Comments on: Where Are Lending Standards Heading? http://privatemoneyutah.com/where-are-lending-standards-heading/ Just another WordPress weblog Thu, 15 Jul 2010 16:12:32 +0000 hourly 1 http://wordpress.org/?v=3.0 By: ChrisAllen http://privatemoneyutah.com/where-are-lending-standards-heading/comment-page-1/#comment-42 ChrisAllen Mon, 23 Feb 2009 15:29:47 +0000 http://privatemoneyutah.com/?p=182#comment-42 I am now setting up all of my banking (meaning my holding and growth monies) through Life Insurance products. Much safer, and much better returns. I am now setting up all of my banking (meaning my holding and growth monies) through Life Insurance products. Much safer, and much better returns.

]]> By: RodMoser http://privatemoneyutah.com/where-are-lending-standards-heading/comment-page-1/#comment-41 RodMoser Mon, 23 Feb 2009 15:28:00 +0000 http://privatemoneyutah.com/?p=182#comment-41 I tend to agree with Hank in regard to all mortgages being backed by the government. That surely seems to be looming on the horizon. What are your thoughts on this Ron? I also agree with points 1 and 2 from Ron but I wanted to clarify something on point 3. The problem isn't with our in-house processing. The bottle neck is with the wholesale underwriting depts. They are so inundated with refinances that they are getting backed up. I tend to agree with Hank in regard to all mortgages being backed by the government. That surely seems to be looming on the horizon. What are your thoughts on this Ron?

I also agree with points 1 and 2 from Ron but I wanted to clarify something on point 3. The problem isn’t with our in-house processing. The bottle neck is with the wholesale underwriting depts. They are so inundated with refinances that they are getting backed up.

]]> By: Ron Pippin http://privatemoneyutah.com/where-are-lending-standards-heading/comment-page-1/#comment-40 Ron Pippin Sun, 22 Feb 2009 15:30:51 +0000 http://privatemoneyutah.com/?p=182#comment-40 1 - Many of the foreclosures are investment properties. Lending in the past included no money down financing for these properties so when housing values dip it is not surprising investors bail on these homes rather than carry investments that are underwater. After all they still have a roof over thier own head. 2 - There are far fewer mortgage options than before. Given that you could get a mortgage if you could fog a mirror in the past, it is not such a bad thing that many of these mortgage options have disappeared. Likely you will see more tightening before things loosen up. Can you still get a mortgage? Sure you can. You have to have decent credit (not necessarily perfect) and possibly a down payment. I still count 4 or 5 options for zero down but not everyone qualifes for those. 3 - Loan processing takes longer. This makes me smile as I personally have not seen that. Many in the industry have seen much longer time frames but only when you don't have the ability to have the process controlled competely in-house - but that is another long discussion in itself. 1 – Many of the foreclosures are investment properties. Lending in the past included no money down financing for these properties so when housing values dip it is not surprising investors bail on these homes rather than carry investments that are underwater. After all they still have a roof over thier own head.

2 – There are far fewer mortgage options than before. Given that you could get a mortgage if you could fog a mirror in the past, it is not such a bad thing that many of these mortgage options have disappeared. Likely you will see more tightening before things loosen up. Can you still get a mortgage? Sure you can. You have to have decent credit (not necessarily perfect) and possibly a down payment. I still count 4 or 5 options for zero down but not everyone qualifes for those.

3 – Loan processing takes longer. This makes me smile as I personally have not seen that. Many in the industry have seen much longer time frames but only when you don’t have the ability to have the process controlled competely in-house – but that is another long discussion in itself.

]]> By: RodMoser http://privatemoneyutah.com/where-are-lending-standards-heading/comment-page-1/#comment-39 RodMoser Fri, 20 Feb 2009 21:16:15 +0000 http://privatemoneyutah.com/?p=182#comment-39 Supply and demand tell us that rates should be much higher. There is very little money available and a huge demand. The cost of money is interest. Shouldn't rates be going up instead of down? The reason we aren't seeing double digit rates like Alan Greenspan suggested is because the government is pumping billions of dollars into the banks. Without this money, rates would be much higher and the current housing crisis could be much worse. These are just my thoughts Supply and demand tell us that rates should be much higher. There is very little money available and a huge demand. The cost of money is interest. Shouldn’t rates be going up instead of down? The reason we aren’t seeing double digit rates like Alan Greenspan suggested is because the government is pumping billions of dollars into the banks. Without this money, rates would be much higher and the current housing crisis could be much worse.

These are just my thoughts

]]> By: Hank http://privatemoneyutah.com/where-are-lending-standards-heading/comment-page-1/#comment-38 Hank Fri, 20 Feb 2009 01:41:07 +0000 http://privatemoneyutah.com/?p=182#comment-38 I remember a good mutual friend of ours, Mr. Stokes, predicting this in the PL session he taught. As creepy as this is the overall goal seems to be that in the end, no one will be able to get a mortgage that is not government backed or guaranteed in some way. Atlas is shrugging... I remember a good mutual friend of ours, Mr. Stokes, predicting this in the PL session he taught. As creepy as this is the overall goal seems to be that in the end, no one will be able to get a mortgage that is not government backed or guaranteed in some way. Atlas is shrugging…

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