[djf]

I’m fairly competent at reading the English language.

I liked this article so much I read it twice...
and still don’t know what the H this guy is trying to say!

He represents EXACTLY why we are in deep shinola. Doublespeak and three card monte!

[razorback-bert]

I think what he/she is trying to say, that people that want to refinance at lower rate are finding their equity went up in smoke. Their house isn’t worth what they owe on it.

[Rational Thought]

What Mark is saying here is that the hoopla about mortgage rates being down is not reality for most. When adding in all the hidden bumps, many are finding that they cannot even match their current rate.

Where I disagree with Mark is the cure. While I don't support the appraisal waiver on refinances, I do support the relaxing of guidelines and pricing bumps. If you successfully allow a borrower to lower their monthly payment through refinancing, I don't believe this would cause a new wave of defaults. Rather, this should create a more solid block of paying customers.

One thing here, this credit scoring system is a very flawed method of determining a borrowers credit worthiness. How on earth did our mortgage/housing market ever survive for years with no scoring system, actually having live underwriters looking at applications to determine a borrowers ability to repay a loan.

[6SJ7]

I think the whole article boils down to the fact some homeowners who try to refinance find they are “upside down on the mortgage”; owing more from the original mortgage than the house is currently worth.

[6SJ7]

I think the whole article boils down to the fact some homeowners who try to refinance find they are “upside down on the mortgage”; owing more from the original mortgage than the house is currently worth.

[GOPJ]

Here's what he's saying: If you bought a row boat and paid $30,000 for it - and the bank that gave you the original loan didn't care what it was worth - or what you were worth - and now you want to refinance your row boat ( worth $200) the new bank won't do it BECAUSE THE ROW BOAT ISN'T WORTH SQUAT.

The solution is the same bank that holds the origianl loan ( at the higher rate ) should be forced to refinace at the lower rate. They already own the worthless property - so there's no reason not to refinance.

[4Liberty]

When people realize they can’t refi the entire mortgage balance at a lower rate, due to Prop Value declines, they walk away from the property.

I think that is what the author is saying...

But it worsening NOW, because many people are JUST NOW entering the market, to find out this news, as they attempt to re-fi at a low, fixed rate...