11-21-2006, 04:20 AM
It looks like the state is concerned about exotic mortgages. I think they will be more concerned when lots of these ARMs start reseting in 2007 and 2008.
http://www.honoluluadvertiser.com/apps/p...10322/1071
From the article: "Among the new standards are evaluating a borrower's ability to repay a loan based on a rate after a low introductory rate expires, and doing more to verify income, assets and debts for higher-risk loans."
Well no duuhh. Doesn't anyone remember putting 20% down and going to the bank with a armful of paperwork to get a loan? I would hate to have money in these banks with the whole consolidate debt, take cash out of your own house ATM, refinance for the 5th time, rates will never be lower commercials. Does this mean the bank freely gave money to people who couldn't pay back the loan, verify income, or even evaluate the property risks, then sold the loans to Fannie or Freddie or some hedge fund who repackaged it and sold it as MBS to your retirement account or pension fund? Damn...
Another tidbit: "So-called exotic loans provide more flexibility for consumers and have been sold more widely in recent years, creating federal and state regulator concerns that borrowers may use such loans without fully understanding terms and risks."
So these idiots who bought the soon to be REO home, didn't understand a binding contract they signed? How stupid can these cattle be? They even have online mortgage calculators now. And why does the govt want to protect them now? Could the next step will be a federal law stopping foreclosures?
No, I don't think a few REO houses being sold below the average will affect your homes appreciation.
http://www.honoluluadvertiser.com/apps/p...10322/1071
From the article: "Among the new standards are evaluating a borrower's ability to repay a loan based on a rate after a low introductory rate expires, and doing more to verify income, assets and debts for higher-risk loans."
Well no duuhh. Doesn't anyone remember putting 20% down and going to the bank with a armful of paperwork to get a loan? I would hate to have money in these banks with the whole consolidate debt, take cash out of your own house ATM, refinance for the 5th time, rates will never be lower commercials. Does this mean the bank freely gave money to people who couldn't pay back the loan, verify income, or even evaluate the property risks, then sold the loans to Fannie or Freddie or some hedge fund who repackaged it and sold it as MBS to your retirement account or pension fund? Damn...
Another tidbit: "So-called exotic loans provide more flexibility for consumers and have been sold more widely in recent years, creating federal and state regulator concerns that borrowers may use such loans without fully understanding terms and risks."
So these idiots who bought the soon to be REO home, didn't understand a binding contract they signed? How stupid can these cattle be? They even have online mortgage calculators now. And why does the govt want to protect them now? Could the next step will be a federal law stopping foreclosures?
No, I don't think a few REO houses being sold below the average will affect your homes appreciation.