We had to check the date on this Bloomberg post very, very carefully to make sure it wasn’t off by a year. It is not:
Fannie Mae, the mortgage-finance company under U.S. government control, will loosen rules for homeowners seeking to lower their loan payments by refinancing.
Fannie Mae will drop some credit-score requirements, reduce income-documentation standards and waive the need for appraisals in some cases, according to a notice yesterday to lenders posted on the Washington-based company’s Web site. The changes apply to loans that the company owns or guarantees. (Emphasis ours).
The interesting thing about waking up every morning in a different Kafka piece is trying to guess which morning you are in Der Gruftwächter. This seals it. It is today.
Fannie Mae to Loosen Rules for Home-Loan Refinancing [Bloomberg]
I think im going to be ill
Wait till they waive LTV requirements.
off by a year? I think its 2 years…
Where is Trevelyan with the Goldeneye device? Surely, that is the only solution to our current problem(s)!
(Forehead Slapper, where art’ thou?)
That is good! Also healthy for hearts,brains, and quality of life. It helps in empowering your brains, rejuvenating your hearts, etc, the natural way. More details at link below.
http://tinyurl.com/akvd3n
It’s for risk they already own… It’s DIY rate mod
“The changes apply to loans that the company owns or guarantees.”
Too Gregor, didn’t Samsa
This is awesome: the Lycans are running the asylum! Party-time, bitches! The economy is about to be clown-faced by ferocious WOLFMEN!
groundhog day was monday, why are they doing this on today?
let’s all channel our inner santayana and send it to the hill: “those
who cannot remember the past are condemned to repeat it” (say it in a spooky vocie really slowly)…
This is just what they’re doing on “Lost”! It’s not Fannie Mae! It’s the island! It’s skipping in time.
Next, John Meriwether will blow up his fund and look to start again.
sweet! now, i can get my ninja loan. have fun paying for this, taxpaying suckers!!
House prices in the UK were up 1.9% last month. Obviously the party isn’t over yet.
It must be a parallel universe. It certainly isn’t April 1st.
I think it feels more like a Satre Play “No Exit”.
Since we’ve obviously gone back in time 18 months, you know which IB’s to short.
Do it, DO IT NOW!!!!
does this mean leveraged sellout is coming back? i miss the good ol’ days.
Now all you need are for some delusional MBAs to slap on some derivative products and we’d all be back to lalaland. Human beings are incapable of learning – Bush will not have been voted twice into office.
WHAT THE……?
When they nationalize BofA and Chitti, look for those two “banks” to loosen their underwriting also. When are these politicians going to realize that the economy is deleveraging?? Their efforts are akin to spitting into the face of a hurricane.
I’m moving to Fallujah.
Finally TARP money gets to Mainstreet: now taxpayers can rip each other off.
This is for rollover loans to keep people in homes.
Needs to be done otherwise these guys couldnt refi their loans and they’d be out on the street.
No surprise and hardly something that will reinflate a bubble – it will just slow the rate of foreclosure to help some weather the storm. Thats not a bad thing.
Historic levels of US govt debt issuance quickly begining to outpace both foreign and domestic appetite in concert with degenerate gambler-type FNMA policies…..
Long UST CDS = Going short subprime 2007
Ladies and Gentlemen… THE UNITED STATES OF AMERICA!!!!
@21 – True, but please remind me again why are we fighting so hard to keep deadbeats in homes they couldn’t afford to begin with? What’s next, extending loan terms out 50 years or so?
The article says:
“The increased flexibility for consumers isn’t large enough to significantly harm mortgage- bond investors and mortgage insurers, analysts said.”
Thanks, that all I wanted to know. Oh, one thing, can I get the phone numbers of those analysts? At least I would like to know who do they work for. JPM?
Take a load off, Fanny
Take a load for free
Take a load off, Fanny
And you put the load right on me
“This is for rollover loans to keep people in homes. Needs to be done otherwise these guys couldnt refi their loans and they’d be out on the street. No surprise and hardly something that will reinflate a bubble – it will just slow the rate of foreclosure to help some weather the storm. Thats not a bad thing.”
I think it would be useful to ruminate on what the reduced documentation standards will do to the value of the pools to which they apply.
@21
That makes sense. I know people with pretty good credit that haven’t been able to refi out of stupid ARM or Option-ARM. They rather have a fixed rate they can afford now. Something to do with credit score requirements been ridiculously high, just for the refi.
No
Income
No
Job
Approved
Refinance
suck it, bitches.
@21, does not make sense. Why should taxpayer dollars go towards help people who can’t afford to stay in their homes? People who have bad credit? And most likely are the 40+% that do not pay income taxes?
And don’t kid yourself. Those loans will have high rates of default and come back to haunt our national debt.
If you want to keep people in their homes, knock down their principals to current market price and appreciation right on it so when they sell it, the lender/taxpayer gets part of the upside (for having written down the loan).
@21, does not make sense. Why should taxpayer dollars go towards help people who can’t afford to stay in their homes? People who have bad credit? And most likely are the 40+% that do not pay income taxes?
And don’t kid yourself. Those loans will have high rates of default and come back to haunt our national debt.
If you want to keep people in their homes, knock down their principals to current market price and put an appreciation right on it so when they sell it, the lender/taxpayer gets part of the upside (for having written down the loan).
@30
According to the article this is not a NINJA scheme.
@21 brilliant
@33
“reduce income-documentation standards”
really?
@28 our MBS guy is unperturbed by that. rather he is wondering what it does to prepayment speeds.
there is a shortage of appraisers. a lot of them left the business when there was a teensy drop in the demand for their services. that is why gvt is waiving the requirement.
@35
Need to provide a pay stub. No job, no pay stub, no refi. Unless you are going to cheat. If you are self-employed, you might be out of luck, but I haven’t read the rules.
@36
Prepayment acceleration is a concern, but it sounds like the volumes of these refis is not going to be so great.
Why stop there? Let’s have Fannie offer delinquent mortgagors 3 year consulting contracts at $5k a month. They can halt the rise in unemployment as well and get this doggone economy movin’ again.
@32,
That is an interesting, creative approach to the issue. Wilbur Ross has a similar theory.
However, I wonder how they could actually implement such a scheme.
If too much potential equity appreciation is removed from the equation for the homeowner then they would balk at the proposal and simply rent + invest the spread on their incremental savings.
@39,
Why are you assuming the average homeowner is actually smart enough to do the math?
now, you cunts are truly fucked
tonight we’re gonna party like it’s 1999…ya know, when poors and minorities could buy a house in our parents’ neighborhoods.
@24 – Nice Bill Simmons reference.
Wow,
Did somebody say MBS duration risk. . . what markets do they use to hedge that. . . lets watch those over the next few weeks. . . also watch as more 401ks and pension plans get f’d in the a. . .
However, the option of not letting them refi in this environment may be worse. So long as these relaxed standards apply to those refinancing. Lets hope to GOD that it does!!!!
Because those 580 credit ratings they used to require weren’t doing the job.
too volker, didn’t nenner
12 – I know I’m late to the party, but that halifax survey is a rise in asking prices, to which:
a) ask what you like, I’m not buying and no-one else is
b) more white-collar job losses = more expensive real estate coming on to the market = rise in average asking price
The UK remains Iceland #2. Without the hot women.
39,40: Yes, there has to be a delicate balance. Bank cannot take 100% of upside, but something like a 50/50 split would sound “fair” to the average homeowner and the bank would be able to write down less of the mortgage (plus have someone actually paying on the loan).
Honestly, I don’t see much downside since most homeowners right now are pretty short-sighted and probably can’t imagine any upside on their homes. The question is whether banks want to take the writedown hit now… or later.
-32
I’d like to take advantage of lower rates.
How does one become a deadbeat?
QMBeyS I think this is a real great post.Much thanks again. Much obliged.
A big thank you for your blog post.Really looking forward to read more. Keep writing.
Very good article post. Really Cool.
wow, awesome article post.Really looking forward to read more. Fantastic.
I think this is a real great article.Really thank you! Awesome.
I think this is a real great article post.Really looking forward to read more. Really Great.
I value the blog post. Much obliged.
Thanks a lot for the post.Much thanks again. Awesome.
Thank you for your blog post.Really looking forward to read more. Awesome.
wow, awesome article.Thanks Again. Great.
Im grateful for the blog article.Really thank you! Cool.
Muchos Gracias for your blog article.Thanks Again. Keep writing.
Thanks for the blog.Thanks Again. Cool.
I appreciate you sharing this article post.Really thank you! Much obliged.
Enjoyed every bit of your blog article. Much obliged.
Really informative article post.Really looking forward to read more. Keep writing.
Im grateful for the blog article.Really thank you! Awesome.