Posted on 07/09/2009 7:16:53 PM PDT by FromLori
Hello old friend.
Realtor.org: No-doc loans are particularly hard to get, locking out people whose incomes are derived from investments or who are able to tax-shelter significant dollars.
The California Mortgage Bankers Association spokesman Dustin Hobbs says the industry understands that banning most alternative financing isn’t the long-term answer.
"It's a reaction to the current environment," he says. "There's such a lack of appetite for risk right now in general that any product viewed as having any sort of risk at all has a tough hill to climb."
Chris George, president of CMG Mortgage, predicts that no-docs and other nontraditional loans will be back within the next six months as lenders gain confidence. "As with injuries, as with your credit, as with the economy, time heals all wounds," he says.
Karl Denninger thinks this is an invitation to bringing back mortgage fraud. That's certainly a risk, but it's also true that old-style, 30-year mortgage is something of a tired dinosaur, that makes less and less sense. There are more people working as freelancers, and the idea of having a lifetime job at the big factory in your town is a joke.
To some extent, that just means renting is probably on a long-term secular increase, a point which Richard Florida has been talking about quite a bit. And for the people who do have abnormal careers or income streams, certain much-derided mortgage, such as the pick-a-pay or no-doc will probably come bac, eventually, though six months seems way too optimistic.
(Excerpt) Read more at businessinsider.com ...
Yes, let’s bring back the no-doc loans...after all, how else do you expect the illegals to start flipping houses again?!!
I want a $300,000. no pay back loan
If you are really that sort of person, you should be able to borrow broker call money, or get a loan based on your D&B.
I need a $400,000.00 no-payback loan...
If it were not for the fact that some decent people still live in CA though few I would say let the whole thing fall into the ocean it is a cesspool.
Lol! That is two parts of pure BS! In what way are people whose incomes are derived from investments unable to document their income? They have to pay taxes on that income and thus their tax returns serve as documentation. As to people who can't document their income because they have "tax sheletered" it -- well, that's what happens when you conduct all your "banking" in the Cayman Islands. Boo-hoo.
well I was trying not to be greedy......I could really us a half mill $
If they were “decent”... o never mind
She was talking about the Cloward-Piven Strategy....Alinsky rules.....
Well, as the FRB of Atlanta just published, the usual suspects in foreclosure (sub-prime lending, predatory practices) that politicians are fond of abusing, are not the real drivers of foreclosure. The decline in house prices is the main factor in foreclosure, and that is being driven, now in the prime segment of mortgages, in large part by unemployment rates. People make a ration decision, at some point, to simply walk away. It took two PhD Economists to show that.
Here in South Florida - there is little confidence that a bottom is near. An example which has just appeared on the market in my development is a townhouse which sold for $580,000 in July of 2007, which fell into foreclosure during 2008, was auctioned a the end of 2008, but did not sell, and now is being offered for $232,000. Among those I have spoken with who are aware of this offer, the general reaction is it has about $50,000 to go before it represents a good value.
“Someone said today on Rush’s stand-in show [only the most AWESOME Mark Steyn!] that she was taught that if the government disrupts an overwhelming number of staples within a democracy then the government is the only thing people can rely on. I wish I could have remembered the entire call, but I was on the highway trying not to become a statistic.”
Can you help this Freeper?
Let me listen to the show and I will transcribe it.
Please give me a little bit of though. :-)
Do you remember which hour of the show this occurred in? :-)
Just in time for Shamnesty II.
No doc loans were intended for illegal aliens who could not provide the proper identification and documentation required for conventional loans.
Eventually it will come out (after amnesty is granted) that the insatiable demands for housing 20-40 million recently-arrived illegal aliens is what gave rise to, and in the short term financed, the mortgage games and schemes like CDOs and phony bonds that set oof the crash we are now in.
But not untill we get those 20-40 million new Democrat voters and cheap labor for the Chamber of Commerce.
Loans are hard to get period, right now.
Listening to the local talk radio host this afternoon (he is a conservative, though leaning more towards libertarian). He spoke with a gentleman who is a loan officer at a local (Little Rock) bank. This person did not give their full name, nor the bank he works for, but indicated that over 97% of loan applications are being turned down across the board at his bank. Long-term customers are being turned down. He said he has had to tell people that loans were declined even though they had been account holders 30 years or more. And he said people with credit scores of over 780 are being turned down.
He said customers are getting very mad, and he can’t give them a “reason” for the rejected loans. Their papers are in order, their employment, income, and resources check out, and their credit scores are fine - and he gets an answer back of denial and the customer asks about the bailout money they got... He said he wishes he could answer. He said that he has been told to tell customers that there was a technicality or something else - essentially make up a reason and move on.
I wouldn’t work for such a bank. But still, from other callers Dave had on his program, it sounds like many local banks, though advertising that they are writing loans, are not really doing much of that.
So I can’t help but wonder... what the heck???? When I read a bit like the start of this thread. It is the high-risk “No Doc” loans that made up a large part of the snowball that got the banks in trouble in the first place. And guess who those loans cater too....
The no-doc loan also helps the self-employed who may have a high cash flow, but may show high non-liquid losses (depreciation). Farmers would fall into this category.
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