Inspection

[ucbruin]

You know who Fannie buys loans from, right? That is why they care. If private equity, using more modern methods, replaces traditional lenders, what is the effect on the GSEs?

You're still avoiding answering directly....
If you don't have an answer just say so....
Only Marcum has all the answers....

 

[DWiley]

-t is the disgraced CEO no longer at fannie whose brainchild was the 1004P since he believed appraisers should not be in the field but at a desk...

Fannie used the "hybrid" process in one of its non-origination arms with such great success that they decided it was worth looking at for origination. I know because the guy who headed that effort used to work with me.

 

[DWiley]

You're still avoiding answering directly....
If you don't have an answer just say so....
Only Marcum has all the answers....

I am not avoiding anything. I gave you the answer.

 

[ucbruin]

Fannie used the "hybrid" process in one of its non-origination arms with such great success that they decided it was worth looking at for origination. I know because the guy who headed that effort used to work with me.

You may just have open up a new can of whop @ss.....

 

[ucbruin]

I am not avoiding anything. I gave you the answer.

Okay....
Then do me a favor and give me an answer that I can understand....
What benefits does Fannie get for shorter mortgage process?

 

[DWiley]

Okay....
Then do me a favor and give me an answer that I can understand....
What benefits does Fannie get for shorter mortgage process?

They don't get put out of business because the lenders they buy from are out of business - as borrowers go to private equity sources rather than traditional lenders. From where they (Fannie) sit, they have to change their model or they will no longer exist.

Many here are fully content with the status quo of mortgage lending So are my parents. My kids, not so much. We can all sit back and laugh and say those silly kids don't really need it any faster, but consumer behavior is speaking.

 

[ucbruin]

They don't get put out of business because the lenders they buy from are out of business - as borrowers go to private equity sources rather than traditional lenders. From where they (Fannie) sit, they have to change their model or they will no longer exist.

Many here are fully content with the status quo of mortgage lending So are my parents. My kids, not so much. We can all sit back and laugh and say those silly kids don't really need it any faster, but consumer behavior is speaking.

Because I'm ignorant regarding the process and the different options available to tech minded kids....

Private lenders aren't backstopped by Fannie....
And Fannie is worried that they will no longer get the largest slice of the pie?
If this is correct...

From your knowledge how large the lending pie is Fannie currently receiving?

 

[J Grant]

They don't get put out of business because the lenders they buy from are out of business - as borrowers go to private equity sources rather than traditional lenders. From where they (Fannie) sit, they have to change their model or they will no longer exist.

Many here are fully content with the status quo of mortgage lending So are my parents. My kids, not so much. We can all sit back and laugh and say those silly kids don't really need it any faster, but consumer behavior is speaking.

Why would borrowers go to private equity sources when their interest rates are several points higher and the down payments greater and loan terms shorter ? Consumers interluding millennials are not idiots and wil choose to wait a few weeks to close on a 4% interest five percent down fannie backed 30 year loan vs close in 5 days private equity 7 % interest thirty percent down balloon loan due in full in 5 years.

Fnnie is serving the agenda of Quicken/Amrock the fast internet model ( what is the stock ownership in these companies of Fannie CEO's ) over more diligent lenders . Jmo I am not Mueller lol can;t investigate it

 

[J Grant]

They don't get put out of business because the lenders they buy from are out of business - as borrowers go to private equity sources rather than traditional lenders. From where they (Fannie) sit, they have to change their model or they will no longer exist.

Many here are fully content with the status quo of mortgage lending So are my parents. My kids, not so much. We can all sit back and laugh and say those silly kids don't really need it any faster, but consumer behavior is speaking.

Oh please give the "kids" some credit. This is not amazon competing against retail to deliver sneakers faster, this is borrowers comparing high rate high down payment private money vs better rate and terms fannie backed. Would you advise a young person to take a bad rate private loan because they can close a day faster? Unbelievable.

PS a distressing (from lender standpoint) number of "kids" have no intention of buying RE for years, if ever, and if they want to now can;t afford it. And it has nothing to do with speed of mortgage closing or appraisal fees.

They either want to opt our of the consumer trap ( smart), or can not qualify for a loan because they are mired in student loan debt or have low earnings (thanks to the "Efficient" companies that keeps downsizing workers ) Management of fannie is trying so hard to be "young" in their thinking yet sem to have no idea about the real issues younger generation are grappling with.

Offer the younger folks real relief- such as roll their student debt into a mortgage payment for example, or rent to own via fannie over time, that is the kind of real help they need, not to save $100 on an appraisal fee or close a week sooner

 

[DWiley]

Why would borrowers go to private equity sources when their interest rates are several points higher and the down payments greater and loan terms shorter ?

Just do a little research on the topic and see what you find You are assuming the status quo.