More mortgage problems ahead
Posted 26 May 2018 - 09:59 PM
Recall the S&L fiasco from yesteryears?
Any time government backs anything, sharks will exploit, and tax payers will pay.
Posted 27 May 2018 - 12:23 PM
The minimum credit score is 580 for the low down payment programs from Fannie Mae. The problem is the crisis programs for mortgage modifications are still around to extend the loans if they default on payments.
Posted 29 May 2018 - 11:23 AM
I guess it doesn't matter what happens to these "agency insured" mortgages when the FED is still easing by doing this
at what point and % of US land holdings that the FED (a private bank) owns will this be important. I think its important now but what do I know. Seems like a land grab to me especially when they can just print money to purchase the loans. This has got to sink the dollar at some point - its just when?
Posted 29 May 2018 - 02:50 PM
If problems are coming, you'll find the mortgage defaults rising, specifically the first payment defaults (FPD) and early payment defaults (EPD). They were rising sharply in 2006. The latter is defined as missing mortgage payments within the first 6 or 12 months, depending on who's doing the reporting.
Posted 06 June 2018 - 05:56 AM
It will be interesting when the FED tells Goldman to buy 1 T of mortgage backed securities to get them off their books - a couple of articles are from 2017 and must have slipped through the cracks.