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+--- Thread: Lenders screw Pahoa (/showthread.php?tid=5865)
Lenders screw Pahoa - Guest - 07-07-2009
A real big economic slam is now directed at Pahoa’s lava zone #1 & #2. Just got this from my relator. The big boy lenders are no longer making home loan mortgage’s in these zones. The big ones that the tax payers just spent Gazillions to bail them out are now going to thumb their noses at lower Puna. FHA, Fanny Mae, and all of those people that put us all into this economic crisis are again fat cats sticking it to the little guy.
The Lack [
!]RE: Lenders screw Pahoa - EightFingers - 07-08-2009
I thought it wasn't ever possible to get a mortgage in LZ1......LZ2 was kind of iffy also.
RE: Lenders screw Pahoa - Bullwinkle - 07-08-2009
Usually in high risk areas lenders require adequate insurance. In very high risk areas (no insurance offered) sales are usually driven by owner financing.
I have a bit of a problem with requiring lenders to lend anywhere; after all they are representing investors and are charged with looking out for their interests first.
RE: Lenders screw Pahoa - John S. Rabi - 07-08-2009
I actually see fairly brisk sales in both LZ1 Leilani Estates (11 sales/pending in the past 90 days) and LZ2 Nanawale Estates (7 sales/pending in the past 90 days) and most are reported as sales with conventional financing, so your realtor (must be a member of NAR!) must be smoking something good. [
]Aloha,
John S. Rabi, GM,PB,ABR,CRB,CM,FHS
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
RE: Lenders screw Pahoa - Guest - 07-08-2009
Actually John this imformation just came in in the last couple of days. What you see is prior to this new decission. But you are right lots of realtors have to smoke something to keep up with traffic light decissions.
The Lack
RE: Lenders screw Pahoa - Bob Orts - 07-08-2009
So Lack, are you suggesting MORE governement involvement, regulations and control?
RE: Lenders screw Pahoa - Guest - 07-08-2009
No John I don’t want more government control. What I would like to see is some respect to ALL of the taxpayers that are digging into their pockets to bail out and support these lenders. If not, than return our tax dollars and fend for yourself. You of all people should be pissed after all you are right in the middle of this. It is a given that private lenders can make most any rules they want, but Fannie May, FHA, VA, and a bucket of others. You know who they are John.
The Lack
RE: Lenders screw Pahoa - Rob L - 07-08-2009
All I read about is the big mainland banks getting government bailouts. Which Hawaiian Banks got TARP money? Which are the biggest lenders in Puna and how mcuh did they get?
Still, if they did get taxpayer money (actually bond lender money), they are under increased pressure not to put it at too much risk, which might explain why they are not lending in Lava Zone 1 or 2, if that is the case.
Aloha,
Rob L
RE: Lenders screw Pahoa - Obie - 07-08-2009
Actually the fault lies here.
In 1999, under pressure from the Clinton administration, Fannie Mae, the nation's largest home mortgage underwriter, relaxed credit requirements on the loans it would purchase from other banks and lenders, hoping that easing these restrictions would result in increased loan availability for minority and low-income buyers. Putting pressure on the GSE's (Government Sponsored Enterprise) Fannie Mae and Freddie Mac, the Clinton administration looked to increase their sub-prime portfolios, including the Department of Housing and Urban Development expressing its interest in the GSE's maintaining a 50% portion of their portfolios in loans to low and moderate-income borrowers.
Freddie Mac and Fannie Mae are just returning to the lending policies that they should have not strayed from.Not only does it include tougher credit checks ,it means no loans in high risk areas and no loans on sub standard buildings.I can remember buying a home back in the 70's and the seller would not allow me to try for Fha financing because he did not want the hassle of the tough Fha inspection.
Financing is available in all areas,but you need spotless credit,insurance and be willing to pay a higher interest rate.
RE: Lenders screw Pahoa - jdirgo - 07-14-2009
Fannie Mae did recently pass a rule that they will not securitize Lava Zones 1 and 2 on the Big Island. I've been in contact with Senator Inouye's office and they are going to make a formal request asking Fannie Mae why they are singling out the Big Island when Maui has an active volcano as do Washington, Oregon and Alaska. I also just got interviewed by the Star-Bulletin and the article will probably appear on Sunday.
John Dirgo, R, BIC, EcoBroker, ABR, e-PRO
Aloha Coast Realty, LLC
808-987-9243 cell
http://www.alohacoastrealty.com