Mortgage Fears Drive Up Rates on Jumbo Loans

http://finance.yahoo.com/loans/article/103339/Mortgage-Fears-Drive-Up-Rates-on-Jumbo-Loans ^ | 8-7-07 | James R. Hagerty

[gogeo]

You applied more care than the typical borrower, but to what degree did your eventual lender illustrate financial scenarios?

My point is...that's the question that should be explored. Accountants can't do that, and lawyers can't do that.

In fact, many lenders can't.

[Hydroshock]

Agreed.

[gogeo]

Been there, done that. Unfortunately, that’s what conventional wisdom calls “smart shopping.”

[Hydroshock]

That is part of the problem, People do not think.

[jennyjenny]

Okay, but that doesn’t change the fact that if someone has 50% of their gross income going to housing, they automatically are left with only a few hundred dollars per month. That’s why I say it “depends”.

I’m not suggesting people should do it, only stating 50% can make sense for some people.....certainly not a majority, but they are out there and can handle it just fine.

There are also people who can meet a 36% ratio that I wouldn’t loan lunch money to.

[RockinRight]

That is true.

[PAR35]

you as a layman

Over 20 years in secured lending and loan collection. It was clear up front what bank was doing the underwriting and would own the paper (at least until it could be packaged). But, in fact, they set it up as a loan from the broker with an immeidate assignment. At the time, my assumption was that the lending bank wanted to try to avoid any agency liability for anything the guy might have said or promised. But the deal itself was fairly transparent.

[gogeo]

I thought you had some background.

The "broker" it appears was actually a correspondent lender, therefore acting as a banker himself.

[L98Fiero]

“I guess it’s all about priorities and what’s really important.”

You said it. We bought a few years ago. We were financed for twice what we spent. You don’t have to spend it all. Some folks don’t realize that, I guess.

[Notary Sojac]

A couple of years from now, Mr.Cecere will view the fact that he did not get approved for this toxic loan as a major stroke of luck.