New Fhfa Head

[gregb]

More of the same, or...?

https://www.housingwire.com/article...reportedly-picking-mark-calabria-to-lead-fhfa

 

[chad hampton]

His description leads me to believe he will be worse. This full steam ahead with deregulation and back to the Wild West is bad for this profession.

 

[Joe Flacco]

Mark Calabria opinions

• Against securitization of mortgages and government guarantees
• Advocate for return to an "originate-and-hold" model for mortgage finance
• Federal support encourages secondary market investors to take on greater risks
• Stability for borrowers provided by 30 year mortgage comes at the expense of tax payers
• Favors loans with shorter terms
• Clear solution for affordability is to increase supply of housing and not low down payments or easy credit
• Opposed mortgage modifications
• Favors aggressive recourse for strategic default

https://www.urban.org/policy-center...-calabria-coming-full-circle-mortgage-finance

https://www.nytimes.com/2018/12/10/us/politics/mark-calabria-federal-housing-finance-agency.html

 

[Joe Flacco]

I don't know if his vision for housing finance is possible or realistic. If he can make it happen then I think he would be very good for appraisal.

 

[J Grant]

I don't know if his vision for housing finance is possible or realistic. If he can make it happen then I think he would be very good for appraisal.

Based on what...wishful thinking?

 

[Joe Flacco]

Based on what...wishful thinking?

If banks had to hold the paper without government guarantees would they still think that appraisals are still too expensive and slow? Maybe.

 

[J Grant]

If banks had to hold the paper without government guarantees would they still think that appraisals are still too expensive and slow? Maybe.

They always find investors to ofload the loans to, only difference in is govt backed certain regs are in place. Banks can't afford to "hold the paper" on massive loan volume....which is why private money loans where they do hold the paper are typically short term loans, a balloon in 3 years, 20-40% down . Most private $ mortgages don't order appraisals because their in house loan loan officers do a rough look up on the property, and with such high $ down they can't lose in a default, plus their foreclosure process since the loan is not federally regulated might be more streamlined.
Anti consumer regulations and protections and people taking over agencies they intend to dismantle is the hallmark of this admin nobody thought about that would mean their own elimination ?

 

[Evincere]

If banks had to hold the paper without government guarantees would they still think that appraisals are still too expensive and slow? Maybe.

If banks were holding the paper and were held to buybacks based on hybrids and AVMs there would be no question that appraisers would be required in lieu of these products.

. Neither of the fore mentioned E&O would satisfy large scale recovery claims

 

[Randolph Kinney]

The nature of banking and loans is to insure against risk of default. Since the government has taken over the risk by insuring or guaranteeing loans, anything goes. And it has. The taxpayer is the backstop to the banking system.

 

[Joe Flacco]

If banks were holding the paper and were held to buybacks based on hybrids and AVMs there would be no question that appraisers would be required. Neither of the fore mentioned E&O would satisfy large scale recovery claims

That's what I think. If banks hold the paper then not only would they want appraisals but they would want good appraisals. But who knows? They might actually believe that the AVM's are better than appraisals. I think privatized GSE's would mean that they would be free to make that choice.