds vaguely familiar today. As a protest, one destroys the very thing upon which they have come to depend. I note that the dictionary says the term can be used as an adjective. This suggests to me that in today’s parlance, it is primarily descriptive. I sense that calling someone a “Luddite” is not a ringing endorsement of their common sense. Continue reading “Congressional Luddites Seek to Dismantle Fannie and Freddie (Part One)”
Introduction. The FAQs below come directly from the most recent CFPB guidelines for January 2014. Parts One and Two can be found here and here. As I go through the rules I will supplement the FAQs. This information does not apply to the Big Banks, e.g. B of A, Morgan Stanley, JPMorgan, etc. Rather, it applies to “small creditors” such as community banks. Unfortunately, the regulators have sought to apply the ATR/QM rules even to Mom and Pop who may sell an occasional rental unit or two.[1] The CFPB gives “small creditors” or “small entities” certain underwriting latitude in the application of the ATR/QM rules. Generally, these are persons or entities with no more than $2 billion in assets that make no more than 500 mortgage loans per year. Originally, the small entity exceptions were intended to apply only to “rural or underserved counties,” but until January 10, 2016, the exceptions will apply to all small creditors, regardless of location. Caveat: This material below is informational only and does not constitute “legal advice.” Moreover, it is summary only; for more information, the actual regulations should be reviewed. [For full article, go to link here.]
[1] I maintain vehemently that on the state and federal levels, the CFPB rules should not apply to the occasional sale of residential property owned by persons who are not in the business of making such loans, when they “carry back the paper,” e.g. on a contract or note and trust deed. The fact that Oregon’s DFCS insists otherwise is a sad and disturbing commentary on the uber-regulatory mindset of governmental bureaucrats who would rather regulate than cogitate. Any sentient human being who has a passing familiarity with the housing and credit crisis would know that the occasional sale of residential property by Mom and Pop who carry back the paper was never meant to be subject to the ATR/QM and mortgage loan originator laws.
Introduction. This is Part Two of ATR and QM FAQs. Part One is here. The FAQs below come directly from the most recent CFPB guidelines for January 2014. As I go through the rules I will supplement the FAQs. This information does not apply to the Big Banks, e.g. B of A, Morgan Stanley, JPMorgan, etc. Rather, it applies to “small creditors” such as community banks. Unfortunately, the regulators have sought to apply the ATR/QM rules even to Mom and Pop who may sell an occasional rental unit or two.[1] The CFPB gives “small creditors” or “small entities” certain underwriting latitude in the application of the ATR/QM rules. Generally, these are persons or entities with no more than $2 billion in assets that make no more than 500 mortgage loans per year. Originally, the small entity exceptions were intended to apply only to “rural or underserved counties,” but until January 10, 2016, the exceptions will apply to all small creditors, regardless of location. Caveat: This material below is informational only and does not constitute “legal advice.” Moreover, it is summary only, and for more information, the actual regulations should be reviewed. ~PCQ [For full article, go to link here.]
[To be continued.]
As 2013 recedes in the rear-view mirror of memory, I thought it high time to ask what were some of the significant developments of the year, and what do they bode for the real estate industry in 2014? I’ve identified the following five data points I believe are most worthy of discussion. They are arranged in no particular order of importance. ~PCQ
The Portland-Metro Real Estate Market. Unless you’ve been on the Moon for the past 15 months, it’s hard to ignore the pleasant truth – the market is much improved. But by no means is it fully recovered. It’s off life support, but still recuperating. There are certain aspects of today’s real estate market that continue to be in need of improvement. [For rest of article go to link here.]