Why Are Fannie And Freddie In Such A Hurry?

[NC Appraising]

J...D Wiley honestly answered the big push behind hybrids replacing a segment of traditional appraisals is so banks can get more $ from closing a day sooner. )

Missed that post. I am just a 400 lb guy in the basement....I have no inside connections. LOL.


As for the cooling off period, I think many lenders will get a cooling of period in the next couple of years. Some will get put in the cooler.

Refi's are at a 20 year low, rates are going up. Get ready.


FWIW, when was the last time FHA partnered up with anyone...what is their motto?

 

[J Grant]

In purchases the borrower /seller often can't or won't close sooner ( moving from one place to another etc ) and in a refinance, if a borrower is so desperate they need the money NOW, maybe it should slow down a bit ?

 

[J Grant]

Clients now want us to call borrower or RE agent immediatley some of them, esp ho are annoyed, they say I haven't finished the paperwork yet, or I'm not sure yet. The rush to speed has little to do with the borrowers they are being used as the excuse

 

[NC Appraising]

In purchases the borrower /seller often can't or won't close sooner ( moving from one place to another etc ) and in a refinance, if a borrower is so desperate they need the money NOW, maybe it should slow down a bit ?

FWIW,

Quicken Loans and Wells Fargo had the highest APR's when I was looking to refi. May gosh, what is their advertising budget? Volume, volume....well the volume game is coming to an end. You cannot force someone to refi.

That is the issue with the mortgage market. There is only so much you can do to produce more business. You are at the will of the economy, interest rates and other factors. You can make all of the rockets you can...all of the no appraisals or hybrid appraisals you want. Not going to do much in a slowing market.

 

[J Grant]

Nobody can force a borrower to do anything but accelerating things rushes judgment and Fannie changing policies to accommodate the lenders whose loan programs emphasize speed for those lenders competitive advantage....

 

[BRCJR]

Simple as, the risk taker should determine the level of information required for risk they are willing to take.
Problem is the taxpayer has to prop the risk taker up, sometimes.
Privatize, which is questionable, sure would change the risk takers tolerance, in my opinion.

 

[George Hatch]

The moral hazard of repeatedly bailing out the banksters cannot be overstated.

I've heard it said that whenever OSHA is investigating a workplace accident they don't start at the worksite with the supervisors, they go straight to the top and start working their way down from there. I dunno if that's true but regardless, I'd like to see that happen with these lenders. Start off in Mozillo's office and don't stop until you run out of the decision makers who cause these problems.

Somebody sent the email, somebody signed the memo, somebody leaned on their subordinate to do their dirty work. Those are the individuals whose skin we need to have in the game.

 

[hastalavista]

OK, I posted what Fannie has told us they do from their website.
Here's their financial goal summary (my bold):

Our vision is to be America’s most valued housing partner and to provide liquidity, access to credit and affordability in all U.S. housing markets at all times, while effectively managing and reducing risk to our business, taxpayers and the housing finance system. We are advancing this vision by pursuing four strategic objectives:

• advancing a sustainable and reliable business model that reduces risk to the housing finance system and taxpayers;
• providing great service to our customers and partners, enabling them to serve the needs of American households more effectively;
• supporting and sustainably increasing access to credit and affordable housing; and
• building a simple, efficient, innovative and continuously improving company.

The bolded is the key for advocating against any changes that some might consider too risky.
And I'm presuming that it will be a significant metric in the testing of new products (all of them; loans and everything needed to make the loan including appraisals).

 

[TRESinc]

Some things just take time for a reason. UBER app can order a ride instantly, but to be safe the driver has to obey the speed laws An Uber driver does not get you any faster from point A to point B than a taxi driver does for that reason. Technology blah blah it was just an app stupid... once on the road safety and traffic and laws are in play.

sounds like you may not be a frequent user of paid-for ride services. i quite often used a cab to go out for drinks and dinner on the weekends (it's much cheaper than getting a dui, which can happen after only 2 or 3 drinks). the destination area was always the same (downtown), so the fares were always in the same neighborhood. along comes uber. i no longer have to call a dispatcher and be told "it will be there when they get there" and wait, on average, 45-90 minutes. the uber fare, and now lyft, was less than half that of the traditional cab. i don't use lfyt because the drivers are faster, i use them because they are (this is gonna make some people cringe) .... faster and cheaper than a traditional taxi!

i suppose some people may think that uber/lyft drivers are faster but my experience has shown the exact opposite - it's the cabbies, who are in daily leased cars, that fly around like we are in the indy 500. oh ya, they don't bother to clean the cabs very well either.

 

[NC Appraising]

I did not know that the government had a contract to bail out or to insure/protect Uber or lyft?

I did not realize that Uber and Lyft could bring down the US economy?

Now if you are comparing Uber to the cab industry, I would agree with you. Uber hands down.

Uber and the mortgage market...apples to oranges. Remember, most borrowers and sellers are idiots when it comes to the housing and mortgage market. We have to realize this.

I recently had a borrower that was buying a new construction home in a PUD tell me that she did not realize that she could negotiate the price or ask for more upgrades or incentives???? Yes, she use the lenders preferred mortgage company too.