A little mortgage sanity

Mortgages get more expensive - again


"[These actions] have raised the costs of mortgage credit and reduced its availability," said Mark Zandi, chief economist for Moody's Economy.com. "Policy makers had been hoping they would move forward to provide more credit and now they're just hoping they don't pull back."


Actually , we were kind of hoping they'd make even more stupid and ridiculous mortgages and generally give money away free like they've been doing before, it's kind of disapointing tha they're not going to keep doing that.


Fannie will also eliminate buying Alt-A loans by the end of 2008. Alt-A loans, a category between prime and subprime, accounted for about 11% of the company's loans during the last years of the boom. They have been used mostly by people who couldn't or wouldn't document their incomes, their assets or both. These buyers will find it harder to obtain financing once Fannie stops buying the loans.


You mean I can't just walk in and buy a $350 000 house and have you just take my word I'm good for it ? That is sooooooooo shocking ! They can't do that !


The additional fees imposed by Fannie will hit newcomers particularly hard, according to Yun. First-time buyers are usually most on the margins and struggling to afford a home purchase. The added fees will be passed on to borrowers and could mean quarter-point increases in interest rates.


This is insane ! you're denying us access to our best customers ! the rubes who don't realize all of our dirty tricks and how we plan on taking them to the cleaners for every red cent they have ! Who else is going to pay $350 000 for a house that's really only worth 50$ 000 when all is said and done ?


Reducing the number of first-time buyers can have a domino effect on the market. Existing homeowners looking to trade up to bigger, more expensive homes may postpone doing so because they can't sell their present home.


And then those rubes that didn't let us take them for every penny the first time round will sit tight and refuse to let us try it again ! How can you expect us vultures to make a living like this ?


Fannie and Freddie, as private companies created and sponsored by the government, have to foster home ownership while satisfying their shareholders. They have to maintain profitability or risk triggering a government rescue.


You mean like you just did ?


"They were created to provide liquidity in times of crisis," said Yun. "If they don't do that, what's the point of having Fannie and Freddie in the first place?"


Near as I can figure their primary purpose is to assist in moving cash from the government coffers to the banks you are now bailing out since you just underwrote loans to every idiot and the dog with no credit check and no securing of assets at all.
Your primary purpose seems to be to let housing salesmen ridiculously inflate the price of every house in the area to the point where people are being booted out of their rental homes because the land lord is defaulting on the mortgage payments and they're now living in their cars in parking lots despite never missing a rental payment.
And then their goal is to have people write ridiculously sappy articles about how the evil government is not letting them continue to raise the prices and bankrupt everyone and the dog , calling it "bad for the economy" that they refuse to give away free money like they own the printing press on it.
Ooops ! They do own the printing press on it. My mistake.

Capitalism at it's finest.