New Fhfa Head

[J Grant]

Banks are not funded enough to "hold paper" on their own loans. What do you guys think interest rates would be if that really even was possible? 14%? With 20% min down payment? Yeah I'd love to see the housing market grind to a halt and everyone's property value plunge if that happens

here is a reason for govt backed loans, it insures risk enough to keep interest rates moderate and down payments lower. This guy wants to do away with all that, god knows what system will replace it because banks are not set up to keep volumes of loans in house, they need to offload it to investors, and so far nobody on private side is clamoring for appraisals.

 

[J Grant]

Banks are not funded enough to "hold paper" on their own loans. That's why they sell the loans to investors within a few months.

What do you guys think interest rates would be if banks even could keep the paper...14%? What would the down payments be...20%? 30%? There is a reason for govt backed loans, it insures risk enough to keep interest rates moderate and down payments lower. This guy wants to do away with all that, god knows what system will replace it because banks are not set up to keep volumes of loans in house, they need to offload it to investors, and so far nobody on private side is clamoring for appraisals.

 

[Mr Rex]

That thought process is not exactly correct. The NC State Employees Credit Union holds their own paper, but will loan on Tax Value if it covers the LTV or order an appraisal @ a whopping $275 if needed.

 

[Joe Flacco]

I don't know if I am interpreting his Cato article correctly but it sounds like he is saying that supply of housing should be high to make homes more affordable and mortgage risk should not be subsidized by the government with low down payment, low rates, and government guarantees. If he is saying that I think that would be a hard sell politically.

 

[J Grant]

I don't know if I am interpreting his Cato article correctly but it sounds like he is saying that supply of housing should be high to make homes more affordable and mortgage risk should not be subsidized by the government with low down payment, low rates, and government guarantees. If he is saying that I think that would be a hard sell politically.

Hey, it would be great investment opportunity for the wealthy Chinese and Russian oligrachs to buy up American homes when the govt guarantees are stripped and home values plunge 40% as a result.

What a brilliant "plan"...take away govt loan backing, watch interest rates shoot up and down payments higher yeah that would make homes more "affordable"... as all the low $ down FHA and VA buyers ( love our vets , let's strip their equity!).....and others who put 10% down and bought in a strong market go underwater in their mortgages and end up in default or short sale at some point.

 

[Joe Flacco]

 

[djd09]

The bitcoiners will love him. buy buy buy.

They should have let fannie fail. They are the root of the problem.

Let the Free Market Ring.

 

[Joe Flacco]

It makes a sense to me. Just probably unpopular since people like to see their real estate prices go up.

But then how do you increase supply of housing? Kind of sounds like government would subsidize the developers for residential construction to maintain enough supply to keep housing price growth in line with income growth. I don't know how else you can increase supply of housing.

 

[Elliott]

From an AI article where Calabria commented on Shiller getting the Nobel Peace Prize:
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"He is certainly someone who has done work in finance and real estate finance that merits a Nobel prize,” Mark Calabria, director of financial regulation studies at the public policy think tank Cato Institute, told HousingWire. Calabria added that Shiller’s work is data-driven and created significant market interest because the S&P Case Shiller Home Price Index is considered to be one of the most practical.

Calabria credits Shiller for being among the first to identify bubbles in the housing market and the dot-com sector.

“I don’t think he is always saying the sky is falling down,” Calabria told HousingWire, but he noted that Shiller is willing to report the asset inflation trends.


“This will give a little more weight to his willingness to call what he sees as bubbles in the marketplace,” Calabria told HousingWire.


In fact, Shiller recently has expressed concerns about the potential for a new housing bubble.


However, housing experts speaking at the Information Management Network’s ABS East institutional investor conference in Miami Oct. 7 disagreed with Shiller’s assertion, which they said may be based on the entry of investors who could have over-stimulated local markets. Mark Fleming, chief economist at analytics firm CoreLogic, told the conference that price appreciation is slowing down and only now is correcting itself for an overshoot in price collapse, HousingWire reported.
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Hard to read the tea leafs and where he will fall on the AVM trend.

 

[J Grant]

How funny...how about increasing INCOME with a livable min wage? Or a program to really stimulate job growth other than ( once again) cutting taxes, which after a short term hiring uptick has done nothing to generate more jobs or higher pay? Home affordablity by crashing house prices is the other way to do it. I suppose I am not happy about losing 40-60% of my home equity along with now stripped of appraiser livelihood. Didn't anyone think of the consequences for electing an anti consumer protection and anti regulations admin...if they want to increase supply of housing by grants to build affordable homes, go for it, but crashing the housing market and putting more owners into default seems like a bad way to go about it.