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I'm excited with the low volume as well!
Being in the real estate business and seeing people who just got a job and credit scores of 550 buying house was a major clue and on and on the clues stacked up.
Their is no bubble right now, this is just normal buying, who waited for a bottom in the interest rates and when they missed out and the interest rates climbed out they came and will continue.
Yep, me too!
It took 30 mins to fill.
Thanks for clarifying, so even if they are released can congress still screw things up?
I really would like to know WHICH tax payers are waiting on reform, hmmm the common guy on the street is so stressed right now because of the lack of reform , riiiiggghhhhtttt! I can see him now sitting on a bench with his head in his hands wondering "why oh why can't they just hurry and reform FnF"
added another 5k of fmcc
I can tell you have been in business for awhile to know the cycle.
With more and more news coming out like on CNBC they will wake up and remember FnF then say "Holy crap that's cheap" They will then perform their DD and jump in with both feet and their families feet, and dogs paws. I don't think the average trader realizes the potential of FnF.
I have been in Real estate for 13 years, it always "plateaus" this time of year, most of the time it slows way down or declines, then picks back up a little until after the holidays when it shuts down until after January, then it is slow until spring then really picks up for summer. When I got in, interest rates were 7.5 and everyone thought that was great. The more interest rates climb back to normal ( 6-8%) the more buyers will come out of the woodwork. I had a guy who tried to time the bottom and lost a full percentage point in one week. Look at the history of real estate, it is an awesome investment. People who have lost confidence are just plain stupid and do not pay attention to history.
What's your take on this?
http://www.fhfa.gov/webfiles/23344/StrategicPlanConservatorshipsFINAL.pdf Page 20 last paragraph et..
By the way, thanks for all your input!
True.
Starting all over in untested waters with the potential to start another crisis, well, I would hate to be that guy.
FnF did their job and we would not be in this mess had they been left alone. I think with all these laws suits against the banks and all of them losing has brought to light it wasn't FnF fault and they will be released soon. Gov is looking for a nice clean exit after sticking their foot in their mouth by trying to sweep all profits to themselves.
Reading all these proposed bills makes me wonder why any of them even consider alluding to doing away with FnF.
Every single one of them all want the same thing in a different manner.
All any of them need to do is tweek FnF accordingly then release them or vice versa. Why start an entirely new organization and call it something different just to stroke their own ego.
That's what winding down means "changing the rules a little bit, release them, Pay back tax payer, Gov sells their share and makes a boat load of money, everyone wins".
There was very little risk to FNF until the Clinton and Bush got involved, more so Clinton. Until then they worked fine. They wanted everybody to own a home causing massive defaults. Put the rules ack in place the way they were before and maybe a little tighter and all will be fine. They created a bubble based on people who shouldn't have purchased a home!
Who wants to known as the congressan who killed the economy by doing away with FnF?
Although I'am not a fan of the "to da moon", at least it is not false and stupid information or a stupid responses to factual, legit information. "To da moon" may be childish and over done, but it's not false or un-factual.
Great article, thanks. Makes Corker look really stupid!
Additionally, Representative Jeb Hensarling (R-TX) has also put forward the "Protecting American Taxpayers and Homeowners Act" (H. R. 2767; PATH Act), which would wind down Fannie Mae and Freddie Mac within five years and centralize all housing finance operations in the Federal Housing Administration (FHA). This legislation would also
"limit the role of the FHA to only insuring loans made to first-time homebuyers, low income buyers, and buyers in depressed housing markets or presidentially-declared disaster areas".
The PATH Act has been passed by the House Committee on Financial Services and is awaiting consideration by the full House.
Yeah,let's insure the group that is most likely to default, yeah that make sense!
Yes about 30% more but Red closes for the week is also about 30% more, except for this week, finally a green week although not by much. Hopefully we have many more green weeks
What are all the scenarios that can happen to the Gov. warrants, 80% correct?
Although the volume was not that great, the large block buys are definitely telling!
Nice post!
Yes they will, He played it very, very well. He gave Obama some very good ideas!
I watched the video, I didn't see him "pump the crap out of them" He just said WHY he was buying and WHY they were a good bet. Nothing more!
It's also Richard Cranium!!
I also liked the fact he didn't bash anyone but instead gave them an opportunity to look like geniuses if they do the right thing! Other wise look at all the lawsuits filed currently they would lose plus more to come. Yesterday was a perfect opportunity for the Gov to wake up and go "Dang it, why didn't I think of that. But of course you have the idiots tryin to close down FnF who wouldn't get any credit so probably won't back down.
Then don't buy it! Now go away!
Yes it did!
Thanks for taking your time and effort to type this.
Berkowitz did an awesome job by sticking to the subject and also for not bashing the Gov, but hopefully opening their eyes so they can realize they can come out ahead and look like hero's instead of a-holes with lawsuits. Obama, who loves the spot light could really turn this to his advantage!
Then sell and go away!!! Wow, tired of hearing negative from you. Most of here are long and staying that way, if you don't like it leave. Holy cow get a clue!
Hmmmmm, He never ceases to make me say "Really"
The Obama Administration Wants Banks to Stop Being So Uptight About their Mortgage Underwriting. How Crazy is That?
by Megan McArdle Apr 3, 2013 10:14 AM EDT
Here we go again
This morning, the Washington Post reports that the administration is pushing for banks to loosen their lending standards in order to make more home loans to buyers with poorer credit and lower incomes. If you're anything like me, you probably said to yourself, "Oh my stars and garters! What sort of daffy wisenheimer came up with this crackpot scheme?"
Seven years on, we're still marinating in the hangover of our last attempt to make the boon of homeownership available to people who can't really afford a home. Why on earth would we do this again?
I'm not sure it's quite as crazy as it sounds. The administration seems to be making the basically fair argument that banks are putting all their energy into refinancings, made attractive by the low-low rates currently on offer at the Federal Reserve. It's nearly impossible for someone with a credit score below 680 to get a mortgage. A 680 credit score is not "deadbeat" territory; it's someone who's had trouble in the last few years, but is now current on everything.
On the other hand, it's not exactly clear how far the administration wants to go with this. "There’s always a tension that you have to take seriously between providing clarity and rules of the road and not giving any opportunity to restart the kind of irresponsible lending that we saw in the mid-2000s" says an anonymous official, which is entirely sensible, but rather vague. How small a downpayment would they like buyers to qualify with? How low a credit score? That stuff matters, because the banks no longer have the capability to do the kind of detailed manual underwriting that they used to do in years past. They are going to go by whatever numbers the administration gives them.
But why should the administration be giving them numbers? Isn't that what caused the problem in the first place, ask conservatives who believe that government regulations were primarily responsible for the crisis.
Fair point (even though I don't think that governmetn regulations were primarily responsible for the crisis.) It is not a good idea for the government to be telling banks to lower their borrowing standards.
But at this point, the government essentially is the mortgage market; the overwhelming majority of loans now go through an entity controlled by the US government. So the government is going to set the underwriting standards. The question is, will they set them too high or too low?
It's not clear. But in the humble opinion of this correspondent, it should err on the side of "too high". Renting is not some sort of calamitous tragedy that the government needs to prevent from befalling our young and moderate-income citizens. And if the government consistently ignores solid, creditworthy buyers, perhaps some enterprising bankers will step in and, I dunno, make a market or something.
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Megan McArdle is a special correspondent for Newsweek and The Daily Beast covering business, economics, and public policy. A former senior editor at The Atlantic and writer for The Economist, Megan has a diverse work history including three small startups and a disaster recovery firm at Ground Zero.
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Thanks, I looked everywhere and could not find it. How did you see it?
Not finding the Berkowitz interview on CNBC sqawkbox, anybody else?
Thanks!
When is the Berkowitz interview on CNBC?
!!!GreenDay!!!
Sure they can, they voted for him (TWICE)!
"The general public can not be that dumb to be buying The Big O's noise".