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Robert from yahoo bd

05/12/21 10:19 PM

#677903 RE: PennMilitia #677899

Believe me I hear you! That's why building capital now is so important. The builders will build more as home prices rise and we are finally starting to kick Covid-19 down the road, and people will start supplying the market with more home listings. For the last 10 years straight, we have built less housing per year than demand and obsolescence dictated.

The gses book of biz is the strongest I have seen it since I was employed there in 1988. The current mark to market LTV is in the mid to low 70's, FICO scores are very strong, and there is some credit risk transfer in place.

The current runup in prices is primarily a result of extremely tight supply (2 months v 6 months), 50 year low Mortgage Rates, and the millennial generation (70m+) coming into home buying age, unlike the 08/09 that was built on rampant buyer speculation and the "if you have a pulse, you have a mortgage!" lender mentality (where do you think all that Private Label MBS came from!).

Never seen homes sell so quickly though...