Why Are Fannie And Freddie In Such A Hurry?

[NC Appraising]

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.

I remember reading several years back that Congress wanted to get rid of Fannie and Freddie, and let the largest banks in America take their place.

Fannie was just chasing the loss in market share. Are the big banks really the best replacement? Bankers?

 

[TRESinc]

I know, not meant for me....

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

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

never said they did in either case.

 

[NC Appraising]

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.

I remember reading several years back that Congress wanted to get rid of Fannie and Freddie, and let the largest banks in America take their place.

Fannie was just chasing the loss in market share. Are the big banks really the best replacement? Bankers?

never said they did in either case.

My fault. Corrected.

 

[Terrel L. Shields]

liked the idea, for all the reasons he cited.

Too logical...USDA in the heart of the corn belt, Dept.of Energy in energy states, ...

 

[gregb]

California should credibly claim every federal agency except __________?

 

[peturner]

OMG
We got off topic as usual

 

[NC Appraising]

OMG
We got off topic as usual

\

You stayed away to long?

Did you find the answer or at least a post to change your mind?

My post was long, but the simple answer was money and profit.

J Grant posted the most truthful answer, as D Wiley would know better than most of us:

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. Vs the impact on borrowers and y markets of rushing things to accommodate that.


I'll end with this: Changes take time. In other words, most lenders, AMCs, realtors, etc. got pissed off in 2015- the fall of 2017. This is when the "under supply" of appraisers started. Which I agreed with, but for other reasons. Low supply, low rates with the threat of rates going up, etc. We are in a profession that is cyclical. Simple as that.

It takes time to implement new policies and changes. Simple as that. Your theory is wrong.

 

[Evincere]

Pete,

I am highly disappointed in you!! I love a good conspiracy story as much as you, so I will help you out!!!

Check this out!!! Bring back memories? CHECK THE DATE OUT!!! ****2002**** You cannot make this stuff up!!! Your answer is below:
http://articles.latimes.com/2002/jan/06/realestate/re-harney6
"""Known as the "property inspection waiver," the pilot program is being offered around the country by a select group of mortgage companies who sell loans to Fannie. The lenders welcome the plan because it allows them to close mortgages faster, (TRAP BORROWERS FASTER) attract price-conscious loan shoppers and sometimes even lower their rate quotes. It also allows them to dispense with their customary contractual warranties to Fannie regarding the mortgaged property's condition and value. Those warranties open lenders to financial penalties should a home's stated value later turn out to be bogus."""

****** https://www.nationalmortgagenews.co...ppraiser-visits-fannie-mae-pilot-asks-why-not *********

**** https://www.urban.org/sites/default/files/f_sunset_seminar_-_appraisals.pdf ******


https://www.miamiherald.com/news/business/real-estate-news/article161759908.html
https://www.quickenloans.com/blog/q...mplifies-income-asset-employment-verification
http://investor.corelogic.com/press...ide-day-1-certainty-service-mon-07312017-1203
https://www.publicintegrity.org/201...ud-odds-quicken-loans-straight-shooting-image
https://www.housingwire.com/articles/38488-these-freddie-mac-mortgages-wont-need-an-appraiser
https://www.bloomberg.com/news/arti...-by-data-startup-claiming-trade-secrets-theft


1. What did Fannie Mae do before the market crash because they were losing so much market share?
2. Why do you always find Fannie Mae, Freddie, Quicken Loans and CoreLogic having summits?
3. Are these companies to "tight" with one another? Is it really to protect/help the public or to make their profits higher and to crush the competition?
4. Who is the largest lender in America?
5. Who benefits from the largest lender in America?
6. What can they further do to dominate the mortgage market?
7. Kinda hard for other smaller mortgage companies to compete...….crush the competition. Refi's are at a 20 year low.
8. What companies benefits if appraisers are taken out of the process or at least watered down?
9. Everyone hates appraisers. LOL.

Well Duh....Question # 2

We all remember Jacqueline Doty of Freddie Mac?

Jacqueline Doty is vice president and product line manager at CoreLogic.


https://collateralrisknetwork.com/jacqueline-doty/

 

[J Grant]

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.

Exactly. Mortgage lenders can use apps and digitalize mortgages and use hybrids or waivers and shave some time off. ....

The greater speed WILL NOT INCREASE LENDING VOLUME . Home buying / borrowing are big ticket decisions, not mass market goods going to fly off the shelves cuz there's an app for that.

There are 2 main ways lending increases : wait for rates to go low which is cyclical, or introduce riskier exotic loans expand to bad credit or no $ borrowers ...how'd that work out last time ?

If lenders all get the latest tech to match each other' s speedy service to borrowers they end up back in the same boat-offering similar service and products to a finite pool of borrowers at any given time.

Privatizing means higher interest rates or bigger down payments which is why it has not happened

 

[NC Appraising]

https://www.consumeraffairs.com/finance/quicken_loans_mortgage.html

Per a borrower, she paid $500 for an appraisal.

Someone else can do the math. They send out offers for $340.

So if they can get an appraisal done for $160, and considering the volume they do per year... that is a lot of additional income/profit to off set the slowing mortgage market.