Freddie and Fannie headed into foreclosure?

[Mango]

(1) You can't deny that "one or two" mortgage folks (not you of course) would "steer" clients to loan products that offered them fatter YSPs--most of the time that would mean an ARM from the likes of Countrywide vs traditional fixed.

(2) Prepay penalty was alive and well in Florida, and they did fatten YSP for the broker who could push it on his clients.


.

You're right. I looked up Florida pre-payment penalties laws and there are none, zip, zilch. A lender could put a 30 year pre-pay and if you sign the bottom line and miss that little item you're mincemeat. :shock:
The only exception is for sub-prime loans.

 

[30ashopper]

one percent

One percent "plus change" of five trillion is..

 

[elgordoboy]

One percent "plus change" of five trillion is..

A few months in Iraq? Our national debt has increased by 5 trillion or so in the last few years so right? In effect, every single one of these mortgages could have been paid off, literally half the borrowed against homes in the nation. I am not suggesting that this should have been done, I am just putting it into perspective for myself as much as anything. Hopefully the plunder starts rolling in soon from Iraq.

 

[SHELLY]

A good "Fannie & Freddie" bedtime story from Economist Magazine:

http://www.economist.com/finance/displaystory.cfm?story_id=11751139

.

 

[Miss Critter]

Shelly, what does it mean in real terms if America defaults on its debt? What do you think is the likelihood of that happening?

 

[SHELLY]

Shelly, what does it mean in real terms if America defaults on its debt? What do you think is the likelihood of that happening?

America will just have to continue to print more money to pay off the debts. This will result in two things...higher inflation (more money chasing fewer goods) and higher costs of borrowing in the future(the USA will essentially be the subprime borrower to the world).

I have hope that the people of America will eventually wake up to the fact that their "over consumption" is causing them great pain. Our only hope is that we learn the happiness we seek isn't found at a shopping mall, in a McMansion-By-The-Sea, or behind the wheel of the biggest, most expensive car. I have faith that Americans will soon figure out that the joy they experience from buying that something today using a credit card isn't worth the years of toiling in the future to pay it off.

If we fail to learn these lessons now, our future and the future for our children and grandchildren will be very bleak indeed.

 

[Miss Critter]

Our only hope is that we learn the happiness we seek isn't found at a shopping mall, in a McMansion-By-The-Sea, or behind the wheel of the biggest, most expensive car.

Of course not, silly. Happiness is in Jimmy Choos, giant plasma TV's and mega-yachts.

JK, of course. It's interesting to note that the more we consume, the UNhappier we seem to get, and this was before our debt began to take its current toll. Antidepressants are the most commonly prescribed drugs in the US. (http://www.cnn.com/2007/HEALTH/07/09/antidepressants/index.html?eref=rss_topstories) and most of the folks I know who take them are still far from what I would consider happy. Human interconnectedness is what makes us happy, and we seem to be moving farther from that every day. I've said for some time that our kids' kids won't know how to have a real conversation with another live human. If I can't be texted or typed, they don't know how to say it. But I digress. . .

It will take the courage and foresight of real leadership to get us out of this mess. Lots of sheep out there who only believe the soundbites they are fed daily (even more ironic in an age where legitimate information is literally just a click away). I pray the tide begins to turn. Hope I don't offend anyone, but maybe our current economic crisis is the societal equivalent of an addict "hitting bottom." If only we allow ourselves to be open to an "intervention."

 

[30ashopper]

Of course not, silly. Happiness is in Jimmy Choos, giant plasma TV's and mega-yachts.

JK, of course. It's interesting to note that the more we consume, the UNhappier we seem to get, and this was before our debt began to take its current toll. Antidepressants are the most commonly prescribed drugs in the US. (http://www.cnn.com/2007/HEALTH/07/09/antidepressants/index.html?eref=rss_topstories) and most of the folks I know who take them are still far from what I would consider happy. Human interconnectedness is what makes us happy, and we seem to be moving farther from that every day. I've said for some time that our kids' kids won't know how to have a real conversation with another live human. If I can't be texted or typed, they don't know how to say it. But I digress. . .

It will take the courage and foresight of real leadership to get us out of this mess. Lots of sheep out there who only believe the soundbites they are fed daily (even more ironic in an age where legitimate information is literally just a click away). I pray the tide begins to turn. Hope I don't offend anyone, but maybe our current economic crisis is the societal equivalent of an addict "hitting bottom." If only we allow ourselves to be open to an "intervention."

All we really need is a strong economic boom with expanding GDP and tighter control on spending from the government. We can easily boom our way out of this, and considering we are at or near a low point, I'd expect just that over the next five years. The question is, will congress tighten down on spending or expand it during the same period? I don't have high hopes of that happening, it looks like they will be spending even more.

 

[30ashopper]

A few months in Iraq? Our national debt has increased by 5 trillion or so in the last few years so right? In effect, every single one of these mortgages could have been paid off, literally half the borrowed against homes in the nation. I am not suggesting that this should have been done, I am just putting it into perspective for myself as much as anything. Hopefully the plunder starts rolling in soon from Iraq.

As a percetage of GDP it really hasn't increased that much. The biggest increase was between 1984 and 1996 wherer it doubled to around 65%. We're still at those levels today. We do need to get it back down into the 30's, but I just don't see that happening any time soon.

 

[Miss Critter]

All we really need is a strong economic boom with expanding GDP and tighter control on spending from the government. We can easily boom our way out of this, and considering we are at or near a low point, I'd expect just that over the next five years. The question is, will congress tighten down on spending or expand it during the same period? I don't have high hopes of that happening, it looks like they will be spending even more.

What's going to lead the boom we so desperately need? I don't see housing improving anytime in the foreseeable future with supply so high, credit so tight, many fearing losing their jobs. Plus interest rates are bound to rise along with the cost of everything else. The dollar's at record lows, foreign governments and investors are bailing out/buying iconic American companies, the war(s) drag on, etc. etc. etc.

Please help me see the silver lining here.