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Rainmaker
1,716,596
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Here we go again.

Oct 16, 2017 09:06 PM
Ambassador
4,089,133
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Doesn't surprise me - Mel Watt began his political career right here in Charlotte...

Back to "living or breathing," I guess. 

Oct 16, 2017 09:30 PM
Ambassador
5,209,285
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

These cycles repeat, are you going to stop selling homes to people who do not have the resources to buy?  Or will you just leave that up to the lenders?

Oct 16, 2017 05:56 PM
Rainmaker
5,570,625
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

a name and a pulse.... commitment!!!

Oct 16, 2017 04:49 PM
Rainmaker
868,069
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Duh!
No one learns.

Oct 16, 2017 04:43 PM
Rainmaker
584,828
Alexander- Slocum
Premiere Property Group, LLC - Vancouver Washington - Vancouver, WA
Realty Team- Vancouver WA Real Estate

Almost SOS-DD.  The Fed now carries about $1.8T in MBS; and up until now, the positive earnings from Fannie and Freddie were sent to subsidize ACA.

Oct 16, 2017 07:23 PM
Ambassador
3,986,518
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I think that contributed to the problem but was not the root of the collapse. It was illegal practices going on that caused the wildfire. Some relaxing will not hurt in my opinion.

Oct 16, 2017 06:18 PM
Rainmaker
5,361,598
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Fred,

Politics of whatever they promised to whoever paid for their campaigns...Follow the money trail.  A

Oct 16, 2017 04:16 PM
Rainmaker
831,208
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

It's already happening. Bring on the short sales. I don't care anymore. They can bring back stated income loans and it wouldn't bother me.

Oct 16, 2017 04:09 PM
Rainmaker
1,361,133
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I think it could.  After a certain point you lower them too much and things (like the economy) break.

Oct 16, 2017 03:28 PM
Rainmaker
3,901,392
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

This certainly could lead to problems down the line.

Oct 17, 2017 03:46 AM
Rainmaker
3,953,634
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

History often repeats itself.  Follow the money.

Oct 16, 2017 10:06 PM
Rainer
179,715
Harjeet Bhatti
FITH THIRD BANK - Chicago, IL
Home Mortgage Consultant 25 States

The lower fico borrowers can't qualified with higher DTI.  There are so many compensating factors which help to close that kind of loan. 

Oct 16, 2017 07:48 PM
Rainmaker
1,707,297
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I don't believe that is what they are doing and sub-prime does not exist today they way it did when Wall Street did it's best to screw us.

Oct 16, 2017 06:00 PM
Rainer
303,211
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Many things have already wiggled back to 2006. Problem layered with: Buyer pays cash over the value of appraisal (listed at $700000 buyer agrees to $725000 house appraises for $650000) with the recording of these higher pushing sales a new normal value occurs not based on truth. 

Oct 16, 2017 04:29 PM
Rainmaker
1,135,602
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

The big banks are losing market share. They want perfect borrower.

Now the major mortgage service providers are lenders I have never heard of. Several are in my area.  People still do not pay their bill. Americans will continue to borrow and live beyond one's means. If there are ample jobs in the area that will work. Employment is everything.

Oct 16, 2017 04:14 PM
Rainer
54,843
Joe D'Agostino
NMLS# 729950 - Manahawkin, NJ
Mortgage Officer 46 years!

Lowering credit scores and DTI ratios could cause some problems. What really needs to happen is Common Sense Underwriting. Recently I lost a deal with a buyer putting $600K down on a $1.2 million second home purchase. His DTI ratios were in the 50% area. Who cares! with a 50% LTV I would think this was a good deal. My Bank would approve him with our Portfolio moany, but he wanted to shop for a lower rate. I would like to see deals for people with 40% down or more be approved as a NO DOC deal. We need to run credit and if the FICO is over 600....approved!

Oct 17, 2017 06:46 AM
Rainmaker
665,453
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

They tightened it up, now they have to loosen the belt to keep home sales where they should be. Personally I am glad. There were a lot more reasons for the meltdown that included sketchy lending with fraudulent mortgage apps & more. We are all responsible for our own finances. 

Oct 17, 2017 05:51 AM
Rainmaker
3,069,684
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Michael Jacobs nailed this one!

Oct 17, 2017 04:10 AM
Rainmaker
1,509,802
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Looks like it does happen more and more. Lenders are desperate these days... fico system has to be re-viewed, in my humble opinion. 

Oct 16, 2017 11:56 PM
Rainmaker
526,755
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

They are filling the pipeline of future short sales and REO's.

Oct 16, 2017 07:56 PM
Rainmaker
6,364,050
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Give families a chance to purchase a home. 

Oct 16, 2017 04:34 PM
Ambassador
4,312,167
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Let us hope this does not happen!

Jun 11, 2018 10:12 PM
Rainmaker
4,730,525
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I sure hope we don't see a repeat of 2008!

Oct 20, 2017 08:34 AM
Ambassador
3,020,197
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

it's a dreadful idea.  Everyone should NOT be an owner

Oct 19, 2017 04:09 PM
Rainmaker
3,831,530
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I sure hope this does not happen.

 

Oct 19, 2017 09:12 AM
Rainmaker
4,015,763
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

It always seem we are heading in that direction! Not a good thing!

Oct 18, 2017 07:36 AM
Rainmaker
906,517
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

I don't mind myself, we go in cycles anyway and during last failure my business actually boomed quite a bit

Oct 17, 2017 05:11 PM
Rainmaker
1,623,772
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

I believe it will

Oct 17, 2017 03:49 PM
Ambassador
952,166
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

We'll certainly see another set back for housing, but it won't be like last time.  ARM loans aren't as attractive as they were in the last boom cycle, and prepayment penalties are nowhere near as prevalent, either.  If/when we see home values decline some, there will certainly be some people stuck in a bad spot, and many who will choose to walk away from their homes, but it won't be the systemic collapse we saw before.

 

That said, it's #&%*ing absurd that they continue to increase dti thresholds, without any regard to disposable income.

 

I LOVE high dti programs - for high earning and high net worth borrowers who may have a 70% dti but still have thousands of dollars left over at the end of every month for static costs like groceries/gas/cell phone bills

 

To allow access to loan products with high dti for those without that level of disposable income is just irresponsible, and yes, will come back to bite the lenders offering the product and the home buyers using the product in the ass.

Oct 17, 2017 11:04 AM
Rainmaker
1,536,879
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Just watched "The Big Short" AGAIN! If you really want to see what is going on dig into the details. 

As Dorie Dillard has stated in her blogs.... The Three "A's"!!

Anticipate, Adapt and Adjust your real estate strategy accordingly.  If you see the handwriting on the wall.

I live and sell in a second - vacation - investment - retirement market. We did not experience the downfall like other markets. But I continue to watch for the signs. 

Oct 17, 2017 09:18 AM
Rainmaker
4,433,483
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

no idea

Oct 17, 2017 08:39 AM
Rainmaker
1,567,948
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

It could be a step in that direction. Those of us who have lived through it need to be open with our counseling about obligations and mortgages!

Oct 17, 2017 08:16 AM
Rainmaker
4,799,306
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Not yet, but it may be.

Oct 17, 2017 07:52 AM
Ambassador
3,000,315
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I do believe we may be headed for another "crisis". 

Oct 17, 2017 07:48 AM
Rainmaker
1,444,427
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Fred Griffin If lowering the credit standards allows a buyer to purchase a home they can afford with a fixed rate and make the payments, why not?

Oct 17, 2017 07:37 AM
Rainmaker
1,231,549
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Keep your financial umbrella handy. You might need it sooner rather than later.

Oct 17, 2017 07:25 AM
Rainmaker
806,557
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

No question about it - we are definitely heading that way, in some shape or form.

Oct 17, 2017 07:22 AM
Rainmaker
868,741
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Is Bank of American Still controlling how Moody rates investments?

It is this mechanism that guaranteed banks could send bad mortgages to Fannie and Freddie, creating a 'free-for-all' of fake mortgages, in which all banks participated, that ultimately lead to the last crash. 

I see no such 'fakery' in the market today. 

Of course no one has seen the fine print, we can trust was created by the banking industry, contained in the proposal to lower the standards.

Oct 17, 2017 05:49 AM
Rainmaker
3,296,258
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

They are still very tight so if they loosten it to what is common sense to us i am for, bit not so anyone wth a pulse gets a loan. 

Oct 17, 2017 05:37 AM
Rainmaker
1,525,205
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

I certainly hope we don't have a repeat of 2006!

Oct 16, 2017 10:53 PM
Rainmaker
3,985,771
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

This along with the no down I believe will set  us up for another disaster.

Oct 16, 2017 08:18 PM
Rainmaker
2,609,864
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

perhaps another chance for the many to get back in

Oct 16, 2017 03:33 PM