April 4, 201313 yr Double dip... Weekly Jobless Claims Unexpectedly Jump | Fox Business 385,000 UE claims this week. If the pattern holds this number is under reported by 3 to 5 K. Hence why they need banks to ease loan requirements.
April 4, 201313 yr Double dip... Weekly Jobless Claims Unexpectedly Jump | Fox Business 385,000 UE claims this week. If the pattern holds this number is under reported by 3 to 5 K. Hence why they need banks to ease loan requirements. Don't follow this statement here Blue...are you saying banks need to relax loan requirements to people who are now unemployed, which, in essance makes it easier for people who will now probably struggle to pay back a loan easier to get?
April 4, 201313 yr Don't follow this statement here Blue...are you saying banks need to relax loan requirements to people who are now unemployed, which, in essance makes it easier for people who will now probably struggle to pay back a loan easier to get? If you are unemployed you will not get a loan - period. And with the length of unemployment remaining at historical high levels God bless anyone losing their job. But the banks are holding properties or holding off on foreclosures waiting for things to 'pick up'. Then they can unload the properties at better rates and not add to the number of house currently on the market and drive down prices. But the pick-up is not coming. Look at the UE number - 385,000 and likely 388,000 or more when it get revised next week (it always low the first week and the revision is almost always 2-3K). So by relaxing standards you keep the more buyers in the market and help keep prices up and help burn off some of the backlog. All under the 'American Dream' logo that both parties use. I have refinanced and bought a commercial property in the last year. The i's were tripled dotted and t's were triple crossed on everything. And they held to the 80/20 rule on the house and 75/25 rule on the commercial. More checking than previous refis over the last few years. Appraisals were tough. No sign of 'increasing prices' in either. Both were lower than expected. And as with the previous couple of Refis - Fannie bought it less than a month after close. I think Fannie is buying up new high dollar mortgages to beef up their books. The total blood bath of Fannie and Freddie has been mostly hidden. But their well-connected officers got their millions.
April 4, 201313 yr Insatiable desire for high returns on high risk mortgages that were bundled together. Moody's ignoring obvious poor investments by rating them as safe. Wall St being in the pockets of Washington which let them write their own legislation as far as capital requirements. Wall St had an incentive to put people into mortgages they couldn't afford. Read "The Big Short" by Michael Lewis. I don't want to come off as a jerk. But if you honestly believe sub prime mortgages and people taking loans they couldn't afford was only a minor issue, I will have to say you don't understand the situation. Wall Street played a big part, but the loans and foreclosures played if not equal an almost equal role.
Archived
This topic is now archived and is closed to further replies.