Collateral Underwriter "suggested Comparables"

[gregb]

Without the "bailout" no one knows what would have happened to the residential appraisal profession. My guess is that the several banks I work for would have continued to prosper and pay me the fees they and I agree are appropriate, and would have continued as before, making residential and commercial loans that met their standards.

 

[timd354]

Without the "bailout" no one knows what would have happened to the residential appraisal profession. My guess is that the several banks I work for would have continued to prosper and pay me the fees they and I agree are appropriate, and would have continued as before, making residential and commercial loans that met their standards.

I know that without a massive infusion of capital after the bubble collapsed in 2007-2008, the credit markets, including the mortgage markets would have collapsed. I know that becase the credit markets actually did collapse in September of 2008 when, in the span of 1 week, over $140 Billion in in private capital was pulled out of money markets and the demand for Mortgage Backed Securities and other commercial paper essentially went to zero as private capital had decided that pretty much all of it was toxic. This caused the credit markets, including the secondary mortgage market to essetially stop working and it was only because of the government bailout in the fall of 2008 and into 2009 that the credit markets did not completely collpased and then started to function again fairly quickly. While I don't know every detail regarding what would have happened if there had been no bailout of the credit markets, which included the GSE bailout, anyone who has a rational thought process and who seriously researches what happend in the credit markets in 2007-09 would conclude that no government intervention at that time would have resulted in an utter collapse of the credit markets as private capital simply was not coming back into the market. The result would have been economic chaos that surely would have resulted in a full blown depression and the utter destruction of the residential appraisal profession along with many other professions and industries,

 

[Rich LeMond]

Bailout money is not a gift it is a loan, many banks have already repaid it with interest.

FAILED.PRIVATE.ENTERPRISE. What about that is ambiguous? The people who made the bad decisions should have been in the SOUP LINE but instead they were getting massive bonuses a few months later.

 

[gregb]

I know that without a massive infusion of capital after the bubble collapsed in 2007-2008, the credit markets, including the mortgage markets would have collapsed. I know that becase the credit markets actually did collapse in September of 2008 when, in the span of 1 week, over $140 Billion in in private capital was pulled out of money markets and the demand for Mortgage Backed Securities and other commercial paper essentially went to zero as private capital had decided that pretty much all of it was toxic. This caused the credit markets, including the secondary mortgage market to essetially stop working and it was only because of the government bailout in the fall of 2008 and into 2009 that the credit markets did not completely collpased and then started to function again fairly quickly. While I don't know every detail regarding what would have happened if there had been no bailout of the credit markets, which included the GSE bailout, anyone who has a rational thought process and who seriously researches what happend in the credit markets in 2007-09 would conclude that no government intervention at that time would have resulted in an utter collapse of the credit markets as private capital simply was not coming back into the market. The result would have been economic chaos that surely would have resulted in a full blown depression and the utter destruction of the residential appraisal profession along with many other professions and industries,

Tim, please spare us the platitudes, you do not know what would of happened because you do not know what you do not know. Next thing you will espouse is that you know the future of appraisers...have at it, but include time line, number of appraisers leaving the profession and where that will leave you in the profession. I have an excel sheet specialy made for your predictions.

 

[The Bob]

Yeah, private capital is just itching to get into mortgages at a 3.5 - 4.0% yield before origination costs, servicing costs and provisions for credit losses which amount to at least 150 -200 basis points, making a potential ROI of around 2 - 2.5% at those types of mortgage interest rates....lol. You have no clue.

Come on, you could have bought some mortgage backed securities today with a yield of anywhere from 1.5 - 2.25%. Don't you think that kind of ROI will attract a massive amount of private capital into the mortgage market? lol

So, the mortgage market is a horrible deal for private money, but a great deal for the govt's (our) money?

 

[timd354]

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[timd354]

So, the mortgage market is a horrible deal for private money, but a great deal for the govt's (our) money?

Where did I ever say that the mortgage market is a great deal for government money? However, it is not arguable that the GSE bailout ended up being very profitable for the federal treasury

 

[djd09]

here is my prediction. the next bubble in the housing market is coming. fannie will deflect any responsibility onto others. they will use CU to "blame" appraisers see current graphs. CU will be implemented as the new age appraisal. what could be more unbiased then a computer. oh and they get another bailout. maybe 500,000,000,000 this time.
who said this
"These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis. The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."

• The New York Times (11 September 2003

 

[Eli]

Think about this. The cream didn't rise to the top with lenders in the crisis either, just like it didn't with appraisers. The one's who needed no bailout didn't rise to the top on the lending side. I think current events are bucking the system. This is due to strong and new regulatory power from authorities other than FNMA, imho. But, FNMA knows it and is taking appropriate action to protect "their" interests as they relate to public trust, no doubt they want to be on the winning team this time around, and they are trying to prove to those higher authorities they deserve to be on the winning team relative to public trust. They are definitely bucking the system, with support from some major players.

 

[timd354]

Tim, please spare us the platitudes, you do not know what would of happened because you do not know what you do not know. Next thing you will espouse is that you know the future of appraisers...have at it, but include time line, number of appraisers leaving the profession and where that will leave you in the profession. I have an excel sheet specialy made for your predictions.

What platitudes? There is no secret about what happened. Why don't you take the time to actually research what went happened and tell me where you think I got it wrong and tell me what you think the likely outcome would have been if there had been no government bailout after private capital pulled out of the credit markets in the fall of 2008 which caused the credit markets to essentially to stop functioning? How high do you think interest rates would have need to rise to in order to attract sufficient private capital back into the credit markets (including the secondary mortgage market) in a highly toxic credit risk environment to avoid a full blown economic depression without the government bailout (assuming that it would have been possible at to attract sufficient private capital at any yield