tag:blogger.com,1999:blog-2020965297376819658.post7430746252223039269..comments2023-05-07T01:54:22.688-07:00Comments on Effective Demand: How are these FHA loans being made?Unknownnoreply@blogger.comBlogger6125tag:blogger.com,1999:blog-2020965297376819658.post-45900773419660564892009-10-10T07:45:12.366-07:002009-10-10T07:45:12.366-07:00100K REO doesn't sound like much relative to t...100K REO doesn't sound like much relative to the total sales volume but REO's tend to be distributed in clusters so it would be expected that the GSE inventory reflects that distribution. The FED did not expect the subprime foreclosures to impact the overall RE market based on the belief they were a small percentage of the total but the overall market was impacted significantly.Unknownhttps://www.blogger.com/profile/12458989319298261094noreply@blogger.comtag:blogger.com,1999:blog-2020965297376819658.post-32572180320862362652009-10-09T20:36:53.957-07:002009-10-09T20:36:53.957-07:00Anon,
I think there are a lot of responsible peop...Anon,<br /><br />I think there are a lot of responsible people. It is just irresponsibility is being rewarded and prudence is being punished.Effective Demandhttps://www.blogger.com/profile/02587961792541800534noreply@blogger.comtag:blogger.com,1999:blog-2020965297376819658.post-41157236405121565912009-10-09T13:43:47.048-07:002009-10-09T13:43:47.048-07:00So is this who all these buyers are? I have been ...So is this who all these buyers are? I have been following Simi Valley home sales for some time and keep thinking who are these buyers. And I keep seeing people say how hot the market is, at the lower end. But its hot nonetheless so who is buying? Is it just a bunch of people who were foreclosed on a few years back jumping in and getting $8000 to boot. FHA is the new Countrywide and will surely suffer the same fate but how long will that take?? Really confused about who is actually out there buying right now.TomKnoreply@blogger.comtag:blogger.com,1999:blog-2020965297376819658.post-34842646855333188722009-10-09T09:51:55.624-07:002009-10-09T09:51:55.624-07:00I guess personal responsibility is a thing of the ...I guess personal responsibility is a thing of the past....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2020965297376819658.post-49947883530696378902009-10-09T08:46:31.288-07:002009-10-09T08:46:31.288-07:00FYI,
100,000 REOs in the context of 5 million sal...FYI,<br /><br />100,000 REOs in the context of 5 million sales a year isn't much. I don't see any evidence of the GSEs holding onto a large portfolio of REOs.Effective Demandhttps://www.blogger.com/profile/02587961792541800534noreply@blogger.comtag:blogger.com,1999:blog-2020965297376819658.post-91909957256607793082009-10-09T08:08:50.106-07:002009-10-09T08:08:50.106-07:00Some bits from Demarco written testimony and Krast...Some bits from Demarco written testimony and Krasting view of what they mean in real world language.<br /><br />The full link:<br />http://brucekrasting.blogspot.com/2009/10/fhfas-demarco-speaks.html<br /><br />Demarco:<br /> Currently the Enterprises are managing a real estate owned (REO) inventory of almost 100,000 properties, a number expected to grow.<br />Krasting:<br />The government can’t sell this crap. If they did, it would just tank the RE market and cause more Prime defaults. Uncle Sam is going into the rental business big time. But that does not look too promising either. Some sobering thoughts on that market:<br /><br />-As of mid- year 2009, rental vacancy rates hit their highest level since the U.S. Census Bureau began tracking vacancy rates in the 1950s.<br /><br />Demarco:<br /><br />The Enterprises will refinance those mortgages (ones in default) without requiring additional private mortgage insurance. If there already is mortgage insurance on the existing mortgage, that coverage will carry forward to the new mortgage.<br /><br />Krasting:<br />This is a flat out subsidy for the PMI providers. When a loan goes into default and a loss is realized the insurance that is there should cover a significant portion of the loss. By rolling the loans the loss is avoided, and so is the necessity to pay up on the claim. This is keeping the PMI folks alive and well. One of the larger players in this space is AIG. We wouldn’t want to do anything that would hurt them would we?Unknownhttps://www.blogger.com/profile/12458989319298261094noreply@blogger.com