F & F to purchase $200 billion in mortgage debt?

[Joe Flacco]

$200 billion in MBS is not a lot.

 

[Fernando]

Last year mortgage rates drop almost percentage point from 2024 but we didn't see a great increase in appraisals.
Rates need to drop more.

 

[Bobby Bucks]

If Dworkin is correct mortgage rates would drop at least quarter of a point, every little bit helps.

 

[J Grant]

A better idea is for FF to enact much higher loan fees and rates to SFR /condos used for rental. These are taking inventory off the market, which drives prices up/

Over 40% of my residential assignments now are investor occupants with a rental form attached.

 

[Fernando]

A better idea is for FF to enact much higher loan fees and rates to SFR /condos used for rental. These are taking inventory off the market, which drives prices up/

Over 40% of my residential assignments now are investor occupants with a rental form attached.

Rental property already have high rates. Lenders have considered that risk of nonowner occupancy.
Also, Investors serve a stabilizing force in slow real estate market.

 

[J Grant]

Everything the government does to enhance "affordability" gets bid into the price of homes, decreasing affordability over time. It increases taxes and increases insurance and increases risk and increases taxpayer liability. We just don't see the money stream from the Treasury to lenders and mortgage insurers, while borrower/taxpayers lose real equity and public debt increases at faster than inflation.

"Over the past 50 years, the rate of growth in total public debt has significantly outpaced the rate of inflation. While the average annual inflation rate has been around 3.7%, the national debt has grown at a much faster, compounding rate, particularly since the 1980s and following major crises. "

We, the people, are also to blame. Whether we voted for DT or not, whether we blame Biden or Trump or the R or the D party, we are too freaking greedy. America has a significant national debt threat, yet we want continued growth and a robust economy. Paying down the debt would mean some belt tightening for all of us- and maybe even paying more taxes. Sorry, but that is true. Increase revenue and use it to pay off the debt. WE can save a little for future generations. That must be done in addition to government spending -yet DT is going wild on spending with a bloated military budget, $170 billion for ICE (instead of a more cost-effective deportation rate) , taking on Venezuela to get back billions to private oil companies, etc.

I am not positive that to be possible, but he is the president now, and what he does in the next three years is all we have- we can not change the past. Those who support him via their party and local elected officials are the ones with the power to influence.

 

[Gobears81]

A better idea is for FF to enact much higher loan fees and rates to SFR /condos used for rental. These are taking inventory off the market, which drives prices up/

Over 40% of my residential assignments now are investor occupants with a rental form attached.

How many homes do you see that are purchased by institutional investors? I saw this week that they are going to try to outlaw them from purchasing SF residential. I am skeptical that it would pass without them somehow coming out ahead, but that seems to be the current solution bandied about.

 

[J Grant]

How many homes do you see that are purchased by institutional investors? I saw this week that they are going to try to outlaw them from purchasing SF residential. I am skeptical that it would pass without them somehow coming out ahead, but that seems to be the current solution bandied about.

I can not tell because I do not get appraisals specifying who is an institutional investor as a buyer. I imagine a number of them buy with cash?

I do see a lot of individuals buying SFR for investment rental purposes and a number of LLC corps buying for flip or investment- air BNB or nnormal rents etc.. FF can be made to charge much higher rates or impose resale restrictions on those mortgages to slow it down.

 

[Fernando]

How many homes do you see that are purchased by institutional investors? I saw this week that they are going to try to outlaw them from purchasing SF residential. I am skeptical that it would pass without them somehow coming out ahead, but that seems to be the current solution bandied about.

My recent purchase was a duplex and I'm proud to offer the units to renters. The existing renter was thrill that I wasn't going to evict her and live in her unit.
Many tenant occupied homes for sale would have them move out after purchaser moves in to be owner occupy.
More units for rent help keep rents from going up in area.
Government should stop interfering in the real estate market.

 

[J Grant]

My recent purchase was a duplex and I'm proud to offer the units to renters. The existing renter was thrill that I wasn't going to evict her and live in her unit.
Many tenant occupied homes for sale would have them move out after purchaser moves in to be owner occupy.
More units for rent help keep rents from going up in area.
Government should stop interfering in the real estate market.

You bought a duplex, not a SFR.